Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2022 Vol: 21 Issue: 1

The Role of Organizational Commitment and Leadership on Performance in Shipping Company

Mahmudah Enny Widyaningrum, Universitas Bhayangkara

Muslichah Erma Widiana, Universitas Bhayangkara

Yudi Sutarso, STIE Perbanas Surabaya

Citation Information: Widyaningrum, M.E., Widiana, M.E., & Sutarso, Y. (2022). The role of organizational commitment and leadership on performance in shipping company. Academy of Strategic Management Journal, 21(S1), 1-13.

Abstract

Employee performance greatly affects an organization. The purpose of this study is to analyze the role of organizational commitment on the relationship of leadership and working safety health on employee performance. This study also investigates the mediating role of organizational commitment in improving employee performance. This study was done on large category shipping companies in Indonesia. The data were collected by distributing questionnaires to employees using a purposive sampling technique and analyzed using a structural equation model. The result showed that leadership and working safety health have a positive effect on employee performance. The mediating role of organizational commitment has its role in the relationship of leadership but does not occur on working safety health. The study contributes to the literature by showing the perspective of the mediating role of organizational commitment in employee performance on cruises.

Keywords

Employee Performance, Organizational Commitment, Leadership, Working Health Safety, Shipping, Indonesia.

Introduction

In the current era of globalization, every organization is required to have quality human resources so that their operations can increase work productivity. Thus, the company can also achieve organizational goals. Therefore, human resources have an important role, especially to deal with any changes that will occur. In addition, human resources are also an important asset owned by the organization because every success of an organization is a reflection of the quality of human resources owned by the organization itself. In relation to human resources, Straub and Attner (Utama, 2020) explains that humans are resources that have an important role in an organization. Humans provide experience, expertise, knowledge, and talent to achieve every goal in the organization. In addition, people who work in organizations are human resources as an important company asset.

In the era of the ASEAN Economic Community (AEC), from various fields, the competition is getting tougher and the competition covers every element of human resource needs that are always evolving all the time. For this reason, this condition demands reform so that any changes can adapt well to global challenges, especially for the Indonesian people. The Indonesian nation must be able to increase the existing resources, especially human resources. Congge (2016) states that human resources must be a serious concern by the government in order to be able to face the MEA. Humans are one of the most important resources because they can provide experience, expertise, and knowledge. In addition, Nawawi (Utama, 2020) explains that human resources (HR) are individuals who work and function as assets (something valuable) for an organization or company advancing the organization or company.

The company is expected to be able to carry out various activities to deal with any demands and also be able to deal with changes that occur in the organizational or company environment. Therefore, the first step that must be done by the organization or company is to improve the quality of its Human Resources. The company must improve the quality of its human resources in order to develop the company as well. Coaching an employee is one way to develop human resources in the work environment. In developing competitive human resources, companies need efforts to find out the weaknesses and strengths of employees, including by looking at how an employee works.

As based on the previous studies, there are also several factors affetcting the employee performance such as work characteristics (Peiró et al., 2020), justice and work analysis (Khtatbeh et al., 2020), leadership behavior (Rehman et al., 2020), job satisfaction and leadership (Eliyana & Ma'arif, 2019), occupational safety and health (Kaynak et al., 2016). All of these factors should be taken into account when the companies want to increase their employees’ performance. Very specifically, when the research is done in relation to the COVID 19 and its impact on this effort.

The COVID-19 pandemic that has hit the whole world has an impact on all aspects, including efforts to improve employee performance for an organization or company. In conditions like this, the government can create various policies to reduce the spread of the COVID-19 virus. The programs include social distancing and urging employees to work from home. This government policy has an impact on the company's operations, which hinders the company's operations. This study uses an object in one of the companies in the service sector, namely customer service services in the shipping sector. This company is a customer service center that focuses on crossing services.

