INFLUENCE OF LEADERSHIP STYLE AND INCENTIVES ON AGENT PERFORMANCE IN SOCIAL SECURITY ACQUISITION WITH ORGANIZATIONAL CULTURE AS AN INTERVENING VARIABLE

Meila Rosanty Restutiani, Eko Ruddy Cahyadi, Jono Mintarto Munandar

Abstract


The re­search objective of the study is to analyze and confirm the influence of lea­dership styles, incentives, and organizational culture on agents' per­formance in social security acquisition. The information was gathered from 190 BPJS Ke­tenagakerjaan agents across 21 branch offices in the East Java re­gion. The r­esearch data obtained by filling out online questionnaires were then processed using a structural equation modeling (SEM) partial least squa­res (Smart PLS Ver­sion 4.0) approach. The findings show that there is an in­f­lu­ence of leader­ship style and incentives toward organizational culture on age­nts, and leader­ship style is more dominant than incentives toward or­ga­ni­za­tio­nal culture. Fur­thermore, the effect of the incentives variable and orga­ni­za­tio­nal culture vari­able on performance has a positive and significant effect. The leadership style variable, however, has a negative effect on performance. Or­ga­nizational cul­tu­re affects performance more than leadership style and in­cen­ti­ves. In addition, orga­nizational culture as an intervening variable fully me­di­ates the effect of the leadership style variable on performance. Fur­ther­mo­re, the organizational cul­ture variable can partially mediate the relationship bet­w­een incentives and per­formance. These findings are expected to provide di­rec­tion for organizati­ons to improve agents' performance by inspiring a sha­red vision, modeling the way, providing awards or recognition, and developing stan­dards of attitudes that clearly and measurably describe the organization's vi­­sion and mission. Further studies are needed in the same model applied to the national level of samples.


Keywords


Incentive; Leadership Style; Organizational Culture; Performance; Structural Equation Modelling (SEM)

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DOI: http://dx.doi.org/10.21776/ub.jam.2023.021.1.06

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