INFLUENCE OF LEADERSHIP TO SATISFACTION OF EMPLOYEE AFFECT TO THE PERFORMANCE OF EMPLOYEE AT DEPARTMENT OF Influence Of Leadership To Satisfaction Of Employee Affect To The Performance Of Employee At Department Of Management Market Of Surakarta (Dinas Pe

INFLUENCE OF LEADERSHIP TO SATISFACTION OF EMPLOYEE AFFECT
TO THE PERFORMANCE OF EMPLOYEE AT DEPARTMENT OF
MANAGEMENT MARKET OF SURAKARTA
(DINAS PENGELOLAAN PASAR PEMKOT SURAKARTA)

THESIS
Submitted as Partial Fulfillment of the Requirement
for Getting Master of Management Graduate Program
Magister of Management

MUHAMMED AHMED A.
P 100 130 018

MASTER OF MAGISTER MANAGEMENT
UNIVERSITY OF MUHAMMADIYAH SURAKARTA
2014

APPROVAL

INFLUENCE OF LEADERSHIP TO SATISFACTION OF EMPLOYEE AFFECT
TO THE PERFORMANCE OF EMPLOYEE AT DEPARTMENT OF

MANAGEMENT MARKET OF SURAKARTA
(DINAS PENGELOLAAN PASAR PEMKOT SURAKARTA)

Prepared and Compiled By:

MUHAMMED AHMED A.
P 100 130 018

Approved and Enacted by the Supervisor I and Supervisor II
Maintained front of the Board of Examiners for Thesis
Master of Human Research Management
University of Muhammadiyah Surakarta

Supervisor I

Supervisor II

Drs. M. Farid Wajdi, M.M Ph.D

Drs. Anton Agus Setyawan, S.E

Date ……………………………………

Date ………………………………….

ii

NOTE OF SUPERVISOR
Drs. M. Farid Wajdi, M.M Ph.D
Lecturer Graduate Program
Muhammadiyah University of Surakarta
Office Note
Subject: Thesis of MUHAMMED AHMED A.
Dear,
Chairman of the Master of Human Research Management
Muhammadiyah University of Surakarta
Assalamualaikum Warahmatullahi Wabarakatuh
After reading, researching, reviewing, correcting and make repairs as needed to
your thesis:
Name

: MUHAMMED AHMED A.
NIM
: P 100 130 018
Program
: Master of Human Research Management
Title
: INFLUENCE OF LEADERSHIP TO SATISFACTION OF EMPLOYEE
AFFECT TO THE PERFORMANCE OF EMPLOYEE AT DEPARTMENT
OF MANAGEMENT MARKET OF SURAKARTA (DINAS
PENGELOLAAN PASAR PEMKOT SURAKARTA)
With this we assess the thesis can be approved for a thesis submitted in the trial
exam on Masters of Human Research Management Muhammadiyah University
of Surakarta.
Wasalamualaikum Warahmatullahi Wabarakatuh

Surakarta, 21st August 2014
Supervisor I,

Drs. M. Farid Wajdi, M.M Ph.D

iii

NOTE OF SUPERVISOR
Drs. Anton Agus Setyawan, S.E
Lecturer Master Program
Muhammadiyah University of Surakarta
Office Note
Subject: Thesis of MUHAMMED AHMED A.
Dear,
Chairman of the Master of Human Research Management
Muhammadiyah University of Surakarta
Assalamualaikum Warahmatullahi Wabarakatuh
After reading, researching, reviewing, correcting and make repairs as needed to
your thesis:
Name
: MUHAMMED AHMED A.
NIM
: P 100 130 018
Program
: Master of Human Research Management

Title
: INFLUENCE OF LEADERSHIP TO SATISFACTION OF EMPLOYEE
AFFECT TO THE PERFORMANCE OF EMPLOYEE AT DEPARTMENT
OF MANAGEMENT MARKET OF SURAKARTA (DINAS
PENGELOLAAN PASAR PEMKOT SURAKARTA)
With this we assess the thesis can be approved for a thesis submitted in the trial
exam on Masters of Human Research Management Muhammadiyah University
of Surakarta.
Wasalamualaikum Warahmatullahi Wabarakatuh

Surakarta, 21st August 2014
Supervisor II,

Drs. Anton Agus Setyawan, S.E

iv

ENDORSEMENT
INFLUENCE OF LEADERSHIP TO SATISFACTION OF EMPLOYEE AFFECT
TO THE PERFORMANCE OF EMPLOYEE AT DEPARTMENT OF

MANAGEMENT MARKET OF SURAKARTA
(DINAS PENGELOLAAN PASAR PEMKOT SURAKARTA)
Prepared and compiled by
MUHAMMED AHMED A.
P 100 130 018

