p–ISSN: 2723 - 6609 e-ISSN: 2745-5254
Vol. 5, No. 7 July 2024 http://jist.publikasiindonesia.id/
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3580
Analysis of the Influence of Organizational Culture,
Transformational Leadership Style and Employee
Performance Assessment on Employee Satisfaction at Bio
Farma
Prima Pratama Mulyawan
1*
, Narti Eka Putri
2
Universitas Tanri Abeng, Indonesia
Email:
[email protected]
*Correspondence
ABSTRACT
Keywords: organizational
culture;
transformational
leadership;
performance appraisal;
employee satisfaction.
Bio Farma (Persero) is a state-owned pharmaceutical
company that was established in 1890 as a bacteriology
laboratory by the colonial government of the Dutch East
Indies and has undergone many transformations until it
became Bio Farma (Persero) in 1997. This study aims to
examine the influence of leadership style, organizational
culture, and performance assessment on the satisfaction of
permanent employees at Bio Farma. In this scientific paper,
the influence of employee participation through latent
variables Power Distance Index (FOC1), IDV (FOC2),
Masculinity versus Femininity (FOC3), Uncertainty
Avoidance Index (FOC4), Ideal Influence (FOC5),
Individual Consideration (FOC6), Inspirational Motivation
(FOC7), Intellectual Stimulation (FOC8), Validity (FOC9),
Approval (FOC10), Reliability (FOC11), Objective
(FOC12), Salary (FOC13), Promotion (FOC14), Co-
workers (FOC15), Boss (FOC16), and Employment
(FOC17). The researcher used a Partial Least Square to see
the influence between variables by testing the outer model
as well as the inner model. Penelitian ini dilakukan terhadap
120 responden karyawan Bio Farma. The results of the study
show that the three independent variables had a direct
influence on employee satisfaction (p-value < 0.05),
meanwhile, the simultaneous influence of the three variables
showed no real influence (p-value = 0.639) with a p-value
limit of < 0.5.
Introduction
Bio Farma (Persero) is a state-owned pharmaceutical company that focuses on the
research, development, production, and marketing of biological and pharmaceutical
products throughout the country and around the world. The company was founded in 1890
and has undergone many transformations since then. The company was first established
by the colonial government of the Dutch East Indies in Bandung as a bacteriology
Analysis of the Influence of Organizational Culture, Transformational Leadership Style and
Employee Performance Assessment on Employee Satisfaction at Bio Farma
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3581
laboratory. Then it became a state pharmaceutical company in 1950, and in 1997 it
changed to Bio Farma (Persero).
Bio Farma based on the decision of the Ministry of SOEs is a holding entity or
holding company that controls and manages several subsidiaries engaged in various
sectors related to the business of pharmaceutical and health companies through a decision
from the Ministry of SOEs. Changes that occur in the organizational structure, corporate
governance, and management strategies implemented will affect the leadership style in
the organization because it must adjust to the company's strategy.
With these changes, the decision of Bio Farma's board of directors in 2018 made
the performance management system a central role in performance-based human resource
management. The implementation of the performance management system will be carried
out objectively, transparently and accountably. This encourages Bio Farma to implement
KPI (key performance indicator) based on employee performance assessments and 360-
degree assessments. Evaluation 2 regarding the implementation of performance appraisal
can help identify the potential for further improvement or development of the existing
system and can identify areas that need to be improved or refined to ensure that the
performance appraisal system runs well and provides maximum benefits.
Bio Farma also adheres to the foundation of the core values of SOEs set by the
Ministry of SOEs, namely AKHLAK (an acronym for Amanah, Competent, Harmonious,
Loyal, Adaptive and Collaborative). This core value serves as a guideline for the
behaviour of SOE human resources (HR) to be applied in daily life and form a culture in
SOE companies.
AKHLAK entered its third year in July 2023, affirming the long-term commitment
of the Ministry of SOEs and Bio Farma to apply its values in every aspect of
organizational operations and decision-making. Over the past three years, the
implementation of AKHLAK's core values at Bio Farma has undergone changes that
reflect the organization's culture that continues to evolve towards the ideals of higher
corporate success and integrity.