With the implementation of the government policy, the company faces operational obstacles because the company is a company in the service sector with greater job mobility. They interact with many people. In addition to the problems caused by the government's policy, the company's operations are also limited and result in decreased employee performance. Other problems include the lack of good leadership style applied during the COVID-19 pandemic.

There are several policies implemented by company leaders that are not communicated properly with employees. For example, there is a sudden dismissal without an agreement. Occupational health and safety, which is one of the important factors in improving safety at work during the COVID-19 pandemic, is decreasing. This condition is marked by the company's lack of attention in maintaining employee health during the COVID-19 pandemic. In the end, this condition can also reduce employee work commitment. During the COVID-19 Pandemic, employees felt less safe and uncomfortable at work, so their performance levels also decreased.

Based on the above background, this study aims to determine the role of leadership in the company on employee commitment and performance. This study also wants to know the role of occupational health and safety on employee commitment and performance.

Literature Review

Employee Performance

According to Fattah (2017), employee performance is the result of expected behavior or a result of the work done. Therefore, it indicates the relationship between a person's behavior in carrying out his duties and obligations within the organization in accordance with established policies. In order to know how the performance of an employee, the leader in an organization or company must carry out a performance evaluation (performance appraisal). Performance is defined as a result obtained by a person as a whole during a certain period in carrying out his duties and obligations. In carrying out these duties and obligations, a work standard, targets, targets or criteria that have been determined and mutually agreed upon are needed (Fatimah, 2017). According to Stoner (Muizu et al., 2019) performance is an achievement achieved by employees. Thus, it can be concluded that employee performance is a result obtained by employees from achieving their duties or obligations in an organization or company.

Improving employee performance needs to involve several factors. In the literature, there are several factors that influence it, namely work characteristics (Peiró et al., 2020), justice and work analysis (Khtatbeh et al., 2020), leadership behavior (Rehman et al., 2020), job satisfaction and leadership (Eliyana & Ma'arif 2019), occupational safety and health (Kaynak et al., 2016). This shows that studies on employee performance have identified multi-factors that affect employee performance. In particular, employee performance associated with shipping companies, in the literature, the accompanying antecedents have been identified, namely the context in shipping container companies in Taiwan. It is stated that organizational performance is closely related to motivation and job satisfaction (Pang & Lu, 2018), and also in another study, namely culture and leadership (Lu & Lin, 2014). In a study of shipping companies in Sri Lanka, it was found It is true that the determinant of employee performance is the balance between life and work (Preena & Preena, 2021).

Leadership

There are several definitions of leadership. According to Robbins & Judge (2008), leadership is the ability to influence a group to achieve a certain vision or goal. Leadership is one of the important factors that help an individual or group identify its goals and, then, provide impetus in achieving the stated goals. According to Fahmi (2016) leadership is the ability to influence others to achieve a goal. Leadership can also be interpreted as an ability to move, influence, and direct the mindset, the way members work so that they can be independent in carrying out their responsibilities and assist in making decisions for the benefit of achieving predetermined goals (Wahyudi, 2017). Wijaya et al. (2015) explains that leadership is the art of influencing other individuals in order to achieve the goals of an organization or company. Furthermore, it can be concluded that leadership is the ability of an individual to influence, move, and direct other people or groups of people to achieve the desired goals.

H1 Leadership has a positive effect on employee performance

H2 Leadership has a positive effect on organizational commitment

Working and Safety Health

According to Candrianto (2020), work safety is an effort to be able to carry out work without experiencing work accidents, or in other words, in order to create a work environment or work atmosphere that is safe from all kinds of dangers. Thus, the company can create comfort in working for its employees. Work safety has a nature, which leads to a work environment that is technical in nature. Occupational health is a specialization of a health science that aims to provide employees with the best possible health facilities, both physically and mentally, against a disease suffered due to a factor in the work and work environment. Occupational health has properties, which lead to the social, physical and mental conditions of an employee.

