The Influence of Personality, Leadership Style, and the Decision-Making Process on Employee Performance

  • Fahrul Kahfi Postgraduate Program, Master of Management, Universitas Fajar
  • Muliyadi Hamid Postgraduate Program, Master of Management, Universitas Fajar
  • Sri Adrianti Muin Postgraduate Program, Master of Management, Universitas Fajar
Keywords: Personality, Leadership Style, Decision Making, Employee Performance, Structural Equation Model

Abstract

This research aims to examine the influence of personality, leadership and decision making on employee performance at PDAM Makassar City. The method used in this research is a structural equation model with a total of 66 respondents consisting of men and women. Based on data analysis, it was found that personality and leadership had a positive and significant effect on employee performance, while decision making did not show a significant effect. Validity and reliability tests show that all indicators are suitable for use, with Cronbach alpha values above 0.70. The data normality test shows a normal distribution, and the multicollinearity test shows there is no correlation between the independent variables. The heteroscedasticity test does not show symptoms of heteroscedasticity, which indicates a good regression model. The T test shows that personality and leadership variables have a significant effect on performance, while decision making does not have a significant effect. The F test shows that the independent variables simultaneously have a significant effect on employee performance. The coefficient of determination (R2) value of 0.677 indicates that the model has a strong relationship between the independent variable and the dependent variable. Based on these findings, it is recommended to improve personality training programs, leadership qualities, and improve decision-making processes to improve overall employee performance.

References

Abubakar, A. M., Elrehail, H., Alatailat, M. A., & Elçi, A. (2019). Knowledge management, decision-making style and organizational performance. Journal of Innovation & Knowledge, 4(2), 104-114. https://doi.org/10.1016/j.jik.2017.07.003

Carlsson‐Wall, M., Goretzki, L., Hofstedt, J., Kraus, K., & Nilsson, C. J. (2022). Exploring the implications of cloud‐based enterprise resource planning systems for public sector management accountants. Financial accountability & management, 38(2), 177-201. https://doi.org/10.1111/faam.12300

Cherian, J., Gaikar, V., Paul, R., & Pech, R. (2021). Corporate culture and its impact on employees’ attitude, performance, productivity, and behavior: An investigative analysis from selected organizations of the United Arab Emirates (UAE). Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 45. https://doi.org/10.3390/joitmc7010045

Davidescu, A. A., Apostu, S. A., Paul, A., & Casuneanu, I. (2020). Work flexibility, job satisfaction, and job performance among Romanian employees—Implications for sustainable human resource management. Sustainability, 12(15), 6086. https://doi.org/10.3390/su12156086

Dawood, M. N., Alkhafaji, M. A., Hussian, A., Diame, H. A., Hussien, N. A., Yassine, S., & Rajinikanth, V. (2023). Developing a Risk Management System with an Optimistic Predictive Approach and Business Decision-Making. Journal of Intelligent Systems & Internet of Things, 9(2). https://doi.org/10.54216/JISIoT.090204

Dwivedi, Y. K., Jeyaraj, A., Hughes, L., Davies, G. H., Ahuja, M., Albashrawi, M. A., ... & Walton, P. (2024). “Real impact”: Challenges and opportunities in bridging the gap between research and practice–Making a difference in industry, policy, and society. International Journal of Information Management, 102750. https://doi.org/10.1016/j.ijinfomgt.2023.102750

Felício, T., Samagaio, A., & Rodrigues, R. (2021). Adoption of management control systems and performance in public sector organizations. Journal of Business Research, 124, 593-602. https://doi.org/10.1016/j.jbusres.2020.10.069

Hafni, L., Himawan, A., SD, S. S., & Firdaus, F. (2022, November). Effect of Leadership and Workload on Work Motivation and Employees Performance PT. Bank Riau Kepri Pekanbaru Branch. In International Conference on Business Management and Accounting (Vol. 1, No. 1, pp. 60-78). https://doi.org/10.35145/icobima.v1i1.2749

Hamid, M. (2023). Pengaruh Gaya Kepemimpinan, Lingkungan Kerja dan Motivasi Kerja Melalui Kepuasaan Kerja Terhadap Kinerja Pegawai pada Dinas Pendidikan dan Kebudayaan Kabupaten Luwu Timur (Doctoral dissertation, Universitas Hasanuddin).