Significant changes in human resource management at Bio Farma as a background
make Bio Farma a "Leading Life Science Company in APAC and Global". This is in line
with the new vision carried out by Bio Farma. According to (Robbins & Judge, 2018),
satisfied employees tend to be more motivated to achieve organizational goals. So the
success of 3 of performance-based HR management can be indicated by employee
satisfaction and motivation at work.
Employee satisfaction is essential to achieve optimal organizational performance
and productivity in a competitive business environment. Employee satisfaction can have
a positive impact on employee motivation, engagement, loyalty, and retention, which
contribute to a company's long-term success. To maximize employee potential and
contribution, Bio Farma must understand the factors that affect employee satisfaction.
Organizational culture is one of the components that can affect employee
satisfaction levels (Tariq, Yunis, Shoaib, Abdullah, & Khan, 2022). A positive and
inclusive organizational culture consists of norms, values, and beliefs that are shared and
Prima Pratama Mulyawan, Narti Eka Putri
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3582
internalized by all members of the organization. A positive and inclusive organizational
culture can create a harmonious work environment where employees feel valued, and
supported, and have an important role to play in achieving organizational goals. Previous
studies have shown that a strong organizational culture that aligns with workers' values
can increase employee satisfaction (Kumari & Singh, 2018).
Leadership style also plays an important role in generating employee satisfaction.
An effective leadership style can increase motivation in the workplace, provide clear
direction, and provide adequate support. According to research, positive leadership styles,
such as transformative or participatory leadership, can increase employee satisfaction.
(Khantee & Jeerapattanatorn, 2023). On the other hand, an authoritarian or unsupportive
leadership style can cause employees to be less happy.
In addition, employee satisfaction can be affected by performance appraisals. An
objective and fair performance appraisal provides significant feedback and provides
opportunities for improvement. If employees feel their performance assessments are
accurate and objective, they are more likely to feel satisfied with their work. (Pulakos,
Hanson, Arad, & Moye, 2015); (Memon et al., 2020). However, dissatisfaction and
decreased motivation can occur if performance appraisals are perceived as unfair or
inconsistent.
The theoretical assumption is that employee satisfaction can drive the company to
achieve its intended vision. Meanwhile, satisfaction is influenced by performance
appraisals, leadership styles and organizational culture. This is in line with the
implementation of KPIs and 360-degree assessments to measure performance
assessments that lead to employee satisfaction. Leadership style and organizational
culture also need to be used as a benchmark in KPIs and formed in the change phase to
build employee satisfaction Therefore, it is very important to analyze the influence of
employee performance appraisals, organizational culture, and overall leadership style on
Bio Farma's employee satisfaction.
Through this research, it is hoped that a deeper understanding of the influence of
employee performance appraisal, organizational culture, and leadership style on
employee satisfaction at Bio Farma can be obtained. The results of this study are expected
to provide useful insights and recommendations for companies in increasing employee
satisfaction and achieving optimal performance.
Table 1
List of Previous Research
It
Research Title
Writer
Methodology
Research Results
1.
The Influence of
Organizational
Culture and
Organizational
Commitment on
Employee
Performance and
Job Satisfaction
as a Moderating
Paramita E,
E. 2020
quantitative
and qualitative
methods, data
analysis
techniques,
path analysis,
regression
analysis, and
factor analysis.
• Organizational
culture and
organizational
commitment are
positively and
simultaneously
related to
employee
satisfaction.
Analysis of the Influence of Organizational Culture, Transformational Leadership Style and
Employee Performance Assessment on Employee Satisfaction at Bio Farma
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3583
Variable at PT.
Bank Mandiri
(Persero), Tbk.
• Organizational
culture is
positively related
to employee
satisfaction.
2.
The Impact of
Performance
Assessment and
Career
Development on
Job Satisfaction
of Banking
Employees.
Saefullah U
A. 2022
metode
explanatory
survey.