Occupational health and safety is generally defined as a science that contains anticipation, recognition, evaluation, and control of hazards that occur in the work environment and can interfere with the welfare and health of employees (Sholihah, 2018). According to Irzal (2016), occupational health and safety is one way to create a healthy, safe and comfortable work environment, so as to reduce the occurrence of work accidents in order to increase employee productivity and work efficiency. In addition to fatalities, work accidents are also materially detrimental to employers and workers themselves, which will affect the course of production, disrupt the environment which ultimately affects the surrounding environment. Yuliani (2014) explains that occupational safety and health is an instrument which is able to protect employees, the environment, companies and the surrounding community from the dangers caused by work accidents.

Every employee has the right to work safety and health protection, which aims to prevent and minimize the risk of work accidents. Furthermore, it can be concluded that Occupational Health and Safety is one of the important factors to minimize work accidents that occur in the work environment, and have an impact on workers, companies and the environment or surrounding community.

H3 Occupational health and safety have a positive effect on employee performance

H4 Occupational health and safety have a positive effect on organizational commitment

Organizational Commitment

There are several definitions of organizational commitment presented by several experts. According to Roy (2018), commitment is an expectation to be able to always be part of an organization in order to maximize the skills possessed, generate deep confidence and acceptance of an organizational goal. Organizational commitment shows that it is greater than passive loyalty and can also engage in active relationships and create the desire of an employee to be able to contribute to the progress of an organization (Maruf et al., 2001). And according to Noe (2017), commitment is a benchmark for employees to recognize the organization they work for and are willing to be able to give their best to the maximum of their abilities. According to Angkawijaya (2019), commitment is an important factor for every employee to support any changes that occur in an organization to be able to develop and survive. Ginting (2021) Commitment is a combination of motivation, condensation and measurement of the sense that a person has in order to carry out a task well without supervision and their desire, and enthusiasm to complete the task. Furthermore, it can be concluded that organizational commitment is an attitude that arises in employees to be able to provide the best (loyalty and totality) for the company.

H5 Organizational commitment has a positive effect on employee performance

Research Method

The research was designed in such a way that it can create a procedure for an important group in order to find steps that can be later used to develop and solve research problems (Rachman, 2018).

Variable Measurement

The researcher measured the variables using instruments that have been used by researchers in previous studies. To measure leadership, the researcher uses three items adopted from the four statement items. The indicators include: the ability to foster good cooperation and relationships, the ability to be effective, participative leadership, the ability to delegate tasks or time, and the ability to delegate tasks or authority. Measurements on the Occupational Health and Safety variable were adopted from a study by Rahayu et al. (2017), which consists of indicators: workplace conditions, actions, and employee mental atmosphere. Variables of organizational commitment are measured from items, which include indicators of effective commitment, continual commitment, and normative commitment. Then, for employee performance, this variable is measured by items adopted from the Sopiah & Sangadji (2018) study with indicators including: quality, quantity, timeliness, effectiveness, and independence.

Measurement of variables in this study was done using a Likert scale. According to Sugiyono (2015), the Likert scale is used to measure perceptions, attitudes and opinions of a person or group of people regarding social phenomena. The questions given are answered using a Liket scale by giving a score for each answer which will be chosen by the respondent. By using a Likert scale, each measured variable will be translated into an indicator variable. Then, the existing indicators will be used as a starting point for compiling instrument items in the form of questions or statements. The Likert scale is used to fill out the questionnaire. The measurement model is used to find out about each answer given by the respondent to answer the problem to be studied. This study uses a questionnaire, which must be answered by the respondent with the available answer choices. The data obtained will then be tabulated, rated (rating), and edited. Tabulation is the process of compiling and processing data based on data in the form of tables. Rating is data from answers obtained before analysis and data processing, must first be given a value rating on answers obtained from respondents. Editing is data management by checking the data results from respondents' answers obtained. Editing techniques are needed to compile the data obtained can be justified.

