The Influence of Organizational Culture and Democratic Leadership Style on Employee Performance at the Trade and Industry Service of Bandung Regency

Abstract

The present study is motivated by a fundamental issue, namely the suboptimal performance of employees at the Trade and Industry Office of Bandung Regency. This issue is evident in the low quality of work, lack of punctuality, and minimal employee initiative. For instance, deficiencies are observed in the preparation of accountability reports, coordination, administration, and financial bookkeeping, which remain ineffective. Additionally, employees tend to wait for instructions rather than taking the initiative to complete tasks, thereby hindering the optimal execution of technical material assessments and facilitation processes. These problems are suspected to stem from an ineffective organizational culture and leadership style. Therefore, this study aims to analyze the extent to which organizational culture and leadership style influence employee performance within the Trade and Industry Office of Bandung Regency. The research adopts a quantitative approach and employs an explanatory survey method. The findings indicate that, partially, organizational culture influences employee performance by 37.8%, while a democratic leadership style has an impact of 11.5%. Simultaneously, organizational culture and democratic leadership style collectively affect employee performance by 49.3%, whereas the remaining 50.7% is influenced by epsilon (other factors beyond the two variables examined).