Descriptive
analysis and
verifiable
analysis
• Performance
appraisal has a
positive and
significant effect
on job satisfaction
3.
Determining the
impact of
entrepreneurial
orientation and
organizational
culture on job
satisfaction,
organizational
commitment, and
employee
performance.
Bahadur Ali
Soomro.
2019
Data was
collected
through a
survey
questionnaire.
Using random
sampling
techniques
• Organizational
culture is
influenced by job
satisfaction.
.
4.
Assessment
Analysis
Performance
Against
Satisfaction and
Impact
on Performance
Synopsis.
2020
Descriptive
research with a
quantitative
approach to
questionnaire
tools
• Performance
appraisal has a
nonsignificant
effect on
employee job
satisfaction.
5.
The Role Of
Leadership Styles
On Staffs Job
Satisfaction In
Public
Organizations.
Dirar
AbdelAziz
Al-maaitah.
2021
Quantitative
Approach with
Questionnaire
Tool
• Transformational
leadership style
has a positive
effect on
employee job
satisfaction
Research Methods
The research method used in this study is a quantitative method with a causal
approach. This study uses a closed questionnaire as a data collection instrument and
conducts statistical analysis to determine the causal relationship between the variables
studied, namely organizational culture, leadership style, employee performance
assessment, and employee satisfaction at Bio Farma.
Research Variables
A variable is something that is used as a characteristic, trait or measure that is owned
or obtained by a research unit about a certain concept of meaning, such as age, gender,
education, marital status, occupation, knowledge, income, disease, and so on
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Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3584
(Notoatmodjo, 2005). The variables used in this study can be identified into dependent
variables and independent variables as follows:
Dependent Variables
The dependent variable is a consequential variable or effect variable or this variable
is influenced by an independent variable or an independent variable. (Notoatmodjo, 2005)
This variable is a variable that is measured or observed to determine whether there is a
change or effect caused by a change in an independent variable, in other words, a
dependent variable is a variable whose value depends on other variables in a study. The
dependent variable in this study is employee satisfaction (HOC4).
Independent Variables
Independent variables are risk variables or causes that affect dependent variables
This variable is considered a cause or factor that affects the dependent variable. The
independent variables in this study are organizational culture (HOC1), leadership style
(HOC2), and employee performance assessment (HOC3) because these three variables
are considered factors that can affect employee satisfaction levels.
Population and Sample
Population is the entire object of research or the object to be studied. The population
of this study included all employees of Bio Farma totalling 1305 people, but did not
include employees at the high management level or who had the authority to conduct
assessments. Due to the very large number of samples, sample calculations can be carried
out using the Slovin technique. The Slovin sample formula is used to determine a
representative sample size of a large population and is used for research using the random
sampling method with the following formula:
Where:
= Desired sample size
N = Number of population
e = Allowable error rate (0,01)

 
  Sample
Based on the calculation above, the sample in this study can be obtained from a
total of 119 people and can be rounded to 120 people.
Types and sources of data
This study uses primary and secondary data types. Primary data is "first hand"
information obtained directly from respondents through a questionnaire in the form of a
questionnaire about organizational culture, leadership style, employee performance and
employee satisfaction at Bio Farma. Secondary data is data that has been collected by
Analysis of the Influence of Organizational Culture, Transformational Leadership Style and
Employee Performance Assessment on Employee Satisfaction at Bio Farma
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3585
other parties before and used as a reference to support the analysis and findings of this
study. This secondary data is obtained from Bio Farma or other external parties that
contain studies, company data and others that support this research.
Data Collection Methods
Primary data was obtained directly from respondents through a questionnaire about
organizational culture, leadership style, employee performance and employee satisfaction
at Bio Farma. For data collection techniques, this study will use a questionnaire method
that will be distributed electronically to respondents. The distribution of the electronic
questionnaire will be carried out through the company's email which can be accessed by
respondents.
