INFLUENCE OF LEADERSHIP STYLE AND INCENTIVES ON AGENT PERFORMANCE IN SOCIAL SECURITY ACQUISITION WITH ORGANIZATIONAL CULTURE AS AN INTERVENING VARIABLE

Abstract

The re­search objective of the study is to analyze and confirm the influence of lea­dership styles, incentives, and organizational culture on agents' per­formance in social security acquisition. The information was gathered from 190 BPJS Ke­tenagakerjaan agents across 21 branch offices in the East Java re­gion. The r­esearch data obtained by filling out online questionnaires were then processed using a structural equation modeling (SEM) partial least squa­res (Smart PLS Ver­sion 4.0) approach. The findings show that there is an in­f­lu­ence of leader­ship style and incentives toward organizational culture on age­nts, and leader­ship style is more dominant than incentives toward or­ga­ni­za­tio­nal culture. Fur­thermore, the effect of the incentives variable and orga­ni­za­tio­nal culture vari­able on performance has a positive and significant effect. The leadership style variable, however, has a negative effect on performance. Or­ga­nizational cul­tu­re affects performance more than leadership style and in­cen­ti­ves. In addition, orga­nizational culture as an intervening variable fully me­di­ates the effect of the leadership style variable on performance. Fur­ther­mo­re, the organizational cul­ture variable can partially mediate the relationship bet­w­een incentives and per­formance. These findings are expected to provide di­rec­tion for organizati­ons to improve agents' performance by inspiring a sha­red vision, modeling the way, providing awards or recognition, and developing stan­dards of attitudes that clearly and measurably describe the organization's vi­­sion and mission. Further studies are needed in the same model applied to the national level of samples.