BUSINESS COMMUNICATION

Leadership Style and How to Affect Individual and Group

Behavior and Performance

COMPILED BY :
1. M. REZA RISHADI 11187000317
2. ANANDA AFRILIA 11187000318
3. MYCHAEL 11187000380
4. RENATE VELLA 11157000718
5. MUTI CAROLINA 11150000324

SEKOLAH TINGGI ILMU EKONOMI INDONESIA

(STEI)
TABLE OF CONTENT
COVER PAGE ..................................................................................................................... i
TABLE OF CONTENTS ....................................................................................................ii

CHAPTER I INTRODUCTION
1.1 Problem Background ...................................................................................................1
1.2 Problem Identification ...................................................................................................1
1.3 Problem Limitation ...................................................................................................1

CHAPTER II DISCUSSION
2.1 Definition of Leadership and Kinds of Leadership Styles ............................................... 2
2.2 Basic Effective Leadership .............................................................................................. 4
2.3 Definition of Performance ............................................................................................... 6
2.4 Effect of Leadership Style on Employee Performance .................................................... 7
2.5 Job satisfaction ....................................................................................................... 8
2.6 Factors Affecting Job Satisfaction ................................................................................... 9
2.7 Effect of leadership on job satisfaction ............................................................................ 9
2.8 Strategy of Leaders in Improving Job Performance and Satisfaction.............................. 11

REFERENCES ..................................................................................................................... 14
 CHAPTER I

INTRODUCTION

1.1 Problem Background

In a company or government organization, success or failure in the implementation of

duties and operations, influenced by leadership and supported by adequate organizational
capacity, the implementation of good governance will be realized, whereas leadership
weakness is one of the causes of organizational performance in Indonesia. Leadership can be
said as a way of a leader in directing, encouraging and regulating all the elements in a group
or organization to achieve a desired organizational goal so as to produce employee
performance means the achievement of the work of a person or employee in realizing the
goals of the organization. In addition to leadership, in a company also supported by
employees who have good performance so that the company's goals can be implemented.

Employees and leaders have a very large contribution to the company, because
without both companies will not run. Because the leader must be able to place his role as the
head of all fields in the company so that it can arrange the employees to work well and also
be able to motivate employees.

1.2 Problem Identification

1. Leadership has the biggest influence on employee performance in company

2. The Strategy carried out by a leader on employee performance is very influential on
the company and has an effect on job satisfaction

1.3 Problem Limitation

In compiling this paper the author limits the problems discussed according to those in
problem idrntification, namely :

1. How big is the influence of performance leadership and employee job satisfaction
2. What is the strategy of a leader to improve employee performance
 CHAPTER II

DISCUSSION

2.1 Definition of Leadership and Kinds of Leadership Styles

Leadership is the applied science of the social sciences, because its principles and
formulations are expected to bring benefits to human welfare. There are many meanings
expressed by experts according to their respective perspectives, these definitions show some
similarities. Understanding of Leadership According to Experts: According to Tead; Terry;
Hoyt (in Kartono, 2003) Definition of Leadership, namely activity or art influences other
people to be willing to cooperate which is based on the person's ability to guide others in
achieving the desired goals of the group.

According to Young (in Kartono, 2003) Definition of Leadership is a form of

domination that is based on personal abilities that are able to encourage or invite others to do
something based on acceptance by the group, and have special expertise appropriate for
special situations. From some definitions above, it can be concluded that leadership is the
ability to influence other people, subordinates or groups, the ability to direct subordinate or
group behavior, have special abilities or expertise in the field desired by the group, to achieve
organizational or group goals

Kinds of Leadership Styles:

1. Authoritarian / Authoritarian Leadership Style

Is a style of leader who focuses all decisions and policies taken from himself in full. All
division of tasks and responsibilities is held by the authoritarian leader, while the
subordinates only carry out the tasks that have been given.

2. Democratic / Democratic leadership style

Democratic leadership style is a style of leader who gives broad authority to subordinates.
Every problem always involves subordinates as a whole team. In the democratic leadership
style the leader provides a lot of information about the duties and responsibilities of his
subordinates.

3. Charismatic Leadership Style

 The advantage of this charismatic leadership style is being able to attract people. They
were fascinated by the uplifting way of speaking. Usually leaders with this personality
style are visionary. They really like change and challenges.

4. Diplomatic Leadership Style

The strength of this diplomatic leadership style is in the placement of its perspective.
Many people often see from one side, namely the side of their benefit. The rest, from the
side of the opponent's advantage. Only this leader with a white personality can see both
sides, clearly! What benefits him, and also benefits his opponent.