Data Processing and Analysis Methodology
The analysis in this study was carried out using the most appropriate analysis
method after the data was collected. The use of descriptive statistics is used to describe
the theoretical range, frequency, and percentage of respondent characteristics. The
process of data analysis and processing involves giving and summing the answer weights
for each variable with a Likert scale. Data processing will be carried out using IBM's
SPSS version 23 tool.
Analysis Model
The SEM model contains 2 parts, namely the latent variable model and the
measurement model (outer model). The measurement model is a model between observed
variables that affect latent variables. In the measurement model, each indicator on the
latent variable is tested for validity and reliability, while in the latent variable model, only
the relationship between the latent variable models is seen. The causal relationship in the
latent variable has two variables, namely, the independent variable and the dependent
variable. In the SEM model, the dependent variable is called the endogenous variable and
the independent variable is called the exogenous variable, both of which will be measured
for their feasibility and influence.
The model built in this study is the 2nd-order SEM. The 2nd Order SEM model
goes through two calculation stages, the first stage is the calculation of the model to check
the validity; Reliability; and validity of the First Order Construct (FOC) variables.
Meanwhile, in the second stage of calculation, the score from the FOC is used as an
indicator of the Second Order Construst (HOC). FOC testing against HOC is carried out
to check the outer model, inner model, and assumption check.
Uji Hipotesis
1. Direct Impact Test
The H1, H2, and H3 hypotheses are each a single hypothesis that tests the influence
of variables Organizational Culture, Leadership Style, and Performance Assessment on
Employee Satisfaction. To test a single hypothesis like this, use the T-test if the dependent
variable (Employee Satisfaction) is nominal or ordinal. The Likert scale is used on all
variables including ordinal scales, so this study uses the T-test.
2. Simultaneous Effect Test
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Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3586
The H4 hypothesis is a combined hypothesis that tests the combined influence of
three independent variables (Organizational Culture, Leadership Style, and Performance
Appraisal) on the dependent variable (Employee Satisfaction). The hypothesis test is used
for the combined hypothesis on the SEM model through intervening variable / moderating
variable. The relationship to be seen is the relationship between all independent variables
to the dependent variables.
Results and Discussion
Validity and Reliability Testing
Validity and reliability testing is carried out to ensure that the model is feasible
which is indicated by valid indicators, valid latent variables and reliable. Latent variables
that are valid and reliable can be calculated in the second stage. Testing the validity of
indicators based on factor loading values with a limit of > 0.5 can be declared valid. As
for the reliability of the variables of the indicator through three main values, namely
Cronbach's Alpha value, Composite Reliability and AVE Value. A variable is said to be
trustworthy if the value of the AVE parameter > 0.5; CR > 0.7; and Cronbach's alpha >
0.7.
Table 2
Convergent Validity Testing
First Order Construct (FOC)
Indikator
Outer Loading
Power Distance Index (FOC1)
Z1
0,853
Z2
0,905
Z3
0,899
Z4
0,885
IDV (FOC2)
Z5
0,854
Z6
0,825
Z7
0,837
Masculinity versus Femininity (FOC3)
Z8
0,825
Z9
1,000
Z10
0,821
Uncertainty Avoidance Index (FOC4)
Z11
0,796
Z12
0,860
Z13
0,864
Organizational Culture (HOC1)
FOC1
0,843
FOC2
0,745
FOC3
0,795
Analysis of the Influence of Organizational Culture, Transformational Leadership Style and
Employee Performance Assessment on Employee Satisfaction at Bio Farma
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3587
FOC4
0,792
Ideal influence (FOC5)
Z14
0,897
Z15
0,929
Z16
0,930
Individual Considerations (FOC6)
Z17
0,954
Z18
0,950
Z19
0,949
Inspirational Motivation (FOC7)
Z20
0,918
Z21
0,929
Intellectual Simulation (FOC8)
Z22
0,753
Z23
0,893
Z24
0,913
Leadership Style (HOC2)
FOC5
0,857
FOC6
0,804
FOC7
0,814
FOC8
0,787
Validity (FOC9)
Z25
0,866
Z26
0,915
Z27
0,891
Approval (FOC10)
Z28
0,901
Z29
0,933
Reliability (FOC11)
Z30
0,932
Z31
0,947
Objectives (FOC12)
Z32
0,969
Z33
0,972
Performance Assessment (HOC3)
FOC9
0,592
FOC10
0,842
FOC11
0,844
FOC12
0,885
Gaji (FOC13)
Z34
0,929
Z35
0,912
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Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3588
Z36
0,858
Promotion (FOC14)
Z37
0,934
Z38
0,901
Z39
0,947
Co-workers (FOC15)
Z40
0,954
Z41
0,946
Superior (FOC16)
Z42
0,966
Z43
0,963
Work (FOC17)
Z44
0,933
Z45
0,886
Job Satisfaction (HOC4)
FOC13
0,799
FOC14
0,796
FOC15
0,771
FOC16
0,747
FOC17
0,710
Table 2 shows that the outer loading value of stage one on all latent variable builder
indicators is > 0.5 so the indicator can be said to be valid. This shows that the latent
variable FOC constructed by the latent variable indicator has consistently explained the
variable in question. The indicator is also considered to have the closest relationship with
the latent variable FOC as measured by the highest factor loading value compared to other
indicators on the same latent variable FOC.
