The impact of democratic leadership towards employees' performance at PT Inti Sehat Maju Jaya Medan

Winner, Josephine (2019) The impact of democratic leadership towards employees' performance at PT Inti Sehat Maju Jaya Medan. Bachelor thesis, Universitas Pelita Harapan.

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Abstract

Leadership is a fundamental part of a company, especially in family business. The effect of democratic leadership style on task performance has impact on individual‟s beliefs on their ability to perform a task. The purpose of the research is to analyze how democratic leadership impacts towards employees‟ performance at PT Inti Sehat Maju Jaya. Democratic leadership is type of leadership in which members of the group take a more participative role in the decision-making process. Meanwhile, employees‟ performance is a multi-dimensional construct. It donates what individual has accomplished in the past. This research applied quantitative research design. The data collection was conducted by preliminary interviews and questionnaires. The population of PT. Inti Sehat Maju Jaya is 34 people, which also became the sample through census sampling technique. Questionnaire was used to collect information about communication, leading, risk taking, employees‟ involvement and performance at PT Inti Sehat Maju Jaya. The result of coefficient of correlation was 0.606, which means that the relationship is strong and positive, while determination test result is 36.8%, which means that the practice of democratic leadership has influenced employees‟ performance by 36.8%. Linear analysis result is Y= 30.263 + 0.390X. The result of hypothesis Z-Test has shown that Ha is accepted, means that there is an impact of democratic leadership towards employees‟ performance at PT. Inti Sehat Maju Jaya. Based on the findings, the company is recommended to improve their communication, providing clear explanation, motivation, providing examples, solving unexpected problems, and punctuality in completing tasks.

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