Procedure for Data Collection

According to Sugiyono (2015), to be able to collect the data, the researchers can use primary or secondary sources. Primary sources or primary data are data given directly to data respondents. In this study, in terms of data collection techniques, this study distributed its own questionnaires to respondents at the company. Questionnaire is a data collection technique given by researchers about questions or written statements. Then, this question was answered by the respondent on the object of research. These answers have their respective values and meanings according to the directions in the researcher's questionnaire.

Population and Sample

This research is set in a large-category shipping company located in Surabaya, Indonesia. This company has received a certificate of appreciation as the 3rd best category of ferry transportation service provider in 2015, from the Ministry of Transportation of the Republic of Indonesia. The setting of this research was chosen on the grounds that this company is engaged in shipping and studies of this type of company in the literature are limited. In addition, the company has a good performance, and the company is in the category of large companies based on the classification of the Ministry of Transportation.

Sugiyono (2015) states that the population is a generalization area consisting of subjects or objects that have certain characteristics and qualities determined by researchers so that they can be studied and conclusions drawn. The sample in this study was determined by a non-probability sampling technique with a saturated sample technique. This technique is a sampling technique where the population is used as a research sample, because in this study the sample was taken from the entire population, namely all 135 employees.

Table 1 shows the characteristics of respondents by gender, consisting of 69.6 percent of men and 30.4 percent of women. Based on age, respondents aged 20-30 years were 20.7 percent, aged 31-35 years were 17.8 percent, aged 36-40 years were 14.1 percent, aged 41-45 years were 12.6 percent, 46-50 years old are 18.5 percent and 51-55 years old are 16 percent. Based on the level of education, the respondents with S2 education are 12.6 percent, S1 are 18.5 percent, D3 are 54.8 percent, and high school is 14.1 percent. Based on the length of work, respondents with a length of work< 3 years were 15.6 percent, 56.3 percent for 5-10 years, and 28.1 percent for> 10 years. The results of the descriptive test on the characteristics of the respondents are in accordance with the proportion of the number of employees in the shipping company.

Table 1 Sample Description
Category Sub-Category Frequency Percentage Cumulative Percentage
Gender Male 94 69.6 69.6
female 41 30.4 100
Age 20 – 30 years 28 20.7 20.7
31 -35 years 24 17.8 38.5
36 - 40 years 19 14.1 52.6
41 - 45 years 17 12.6 65.2
46 - 50 years 25 18.5 83.7
51 - 55 years 22 16.3 100
Education Level S2 (Masters) 17 12.6 12.6
S1 (Undergraduate) 25 18.5 31.1
D3 (3-Year Diploma) 74 54.8 85.9
SMA (Senior High School) 19 14.1 100
Period of Working < 3 years 21 15.6 15.6
5 - 10 years 76 56.3 71.9
> 10 years 38 28.1 100
Total 135 100 -

Description of Research Data

The descriptive test explains the characteristics of the data to be studied. The character of the data can explain for several sizes, namely the size of the center and the size of the spread. Central measure to measure mode, median, trimmed mean and mean. As for the size of the spread can be explained from the standard deviation, variation and range. Table 2 shows the item construct, mean and standard deviation of the collected data.

Table 2 Constructs, Items, Mean and Standard Deviation
Construct Item Mean Std. Deviation
Leadership (LDS) LDS1 I believe that the leadership can appreciate my performance 3.86 1.14
LDS2 I believe the leader can appreciate the ideas I provide 3.20 1.34
LDS3 I believe that leaders can be just leaders 4.18 1.09
LDS4 I believe leaders always provide comfort in work, such as the facilities provided 4.16 0.88
LDS5 I believe the leader will give bonuses to employees who have good performance 4.10 0.85
Occupational Health and Safety (OHS) OHS1 Comfortable work environment and atmosphere 3.89 1.17
OHS2 Availability of health services in the workplace 3.97 1.06
OHS3 My mental state during work is good 4.13 0.85
Organizational Commitment (ORC) ORC1 I believe if I can work well, to advance the company 4.13 1.08
ORC2 I believe if I can work well, the company will support my welfare 4.18 0.85
ORC3 I believe when I can contribute to the progress of the company, the company will provide a promising career path 4.12 0.83
Job performance (JPR) JPR1 I can complete tasks well according to company standard operating procedures 4.24 0.77
JPR2 I can do more quantity tasks 4.14 0.84
JPR3 I can complete the task, according to the time given 4.24 0.77
JPR4 I can work as effectively as possible 4.14 0.84
JPR5 I can learn quickly, about a given field 4.13 0.80