The results of the reliability test had a Cronbach's Alpha value of > 0.7 on each
indicator in all variables, so it can be said that respondents were consistent in answering
questions. Meanwhile, based on the table, the composite reliability value shows > 0.7,
which indicates that all indicators in all variables have a good level of reliability.
Analisa Outer Model
The trajectory model uses the 2nd-order SEM CFA. In this model, the calculation
is carried out in two stages. The first stage of calculation includes checking the outer
model of the FOC. The trajectory model of this research was made using SmartPLS for
phase 1 calculations shown in Figure 1.
Analysis of the Influence of Organizational Culture, Transformational Leadership Style and
Employee Performance Assessment on Employee Satisfaction at Bio Farma
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3589
Figure 1. Phase one calculation trajectory model
Furthermore, after the first stage of calculation, the latent variables and indicators
from the model can be considered valid. So in the second stage of calculation, the latent
variable value of the first stage calculation is used as an indicator of the latent variable /
HOC.
Discrimination Test Results
The validity test of discrimination uses two testing methods, namely HTMT and
Fornell Larcker. The latent variable with a discriminatory validity value higher than the
discriminatory validity value against other latent variables shows that the latent variable
has limitations in its measurement and is not unidimensional.
The results of the discrimination validity test with the HTMT of all latent variables
have a value of < 0.9 so all variables can be said to be valid. Based on Table 3 below, it
is shown that each latent variable has a latent square root of AVE > other square roots of
AVE, so each latent variable of HOC can be considered non-unidimensional, Leadership
Style (HOC2; 0.613); Performance Assessment (HOC3; 0.306); and Employee
Satisfaction (HOC4; 0.54).
Table 3
Validitas Diskriminan HTMT perhitungan tahap dua
HOC 1
HOC2
HOC3
HOC4
HOC1
HOC2
0,615
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Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3590
HOC3
0,417
0,306
HOC4
0,707
0,541
0,54
Inner Model Analysis
The inner model also called the structural model is used in taking into account the
causality (cause-and-effect) relationship between latent variables. Measurement of the
feasibility of the inner model can be done using Goodness of Fit. The goodness of fit
parameters used in this study are SRMR and NFI.
The goodness of fit model
The Goodness of Fit parameters used to assess the feasibility of the model in this
study are the Normed Fit Index (NFI) with a limit of > value of 0.8 and the Standardized
Root Mean Square Residual (SRMR) with a feasibility value of < 0.1. The results of the
Goodness of Fit test are contained in the following table:
Table 4
Goodness of Fit
Saturated
Model
Estimated Model
Information
SUMMER
0.089
0.089
Fulfilled
d_ULS
1.221
1.221
Unfulfilled
d_G
0.389
0.389
Fulfilled
NFI
0.734
0.734
Unfulfilled
Table 4 above shows that in this study the entire model is considered to have
absolute feasibility with an SRMR value of 0.089 and a Geodesic distance value in the
confidence interval range so that the feasibility is met. This shows that the entire model
has shown feasibility both in absolute and incremental terms. Furthermore, the model
analysis can be continued for hypothesis-checking
Direct Impact Testing
In the second stage of calculation, the calculation trajectory model built in this study
includes latent variables (HOC1; ORC2; HOC3) and their effect on HOC4, respectively,
are based on the direct influence of the latent variable and the simultaneous influence.