5. Authoritarian Leadership Style

The strength of this authoritarian leadership model is in its achievement. There is not a
single wall capable of blocking this leader's step. When he decides on a goal, it is a fixed
price, there is no reason, there is a result. The steps are calculated and systematic.

6. Moral Leadership Style

The advantages of this style of leadership are generally they are warm and polite to
everyone. They have high empathy for the problems of their subordinates, are also patient,
generous All forms of virtue are in this leader. People who come because of their warmth
despite all their shortcomings. The weakness of leadership like this is his emotions. The
average person like this is very unstable, sometimes it can look sad and terrible,
sometimes it can be very fun and friendly. If I become a leader, I would prefer a
democratic leadership style. Because through this leadership style all problems can be
solved by cooperation between superiors and subordinates. So that the relationship
between superiors and subordinates can be well established.

Leadership takes place in everyday human life. Leadership as a process can take place
inside and outside an organization. Effective leadership is a dynamic process, because it takes
place in an organizational environment as a system of cooperation between a number of
people to achieve certain goals, which are also dynamic.

Leadership is a human problem, because those who lead and who are led are human, who
have various limitations. This completeness cannot be surpassed by humans, which requires
that leadership be carried out to foster and develop led leadership. The process can be
manipulated in regeneration activities, which can be a means to continuously improve
leadership quality, because leadership cannot be carried out merely as a routine activity.
Effective leadership as mentioned above is only realized if it is able to respect human rights,
although it will always confront leadership in various conflicts. Therefore effective leadership
must be able to resolve every conflict, as part of a dynamic process.

2.2 Basic Effective Leadership

1. Determination of Goals
A leader must ensure from the start that all team members understand the aims and
objectives of the organization. What the organization's vision and mission must be
internalized in each member. This is one of the reasons why many of us find the corporate
office walls with a picture that says the company's Vision, Mission and Quality Policy.
Because the top management wants all those involved in the organization to know the
direction and purpose of the organization. The team will not lose direction in spurring the
wheels of the organization with the phase of determining this goal at the beginning. This is
the fundamental phase in the organization, and effective leaders are accustomed to
implementing it.

2. Communication
All policies, decisions, information or news made by top management regarding the
company's goodness must be well communicated to all team members. Many media can
be used to convey it. Ordinary leaders in communicating something to their team must be
used to using media e-mail, notes, official memos, chat groups, or other internal
communication tools. And for effective leaders, they are not enough. There are many
reasons for effective leaders, why is that media not enough. One of them is, not all
employees in the team want to read. Also reading, not necessarily all get the same
understanding. Therefore effective leaders will make communication methods that are
more 'intimate'. Man-to-man communication. He will meet the team directly, and make
sure each team member understands what he communicates.

3. Trust
Effective communication is based on the existence of mutual trust between the parties
involved in the communication; in this case between the leader and his subordinates.
Determination of the direction of organizational goals has been made, then communicated
and the communication is built on trust. How can subordinates accept and follow boss
instructions if their subordinates do not 'trust' the leader. This principle is very well
understood by effective leaders.
4. Accountability (Accountability)
The fourth basis is accountability or accountability. Many leaders have finally failed to
carry out several projects because of neglecting this basis. This is not intended to find out
who is guilty of organizational failure, but is intended to hold people accountable for being
involved. This principle raises the rules of the check-list; monitoring.

All employees or subordinates feel supervised so that every time they are encouraged to
give their best. Even if they are 'able to' feel unattended, their performance can still
prioritize the best because they will also be responsible for their work to their supervisor at
the end of the job / project. One of the successes of a company is determined by the
presence of highly dedicated employees and leaders for the progress and achievements of
the company. A leader must have a leadership spirit can influence the performance of
employees to work together based on the ability of employees to guide in order to achieve
the expected goals for all members within the company. The role of a leader is important
to achieve the desired organizational goals by improving employee performance in
carrying out their work.

Employee performance is the result of work that can be achieved by a person or group
of people in an organization according to their respective authority and responsibility in
order to realize organizational goals. According to Kerlinger and Padhazur (2002),
leadership factors have a very important role in improving employee performance because
effective leadership gives direction to the efforts of all workers in achieving organizational
goals. A leader can improve employee performance by evaluating employee performance.

