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Introduction
PT. Kiyokuni Indonesia is a foreign investment company (Japan) initially engaged in the process of press machines and manufacture of dies. Along with the development of a request from one of its customers, namely, PT. Indonesia Epson Industry, starting in 2004, PT. Kiyokuni Indonesia started to manufacture and assembly of Epson printer products exported all over the world. Printer assembly is done manually (labor intensive) so as to absorb a lot of labor. These conditions create emerging issues related to human resources that are associated with employment such as motivation, leadership and discipline that have an impact on employee performance and ultimately affect the company’s performance.
The company’s performance in the past two years showed a tendency to decline. Some indicators related to the performance of companies such as production, rejected number of products and overtime costs to be incurred have increased, making a negative impact on corporate profits. The company’s overall performance data from 2012 to 2014 can be seen in Table I as follows.
Table I shows the decrease in production in 2013 and 2014. In addition to decreasing rate of production, an increase in overtime costs was also very high, leading to the decrease on company’s overall performance. This was followed by the decreasing level of discipline by employees as shown in Table II.
Looking at the facts, the objectives of this research can be formulated as follows:
to analyze and explain leadership style significantly affecting the performance of employees of PT. Kiyokuni Indonesia;
to analyze and explain motivation significantly affecting the performance of employees of PT. Kiyokuni Indonesia;
to analyze and explain discipline significantly affecting the performance of employees of PT. Kiyokuni Indonesia; and
to analyze and explain leadership style, motivation and discipline simultaneously and significantly affecting the performance of employees of PT. Kiyokuni Indonesia.
Literature review
Leadership style
Leadership style is a set of the features of a leader to influence subordinates so that organizational goals can be achieved (Rivai, 2011). To be a good leader, a leader should be able to choose what kind of leadership style is suitable to be applied in the company to motivate employees as well as to discipline employees in the company.
Dimensions of leadership style in this study are challenge the process,...