The test of the significance of direct influence can be seen through the p-value value, if
the p-value has a < value of 0.05, then the latent variable can be said to have a real or
influential influence and vice versa, if the p-value has a value of > 0.05, it can be said to
have no real influence or no effect. The results of the significance test of the influence
can be seen in the following table 5:
Analysis of the Influence of Organizational Culture, Transformational Leadership Style and
Employee Performance Assessment on Employee Satisfaction at Bio Farma
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3591
Table 5
Direct Effect Test Results
Original
Sample (O)
Sample
Mean (M)
Standard
Deviation
(STDEV)
T Statistics
(|O/STDEV|)
P Values
Organizational
Culture ->
Leadership Style
0,482
0,481
0,085
5,640
0,000
Organizational
Culture -> Employee
Appraisal
0,357
0,373
0,086
4,154
0,000
Organizational
Culture -> Employee
Satisfaction
0,392
0,381
0,075
5,213
0,000
Leadership Style ->
Employee
Satisfaction
0,201
0,220
0,083
2,421
0,016
Leadership Style ->
Employee
Satisfaction
0,108
0,126
0,150
0,722
0,471
Penilaian_Karyawan
-> Employee
Satisfaction
0,272
0,268
0,076
3,586
0,000
In Table 5, it is shown that organizational culture has a real and positive influence
on the employee satisfaction variable (p-value = 0.000). The leadership style variable had
a real and positive influence on the employee satisfaction variable (p-value = 0.016). The
employee assessment variable had a real and positive influence on the employee
satisfaction variable (p-value = 0.000). The variables of leadership style, employee
appraisal and organizational culture had no real effect on the employee satisfaction
variable (p-value = 0.639)
Proof of Hypothesis
Based on the results of testing the measurement model and structural model of the
influence of Organizational Culture, Leadership Style, and Employee Performance
Assessment on Job Satisfaction, the results of hypothesis testing are obtained as follows:
Table 6
Hypothesis Testing
Hypothe
sis
Latent Variable
Relationships
Original
Sample
(O)
Sample
Mean (M)
Standard
Deviation
(STDEV)
T Statistics
(|O/STDEV|)
P Values
H1
Organizational
Culture ->
0,392
0,381
0,075
5,213
0,000
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Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3592
Employee
Satisfaction
H2
Leadership
Style ->
Employee
Satisfaction
0,201
0,220
0,083
2,421
0,016
H3
Penilaian_Kary
awan ->
Employee
Satisfaction
0,272
0,268
0,076
3,586
0,000
H4
HOC1 ->
HOC3 ->
HOC2 ->
HOC4
0,008
0,013
0,017
0,469
0,639
Hypothesis 1, which states that Organizational Culture positively and significantly
affects Employee Satisfaction, can be accepted with a coefficient value of 0.392 and p-
values of 0.000. Hypothesis 2, which states that Leadership Style positively and
significantly affects Employee Satisfaction, is also acceptable with a coefficient value of
0.201 and p-values of 0.016. Hypothesis 3, which states that Employee Assessment
positively and significantly affects Employee Satisfaction, was accepted with a
coefficient value of 0.272 and p-values of 0.000. However, Hypothesis 4, which states
that the simultaneous influence between Organizational Culture, Leadership Style, and
Employee Assessment on Employee Satisfaction is not significant, is unacceptable
because the p-value of 0.639 shows that the simultaneous influence has no real effect.
