The Influence of Leadership Style and Work Discipline on Employee Performance with Work Motivation as an Intervening Variable at PT. Permodalan Nasional Madani Bogor Branch Office





The key factors affecting performance are employees and work discipline. Work motivation as an intermediate variable in the relationship between leadership style and employee performance at the PT PNM Bogor Branch Office. Employee performance at the PT Permodalan Nasional Madani Bogor Branch Office will be analysed in relation to the researcher-identified leadership style, work discipline, and work motivation. A total of 120 employees from various departments at the PT PNM Bogor Branch Office were randomly selected to participate in the study. PLS SEM is a statistical approach used for analysing data. Findings from studies conducted at the PT PNM Bogor Branch Office indicate that a leader's style influences workers' motivation (Y1) but has no effect on productivity (Y2). Employee performance (Y2) is positively impacted by work discipline, and employee motivation to work (Y1) is influenced by work discipline as well. The degree to which workers are inspired by their jobs is a key factor in their productivity (Y2). In addition, there is a nuanced mediational relationship: leadership style affects performance via the complete intermediary of work motivation, while work discipline affects performance both directly and via the partial intermediary of work motivation





Employees and work discipline are the main factors that affect performance. The influence of leadership style and work discipline on employee performance at PT Permodalan Nasional Madani (PT PNM) Bogor Branch, with work motivation as an intervening variable. This study intends to investigate the influence of leadership style, work discipline, and work motivation on employee performance at the Bogor Branch Office of PT Permodalan Nasional Madani. The study population was all employees who occupied certain positions at PT PNM Bogor Branch with a total of 120 respondents selected using the random sampling method. Data analysis uses the PLS SEM method as an analysis tool. The results of research at PT PNM Bogor Branch Office show that (1)  The first factor that affects performance is leadership style. Conveyed by Handayani et al., (2019) leadership is a set of interacting factors, including but not limited to procedures, personality, behaviour, influence, authority, interaction goals, role differentiation, structure creation, and direction-based communication. The company must pay attention to, and find ways to improve upon, a number of factors that are contributing to the decline in employee performance. These include the quality of leadership provided, the presence of good and correct work discipline in employees' daily work activities, and the consistency with which the company manages its human resources. On the other hand, if a leader doesn't tailor their approach to fit the specifics of their team and the tasks at hand, they risk seeing a decline in morale and productivity among their colleagues. A leader's ability to motivate, inspire, and coordinate the various parts of his team towards the accomplishment of a common goal is central to the concept of leadership. High employee performance, in turn, is crucial to the success of any enterprise.
A company or organisation requires a leader who can keep things on track and make it competitive in the marketplace. This is connected to the value of a leader in advancing the organization's goals and objectives. Organisations can only perform at their best under the guidance of capable leaders (Bagis et al., 2020). Various ways will be taken by companies in improving the performance of their employees, including by paying attention to the leadership style of superiors seen from the aspects of how to communicate leadership with subordinates, how to provide leadership motivation to subordinates, how leadership creates a good and pleasant work atmosphere, and how leadership makes decisions (Kusumadewi et al., 2018).
Previous research has demonstrated that leadership style influences employee performance (Handayani et al., 2019;Sabastian, 2021). However, According to other studies, leadership style has no effect on employee performance (Inna Nisawati Mardiani &;Yon Darwis Sepdiana, 2021). The impact of a leader's approach on staff productivity has been studied to varying degrees of success. The contradictory findings of earlier studies highlight the need for additional investigation into the link between leadership style and employee performance.
Discipline in the workplace is another aspect that can have an impact on productivity. Supervisors implement disciplinary measures in the workplace when they want to get workers to improve their behaviour or to raise their understanding of and compliance with all workplace policies and procedures. Discipline in the workplace refers to the conformity of one's demeanour, outlook, and actions with the norms established by the company. In general, all workers are expected to exhibit strict discipline, from showing up to work on time to putting in the necessary effort to complete the duties at hand and reach the goal (Sudarsih &;Supriyadi, 2019). Work discipline also has aspects that affect the decline in employee performance. The success or failure of discipline depends on how well the leader performs his or her duties. Employees whose relationships with their managers are strained don't put forth their full potential on the job, and their managers tend to have a negative impression of them as a result of their lack of dedication to their work. The worker ended up deciding to leave the business (Kristanto &;Edward, 2020). Work discipline is beneficial for the firm and its employees because it ensures that responsibilities and policies are carried out consistently and efficiently (Jayanti et al., 2020) found that when workers are disciplined at work, they are more productive and happier. Discipline in the workplace is the practise of enforcing rules and procedures consistently so that employees know they will be held accountable for their actions if they deviate from the established norm. Therefore, this form of discipline cannot be administered hastily and requires careful thought (Priyandi et al., 2020). Researchers believe that in addition to concentrating on leadership style, workplace discipline, and the phenomenon of employee performance issues, they need other variables as mediation that bridges between the aforementioned factors in order to help existing problems, Consequently, this study uses work motivation as an intervening or mediating variable that can influence the aforementioned domains.
Previous research has demonstrated that workplace discipline affects employee performance (Sudarmanto, et al, 2022;Wiranata, et al, 2022). But in other studies, It was explained that workplace discipline had little impact on employee performance (Arisanti, et al, 2019). Results from previous research on the correlation between workplace discipline and productivity have been inconclusive. Since prior studies have yielded contradictory findings, it is crucial to dig deeper into the connection between work discipline and employee performance.
After first research showed inconclusive results, we expanded our focus to include work motivation as the moderating factor in the relationship among leadership style, work discipline, and performance. It may be helpful to incorporate work motivation qualities as intervening or intermediary variables in order to explain why some studies have found Others have not found a positive correlation between leadership style, work discipline, and employee performance.
Motivation is a process of demonstrating individual ability, perseverance from effort towards goal achievement. Without motivation, an employee cannot reach the standard or can exceed the standard because what is his motive and motivation is not met. According to Rukmana, (2020) motivation is an important factor that every employee must have. Every employee has different types of interests in work, motivation can be an impetus for a person to complete his duties and responsibilities at work and a person can happily do his job well. It is well acknowledged that boosting employee performance relies heavily on internal elements like job happiness, motivation, and organizational commitment, all of which originate with the individual employees themselves.
Previous studies have found that leaders' styles indirectly affect employees' motivation to do their best at work, which in turn improves productivity. (Nuraeni, 2019). Furthermore, it is demonstrated that work motivation can mediate the relationship between work discipline and leadership and performance (Arifa &;Muhsin, 2018). According to previously cited research, there is evidence that work motivation can serve as an intermediary variable between leadership style and work discipline and employee performance.

