The Importance of Leadership Style and Work Environment

Oct 13, 2025 by thesweetdesigns.com 93 views

Introduction

In today's fast-paced and competitive business environment, organizational commitment has become a crucial factor in determining the success of any organization. Organizational commitment refers to the degree to which employees are committed to their organization, its goals, and its values. It is a vital aspect of employee engagement, motivation, and job satisfaction. In this study, we aim to analyze the effect of leadership style and work environment on organizational commitment at PT. PLN (Persero) UP3 Medan, a leading state-owned electricity company in Indonesia.

The Importance of Leadership Style and Work Environment

Leadership style and work environment are two critical factors that can significantly impact organizational commitment. Leadership style refers to the way leaders interact with their employees, communicate with them, and make decisions. It can either motivate or demotivate employees, depending on how it is implemented. On the other hand, work environment refers to the physical and non-physical aspects of the workplace that can affect employee performance and well-being. It includes factors such as job design, work-life balance, and employee recognition.

Research Methodology

This study employed a quantitative approach to analyze the effect of leadership style and work environment on organizational commitment. The population used as subjects was all employees of PT. PLN UP3 Medan, with a sample size of 56 respondents. Primary data was collected through the distribution of questionnaires, while secondary data was obtained through related literature studies. The data analysis methods used included validity tests, reliability tests, classical assumptions, multiple linear regression analysis, and hypothesis tests.

Research Results

The results of this study showed that the leadership style (variable X1) has a significant influence on organizational commitment (variable Y). This means that effective leadership can increase employee commitment to the organization. However, the results also indicate that the work environment (variable X2) does not have a significant effect on organizational commitment. Although the work environment does not have an individual significant impact, research found that leadership style and work environment simultaneously affect organizational commitment. The determination coefficient test shows the adjusted R square value of 0.190, which means 19.0% of the variation of organizational commitment can be explained by the leadership style and the work environment.

Additional Analysis and Explanation

The results of this study provide important insights for the management of PT. PLN UP3 Medan in designing strategies to increase organizational commitment among employees. A good leadership style, such as transformational leadership that drives participation and collaboration, is proven to have a positive impact on employee commitment. Thus, training and development to improve leadership skills need to be a priority. Although the work environment does not have a significant influence, it does not mean that it can be ignored. The conducive work environment still has an important role in creating a comfortable and productive work atmosphere. Management should not only focus on leadership styles but also pay attention to aspects of the physical and non-physical environment that can support employee performance.

Conclusion

Overall, this research shows that the leadership style has a significant influence on organizational commitment, while the work environment does not show the same effect. It is essential for the organization to increase leadership style to strengthen employee commitment, while still considering the work environment as a supporting factor that can strengthen the desired results. Further research can explore other variables that may have an impact on organizational commitment in order to obtain a more comprehensive picture.

Recommendations

Based on the findings of this study, we recommend the following:

Develop a transformational leadership style: The organization should focus on developing a transformational leadership style that drives participation and collaboration among employees.
Improve the work environment: Although the work environment does not have a significant influence, it is still essential to create a comfortable and productive work atmosphere.
Provide training and development: The organization should provide training and development opportunities to improve leadership skills and enhance employee performance.
Conduct further research: Further research can explore other variables that may have an impact on organizational commitment in order to obtain a more comprehensive picture.

Limitations of the Study

This study has several limitations that should be acknowledged. Firstly, the sample size was relatively small, which may limit the generalizability of the findings. Secondly, the study only focused on PT. PLN UP3 Medan, which may not be representative of other organizations. Finally, the study only analyzed the effect of leadership style and work environment on organizational commitment, which may not be the only factors that influence employee commitment.

Future Research Directions

Future research can explore other variables that may have an impact on organizational commitment, such as employee engagement, job satisfaction, and organizational culture. Additionally, research can be conducted to examine the effect of leadership style and work environment on other outcomes, such as employee performance and job turnover.

Q: What is organizational commitment, and why is it important?

A: Organizational commitment refers to the degree to which employees are committed to their organization, its goals, and its values. It is a vital aspect of employee engagement, motivation, and job satisfaction. Organizational commitment is essential for the success of any organization, as it can lead to increased productivity, job satisfaction, and reduced turnover rates.

Q: What is the relationship between leadership style and organizational commitment?

A: The study found that leadership style has a significant influence on organizational commitment. Effective leadership can increase employee commitment to the organization. A good leadership style, such as transformational leadership that drives participation and collaboration, is proven to have a positive impact on employee commitment.

Q: What is the role of work environment in organizational commitment?

A: Although the work environment does not have a significant individual impact on organizational commitment, it still has an important role in creating a comfortable and productive work atmosphere. Management should not only focus on leadership styles but also pay attention to aspects of the physical and non-physical environment that can support employee performance.

Q: What are the implications of this study for organizations?

A: The study provides important insights for organizations in designing strategies to increase organizational commitment among employees. Organizations should focus on developing a transformational leadership style, improving the work environment, and providing training and development opportunities to improve leadership skills and enhance employee performance.

Q: What are the limitations of this study?

A: This study has several limitations that should be acknowledged. The sample size was relatively small, which may limit the generalizability of the findings. The study only focused on PT. PLN UP3 Medan, which may not be representative of other organizations. Finally, the study only analyzed the effect of leadership style and work environment on organizational commitment, which may not be the only factors that influence employee commitment.

Q: What are the future research directions?

A: Future research can explore other variables that may have an impact on organizational commitment, such as employee engagement, job satisfaction, and organizational culture. Additionally, research can be conducted to examine the effect of leadership style and work environment on other outcomes, such as employee performance and job turnover.

Q: How can organizations measure organizational commitment?

A: Organizational commitment can be measured using various methods, such as surveys, questionnaires, and performance metrics. Organizations can use tools such as the Organizational Commitment Questionnaire (OCQ) or the Job Satisfaction Survey (JSS) to measure employee commitment.

Q: What are the benefits of increasing organizational commitment?

A: Increasing organizational commitment can lead to numerous benefits, including increased productivity, job satisfaction, and reduced turnover rates. It can also lead to improved employee engagement, motivation, and performance, ultimately contributing to the success of the organization.

Q: How can organizations improve leadership style and work environment?

A: Organizations can improve leadership style and work environment by providing training and development opportunities for leaders, creating a positive and supportive work environment, and encouraging open communication and feedback. They can also conduct regular employee surveys and feedback sessions to identify areas for improvement.

Q: What are the key takeaways from this study?

A: The key takeaways from this study are that leadership style has a significant influence on organizational commitment, and that a good leadership style, such as transformational leadership, can increase employee commitment. Additionally, the study highlights the importance of creating a comfortable and productive work environment to support employee performance and well-being.