THE EFFECT OF DEMOCRATIC LEADERSHIP STYLE ON PERFORMANCE AND JOB SATISFACTION MODERATION AMONG EMPLOYEES AT ARUNIKA MEDIKA CLINIC

Abstract

Leadership style is an important factor that influences work effectiveness and employee productivity in healthcare settings. Democratic leadership style is where leaders involve employees in decision-making and value their opinions. This study aims to analyze the effect of democratic leadership style on the performance of employees at Arunika Medika Clinic, by examining the moderating role of job satisfaction. The research method is quantitative with a survey approach, involving permanent employees aged 25-50 years at the Arunika Medika Clinic. The population includes 150 employees, with a sample of 120 respondents selected through purposive sampling based on a minimum criterion of 2 years of work experience. Data were collected through a Likert scale questionnaire from standard instruments (Multifactor Leadership Questionnaire for leadership, Job Satisfaction Survey for job satisfaction, and Individual Work Performance Questionnaire for performance), with validity and reliability tested using Cronbach's Alpha (>0.70). Data analysis was performed using multiple moderation regression through SPSS 26. The results showed that democratic leadership had a significant positive effect on performance (β = 0.42, p < 0.001), explaining 28% of the variance. Job satisfaction significantly moderated this relationship (β interaction = 0.31, p < 0.01), where the positive effect of democratic leadership was stronger among employees with high job satisfaction (R² Δ = 0.12), with a stronger effect among employees with high satisfaction. Conclusion that democratic leadership style has a positive and significant effect on employee work motivation and performance and the application of democratic leadership at Arunika Medika Clinic.