LITERATURE REVIEW 1. Understanding Leadership Style
Leadership style is a way that a person uses to influence the group towards achieving goals (Agustin et.al, 2019). In order to increase employee motivation carried out by leaders, It has an effect on enhancing employee performance and productivity, so that the main goals desired to be achieved by the company can be realized (Agustin et al., 2019).
The ability of a leader to inspire his or her followers to take action and reach a common goal is strongly influenced by the leader's own manner of inspiring that action in others (Handayani et al., 2019). When a leader exerts influence on the actions of followers, he or she is exhibiting a leadership style, which is a pattern of behaviour that is well-known to followers (Bukit et al., 2019).

Understanding Work Discipline
According to Supomo and Nurhayati (2018), for the purposes of accomplishing organisational objectives, "work discipline" refers to an employee's willingness to always obey, respect, and respect the rules and norms established by the organisation. Discipline in the workplace is an indication of how seriously one takes his responsibilities. This will boost morale and productivity, helping the company get closer to its goals.
Additionally, Sutrisno noted that work discipline is a person's attitude, behaviour, and actions in accordance with the written and unwritten norms of an organisation. Mangkunegara emphasised that management's implementation of strengthened organisational principles constitutes "work discipline." (Burhannudin, et al, 2019).

Understanding Work Motivation
Work motivation is defined as something that invigorates or encourages work. Therefore, motivation is commonly referred to as encouragement or enthusiasm for work (Rotua Situmorang &;Sarjono, 2013).
An individual's drive, focus, and persistence at work can all be explained by the process of motivation. A person's inner or psychological milieu in society, organisation, or company that constitutes his work milieu has a significant impact on his work results. The inner climate is reflected in the motivation or love of work that results in actions at work that further organisational objectives (Hastuti Mulang, 2022).