On date,021st August 2014
And found to comply to accepted
Structure Board of Examiners
Supervisor I,

Other members of the Board
of Examiners

Drs. M. Farid Wajdi, M.M Ph.D
Supervisor II,

Drs. Anton Agus Setyawan, S.E

v

vi

THESIS STATEMENT OF AUTHENTICITY
The writer, the following:
Name
NIM
Program
Concentration
Title

: MUHAMMED AHMED A.
: P 100 130 018
: Master of Human Research Management
: Master of Human Research Management
: INFLUENCE OF LEADERSHIP TO SATISFACTION OF EMPLOYEE
AFFECT TO THE PERFORMANCE OF EMPLOYEE AT DEPARTMENT
OF MANAGEMENT MARKET OF SURAKARTA (DINAS
PENGELOLAAN PASAR PEMKOT SURAKARTA)
Stating the fact that I submit this thesis is really a result of my own work,

except for quotations and summaries that I have explained the source. If in the
future this thesis is the result of plagiarism, the title given by the Muhammadiyah
University of Surakarta canceled I received.

Surakarta, 21st August 2014
Who makes a statement,

MUHAMMED AHMED A.
P 100 130 018

vii

MOTTO

use friendliness but do not use your friends
Frank Crane

You do not always live in peace and harmony
A o y

Peace is the desire of every living human being
Writer

viii

DEDICATION
Each of the ideas contained in this paper sheets are part of Allah Subhanahu
wa Ta'ala guidance to the author and to the lord of the Prophet Mohammad
Shallallaahu Alaihiwasalla . The writer dedicate this paper to:
1. Beloved father and mother as well as my extended family, thank you for your
compassion and sacrifice.
2. Friends who have always encourage me, so the writer can complete the study
so far.
3. People who will read this paper.

ix

ACKNOWLEDGEMENT

ASSALAMUALAIKUM WR.WB

Alhamdulillahirrabilalamin, Praise is to Allah Subhanahu wa Ta'ala, the Lord
of Universe, for blessing and guiding the research paper as a partial fulfillment of
the requirement for getting Master of Management Graduate Program Magister
of Management, University of Muhammadiyah Surakarta.
The researcher is fully aware that people s help a d guida ce. Therefore, i
this opportunity, she would like to express her gratitude and appreciation to:
1.

Prof. Dr. Khudzaifah Dimyati, SH, M. Hum, as the Director of the Graduate
Program of University of Muhammadiyah Surakarta.

2.

Drs. M. Farid Wajdi, M.M Ph.D as a supervisor had of Magister Managemen
and also as a lecturer Graduate University of Muhammadiyah Surakarta who
has provided guidance and input with full sincerity to spend time in charting
the preparation of this thesis.

3.

Drs. Anton Agus Setyawan, S.E, my second supervisor as well as a lecturer
and Graduate University of Muhammadiyah Surakarta which has provided
knowledge, guidance and feedback to me in the preparation of this thesis.

x

4.

To all leaders and employees of the Graduate library and the central library
of University Muhammadiyah of Surakarta who helped provide the
opportunity and preparation of the references in this thesis.

5.

A big thank you I do not forget to give to my beloved parents who have
provided support, prayers, and give motivation to complete this study.

6.

For my friends who give me support and encouragement to complete this
thesis, thank you very much.

7.

Of course in introductory sheet is not enough this time I mention one by
one, but for services and help all those I say thank you.
The writer realizes that this research paper is far from being perfect

because of her limited capability. Thus, revision, suggestion, and criticism are
welcomed for the perfection of this work. The writer wishes this research paper
would be useful and helpful to readers.
WASSALAMU’ALAIKUM WR. WB.

