Abstract

Analyzing the effect of leadership and work environment on employee job satisfaction, the influence of leadership and work environment on employee performance then the effect of job satisfaction on employee performance and the role of job satisfaction in mediating the influence of leadership on employee performance is the aim of this research. This type of research is quantitative research with a sample of 100 respondents who are employees of CV. Akemi Bali Craft in Klungkung with the total sampling method. The data analysis technique used is Partial Least Square (PLS). The results of this study, leadership and work environment have a positive effect on job satisfaction, leadership and work environment have a positive effect on employee performance, and job satisfaction has a negative and insignificant effect on employee performance. The mediating role of job satisfaction in the relationship between leadership and performance shows that the indirect relationship is not significant while the direct relationship is also significant, so job satisfaction is not a mediation between leadership and performance. This means that job satisfaction is not able to explain why leadership affects employee performance. That to obtain maximum performance requires good leadership in order to maximize the performance of its employees. Then the mediating role of job satisfaction on the relationship between the work environment and performance shows that the indirect relationship is not significant while the direct relationship is also significant, so job satisfaction is not a mediation between the work environment and performance. This means that job satisfaction is not able to explain why the work environment affects employee performance. That in order to obtain maximum performance, a good work environment is needed in order to maximize the performance of its employees.

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