Effect Of Leadership Style, Organizational Culture And Standard Operating Procedures (SOP) On The Performance Of The Officers Of The Office Of The Directors Of PT. North Sumatra Plantation

Exploring the Key to Successful Employee Performance: The Role of Leadership Style, Organizational Culture, and SOP at the Office of the Board of Directors of PT. North Sumatra Plantation

In today's fast-paced business environment, organizations are constantly seeking ways to improve employee performance and achieve their goals. One of the most critical factors that influence employee performance is the leadership style, organizational culture, and standard operating procedures (SOP) in place. This study aims to investigate the effect of transformational leadership styles, organizational culture, and SOP on employee performance in the office of the Board of Directors of PT. North Sumatra Plantation.

Methodology

This study used a quantitative approach, with a sample of 50 employees from the office of the Board of Directors of PT. North Sumatra Plantation. A questionnaire was distributed directly to all respondents to collect data on the independent variables, namely transformational leadership style, organizational culture, and SOP, and the dependent variable, employee performance. The data was analyzed using multiple linear regression, with testing statistical hypotheses f and t.

Results

The results of this study showed that the transformational leadership style, organizational culture, and SOPs together had a positive and significant influence on employee performance at PT. North Sumatra Plantation. Furthermore, partial analysis revealed that SOP is the most influential variable on employee performance in the office of the Board of Directors of PT. North Sumatra Plantation, followed by organizational culture and transformational leadership styles.

Discussion

The findings of this study provide valuable insights into the importance of SOP, organizational culture, and transformational leadership styles in improving employee performance. The results suggest that the application of clear and structured SOPs is the main key in improving employee performance. Effective SOPs help build measurable work standards, increase efficiency, and minimize errors.

Moreover, a positive and supportive organizational culture plays an important role in encouraging the enthusiasm and motivation of employee work. Culture that encourages collaboration, open communication, and appreciation for achievement will create a conducive work environment to achieve optimal performance.

Additionally, transformational leadership style that inspires, motivates, and encourages the development of employee potential, is able to create a positive work environment and encourage employees to achieve the best results.

Practical Implications

The results of this study provide practical implications for PT. North Sumatra Plantation to improve the performance of its employees. By understanding the important role of SOP, organizational culture, and transformational leadership styles, PT. North Sumatra plantations can focus on:

Improvement and Application of SOPs

Ensuring that SOPs are comprehensive, easy to understand, and implemented consistently.

Building a Positive Organizational Culture

Promotes organizational values ​​that support performance, such as integrity, collaboration, and innovation.

Improving Leadership Quality

Building a leadership development program that focuses on developing transformational leadership styles.

Conclusion

By implementing the right strategy, PT. North Sumatra plantations can create an optimal work environment and encourage better employee performance, so that it can achieve the targets and objectives of the organization effectively. The findings of this study provide valuable insights into the importance of SOP, organizational culture, and transformational leadership styles in improving employee performance.

Recommendations for Future Research

This study provides a foundation for future research on the effect of leadership style, organizational culture, and SOP on employee performance. Future studies can explore the following research questions:

• How does the implementation of SOP affect employee performance in different industries?
• What are the key factors that influence the development of a positive organizational culture?
• How can transformational leadership style be developed and implemented in organizations?

By exploring these research questions, future studies can provide a deeper understanding of the complex relationships between leadership style, organizational culture, and SOP, and their impact on employee performance.

Limitations of the Study

This study has several limitations that should be acknowledged. Firstly, the sample size of 50 employees may not be representative of the entire organization. Secondly, the study only focused on the office of the Board of Directors of PT. North Sumatra Plantation, and may not be generalizable to other organizations. Finally, the study only used a quantitative approach, and may not capture the nuances of employee performance.

Conclusion

In conclusion, this study provides valuable insights into the effect of transformational leadership styles, organizational culture, and SOP on employee performance in the office of the Board of Directors of PT. North Sumatra Plantation. The findings suggest that SOP, organizational culture, and transformational leadership styles are critical factors that influence employee performance. By understanding the importance of these factors, organizations can develop effective strategies to improve employee performance and achieve their goals.

Q: What is the main finding of this study?

A: The main finding of this study is that the transformational leadership style, organizational culture, and SOPs together have a positive and significant influence on employee performance at PT. North Sumatra Plantation.

Q: What is the most influential variable on employee performance in this study?

A: The most influential variable on employee performance in this study is SOP, followed by organizational culture and transformational leadership styles.

Q: What is the role of SOP in improving employee performance?

A: SOP plays a crucial role in improving employee performance by providing clear and structured work standards, increasing efficiency, and minimizing errors.

Q: How can organizations improve their organizational culture to support employee performance?

A: Organizations can improve their organizational culture by promoting values that support performance, such as integrity, collaboration, and innovation, and by creating a positive and supportive work environment.

Q: What is transformational leadership style, and how can it be developed?

A: Transformational leadership style is a leadership style that inspires, motivates, and encourages the development of employee potential. It can be developed through leadership development programs that focus on developing transformational leadership skills.

Q: How can organizations implement effective SOPs to improve employee performance?

A: Organizations can implement effective SOPs by ensuring that they are comprehensive, easy to understand, and implemented consistently.

Q: What are the practical implications of this study for PT. North Sumatra Plantation?

A: The practical implications of this study for PT. North Sumatra Plantation are to focus on improving and applying SOPs, building a positive organizational culture, and improving leadership quality.

Q: How can organizations measure the effectiveness of their SOPs and organizational culture?

A: Organizations can measure the effectiveness of their SOPs and organizational culture by using metrics such as employee satisfaction, productivity, and performance.

Q: What are the limitations of this study?

A: The limitations of this study are that the sample size is small, the study only focused on the office of the Board of Directors of PT. North Sumatra Plantation, and the study only used a quantitative approach.

Q: What are the recommendations for future research?

A: The recommendations for future research are to explore the effect of leadership style, organizational culture, and SOP on employee performance in different industries, to investigate the key factors that influence the development of a positive organizational culture, and to explore the development of transformational leadership style.

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

A: The implications of this study for organizations are that they should focus on developing effective SOPs, building a positive organizational culture, and improving leadership quality to improve employee performance and achieve their goals.

Q: How can organizations create an optimal work environment to support employee performance?

A: Organizations can create an optimal work environment to support employee performance by providing a positive and supportive work environment, promoting values that support performance, and developing effective SOPs.

Q: What are the benefits of implementing effective SOPs and organizational culture?

A: The benefits of implementing effective SOPs and organizational culture are improved employee performance, increased productivity, and better job satisfaction.

Q: How can organizations measure the return on investment (ROI) of their efforts to improve employee performance?

A: Organizations can measure the ROI of their efforts to improve employee performance by using metrics such as employee satisfaction, productivity, and performance, and by comparing the costs of implementing effective SOPs and organizational culture with the benefits.