Employee performance is the process of an organization evaluating or evaluating

employee work. If the performance appraisal is carried out well, orderly, and correctly, it
can help increase work motivation while increasing the loyalty of the members of the
organization in it, and if this happens it will benefit the organization itself. Therefore
performance appraisal needs to be done formally with the criteria set by the organization
objectively. The effects of this performance assessment are:
a. Encourage people or employees to behave positively or improve their actions that are
subpar.
b. As an assessment material for management whether the employee has worked well.
c. Providing a strong foundation for making organizational improvement policies.
2.3 Definition of Performance

Performance is the level of achievement of results or implementation of certain tasks.

In the context of human resource development the performance of an employee in a company
is needed to achieve work performance for the employees themselves and also for the success
of the company. The term performance comes from job performance or actual performance
(work performance or actual achievement achieved by someone), or also the work results in
the quality and quantity that an employee wants to achieve in carrying out his duties in
accordance with the responsibilities given to him. (Mangkunegara 2007: 67).

Based on the above definition that performance is a strategic concept in order to

establish cooperative relations between management and employees to achieve good
performance, the most dominant element is human resources, even though planning has been
arranged well and neatly but if people or personnel those who implement it are not qualified
by not having a high morale, then the plan that has been prepared will be in vain.
Performance is organizational behavior that is directly related to the production of goods or
the delivery of services. Information about organizational performance is a very important
thing to use to evaluate whether the performance process carried out by the organization has
been in line with the expected goals or not. However, in reality, there are many organizations
that lack or even rarely have information about performance in their organizations.

Performance as the results of the function of work / activity of a person or group in an

organization that is influenced by various factors to achieve organizational goals in a certain
period of time (Tika, 2006). Whereas according to Rivai and Basri (2005) performance is the
willingness of a person or group of people to do an activity and perfect it according to
responsibility with the results as expected. According to Bambang Guritno and Waridin
(2005) performance is a comparison of work results achieved by employees with
predetermined standards. While according to Judge (2006) defines performance as the work
achieved by individuals who are adjusted to the role or task of the individual in a company
for a certain period of time, which is associated with a measure of value or certain standards
of the company where the individual works.

Performance is a comparison of the results of work achieved by employees with

predetermined standards (Masrukhin and Waridin, 2004). Based on the notion of
performance from several opinions above, performance is a comparison of the results of work
achieved by employees with predetermined standards. Performance also means the results
achieved by someone, both quantity and quality in an organization in accordance with the
responsibilities given to him. Tika (2006) suggests that there are 4 (four) elements found in
performance, namely:
a) Job function results
b) Factors that influence employee performance
c) Achievement of organizational goals
d) Specified time period

According to Rivai and Basri (2005) performance is basically determined by three

things, namely Ability, Desire, and Environment. Rivai and Basri (2005) also mention four
aspects of performance, namely Ability, Acceptance of company goals, Level of goals
achieved, Interactions between goals and capabilities of employees in the company. Then the
performance goals according to Rivai and Basri (2005):
a) Proficiency of the ability of new assignments is intended to improve the results of
performance and activities.
b) Proficiency of new knowledge which will help employees with complex problem solving
activities to make decisions on assignments.
c) Proficiency or improvement in attitude towards coworkers with a performance activity.
d) Target performance improvement activities.
e) Improvements in quality or production.
f) Repairs in time or delivery.

Yuwalliatin (2006) says that performance is measured by instruments developed in

studies that are incorporated into performance measures in general then translated into
fundamental behavioral assessments, including: quantity of work, quality of work, knowledge
of work, opinions or statements delivered, planning of activities.

2.4 Effect of Leadership Style on Employee Performance

The leadership style basically emphasizes respecting individual goals so that later
individuals will have confidence that actual performance will exceed their performance
expectations. A leader must implement a leadership style to manage his subordinates, because
a leader will greatly influence the success of the organization in achieving its goals (Waridin
and Bambang Guritno, 2005). Suranta (2002) and Tampubolon (2007) state that leadership
factors also influence employee performance. From the opinion of the experts it can be
concluded that there is a close relationship and influence between leadership factors and
employee performance factors.

2.5 Job satisfaction

Job satisfaction at a certain level can prevent employees from looking for work in
other companies. If employees at the company get satisfaction, employees tend to stay with
the company even though not all aspects that affect job satisfaction are fulfilled. Employees
who obtain satisfaction from their company will have a sense of attachment or greater
commitment to the company than employees who are not satisfied. Thus experts provide
several definitions of job satisfaction.

