Servant Leadership And Employee Performance: The Mediating Role Of Leader-Member Exchange And Organizational Citizenship Behavior

Abstract

Employee performance in the banking industry is greatly influenced by leadership styles. One of the leadership styles is situational leadership. In addition to situational leadership, the factors of leader-member exchange and organizational citizenship behavior are also believed to influence employee performance. This study examines the direct and indirect effects of servant leadership on employee performance mediated by LMX and OCB. The sample involved in this study was 298 respondents at PT Bank Artha Graha Internasional Tbk Jakarta. The analysis used path analysis using partial least square analysis (SmartPLS). The results show that: 1) servant leadership has a positive and significant direct effect on employee performance; 2) servant leadership has a positive and significant direct effect on LMX; 3) servant leadership has a positive and significant direct effect on OCB; 4) LMX has a positive and significant direct effect on employee performance; 5) OCB has a positive and significant direct effect on employee performance; 6) LMX partially mediates the relationship between servant leadership and employee performance; 7) OCB partially mediates the relationship between servant leadership and employee performance. This study contributes to the theoretical development regarding leadership theory, especially servant leadership theory, (Greenleaf, 1998) and organizational psychology theory,(Kelley, Thibaut, Radloff, & Mundy, 1962). Furthermore, the results of this study provide practical benefits for PT. Bank Artha Graha Internasional Tbk in developing training programs to improve employee performance.