Surakarta, 21st August 2014
Writer,

MUHAMMED AHMED A.
P 100 130 018

xi

ABSTRACT
INFLUENCE OF LEADERSHIP TO SATISFACTION OF EMPLOYEE AFFECT
TO THE PERFORMANCE OF EMPLOYEE AT DEPARTMENT OF
MANAGEMENT MARKET OF SURAKARTA
(DINAS PENGELOLAAN PASAR PEMKOT SURAKARTA)
The purpose of this study is to analyze the influences of leadership to
satisfaction of employee at Department of Management Market of Surakarta, to
analyze influence leadership to satisfaction of employee effect to the
performance of employee at Department of Management Market of Surakarta,
and to analyze the positive influences of leadership directly through the
performance of employee at Department of Management Market of Surakarta
(DINAS Pengelolaan Pasar PEMKOT Surakarta). Research conducted a descriptive
study using a quantitative approach, by taking samples at Department of
Management Market of Surakarta (DINAS Pengelolaan Pasar PEMKOT Surakarta),
Central Java, Indonesia. The study population was all employees and staff of the
Department of Management Market of Surakarta and samples taken by 50
employees. The technique of collecting data using questionnaires. The data
analysis technique used is path analysis. The results obtained showed that:
Leadership will influence on satisfaction of employee at Department of
Management Market of Surakarta, satisfaction of employees affects the
employee's performance of employees at Department of Management Market of
Surakarta, and leadership influence on performance of employee indirectly
through satisfaction of employees at Department of Management Market of
Surakarta (DINAS Pengelolaan Pasar PEMKOT Surakarta).
Keywords: Leadership, Satisfaction of Employees and Performance of Employee.

xii

TABLE OF CONTENTS
TITLE ........................................................................................................... i
APRROVAL .................................................................................................. ii
NOTE OF SUPERVISOR ................................................................................. iii
ENDORSEMENT ........................................................................................... v
THESIS STATEMENT OF AUTHENTICITY ........................................................ vi
MOTTO ....................................................................................................... vii
DEDICATION ............................................................................................... viii
ACKNOWLEDGEMENT ................................................................................. ix
ABSTRACT ................................................................................................... xi
TABLE OF CONTENT .................................................................................... xii
TABLE OF APPENDIXES ................................................................................ xvi
TABLE ......................................................................................................... xvii
TABLE OF FIGURE ........................................................................................ xviii
CHAPTER I

INTRODUCTION
A. Background of the Study ....................................................... 1
B. Formulation of The Problem .................................................. 4
C. Limitation of the Study .......................................................... 4
D. Objective of the Study ........................................................... 4
E. Benefit of the Study ............................................................... 5
1. Theoretical Benefit ............................................................ 5
2. Practical Benefit ................................................................ 5

CHAPTER II

LITERATURE REVIEW
A. Theoretical Basis .................................................................... 6
1. Dependent Variable (Performance of Employee) ............. 6
a. Definition of Performance ............................................ 6
b. Factors that Influence Performance of Employee ....... 7
c. Measurements of Performance of Employee .............. 8

xiii

2. Intervening Variable (Satisfaction) .................................... 9
a. Definition of Satisfaction .............................................. 9
b. Factors that Influence Satisfaction of Employees ........ 10
c. Measurements of Satisfaction of Employee ................ 11
3. Independent Variable (Leadership) .................................. 11
a. Definition of Leadership ............................................... 11
b. Factors that influence Leadership ................................ 12
c. Measurements of Leadership ....................................... 13
B. Previous Research .................................................................. 14
C. Conceptual Framework .......................................................... 15
D. Hypothesis ............................................................................. 17
CHAPTER III

RESEARCH METHODS
A. Research Method ................................................................... 18
1. Type and Design Research ................................................ 18
a. Type of Research .......................................................... 18
b. Design of Research ....................................................... 18
2. Researchers Presence ....................................................... 18
a. Place of Research ......................................................... 18
b. Research Time .............................................................. 19
B. Object Determination Methods Research ............................. 19
1. Population, Sample and Sampling .................................... 19
a. Population .................................................................... 19
b. Sample .......................................................................... 19
c. Sampling ....................................................................... 20
2. Data Collection Procedures ............................................... 20
C. Research Instruments ............................................................ 21
1. Instrument ......................................................................... 21
2. Testing Instruments .......................................................... 21

xiv

a. Validity Test .................................................................. 21
b. Reliability Test .............................................................. 21
D. Techniques Analysis of Data .................................................. 22
1. Classical Test Assumptions ................................................ 22
a. Normality Test .............................................................. 22
b. Partial Test .................................................................... 22
2. Path Analysis ..................................................................... 23
a. Formulate hypotheses and structural equation .......... 23
b. Path coefficient diagram form ..................................... 23
c. Equation path coefficients ........................................... 24
d. Individually testing [(X to Y) and (I to Y)] ...................... 24
e. Testing the indirect influence ....................................... 25
f. Summarize and conclude ............................................. 25
CHAPTER IV DATA ANALYSIS AND DISCUSSION
A. Test of Instrument Data ......................................................... 26
1. Validity Test of Leadership Questionnaire ........................ 26
2. Validity Test of Satisfaction of Employee
Questionnaire .................................................................... 28
3. Validity Test of Questionnaire Employee of
Performance ...................................................................... 28
4. Test Reliability ................................................................... 30
B. Discussion of the Problem ..................................................... 30
1. Leadership ......................................................................... 31
2. Satisfaction Employee ....................................................... 33
3. Employee of Performance ................................................ 36
C. Classical Test Assumptions .................................................... 38
1. Normality Test ................................................................... 39
2. Partial Correlation Test ..................................................... 39
D. Data Analysis Techniques ...................................................... 40

