Leadership and employee performance in local government: Evidence from Aceh, Indonesia

Abstract

This study examines the effect of leadership on employee performance at the Community and Village Empowerment Agency (DPMG) of Banda Aceh City, Indonesia. A quantitative research design was employed using a simple linear regression model to analyze the relationship between leadership and employee performance. The study involved 80 employees selected as respondents. The findings indicate that leadership has a positive and statistically significant effect on employee performance. The t-test results show that the calculated t-value (2.344) exceeds the critical t-value (1.989), with a significance level below 0.05 (p < 0.05), confirming the acceptance of the research hypothesis. Furthermore, the F-test yields an F-value of 31.140 (p < 0.001), indicating that the regression model is statistically significant. These findings suggest that effective leadership plays an important role in enhancing employee performance within public sector organizations. The study highlights the importance of strengthening leadership practices to improve organizational effectiveness and public service performance.