THE INFLUENCE OF INDIVIDUAL CHARACTERISTICS ON EMPLOYEE ENGAGEMENT: LEADERSHIP STYLE AS AN INTERVENING VARIABLE

Abstract

In the business world in the modern era of industry 4.0, business development is very tight in its competition, where the company always has the goal of obtaining business profits and trying to maintain and develop the viability of the business itself, especially the individual characteristics of employees are indispensable in encouraging company goals and in Manufacturing Companies. Plastic Woven Packaging in Gresik, has a problem with the performance of its employees which is less than optimal and tends to decline so it needs to be evaluated and found a solution so that the company's goals can be achieved.

This study aims to analyze the influence of individual characteristics possessed by employees on their performance in the company through the leadership style that exists in the company while in this study using quantitative methods with a population of employees of the Plastic Woven Packaging Manufacturing Company in Gresik using a sample of the production department of 100 respondents, through SmartPLS 3.0 analysis method

The results of this study indicate that the influence of (1) Individual Characteristics has a significant direct effect on Performance, (2) Individual Characteristics has a significant direct effect on Leadership Style and (3) Leadership Style has a significant direct effect on Performance, while for the results of indirect influence through mediating variable Leadership Style that (4) Individual Characteristics have a significant direct effect and can improve employee performance although not through leadership style as a mediating variable, therefore companies need to pay attention to the behavior of individual characteristics of their employees especially to improve their performance and companies also need to pay attention to other variables that can affect employee performance.