Job satisfaction will encourage employees to perform better. Better achievement will
lead to higher economic and psychological rewards. If these benefits are deemed appropriate
and fair, greater satisfaction arises because employees feel that they receive rewards
according to their achievements. Conversely, if rewards are deemed not in accordance with
the level of achievement, there tends to be uncertainty.

Job satisfaction is enjoyed in work, outside work and a combination of in and outside
work. Job satisfaction in work is the job satisfaction enjoyed in the work by obtaining work
praise, placement, treatment, equipment and a good working environment. Employees who
prefer to enjoy job satisfaction in work will prioritize their work rather than repay the service
even though the service is important. Satisfaction outside of work is employee job
satisfaction enjoyed outside of work with the amount of remuneration that will be received
from the work, so that he can buy his needs.

Employees who prefer to enjoy their satisfaction outside of work are more concerned
with remuneration than in carrying out their duties. Job satisfaction a combination of in and
outside work is job satisfaction which is reflected by a balanced emotional attitude between
reciprocity of service and the implementation of work. Employees who enjoy job satisfaction
a combination of both inside and outside the work will feel satisfied if the work and response
results are perceived as fair and appropriate. The absolute measure of satisfaction does not
exist because each individual employee has a different standard of satisfaction. The indicator
of job satisfaction is only measured by discipline, work morale, turnover of large employees,
the job satisfaction of employees in the company is reduced.
2.6 Factors Affecting Job Satisfaction

Job satisfaction is a problem that is quite interesting and important to be investigated

because of its proven benefits both for the benefit of employees, companies or organizations
and communities. Many factors influence employee job satisfaction. Factors that influence
job satisfaction according to Hasibuan (2005: 203) as follows:

a) Fair and decent remuneration

b) The right placement according to expertise
c) The light weight of the job
d) The atmosphere and work environment
e) Equipment that runs the work
f) The attitude of the leadership in his leadership
g) The nature of the work is monotonous or not

2.7 Effect of leadership on job satisfaction

Employee job satisfaction influences the leadership attitude in his leadership. Participatory
leadership provides job satisfaction for employees because employees actively participate in
giving their opinions to determine company policy. Authoritarian leadership results in low
employee job satisfaction. Factors that influence job satisfaction according to Effendy (2000:
92) as follows:

1) Adequate wages
Adequate wages for the needs are the desires of every employee. To achieve this,
there are employees who encourage themselves to work or increase their knowledge
by taking courses.
2) Fair treatment
Every employee wants to be treated fairly, not only in relation to wages, but also in
other matters, to be able to create the same perception between superiors and
subordinates about the true meaning of justice, so open communication must be held
between them.
3) Peace of work
Every employee wants peace, not only the relationship with work, but also the welfare
of his family.
4) Feelings of recognition
 Every employee feels the feeling of being recognized as a valuable employee and as a
respected member of the group. This relates to activities outside work tasks, such as:
sports, arts and others.
5) Award for work results

Someone employee will feel satisfied in working if he is placed in a position and class
that is in accordance with his wishes, but in this case the management must also see the
ability of the employee to be positive. Besides that the company must also provide fair and
fair financial and social guarantees. Such guarantees are very important for employees
because they work not for themselves, but also to provide a decent life to their families.

according to As’ad (2003: 114), the factors that influence job satisfaction:

1. Individual factors, including age, character and expectations.

2. Social factors, including family relations, community views, recreation opportunities,
political freedom, activities of workers' unions and community relations.
3. The main factors in work, including wages / salaries, supervision, peace of mind,
work conditions and opportunities for advancement.

In addition, there is also an appreciation of the skills of social relations in the work, the
accuracy in resolving conflicts between humans, feeling treated fairly, both concerning
personal and task. Other factors that influence job satisfaction according to As'ad (2003: 114)
are:

1. Opportunities to advance, namely the presence or absence of opportunities to gain

experience and increase ability during work.
2. Security, often referred to as supporting job satisfaction for both male and female
employees.
3. Salaries / wages cause more dissatisfaction and rarely people express job
satisfaction with the amount of money earned.
4. A good company and management is capable of providing stable working
conditions and conditions.
5. Supervision or supervision, for employees, supervisors are considered as father
figures and superiors. Poor supervision can result in employee absenteeism and
turnover.
6. Intrinsic factors of work. Attributes that exist on the job require certain skills.
Difficult easy and pride of duty will increase or reduce customer satisfaction.
 7. Working conditions, including the condition of the place, ventilation, canteen and
parking lot.
8. Social aspects of work, is one attitude that is difficult to describe but is seen as a
supporting factor for job satisfaction.
9. Communication, between employees and management is used as an excuse to like
his position. In this case the willingness of the employer to want to hear,
understand and acknowledge the opinions or achievements of the employees is
very instrumental in generating satisfaction with work.
10. Other facilities, such as hospitals, leave, pension funds or housing are the standard
of a position and if it can be fulfilled it will generate job satisfaction.