From Table 2, it can be seen that the sample's perception of the four constructs measured in this study, ranges from 3.20 on LDS2 to 4.24 on JPR1 and JPR3. This means that the respondent's perception of the construct level is at a high level.

Data Analysis and Discussion

Construct Validity and Reliability

To ensure that the data used in the analysis can be accounted for, this study examines the quality of the measurements with validity and reliability tests. Validity test is done through convergent validity and discriminant validity. Convergent validity aims to ensure that the statement items in the construct are statistically integrated with the loading factor criteria>0.6 (p<0.05) and the AVE (average variances extracted) value>0.5 (Hair et al., 2010). Table 3 shows the results of this test, where the smallest loading factor is above 0.6, except for OHS 3 where the loading factor for OHS3 items is 0.561 (p< 0.001). This OHS 3 item is still used because it is the main indicator in the construct. This study also removed two items in the model because of the low loading factor, namely LDS1 (0.4) and LDS 2 (0.4). Table 3 also shows the smallest AVE value is 0.661 (OHS). This means that it has met the criteria, or in other words the statement items have converged or converged in each construct.

Table 3 Convergent Validity and Reliability
Constructs Code Convergent Validity Reliability VIF
Indicator of Loadings AVE Alpha Cronbach Composite Reliability
Leadership (LDS) LDS1 0.754** 0.737 0.809 0.888 3.739
LDS2 0.902**
LDS3 0.894**
Occupational health and safety (OHS) OHS1 0.909** 0.661 0.713 0.843 1.600
OHS2 0.901**
OHS3 0.561**
Organizational commitment (ORC) ORC1 0.787** 0.740 0.823 0.895 4.127
ORC2 0.900**
ORC3 0.890**
Job performance (JPR) JPR1 0.938** 0.760 0.839 0.939 3.599
JPR2 0.912**
JPR3 0.938**
JPR4 0.912**
JPR5 0.613**

Discriminant validity indicates the extent to which items in a construct differ from items in other constructs. The statistical test to show this validity is to look at the value of the square root AVE> correlation with other constructs in the model (Hair et al., 2010). Table 4 shows the square root value of AVE (diagonal score) and the correlation of each construct with other constructs, where the diagonal score is higher than the correlation score with other constructs. This indicates that the items in the four constructs have met the criteria or that the items have shown differences between constructs in the model.

Table 4 Discriminant Validity: Square Root of Average Variance Extracted
Constructs Code LDS OHS ORC JPR
Leadership LDS (0.853) 0.556 0.820 0.788
Occupational Health and Safety OHS 0.556 (0.807) 0.546 0.584
Organizational Commitment ORC 0.820 0.546 (0.861) 0.812
Job Performance JPR 0.788 0.584 0.812 (0.872)

The reliability of the research instrument shows the extent to which the instrument in the form of statement items can produce consistent data over time. The statistical test in this study was carried out by looking at internal consistency, namely by looking at the composite reliability and Cronbach alpha values, where the cut-off values for these two indicators were 0.7 and 0.6, respectively (Hair et al., 2010). Table 3 shows that both composite reliability and Cronbach's alpha have met the criteria, so it can be said that the instrument or statement item has been able to produce consistent data. With the fulfillment of statistical tests of validity and reliability, it can be concluded that the instrument is believed to be able to produce reliable data, so that hypothesis testing can be carried out.