Understanding Employee Performance
Success in accomplishing objectives and meeting targets is what is meant by "performance" (Ladianto Candra, 2018).
Quantitative and qualitative indicators are used to assess performance, which is depicted as a contribution to the organization's final results in relation to its expenditures of resources (Irma Kusuma Fitri, 2021). In this study, here is a picture of the research framework:

METHODOLOGY
Population is a collection of individuals with predetermined qualities and characteristics (Wahyudi, Umi Rusilowati, 2021). In this investigation, the population consists of all PT PNM Bogor Branch Office employees who hold specific positions. The number of samples equals the number of formation variable indicators multiplied by 5 to 10 (Siregar et al., 2021).
In this study, the variables measured were Leadership Style (X1), Work Discipline (X2), Work Motivation (Y1), and Employee Performance (Y2). Each variable has 3 indicators. With a total of 12 indicators, the number of research samples was decided by the researcher to multiply by 10 from the number of indicators. Therefore, the number of samples selected is 120.
The following are some of the data collection methods employed in this study:

Questionnaire
Questionnaire, also known as questionnaire or self-administered questioner, is a technique for collecting data by sending respondents a list of queries to complete (Sidik Priadana, 2021). In this study, closed and items were used 2. Document Anecdotal notes, letters, diaries, and other papers all fall under the broad category of "documents," which can be thought of as written or printed records of previous events. Internal sheets, communications for various audiences, staff and student records, programme descriptions, and educational statistics are all examples of office documents (Sidik Priadana, 2021). In this study, the documents used include various sources relevant to the research topic. Document sources include documents from PT PNM Bogor Branch Office, scientific journals, related books, and other scientific papers.

Analysis Techniques
The Structural Equation Model (SEM) was used for hypothesis testing in this study's data analysis. The SEM technique builds on multivariate analyses like path analysis and multiple regression (Haryono, 2019). The SEM method is superior to route analysis and multiple regression because it provides a more in-depth investigation of the data.
Some of the stages of PLS analysis are as follows (Haryono, 2017):

Model Evaluation
Model evaluation in SmartPLS is divided into two, namely outer model and inner model (Dr. Duryadi, 2021).

Outer Model Evaluation (Measurement Evaluation)
Outer model evaluation is an evaluation of the tools used to collect research data. This evaluation is used to determine the validity and reliability of data collection tools (Measuurement). The following are the norms used to measure the validity and reliability of measurement (Dr. Duryadi, 2021).

Evaluation of the Inner Model (Structural Model)
Evaluation of the structural model (Interior model) is the second step in model evaluation. Several component items serve as criteria for evaluating the structural model (Interior model), including the R-Square and Significance values.

RESULT
1. Data Analysis a. Respondent Answer Analysis Analysis of respondents' answers in the study aims to identify the average value (Mean), highest score, and lowest score from the score choices given by respondents. Those score options can include values such as 1 (STS), 2 (TS), 3 (N), 4 (S), 5 (SS), which are typically used to measure respondents' perceptions, views, or attitudes toward a topic or question in research. The following are the results of the analysis of respondents' answers in this study: Source : Primary Data 2023 Table 1 above presents the results of the analysis of respondents' answers related to the variables Leadership Style (X1), Work Discipline (X2), Work Motivation (Y1), and Employee Performance (Y2).
b. Designing Structural Models In this study, there are seven problem formulations with two independent construct variables (X), one intervening variable (Y1) and one dependent construct variable (Y2). To facilitate and understand the flow of data testing, there is a structural model design. The following structural model of the research construct variable:

Source : SmartPLS
The results of the convergent validity test in Table 4.8 show that all loading factor values for construct indicators are above 0.7. This suggests that the indicators have strong convergent validity, corresponding to the criteria recommended in the confirmatory analysis.  Table 3, all constructs in this study meet the convergent validity standard, because the AVE value for each construct is above 0.5. This shows that the indicators on the construct have a good ability to measure the variability of the construct.
2) Discriminant Validity The cross loading value can be used to verify the reliability of the discriminant when using reflecting indicators. Each of these numbers must be bigger than 0.70. (Rahmad Solling Hamid, 2019). The following are the results of Discriminant Validity :

Source : SmartPLS
From the data of Table 4, it can be seen that all cross loading values for each variable exceed 0.70. This shows that each indicator has strong discriminant validity, which indicates that it can effectively distinguish one construct from another.

3)
Reliability Test There are two techniques to calculate the trustworthiness of a construct using reflecting indicators: Cronbach's Alpha and Composite Reliability. Composite reliability, a common method for evaluating construct validity, should be better than 0.7 for confirmatory research although values between 0.6 and 0.7 are fine for exploratory studies (Rahmad Solling Hamid, 2019). The following are the results of the Reliability Test :

Source : SmartPLS
The results of the Reliability Test in Table 5 show that all constructs have good reliability values, both through Cronbach's Alpha and Composite Reliability measurements. All of Cronbach's Alpha and Composite Reliability values are above the recommended values for confirmatory research, indicating that they have an adequate level of reliability. However, the Performance construct has Cronbach's Alpha value of 0.691. Although 0.691 is still within the acceptable range for exploratory research, it may indicate that there is little variation in consistency between indicators that measure performance constructs.

