Chapter 1 (Leadership Style)

THE RELATIONSHIP BETWEEN THE LEADERSHIP STYLE USE BY THE
LEADERS AND EMPLOYEES SATISFACTION IN GOVERNMENT SECTOR
CHAPTER 1
INTRODUCTION
1.0
BACKGROUND OF THE STUDY
The survival and growth of a company is not only determined from success in
managing finances, marketing and products, but also determined from
success in managing human resources. Currently human resources is
considered as a resource which is important for the organization, because
without qualified human resources, the organization will not be able to
survive in the competition. Managing human resources in the organization is
not easy because it involves various elements in an organization, namely
employees, leadership, as well as the system itself. A mix of these three
things are expected able to create a working environment conducive to both
employees and leaders can carry out his work to the fullest. For employees,
the environment a conducive work is expected to create job satisfaction.
Satisfaction work had considerable influence on the productivity of the

organization both directly or indirectly. Dissatisfaction is the starting point of
problems which appeared in organizations such as absenteeism, conflict
manager-worker and employee turnover. From the side of the workers,
dissatisfaction
employment
can
and
lead
falling
to
decreased
labor
to
see
motivation,
both
morale
qualitative
as
declining
well
as
quantitatively. Changes in organizational environment that is increasingly

complex and competitive, requires every company and organization to be
more responsive in order able to survive and continue to grow. To support
organizational change such, it is necessary to change the individual. The
process of aligning organizational change by individual change is not easy.
Leader as a role model in the organization, so the change should start from
level the top is the leader himself.
Therefore, organizations require reformist leaders were able to become the

driving force encouraging organizational change. Until now, the leadership is
still a topic of interest for assessed and observed, because most often
observed but is a phenomenon
the least understood. The phenomenon of leadership styles in Indonesia
became an interesting issue and a major influence in political life and state.
In the business world, leadership style strongly influence running of the
organization and the organization's survival. The role of leadership strategic
importance in an organization as one of the determinants success in

achieving the mission, vision and goals of an organization.
Thus The challenge in developing a clear organizational strategy primarily

rests on the one hand and the organization depends on leadership (Porter,
1996: in Sunarsih, 2001). So important is the role of leadership in an
organization becomes the focus of interest to researchers in the field of
organizational behavior. Bass (1990) stated that the quality of a leader is
often regarded as The most important factors that determine the success or
failure of the organization .. Schein (1992), Nahavandi & Malekzadeh (1993)
and Kouzes & Posner (1987) also stated that the leadership has a major
influence on the success of the organization. Porter (1996) in Sunarsih
(2001). Green Berg and Baron (2000: 444) in Sunarsih (2001) stated that the
leadership a key element in an organization's effectiveness. Along with the
development of information technology is growing fast and the Indonesian
economy is less stable, this could be a source, organizational constraints but
can also be a source of profit organization.
Effective leadership can help organizations to survive in uncertainties in the

future (Katz and Khan 1978; Koh et al. 1995; Mowday et al. 1982). An
effective leader must respond to change, able to analyze the strengths and
weaknesses of resources so as to maximize its human and organizational
performance solve the problem appropriately. The effective leader capable
3
influencing
followers
to
have
greater
optimism,
confidence,
and
commitment to the goals and mission of the organization (Gary Yukl, 1994).
This brings the consequence that every leader is obliged to give serious
attention in developing, moving and direct all the potential employees in
their environment in order to bring stability to the organization and
improving productivity-oriented the objectives of the organization.
Modern leadership model as transformational leadership plays an important

role
for
the
organization.
Bass
(1985)
in
Sunarsih
(2001)
defines
transformational leadership as a leader have the power to influence

subordinates in certain ways. Subordinates feel trust, admiration, loyalty and
respect for his superiors so subordinates are motivated to do more than what
is usual done and hoped. Jung and Avolio (1999) in Sunarsih (2001)
also stated that transformational leadership includes the development a
closer relationship between the leader and his followers, not just just an
agreement but rather is based on trust and commitment. Transformational
leadership in principle to motivate
subordinates to do better than what it used to do, in other words can
increase the trust or confidence of subordinates who would effect on
performance improvement.
Leadership is the ability to influence others to achieve goals with enthusiasm