Han, X., & Moynihan, D. (2022). Does managerial use of performance information matter to organizational outcomes?. The American review of public administration, 52(2), 109-122. https://doi.org/10.1177/02750740211048891

Hayden, M. T., Mattimoe, R., & Jack, L. (2021). Sensemaking and the influencing factors on farmer decision-making. Journal of Rural Studies, 84, 31-44. https://doi.org/10.1016/j.jrurstud.2021.03.007

Ibrahim, I., Syarifuddin, S., Haeruddin, H., & Iqbal, A. R. (2023). Influence Competence and Quality Service Against Performance Employees at PDAM Makassar City. Syntax Idea, 5(8), 1032-1045. https://doi.org/10.46799/syntax-idea.v5i8.2514

Jumani, A., Ananda, F. R., Rahellea, S. L., Fikri, S. N., & Zen, A. (2023). Faktor-faktor yang mempengaruhi Kinerja Karyawan, Pengambilan Keputusan: Kepemimpinan, Keterampilan dan Komunikasi (Literature Review Pengambilan Keputusan Manajerial). Jurnal Ilmu Manajemen Terapan, 4(6), 824-838. https://doi.org/10.31933/jimt.v4i6.1628

Kahfi, F., Hamid, M., & Muin, S. A. (2024). The Influence of Personality, Leadership Style, and the Decision-Making Process on Employee Performance. Journal La Bisecoman, 5(4), 500-510. https://doi.org/10.37899/journallabisecoman.v5i4.1280

Karcher, D. B., Cvitanovic, C., Shellock, R., Hobday, A. J., Stephenson, R. L., Dickey-Collas, M., & van Putten, I. E. (2022). More than money-the costs of knowledge exchange at the interface of science and policy. Ocean & Coastal Management, 225, 106194. https://doi.org/10.1016/j.ocecoaman.2022.106194

Keeler, B. L., Polasky, S., Brauman, K. A., Johnson, K. A., Finlay, J. C., O’Neill, A., ... & Dalzell, B. (2012). Linking water quality and well-being for improved assessment and valuation of ecosystem services. Proceedings of the National Academy of Sciences, 109(45), 18619-18624. https://doi.org/10.1073/pnas.1215991109

Lasrado, F., & Kassem, R. (2021). Let's get everyone involved! The effects of transformational leadership and organizational culture on organizational excellence. International Journal of Quality & Reliability Management, 38(1), 169-194. https://doi.org/10.1108/IJQRM-11-2019-0349

Lindblom, A., Lindblom, T., & Wechtler, H. (2020). Dispositional optimism, entrepreneurial success and exit intentions: The mediating effects of life satisfaction. Journal of business research, 120, 230-240. https://doi.org/10.1016/j.jbusres.2020.08.012

Luky, A. Z., Kurniawati, T., & Cerya, E. (2021, November). The effect of interpersonal communication and work motivation on employee performance in padang city regional company offices (PDAM). In Seventh Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2021) (pp. 367-375). Atlantis Press. https://doi.org/10.2991/aebmr.k.211117.083

McMullin, C. (2021). Challenging the necessity of New Public Governance: Co‐production by third sector organizations under different models of public management. Public Administration, 99(1), 5-22. https://doi.org/10.1111/padm.12672

Mihalache, M., & Mihalache, O. R. (2022). How workplace support for the COVID‐19 pandemic and personality traits affect changes in employees' affective commitment to the organization and job‐related well‐being. Human resource management, 61(3), 295-314. https://doi.org/10.1002/hrm.22082

Miranti, S. (2022). The Measuring the Efficiency and Productivity of Regional Water Utility Company (PDAM) in Indonesia from 2012 to 2016. Jurnal Perencanaan Pembangunan: The Indonesian Journal of Development Planning, 6(1), 81-105. https://doi.org/10.36574/jpp.v6i1.278

Mishra, D., & Min, J. (2010). Analyzing the relationship between dependent and independent variables in marketing: A comparison of multiple regression with path analysis. Available at SSRN 2259524. http://dx.doi.org/10.2139/ssrn.2259524

Orbawati, E. B., Ahsani, R. D. P., Wulandari, C., Mukti, A., & Kinanti, A. W. (2022, December). Collaborative Governance in Creating a Lifestyle of People who Care about Hygienic Drinking Water and Sanitation. In 3rd Borobudur International Symposium on Humanities and Social Science 2021 (BIS-HSS 2021) (pp. 269-275). Atlantis Press. https://doi.org/10.2991/978-2-494069-49-7_45

