THE EFFECT OF LEADERSHIP STYLE ON MOTIVATION AND EMPLOYEE PERFORMANCE: A STUDY ON EMPLOYEES OF PT. DIPO STAR FINANCE OF MAKASSAR BRANCH, SOUTH SULAWESI

Abstract

This study aims to empirically examine the effect of leadership style toward work motivation and employee performance. Leadership style on this present study focuses on transformational and transactional leadership style. Samples used in this study are 57 respondents who work at PT. Dipo Star Finance in Makassar Branch. The sampling technique used is the systematic random sampling and the sampling refers to the division of work. In this study, the results show that both leadership styles significantly influence work motivation and performance of employees; there are greater influence of transactional leadership style than transformational leadership style. Indirect effect through work motivation is smaller than the direct influence of leadership style and employee performance.