The Influence of Organizational Culture on Employee Satisfaction
Organizational culture is a set of values or standard rules that can help members
overcome problems in the organization (Vebrianis, Agussalim, & Haryati, 2021).
Organizational culture is important for a company to own and implement because it can
affect employee performance. Companies with a healthy organizational culture can
motivate employees to do their jobs which has an impact on employee satisfaction.
In line with the research of (Ndeok, FoEh, Manafe, & Niha, 2023), a good
organizational culture and an adequate work environment will have an impact on
increasing employee work productivity, which ultimately causes an employee's
psychological state, namely satisfaction (Ndeok et al., 2023). In (Irfan, 2022) research,
organizational culture has a significant role in the formation of employee satisfaction
where the clearer and more trusted an organizational culture will have an impact on
employee satisfaction (Irfan, 2022).
Based on the description above, the first hypothesis is proven to explain the real or
positive influence of organizational culture on employee satisfaction. The results of the
study show that organizational culture has a positive and real influence on employee
satisfaction. This is in line with the social exchange theory, that organizational culture
will provide a good environment and adequately provide stimulus or support for someone
to succeed at work. With positive support and stimulus, it will provide job satisfaction to
Analysis of the Influence of Organizational Culture, Transformational Leadership Style and
Employee Performance Assessment on Employee Satisfaction at Bio Farma
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3593
employees. This is shown by the proposition of success and stimulus in social exchange
theories
The Influence of Leadership Style on Employee Satisfaction
Leadership style is the work pattern of leaders to guide their subordinates in
carrying out work (Khairizah, 2015). A person's leadership pattern will vary depending
on the size and environment of the company, personality, knowledge, and experience that
the leader has (Herawati & Ranteallo, 2020). Employee satisfaction influenced by
leadership style is also related to mutual respect between superiors and subordinates.
The results of the study show that leadership style has a real and positive influence
on employee satisfaction. A professional and responsible leadership style will create
effective work dynamics so that it has an impact on the achievement of organizational or
group goals, which will indirectly cause employee job satisfaction.
A good leadership style will have an impact on individual performance and affect
the achievement of organizational performance and employee satisfaction. This is by
(Yanoto, 2018) research, that a good leadership style from a company can increase job
satisfaction and make employees feel more satisfied in working at the company. Another
appropriate research is a study by (Vahera & Onsardi, 2021) leadership style has a
positive and significant effect on employee job satisfaction. Leaders who always give
direction to employees will make employees feel motivated to do their jobs and increase
employee satisfaction.
The results of the study show that leadership style has a positive and real influence
on employee satisfaction. This is in line with the social exchange theory, that leadership
style provides the main stimulus in terms of supporting the work environment formed by
the leader. In addition, a positive leadership style can create effective direction and goals
to maintain a balance of expectations between employees and the company. These two
things also have a positive impact on employee satisfaction. This is shown by the
proposition of stimulus and approval-aggression in social exchange theories.
The Effect of Employee Assessment on Employee Satisfaction
Employee Assessment is an effort to ensure that employees can meet the
performance that the organization has made with the specified standards (January 2015).
Employee assessment is a reference to get the human resources needed by the
organization. The assessment will spur the achievement of individual performance so that
the organization develops more.
The results of this study show that employee performance appraisal has a positive
influence and a direct relationship with employee satisfaction, so the third hypothesis can
be accepted. The better the performance appraisal system implemented by the company
on employees can affect employee satisfaction. An effective assessment will give
employees a positive impression of the company's brand. This is in line with research
conducted by Saefullah (2022), a good performance assessment will increase employee
satisfaction with the company.
Based on research conducted (Hariani & Irfan, 2019), performance appraisal is a
tool to assess work results based on employee talents, which can help companies plan for
Prima Pratama Mulyawan, Narti Eka Putri
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3594
the future career growth of their employees. Employees will be motivated to work as best
as possible to get a positive assessment from the organization. According to Darmawan,
et. Al (2021), performance appraisal can measure the accuracy of employee performance,
so that it can build a relationship between performance to tasks and the potential for
rewards for employees to be transparent. The low quality of performance appraisals, such
as the company's inability to control the appraisal process and the lack of knowledge to
explore the potential of employees, can result in low levels of job satisfaction, as
employees feel that their contributions to the company are not appreciated.