Designing the Inner Model
Once the outside model has been tested and shown to be satisfactory, the inner model, or structural model, can be put to the test. The structural model, grounded in the study's theoretical underpinnings, provides a descriptive account of the interplay between latent variables. At this point, analysis is performed by calculating the R-squared value of the dependent variable and the values of the path coefficients for the independent variable. Next, t-statistics are used to determine whether or not a given path coefficient is statistically significant. The proposed research model is more reliable the higher the Rsquared value. Path coefficient values reveal the degree of significance during hypothesis testing. By comparing the theoretical model to the empirical data, inner model testing can determine whether or not there is a significant relationship between the indicators making up the variables of interest.
a. Variant Analysis (R2) or Determination Test In a regression model or other type of analysis, R-Square is a coefficient of determination that evaluates how much of the variability of the dependent variable can be attributed to the independent variable. The The following are the results of the Determination test in this study:

Interpretation a. Hypothesis Testing
In order to strengthen confidence in the value of the path coefficient found, a significance test was carried out using the bootstrapping method. The results of this significance test are then illustrated through the following figure. With the bootstrapping method, it can be more convincing that the values of the path coefficients obtained are not only the result of chance, but have a reliable level of significance in measuring the influence between variables and the results are shown in the figure as follows:

Hypothesis Testing of Direct Influence
The following are the results of the test of the influence of the direct hypothesis on the influence of variables X1, X2 on variables Y1 and X1, X2, and Y1 on variable Y2:

Interpretation of the Significance of the Hypothesis of Direct Influence
To test the hypothesis of direct influence, a comparison was made against the statistical T value (Dr. Duryadi, 2021). The testing criteria are as follows: a. If the statistical T value is greater than or equal to of 1.96 and the P-Value value is less than or equal to of 0.05, then the hypothesis is acceptable. b. If the statistical T value is smaller than 1.96 or if the P-Value is greater than 0.05, then the hypothesis can be rejected.
The following is a summary of the results of the Direct Effect Hypothesis Test that will be used for the significance test: Source : SmartPLS Table 9 presents the results of hypothesis tests regarding direct influence. Each result is interpreted as follows: 1. The Leadership Style variable (X1) has a positive and significant influence on Work Motivation (Y1). This is evidenced by the value of T Statistics (2.286 > 1.96). According to the results of this statistical calculation, it is concluded if H1 is accepted. 2. The Work Discipline variable (X2) has a positive and significant influence on Work Motivation (Y1). This is evidenced by the value of T Statistics (4.892 > 1.96). According to the results of this statistical calculation, it is concluded if H2 is accepted. 3. The Work Motivation variable (Y1) has a positive and significant influence on Employee Performance (Y2). This is evidenced by the value of T Statistics (5,305 > 1.96). According to the results of this statistical calculation, it is concluded if H3 is accepted. 4. The Leadership Style variable (X1) has no significant effect on Employee Performance (Y2). This is evidenced by the value of T Statistics (1,190 < 1.96). According to the results of this statistical calculation, it is concluded that H4 is rejected. a. The Work Discipline variable (X2) has a positive and significant influence on Employee Performance (Y2). This is evidenced by the value of T Statistics (2,554 > 1.96). According to the results of this statistical calculation, it is concluded if H5 is accepted.

Testing the Indirect Influence Hypothesis
Testing the indirect hypothesis through intervening variables of work motivation can be seen through the results of the specific indirect effect listed in Source : SmartPLS

Interpretation of the Significance of the Direct Influence Hypothesis (Mediation)
To test the hypothesis of indirect influence, a comparison was made against the statistical T value (Duryadi, 2021). The test criteria are as follows: a. If the statistical T value is greater than or equal to of 1.96 or the P-Value value is less than or equal to than 0.05, then the hypothesis is acceptable. b. If the statistical T value is smaller than 1.96 or if the P-Value is greater than 0.05, then the hypothesis can be rejected.
The following is a summary of the results of the Indirect Influence Hypothesis Test:

Types of Mediation
The following test hypothesis 6 and hypothesis 7 types of mediation of Leadership Style (X1) on Employee Performance (Y1) through Work Motivation (Y1) and Work Discipline (X2) on Employee Performance (Y2) through Work Motivation (Y1) in this study: Based on the information of Table 4. 18, the direct effect of the Leadership Style Variable (X1) on Employee Performance (Y2) concluded that the hypothesis was rejected because there was no significant relationship. Meanwhile, in the test of the indirect influence of Leadership Style (X1) on Employee Performance (Y2) through Work Motivation (Y1), it was concluded that the hypothesis was also rejected because there was no indirect influence. Since in the direct influence test and indirect influence test the hypothesis is both rejected or insignificant, it is concluded that in this hypothesis there is no mediating effect or it can be said that the mediating variable is not able to contribute to Employee Performance. or significant, it is concluded that the role of the intervening variable Work Motivation (Y2) in this hypothesis is classified as a type of partial mediation.