Structural Model

Structural models test hypotheses in one framework simultaneously. In the structural test, control variables were included to determine the impact of these variables in the structural model. Table 5 shows the effect of these variables in the model, namely: gender (-0.10; p=0.407), age (-0.061; p=0.223), education (0.034; p<0.210), and years of service (-0.053; p= 0.228). To avoid collinearity between predictor variables, Variance Inflation Factor (VIF) has also been estimated and the results are as in Table 3 which shows the value that meets the cut off-value (VIF<5) (Ringle et al., 2015). The estimation results of hypothesis testing in this study can be shown as in Table 5.

Table 5 Summary of Hypothesis Testing Results
H Hypotheses and Their Relationship Beta p-value Conclusion
  Path      
H1 Leadership → Employee Performance 0.266 0.029 supported
H2 Leadership → Organizational commitment 0.775 <0.001 supported
H3 Health & Occupational Safety → Organizational commitment 0.082 0.139 Not supported
H4 Health & Occupational Safety → Employee Performance 0.146 0.018 supported
H5 Organizational Commitment → Employee Performance 0.499 <0.001 supported
  Control Variables      
  Gender -0.010 0.407 n.a
  Age -0.061 0.223 n.a
  Level of Education -0.034 0.210 n.a
  Period of Working -0.053 0.228 n.a

The results of hypothesis testing in the structural model show important findings in this study. Most of the hypotheses were confirmed. Leadership can be confirmed to have a positive effect on employee performance (β=0.266, p<0.05), and a positive effect on organizational commitment (β=0.775, p<0.001), which means that H1 and H2 are supported. Occupational Health and Safety could not be confirmed as having a positive effect on organizational commitment (β=0.082, p=0.139). However, organizational commitment can be confirmed as having a positive effect on employee performance (β=0.146, p<0.001). For that reason, Hypothesis 3 is not supported, but Hypothesis 4 is supported. The effect of organizational commitment on employee performance can be confirmed by confirmation (β=0.499, p<0.001), so H5 is supported.

The Role of Leadership

This study confirms that leadership has a positive effect on organizational commitment. This means that in shipping companies, the better the leadership performance applied, the higher the employee's organizational commitment. This good leadership style means that it will also create employee confidence in the company's leadership. Thus, this will create a good working relationship, where employees can explain what obstacles are experienced at work to support the improvement of employee performance and vice versa. This kind of relationship can create comfort at work, so that employees will provide the best quality work that forms employee work commitments. This finding is in line with research from Darmawan & Putri (2017), that leadership is one of the important factors in increasing employee work commitment.

Leadership has a positive and significant effect on employee performance, where the better the leadership applied, the more employee performance will increase. A good leadership style will create the desired work environment or work atmosphere so that it makes it easier for a leader to communicate with employees about any obstacles faced in carrying out their duties or obligations so as to improve employee performance. The results of this study are in line with research from Muizu et al. (2019), that leadership is one of the important factors in improving employee performance.

The Role of Health and Occupational Safety

Occupational health and safety has a positive effect on employee performance. This means that the better the occupational health and safety is implemented by the company, the less accidents at work in the company is, so that it will create a sense of security and comfort in carrying out their work or obligations. Comfort in work will improve employee performance. This finding is in line with research from Marom & Sunuharyo (2018), that occupational health and safety has an effect on improving employee performance.

However, in this study, occupational health and safety could not be confirmed to have a positive effect on employee organizational commitment. This means that, in the context of this study, improving occupational health and safety applied to companies does not necessarily increase employee commitment. In a larger context, the better the implementation of occupational health and safety, the more security employees will feel when doing their work or their obligations, which are more determinants of performance than a determinant of commitment. When employees feel safe and comfortable at work, it is because their safety and health are guaranteed by the company. As a result, this condition can minimize the occurrence of work accidents. In addition, this also determines their performance compared to the increase in work commitment of employees. The results of this study are not in line with research from Cahyono (2018) which explains that occupational health and safety has an effect on creating employee work commitment.