xv

1. Formulating Hypotheses and Structural Equation ............ 40
a. Path Analysis Model-1 .................................................. 40
b. Path Analysis Model-2 .................................................. 42
2. Figure of Coefficient Diagram Line .................................... 43
3. Calculating Coefficient Line ............................................... 43
4. Testing of Path Coefficients In Individuals ........................ 44
a. Hypothesis Testing I (t test) .......................................... 45
b. Hypothesis Testing II (t test) ......................................... 46
5. Calculating of Coefficient Line ........................................... 48
E. Discussion of Data Analysis .................................................... 51
CHAPTER V

CONCLUSIONS AND SUGGESTION
A. Conclusion .............................................................................. 55
B. Implication ............................................................................. 55
C. Suggestion .............................................................................. 56
1. For Leaders ........................................................................ 56
2. For Employees or Staffs .................................................... 56
3. For Further Researchers .................................................... 57

REFERENCES
APPENDIXES

xvi

TABLE OF APPENDIXES
Appendix 1 Research Questionnaire .................................................................. 61
Appendix 2 Score of Result Instrument Test ...................................................... 68
Appendix 3 Validity Test of Leadership Questionnaire ...................................... 71
Appendix 4 Reliability Test of Leadership Questionnaire .................................. 73
Appendix 5 Validity Test of Satisfaction Employee Questionnaire .................... 74
Appendix 6 Reliability Test of Satisfaction Employee Questionnaire ................ 75
Appendix 7 Validity Test of Employee Performance Questionnaire ................. 76
Appendix 8 Reliability Test of Employee Performance Questionnaire .............. 78
Appendix 9 Research Data ................................................................................. 79
Appendix 10 Description of Data ....................................................................... 85
Appendix 11 Normality Test ............................................................................... 90
Appendix 12 Partial Correlation Test ................................................................. 91
Appendix 13 OUT PUT CORRELATION Model-1 ................................................. 92
Appendix 14 OUT PUT REGRESSION Model-1 (X to I effect Y) ........................... 93
Appendix 15 OUT PUT REGRESSION Model-2 (X to I) ........................................ 94
Appendix 16 Relative and Effective Contribution .............................................. 95
Appendix 17 Table r Product Moment ............................................................... 98
Appendix 18 Table t ........................................................................................... 99
Appendix 19 Table F ........................................................................................... 100

xvii

TABLE
Table 4.1 Summary of Test Validity Leadership Questionnaire ......................... 27
Table 4.2 Summary of Test Validity Questionnaire Satisfaction of
Employee ........................................................................................... 28
Table 4.3 Summary of Test Validity Questionnaire Employee of
Performance ...................................................................................... 29
Table 4.4 Leadership Distribution ...................................................................... 32
Table 4.5 Satisfaction Employee Distribution .................................................... 34
Table 4.6 Employee of Performance Distribution .............................................. 37
Table 4.7 Normality Test Results Summary ....................................................... 39
Table 4.8 Partial Correlation Test Results Summary .......................................... 40
Table 4.9 Summary of Test Results of Path Analysis ......................................... 41
Table 4.10 Summary of Test Results of Path Analysis ....................................... 42

xviii

TABLE OF FIGURE
Figure 2.1 Conceptual Framework ................................................................... 16
Figure 3.1 Diagram Coefficient Line ................................................................. 23
Figure 4.1 Frequency Distribution Graphs Leaderships at Department
of Management Market of Surakarta ............................................. 33
Figure 4.2 Frequency Distribution Graphs Satisfaction Employee at
Department of Management Market of Surakarta ......................... 35
Figure 4.3 Frequency Distribution Graphs Satisfaction employee at
Department of Management Market of Surakarta ......................... 38
Figure 4.4 Coefficient Diagram Line ................................................................. 43
Figure 4.5 Graphic t-test statistic leadership influence on satisfaction
employee ......................................................................................... 46
Figure 4.6 Graphic t-test statistic the influence of satisfaction
employee on employee of performance ........................................ 48

xix