Ethical Leadership and Organizational Culture as Predictors of Employee Performance: The Mediating Role of Organizational Commitment Companies in East Java, Indonesia
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When it comes to reaching business objectives, employee performance is a major determinant. On the other hand, leadership ethics, organizational culture, and organizational commitment are psychological and social components of the workplace that impact employee performance in addition to technical variables. Using organizational commitment as a mediator, this study seeks to examine the impact of leadership ethics and organizational culture on employee performance. The 244 participants hailing from 6 East Javan businesses comprised the research's explanatory quantitative methodology. Questionnaires were distributed in order to gather data, and a sampling method known as purposive sampling was used. The study model's variables were tested for their relationships using data analysis utilizing Structural Equation Modeling (SEM). Leadership ethics and company culture significantly impact employee dedication to the company, according to the study's findings. Employee performance is positively impacted by organizational commitment, which also mediates the link between leadership ethics, organizational culture, and performance. These results demonstrate that a healthy company culture and strong leadership ethics may boost employee engagement, which in turn boosts performance. The findings of this study suggest that in order to foster maximum performance and greater employee dedication, businesses should prioritise enhancing their corporate culture and leadership's ethical standards.
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