(David, Keith, 1985). A leader must able to influence his subordinates to act
4
in accordance with the vision, mission and objectives of the company. The
leader must be able to provide insights, pride, and fostering respect and
trust from subordinates. The effective leader is a leader who recognizes
kekuatankekuatan important contained in the individual. Every individual has
needs and desires are different. Every individual has a level Different skills
anyway. Leaders must be flexible in understanding all the potential of
individuals and the various problems that faced by the individual. By doing
this approach, leaders can apply all the rules and policies of the organization
and bestow duties and responsibilities properly. This is in line with efforts to
foster organizational commitment of the employees themselves. so that
leaders in turn can increase employee satisfaction in his work as well can
improve employee performance more effectively.
Generally, employees are satisfied with the job is likely to be has a peak
performance. Miller et.al., (1991) states that force leadership positively
related to job satisfaction of the employees. Results of research Gruenberg
(1980) found that the relationship familiar and help each other with
coworkers and supervisors are is very important and has a strong
relationship with job satisfaction and no relation to the state of the workplace
and type of work. Path-Goal Theory (Evans, 1970; House, 1971; House &
Mitchell, 1974 in Yulk, 1989).
1.2
STATEMENT OF THE PROBLEM
Based on the background of the problem, we know that the problem of

human resources in the organization is basically a complex issue because it
involves individual issues. Every individual needs and desires are different,
not many people who get satisfaction on compensation and rewards they
expect, not many people have the opportunity to express themselves and
feel the freedom of control while working. The problems of individuals in an
organization is what should be the concern of a leader. The effective leader is
a leader who recognizes the important powers contained in an individual or
group. Flexibility leader in its approach to individual problems can later be
the basis for optimizing the performance and design systems better
organization
1.3
PURPOSE OF THE STUDY
The purpose of this study was to determine the relationship between the
leadership style and employees satisfaction in government sector. By
knowing the relationship, this study will assist any government sector in
tackling problems of both individuals and groups that can later be used by
the
leadership
in
implementing
policies
and
regulations,
maintain
employment stability and to improve the organization's services.
1.4
RESEARCH QUESTION
1.6
SIGNIFICANCE OF THE STUDY
The benefits of this research are as follows:
The results of this study are expected to provide input to the management of
PT. Yudhistira Ghalia Indonesia Yogyakarta Area in doing the right strategy to
improve performance and job satisfaction of employees, especially by using
the style of leadership and creating the right organizational commitment. 2.
The results of this study are expected to furnish materials further research in
order to increase the academic repertoire that is useful for the development
of science, particularly in the field of Human Resource Management.
1.7
SCOPE AND LIMITATIONS OF THE STUDY
Limitation of problem in this research is to complain only to the

leadership style of the company's main leader Garang Tbk PT
WAREHOUSE Pamekasan branch. Which will be analyzed by the
authors through the employees of PT Gudang Garam Tbk itself.
1.8
DEFINITION OF TERMS
1.8.1
Leadership Style
Leadership plays a very important in management organization.

Leadership humans need for their limitations particular in human
beings. From this arises the need for lead and be led. Leadership is
defined in individual characteristics, habits, how to influence others,
interactions, positions in organizations of and perceptions about the
influence legitimate. Leadership is the ability to influencing others
to achieve goals with enthusiasm (David Keith, 1985). According
Veitzhal Rival (2004), leadership is a process of influencing or an
example to their followers through the communication process in
7
efforts to achieve organizational goals. According to Achmad Suyuti

(2001) is with leadership is the process of directing, guiding and
influencing thoughts, feelings, actions and behavior of others to be
moved in the direction specific purpose.
Leadership style is basically implies as a the embodiment of a
leader's behavior regarding his ability in the lead. The embodiment
typically form a pattern or shape certain. Understanding such
leadership style is in accordance with the opinion
submitted by Davis and Newstrom (1995) which states that the
pattern
overall leader act as perceived or referred by
subordinate. Leadership styles representing philosophy, skills, and
attitude of leaders
in politics. Leadership style is a pattern of behavior designed to
integrating organizational goals to individual goals to achieve goals
specific (Heidjrachman and Husnan, 2002: 224). Meanwhile,
according to Tjiptono
(2001: 161), the style of leadership is a leader in the means used
interacting with subordinates. Another opinion says that the force
leadership is a pattern of behavior (words and actions) of
a leader who is perceived by others (Hersey, 2004: 29).
1.8.2 Employees Satisfaction
Activities of human life are diverse and one of the forms of all
activity there is work. Work has a sense of undertaking a task
which ended with the fruit of the work that can be enjoyed by
humans
concerned (Moh. As'ad.1987: 45). This was driven by the human
desire to
8
meet their needs to be met.