The Mediating Role of Organizational Commitment

Organizational commitment has a positive effect on employee performance. This means that the higher the commitment to the employee, the higher the employee's performance is. When employees are committed to work, they will provide totality and loyalty in their work, and in the end can improve employee performance. The results of this study are in line with research from Muis et al. (2018) which explains that employee work commitment has an effect on increasing employee performance.

Another important finding is the mediating role of organizational commitment in the relationship between leadership and employee performance. The relationship between the two is partially mediated by organizational commitment. Therefore, the role of leadership in addition to having a direct influence on employee performance also has an indirect effect through organizational commitment. However, organizational commitment does not become a mediator on the relationship between occupational health and safety on employee performance.

Managerial Implication

In this study, the role of leadership is very important in managing employees, especially in order to increase organizational commitment. Leadership is also important in improving employee performance. The most important effort to improve leadership can be done by providing employee comfort in working, such as various necessary facilities. In addition, the role of providing rewards for high-performing employees is also important in order to encourage employees to always improve their performance. Fairness is also important to be promoted to employees, so that employees will feel being treated as they should.

The role of occupational health and safety is a more influtial factor in improving employee performance, although it does not affect employee organizational commitment. Efforts to improve occupational health and safety can be carried out through increasing their comfort in the work environment and atmosphere, improving health services in the workplace, and improving their mental conditions.

Organizational commitment becomes a mediator, especially in the relationship between leadership and employee performance. Therefore, efforts to increase commitment can be done by increasing employee confidence to be able to work well in advancing the company, supporting the welfare of the employees themselves, and in order to support a good career path. These efforts need to be maintained in order to improve the ability of employees to complete tasks well according to operational standards, complete tasks with more quantity, and complete tasks on time, work efficiently, and speed up learning about the given field.

Conclusion

It has been noted that leadership has a positive effect on employee work commitment. A good leadership style can increase employee work commitment because it can make employees feel comfortable. Ehen they feel comfortble they have a sense of being appreciated for every work they do by being given bonuses or other benefits. This is a form of appreciation from leaders for employees who have a high work commitment to the company. Leadership has a positive and significant effect on employee performance. With the leadership style applied by the leader, the company will improve employee performance. Good leadership is able to make employees feel comfortable at work because it is easy to communicate with superiors about the various obstacles they face at work.

Occupational safety has a positive and significant effect on employee work commitment. With the high implementation of occupational health and safety, it will increase employee work commitment, where good health and safety will minimize the occurrence of work accidents in the work environment. Efforts to implement occupational health and safety will create a sense of security when employees do their work, thereby creating comfort in the work environment and being able to foster work commitment to each employee.

Occupational health and safety has a positive and significant effect on employee performance. With the implementation of occupational health and safety will improve employee performance, where because of the health and safety of employees, employees will feel safe in carrying out their work so that it will improve performance. Work commitment has a positive effect on employee performance. High work commitment to employees will improve employee performance, where work commitment that arises will illustrate that employees at the company are comfortable and can provide the best (loyalty) to their work, which results in increased employee performance.

Limitation and Further Research

This study is subject to several limitations, namely, first: the sampling technique using one company could reduce the generalizability of the results in industry. Further studies are expected to use industry coverage or at least to classify between small and medium enterprises. Second, the measurement of the construct of organizational commitment is limited to using unidimensional measurements so that it is limited to taking more holistic data. Therefore, further studies are recommended to use multidimensional measurements. Third, this study did not use situational factors in analyzing leadership roles, occupational health and safety, and commitment to employee performance. Further studies are suggested to use situational factors to enrich the study findings, such as personality aspects, demographic and organizational.

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