Title:
THE EFFECT OF LEADERSHIP EFFECTIVENESS AND WORK ENVIRONMENT ON WORK PRODUCTIVITY AND ITS IMPACT ON PERFORMANCE OF INDUSTRY, TRADE, COOPERATIVE AND SMALL-MEDIUM ENTERPRISES DEPARTMENT OF PIDIE JAYA

Authors:
Azharyadi, Said Musnadi and Hamdi Harmen

Abstract:
This study intends to examine the effect of leadership effectiveness, work environment on work productivity, and its impact on organizational performance. The population was all employees at of the Department of Industry, Trade, Cooperatives, and Small and Medium Enterprises (Disperindagkop) Department of Pidie Jaya Regency, Indonesia, totaling 84 employees. The respondents were also all employees in the Disperindagkop environment because the population is relatively small. The data was measured using a Likert scale and the research model was analyzed using the Partial Least Square (PLS). The results of the descriptive hypotheses test show that the variables of leadership effectiveness, work environment, work productivity, and the performance of the Pidie Jaya Disperindagkopare in good condition. The results of testing the direct path hypothesis are known that leadership effectiveness significantly influences work productivity, work environment significantly influences work productivity, leadership effectiveness significantly influences organizational performance, work environment significantly influences organizational performance, and work productivity significantly influences organizational performance. The results of testing the indirect effect hypothesis (indirect path) show that work productivity partially mediates leadership effectiveness affecting organizational performance, and work productivity partially mediates work environment affecting organizational performance. Thus, the tested organizational performance improvement model can be applied, namely by increasing the effectiveness of the leadership and work environment so that it can affect the increase in work productivity and will ultimately have an impact on organizational performance. For further researchers can develop this model by adding other variables such as work performance and innovation that exist in employees in the organization.