This is in line with the social exchange theory, the relationship between these two
variables shows that the value or reward given is by the work results given by the
employee. Another appropriate proposition is the deviation-satiation proposition, where
the subjective value given is still equivalent to a decrease or increase in the exchange of
employee performance results. So two propositions that correspond to the variable
relationship between employee assessment and employee satisfaction are the value
proposition and deviation-satiation.
Simultaneous influence of Organizational Culture, leadership style, and
performance appraisal on Employee Satisfaction
Based on the data from this study, the variables of leadership style, organizational
culture, and employee assessment simultaneously have an influence but in a small enough
size that they are not considered to have a real effect based on statistical conclusions on
employee satisfaction. So the fourth hypothesis is unacceptable. This small influence is
also strengthened by the high and direct influence of individuals between variables, and
simultaneous influences/interactions between 2 independent variables. So that the
simultaneous influence of the three independent variables no longer has a significant
influence.
This description indicates that this research is not in line with several previous
studies (Indrani, 2022) which states that organizational culture, employee performance
and employee satisfaction affect each other simultaneously. This is because all variables
reinforce each other so that there is a synergy that has an impact on improving employee
performance (Erniwati, Ramly, & Alam, 2020). This is suspected to be due to factors,
such as a lack of support from colleagues, competition for promotions, and compulsion
to do the tasks given.
Based on the explanation above, it can be concluded that employee satisfaction can
be achieved if there is a good relationship between employees and superiors. Furthermore,
a positive mind or culture will be created so that employees can provide good
performance, and freely express opinions and creative ideas. This is certainly inseparable
from the assessment tool that can run effectively and transparently. The influence of the
interaction of independent variables can make a positive contribution to employee
satisfaction as mentioned in previous research. But the influence did not have a big
impact.
The greatest contribution remains to the individual influence of leadership style
variables, organizational culture and employee assessment. Furthermore, other
Analysis of the Influence of Organizational Culture, Transformational Leadership Style and
Employee Performance Assessment on Employee Satisfaction at Bio Farma
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3595
contributions came from the interaction between 2 independent variables, namely
Organizational Culture and Leadership Style, as well as Organizational Culture and
Employee Assessment of Satisfaction. This conclusion is in line with the social exchange
theory. Where the simultaneous relationship between all positive exogenous variables on
employee satisfaction is in line with the proportion of success, deviations, values,
approval-aggression and stimulus.
Conclusion
This study was built to understand the relationship between the variables of
organizational culture style, leadership style, and employee assessment on employee
satisfaction. The influence relationship built is based on the SEM model of PLS 2nd
Order. The model built is worth testing assumptions. This is because based on the
calculations of stages one and two, the model has gone through checking the validity of
the instrument, and the feasibility of the outer model and the inner model. The influence
of the latent variables of organizational culture ( = 0.392, p-value = 0.000), and
employee performance assessment ( = 0.272, p-value = 0.000) had a real and positive
influence value. Likewise, the latent variable Leadership style ( = 0.201, p-value =
0.016) has a positive influence and has a real impact on employee satisfaction. In addition,
simultaneously the independent variables had no real effect on employee satisfaction (
= 0.008, p-value = 0.639).
Based on this discussion, it can be concluded that organizational culture is an initial
foundation for the formation of employee satisfaction. If implemented properly, it can
provide comfort both in terms of employee performance and in the work environment. So
that there is a harmony of vision and mission that is embraced together. In addition,
leadership style also affects employee satisfaction in an organization. Qualified leaders
can increase employee satisfaction. This can encourage qualified individual performance
and an ever-growing organization, with leaders who can motivate well and make
employee judgment important to employee satisfaction. So this is also in line with the
proposition of social exchange theories related to the value proposition, stimulus,
approval-aggression, deviation-satiation and success.
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Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 7, July 2024 3596
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