2.8 Strategy of Leaders in Improving Job Performance and Satisfaction

In a company a leader has responsibility for the performance of his employees, the
goal of a company is said to be successful if the employee's performance of the company has
good quality, it will produce job satisfaction for the employee. Here is the task of a leader to
improve the performance of the employee. The strategies that must be carried out are:

1. Giving Motivation
Motivation is a skill in directing employees to organizational goals to want to work and
try so that the desires of employees and organizational goals can be achieved.
Motivation for someone to do a job because of a life necessity that must be fulfilled.
This need can be in the form of economic needs, namely to obtain money, while non-
economic needs can be interpreted as the need to gain more appreciation and desire.
With all these needs, a person is required to be more active and active in work, to
achieve this there is a need to provide motivation from a leader to his employees in
doing work, because it can encourage someone to work and always willing to continue
his business. Therefore if employees who have high work motivation usually have high
performance too. Suharto and Cahyono (2005) and Judge (2006) mention that there is
one factor that influences performance, namely motivation factor, where motivation is a
condition that moves a person to try to achieve goals or achieve desired results. Rivai
(2004) shows that the stronger the work motivation, the higher the employee's
performance. This means that every increase in employee work motivation will provide
a very significant increase for improving employee performance in carrying out their
 work. Motivation is a factor that influences the enthusiasm and enthusiasm of work of
employees to actively participate in the work process. The most famous motivation
theory is Abraham Maslow's hierarchy of needs expressed. The hypothesis says that in
all humans there are five levels of need (Maslow, in Robbins, 2006), which are
indicators, namely:
a. Physiological: include hunger, thirst, protection (clothing and housing), sex, and
other physical needs.
b. Security: including safety and protection against physical and emotional harm.
c. Social: includes love, belonging, good acceptance, and friendship.
d. Awards: include self-respect factors such as self-esteem, autonomy, and
achievement; and external respect factors such as status, recognition and attention.
e. Self-actualization: the urge to be someone / something according to his ambition
which includes growth, achievement of potential, and fulfillment of self-needs.
2. Improve work discipline
According to Simamora (1997) discipline is a procedure that corrects or punishes
subordinates for violating regulations or procedures. Work discipline is a tool used by
managers to communicate with employees so that they are willing to change a behavior
and as an effort to increase one's awareness and willingness to comply with all
applicable company regulations and social norms (Rivai, 2004). Hasibuan (2004)
argues that discipline is the awareness and willingness of someone to comply with all
applicable company regulations and social norms. Based on the above understanding it
can be concluded that work discipline is an attitude, behavior, and action that is in
accordance with both written and unwritten rules, and if it violates there will be
sanctions for violations. Budi Setiyawan and Waridin (2006) in Mohammad (2005),
there are 5 factors in the assessment of work discipline on service delivery to the
community, namely:
a. The quality of work discipline, including coming and returning on time, utilizing
time for carrying out tasks and the ability to develop self potential based on positive
motivation.
b. Job quantity includes volume of output and contribution. Compensation required
includes: advice, direction or improvement.
c. Location of work place or residence.
d. Conservation includes respect for respect with the courage to always prevent the
occurrence of actions that are contrary to the rules.
 To create a harmonious condition, harmony must be realized between the obligations
and rights of employees. So that it can be concluded that discipline is an attitude of loyalty
and obedience of a person or group of people towards both written and unwritten rules, which
are reflected in the form of behavior and actions. This proves that employee discipline has an
influence on employee performance.
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Siagian, Sondang P, 1979. Peranan Staf dalam Management, Jakarta: Gunung Agung

As’ad, 2003. Kepemimpinan Efektif dalam Perusahaan. Ed2. Liberty. Yogyakarta

Kartono, Kartini, 2003, Pemimpin dan Kepemimpinan, PT. Raja Grafindo Persada, Jakarta

Hasibuan, S.P Malayu, 2005. Manajemen Sumber Daya Manusia. Jakarta : Bumi Aksara

Basri, A.F.M., dan Rivai, V. 2005. Performance Appraisal. Jakarta: PT. Raja. Grafindo
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