The Influence of Democratic Leadership, Work Discipline and Employee Empowerment on Employee Performance at Furniture Companies in Jepara

Abstract

High-quality and professional human resources are the main pillars of success for any organization. Organizations that have competent and committed human resources are more capable of achieving optimal performance that aligns with organizational goals, both individually and collectively. This study aims to examine the impact of democratic leadership, work discipline, and employee empowerment on employee performance at CV Aqma Furniture. The research population includes all employees of CV Aqma Furniture, with a sample consisting of 133 individuals chosen through a saturated sampling method, ensuring full representation of the entire population. Data were gathered by distributing questionnaires that had undergone validity and reliability testing. The collected data were then analyzed using the Partial Least Squares (PLS) approach, a variance-based Structural Equation Modeling (SEM) technique, which enables simultaneous testing of relationships among variables. The analysis results indicate that democratic leadership does not significantly impact employee performance at CV Aqma Furniture. On the other hand, work discipline and employee empowerment have been proven to influence employee performance improvement significantly. These findings suggest that enhancing work discipline and employee empowerment are crucial factors in driving optimal performance at CV Aqma Furniture. Furthermore, this study offers a new perspective by revealing that democratic leadership, while often considered important, does not always have a significant impact on performance within the furniture industry context in Jepara.