An Evidence Based Analysis of Employee Satisfaction: The Effect of Leadership, Work Environment and Motivation

Abstract

This research aimed to examine the effect of leadership and work environment on
motivation and its impact on employee job satisfaction. The sample of this research is 100
people from 403 employees of Malang Centerpoint Department Store, Malang City, East
Java, Indonesia. The analysis employed the Structural Equation Model (SEM) with the
Smart PLS 3.2 program. Measurement of variables using questionnaires with a test of
validity and reliability. The results showed: (1) Leadership significantly affects work
motivation. (2) The work environment does not affect work motivation. (3) Leadership
does not affect job satisfaction. (4) The work environment significantly affects the
employee job satisfaction. (5) Work motivation significantly affects employee job
satisfaction. From the results of mediation analysis and total effect, employees’ work
motivation significantly mediated the effect of leadership on job satisfaction. Employees’
work motivation also significantly mediated the effect of the work environment on job
satisfaction. While the most significant total effect is 0.362, located in the pathway of the
work environment, motivation, and job satisfaction. The managerial implications for
increasing job satisfaction are the most effective by increasing variables on the path to
the work environment, work motivation, and job satisfaction