Leadership Style has a Positive and Significant Influence on Employee Motivation at PT PNM Bogor Branch Office
The results showed that the Leadership Style Variable (X1) had a positive and significant influence on Work Motivation (Y1). This is evidenced by the value of T Statistics (2.286 > 1.96). According to the results of this statistical calculation, it is concluded if H1 is accepted. The results of this study are in line with previous research from Pramudhita & Meirisa, (2019) which demonstrated that leadership approach has a significant and positive impact on employee performance. But this study is not in line with Dewi, (2019) who concluded that leadership style has a marginally positive influence on employee motivation.

Work Discipline has a Positive and Significant Influence on Employee Motivation at PT PNM Bogor Branch Office
The results showed that the Work Discipline Variable (X2) had a positive and significant influence on Work Motivation (Y1). This is evidenced by the value of T Statistics (4.892 > 1.96). According to the results of this statistical calculation, it is concluded if H2 is accepted. The results of this study are in line with previous research from Sudarmanto et al., (2022) which explained that work discipline has a positive and significant effect on work motivation. And this study is also in line with Wiranata et al., (2022) who explained that work discipline variables have a positive and significant effect on employee performance

Work Motivation has a Positive and Significant Influence on Employee Performance at PT PNM Bogor Branch Office
The results showed that the Work Motivation Variable (Y1) had a positive and significant influence on Employee Performance (Y2). This is evidenced by the value of T Statistics (5,305 > 1.96). According to the results of this statistical calculation, it is concluded if H3 is received. The results of this study are in line with previous research from Arisanti et al., (2019) which explained how work motivation variables affect employee performance significantly. But this study is not in line with Hidayat, (2021) who concluded that Motivation has no effect on Performance.

Leadership Style has a Positive and Significant Influence on Employee Performance at PT PNM Bogor Branch Office
The results showed that the Leadership Style Variable (X1) did not have a significant influence on Employee Performance (Y2). This is evidenced by the value of T Statistics (1,190 < 1.96 who concluded that leadership style has a direct effect on employee performance

Employee Work Discipline has a Positive and Significant Influence on Employee Performance at PT PNM Bogor Branch Office
The results showed that the Work Discipline Variable (X2) had a positive and significant influence on Employee Performance (Y2). This is evidenced by the value of T Statistics (2,554 > 1.96). According to the results of this statistical calculation, it is concluded if H5 is accepted. The results of this study are in line with previous research from Sudarmanto et al., (2022) which indicated that workplace discipline has a significant and positive impact on employee performance. But this study is not in line with Arisanti et al., (2019) who concluded that employee performance is unaffected by workplace discipline.

Leadership Style Through Work Motivation has a Positive and Significant Influence on Employee Performance at PT PNM Bogor Branch Office
The results showed that the Leadership Style Variable (X1) did not have a significant influence on Employee Performance (Y2) through Work Motivation (Y1). This is evidenced by the value of T Statistics (1,875 < 1.96). According to the results of this statistical calculation, it is concluded that H6 is rejected. The results of this study are in line with previous research from Lamere et al., (2021) which explains why Leadership Style has no effect on motivational performance.

Employee Work Discipline through Work Motivation Has a Positive and Significant Influence on Employee Performance at PT PNM Bogor Branch Office
The results showed that the Work Discipline Variable (X2) had a significant influence on Employee Performance (Y2) through Work Motivation (Y1). This is evidenced by the value of T Statistics (4,112 > 1.96). According to the results of this statistical calculation, it is concluded if H7 is accepted. The role of the intervening variable Work Motivation (Y2) in this hypothesis belongs to the type of partial mediation. The results of this study are in line with previous research from Arifa & Muhsin, (2018) which explained that work motivation is proven to be able to mediate the relationship between work discipline and leadership on performance. But this study is not in line with Dewi, (2019) who concluded that leadership style has a marginally positive influence on employee motivation.