The effect of work environment, leadership style, and organizational culture towards job satisfaction and its implication towards employee performance in Parador Hotels and Resorts, Indonesia

Abstract

Purpose

The purpose of this paper is to determine the effect of the work environment, leadership style and organizational culture on job satisfaction and its implication toward the performance of the employees.

Design/methodology/approach

The research population was the whole 642 employees of Parador Hotels and Resorts, Indonesia. The amount of the samples was determined with the formula of Slovin, and the Structural Equation Modelling (SEM) sample consideration was equal to 200 employees. As many as 179 questionnaires were returned and sent for analysis. Proportionate stratified sampling was used for the sampling technique, and sample elements were determined by accidental sampling method. The analytical method used in this study was descriptive statistics and SEM–Partial Least Square with IBM Statistical Package for the Social Sciences (IBM SPSS) Statistics 22.0 software and WarpPLS 3.0 program.

Findings

The results show that work environment, leadership style and organizational culture have a positive and significant impact on job satisfaction, but only the leadership style has a positive and significant effect on the employee performance. Job satisfaction does not give a significant and positive effect on employee performance and it is not a mediating variable.

Originality/value

As indicated by the findings, the role of leaders in hotel industry, in this case general manager (gm), is of importance. Without a high-quality gm, job satisfaction and organizational culture will not be achieved.

Citation

Pawirosumarto, S., Sarjana, P.K. and Gunawan, R. (2017), "The effect of work environment, leadership style, and organizational culture towards job satisfaction and its implication towards employee performance in Parador Hotels and Resorts, Indonesia", International Journal of Law and Management, Vol. 59 No. 6, pp. 1337-1358. https://doi.org/10.1108/IJLMA-10-2016-0085