How Authentic Leadership Promotes Job Performance? The Mediating Role of Organizational Climate

Abstract

Industrial progress continues to demand workspace professionalism, so it encouraged the labor market to be competitive. High enthusiasm is one signal that reflects work productivity. This work orientation is to investigate the relationship between authentic leadership and job performance mediated by organizational climate. The sample method collects the entire population, which is focused on 159 employees who work at PT. Pure Original Plywood (Kalamur) in Samarinda City. The analytical approach was tested using Partial Least Square (PLS). The empirical findings validate that authentic leadership plays an important role in building organizational climate. Meanwhile, improvement in organizational climate also has a significant effect on work performance. Interestingly, authentic leadership does not have a significant effect on job performance, but through the application of organizational climate, the effect is significant. Further implications focus on organizational climate, where the key to success in stimulating job performance is emphasizing rewarding according to their achievements. In practice, this paper also verifies that an excellent organizational climate as a concrete condition creates authentic leadership.