Paparang, J. P., & Rumokoy, F. S. (2015). The Role of Internal Service Quality and Benefit Plans on Organizational Performance at Regional Drinking Water Company (PDAM) Sangihe. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 3(3). https://doi.org/10.35794/emba.3.3.2015.9321

Parker, L. D., & Schmitz, J. (2022). The Reinvented accounting firm office: Impression management for efficiency, client relations and cost control. Accounting, Organizations and Society, 98, 101306. https://doi.org/10.1016/j.aos.2021.101306

Peiró, J. M., Bayona, J. A., Caballer, A., & Di Fabio, A. (2020). Importance of work characteristics affects job performance: The mediating role of individual dispositions on the work design-performance relationships. Personality and Individual Differences, 157, 109808. https://doi.org/10.1016/j.paid.2019.109808

Rivera, L. A. (2020). Employer decision making. Annual review of sociology, 46(1), 215-232. https://doi.org/10.1146/annurev-soc-121919-054633

Riyanto, S., Endri, E., & Herlisha, N. (2021). Effect of work motivation and job satisfaction on employee performance: Mediating role of employee engagement. Problems and Perspectives in Management, 19(3), 162.

Rockman, B. A. (2020). Bureaucracy, power, policy, and the state. In The state of public bureaucracy (pp. 141-170). Routledge. https://doi.org/10.1177/0095399719874758

Schulze, J. H., & Pinkow, F. (2020). Leadership for organisational adaptability: How enabling leaders create adaptive space. Administrative Sciences, 10(3), 37. https://doi.org/10.3390/admsci10030037

Strich, F., Mayer, A. S., & Fiedler, M. (2021). What do I do in a world of artificial intelligence? Investigating the impact of substitutive decision-making AI systems on employees’ professional role identity. Journal of the Association for Information Systems, 22(2), 9. https://doi.org/10.17705/1jais.00663

Stritch, J. M., Bretschneider, S., Darnall, N., Hsueh, L., & Chen, Y. (2020). Sustainability policy objectives, centralized decision making, and efficiency in public procurement processes in US local governments. Sustainability, 12(17), 6934. https://doi.org/10.3390/su12176934

Sürücü, L., & Maslakçi, A. (2020). Validity and reliability in quantitative research. Business & Management Studies: An International Journal, 8(3), 2694-2726. https://doi.org/10.15295/bmij.v8i3.1540

Swinkels, M. (2020). How ideas matter in public policy: a review of concepts, mechanisms, and methods. International Review of Public Policy, 2(2: 3), 281-316. https://doi.org/10.4000/irpp.1343

Tabesh, P., & Vera, D. M. (2020). Top managers' improvisational decision-making in crisis: a paradox perspective. Management Decision, 58(10), 2235-2256. https://doi.org/10.1108/MD-08-2020-1060

Torkzadeh, J., & Dehghan Harati, F. (2016). Developing and validating a scale to assess organizational behavior foundations. Mediterranean Journal of Social Sciences, 7(6), 72-61. https://doi.org/10.5901/mjss.2016.v7n6p61

Zell, E., & Lesick, T. L. (2022). Big five personality traits and performance: A quantitative synthesis of 50+ meta‐analyses. Journal of personality, 90(4), 559-573. https://doi.org/10.1111/jopy.12683

Zheng, W., Yang, B., & McLean, G. N. (2010). Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management. Journal of Business research, 63(7), 763-771. https://doi.org/10.1016/j.jbusres.2009.06.005

Zulkarnaen, I. (2024). The Influence of Transformational Leadership Style and Big Five Personality on Organizational Citizenship Behavior in Civil Servants of West Nusa Tenggara Province. Journal of Social Science and Education Research, 1(4), 326-387. https://doi.org/10.59613/9cq6vp70

Published
2024-07-07
How to Cite
Kahfi, F., Hamid, M., & Muin, S. A. (2024). The Influence of Personality, Leadership Style, and the Decision-Making Process on Employee Performance. Journal La Bisecoman, 5(4), 543-561. https://doi.org/10.37899/journallabisecoman.v5i4.1280