Democratic Leadership

Leadership is a practical skill that includes the ability of a person or organization to lead or guide other people, teams, organizations, and companies. Leadership is a very important factor in influencing and providing direction to employees, what's more when the system is open, it is a leadership figure that strengthens employees. The Leadership Style is a method or pattern and certain abilities used by a leader in understanding, communicating and being able to influence, direct, encourage and control other people or subordinates in order to do a job so as to achieve a goal. The success that is obtained from an organization or organization whose performance has been determined, and carry out it with the responsibilities that have been given.

Based on the research of Kadek Ary Setiawan in his research "The Effect of Leadership Style and Compensation on Employee Performance of PT. Astra Honda Nusa Dua Bandung Regency" explains that the purpose of his research is the influence of leadership style and compensation on employee performance. This shows that the leadership style has a positive and significant effect on employee performance. And shows that the statement of leadership style, the employee's performance will increase significantly. The difference between this study and previous research is that it lies in the influence of leadership style and compensation on employee performance in this study to determine the effect of leadership style on employee performance, that in the author's study, the author wanted to know about the influence of leadership styles possessed by company leaders. 

PT. Medan Industry Area (Persero) is a State-Owned Enterprise (BUMN) with the business of industrial estate management services. This area was established on October 7, 1998, with a composition of shares consisting of the Government of Indonesia (central) 60%, North Sumatra Provincial Government 30%, and Medan City Government 10%, always well planned by management. The leadership style possessed by the main director of PT. Medan Industry Area (Persero) is a democratic leadership style so that leaders often include employees in decision making and employees can work together and prioritize work quality, but not all employees feel the leadership style possessed by company leaders, some of them always feel excessive fear when following company leaders they often assume too much with company leaders, they assume when they consider leaders their company is making a mistake at work.

Formulation of the Research

The formulation of the problem in this study is "how the influence of democratic leadership style on employee performance at PT. Medan Industry Area (Persero)" 

Limitation of the Research

The limitation of this problem is only on the influence of democratic leadership style on employee performance at PT. Medan Industry Area (Persero) in the recording period from March to July 2020. 

Objectives of the Research

The purpose of this study was to determine how the influence of democratic leadership style on employee performance at PT. Medan Industry Area (Persero).

Benefits of the Research

This research can add knowledge to the author and an understanding of democratic leadership and its application to human resource management where it has been studied in college and in the real world of work.