Job satisfaction is a psychological atmosphere of pleasant feelings
or unpleasant towards their work (Davis, Keith, 1985).
Meanwhile Porter and Lawler in Bavendam, J. (2000) explains that
job satisfaction is unidimensional building, where a person has a
general satisfaction or dissatisfaction with the job. Vroom as
cited by Ahmad, M.A. Roshidi (1999) defined job satisfaction as
a reference from a person's effective orientation on the role of their
employees
the position he held at this time. A positive attitude toward the job
conception can be expressed as job satisfaction and negative
attitudes towards
the same job with dissatisfaction. This definition has received
support from
Smith and Kendall (1963), which explains that the job satisfaction
as feeling
one's employees about the job. Simply put, job satisfaction can
is defined as what makes people want and please
work. What makes them happy in her job or out of
his work, according to Robin in Siahaan, E.E.
In excerpts Moh. As'ad contained in the book Industrial Psychology
(2000: 104), Joseph Tiffin define job satisfaction is the attitude of
employees
to jobs, the employment situation, cooperation between
management and fellow employees
and M.L Blum define job satisfaction is an attitude common
as a result of various special properties of the individual against the
work factor, characteristic
9
individual and social relations of individuals beyond the work itself.

Susilo Martoyo
(1990) states that job satisfaction is an emotional state employees
which occurs or does not occur the meeting point between the
remuneration of employees of
Companies or organizations with a level of remuneration which
values are desired
for those employees. While Edison (2002) identify the source of job
satisfaction consist of
challenging work, appropriate rewards, conditions / working
environment
support, and coworker support. Indra, Hary in research
states that the factors affecting employee satisfaction in
significant are: factors related to employment, working conditions,
with co-workers, with supervision, with a promotion and salary.
Smith, Kendal and Hulin in Bavendam, J. (2000) revealed that
job satisfaction is multidimensional in which a person feels more or
less
satisfied with his work, his supervisor, the workplace and so on.
Porter
and Lawler as quoted by Bavendam, J. (2000) has made a diagram
job satisfaction that describes job satisfaction as an emotional
response
people over working conditions. Job satisfaction is multidimensional
it can represent the attitudes of job satisfaction overall (general
satisfaction)
and refers to a part of someone's job. This means that if the general
reflecting the very high satisfaction but can only someone would
feel
10
not satisfied with one or a few aspects of it like a holiday schedule

(Davis, Keith. 1985). The consequences of job satisfaction can be
increased or
declining work performance of employees, turnover (turnover),
absenteeism,
or theft (Davis, Keith, 1985).
1.8.3 Government Sector

1.9
SUMMARY
REFERENCES
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THE RELATIONSHIP BETWEEN THE LEADERSHIP STYLE USE BY THE

LEADERS AND EMPLOYEES SATISFACTION IN GOVERNMENT SECTOR

BACKGROUND OF THE STUDY

Satisfaction work had considerable influence on the productivity of the

quantitatively. Changes in organizational environment that is increasingly

Therefore, organizations require reformist leaders were able to become the

importance in an organization as one of the determinants success in

Thus The challenge in developing a clear organizational strategy primarily

Effective leadership can help organizations to survive in uncertainties in the

Modern leadership model as transformational leadership plays an important

transformational leadership as a leader have the power to influence

Leadership is the ability to influence others to achieve goals with enthusiasm

STATEMENT OF THE PROBLEM

Based on the background of the problem, we know that the problem of

PURPOSE OF THE STUDY

employment stability and to improve the organization's services.

SIGNIFICANCE OF THE STUDY

The benefits of this research are as follows:

SCOPE AND LIMITATIONS OF THE STUDY

Limitation of problem in this research is to complain only to the

Leadership plays a very important in management organization.

efforts to achieve organizational goals. According to Achmad Suyuti

meet their needs to be met.

individual and social relations of individuals beyond the work itself.

not satisfied with one or a few aspects of it like a holiday schedule

1.8.3 Government Sector

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