Organizational Culture and Leadership Can Reduce Work Stress and Improve Job Satisfaction

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Medan - A study by Johnnyfan, Thomas Sumarsan Goh, and Henri Saragih of Universitas Methodist Indonesia found that organizational culture and leadership play important roles in reducing work stress and improving employee job satisfaction at PT. Samawood Utama Work Industry. Conducted from April to July 2025, the study involved 75 employees and found that organizational culture, leadership quality, and work stress together explained 87.7% of the variation in job satisfaction. The findings highlight the importance of creating a supportive workplace where employees receive clear direction, effective leadership, and adequate support.

Why Workplace Culture and Leadership Matter

Employee satisfaction is closely connected to how people experience their workplace. In manufacturing companies, employees often work within structured systems that demand efficiency, coordination, communication, and consistent performance. Leadership and organizational culture can therefore influence not only productivity but also employees' psychological conditions.

The study was conducted against a background of employee dissatisfaction at PT. Samawood Utama Work Industry. The article points to concerns related to the promotion system and reports of employee protests over alleged unilateral termination policies. These conditions provide an important context for examining how workplace culture, leadership, stress, and job satisfaction interact.
Previous studies in the manufacturing sector have examined relationships between organizational culture, leadership, and job satisfaction. However, the authors noted that fewer studies have integrated organizational culture, leadership, work stress, and job satisfaction into one structural model. Their analysis places work stress in the middle of the relationship, showing how workplace conditions can affect satisfaction both directly and indirectly.

How the Study Was Conducted

Johnnyfan, Thomas Sumarsan Goh, and Henri Saragih used a quantitative approach at PT. Samawood from April to July 2025. The study included all 75 employees in the company as respondents, using a census or saturated sampling method.

Information was collected through questionnaires, interviews, and literature studies. Employees responded using a five-point Likert scale. The questionnaire was tested for validity and reliability before the main analysis.

The researchers then examined the relationships among four key variables: leadership, organizational culture, work stress, and job satisfaction. Statistical analysis included assumption testing, path analysis, and an R² measurement to determine how strongly the variables explained changes in work stress and job satisfaction.

Organizational Culture and Leadership Reduce Work Stress

One of the strongest findings concerns the relationship between workplace conditions and employee stress.

Organizational culture had a significant negative effect on work stress. In practical terms, a healthier organizational culture was associated with lower levels of employee stress. Leadership showed a similar pattern: better leadership was significantly associated with lower work stress.

The combination of organizational culture and leadership explained 87.5% of the variation in work stress. This indicates that the two factors work together rather than operating as isolated influences.

A supportive culture can provide employees with clearer roles, open communication, mutual respect, teamwork, and a stronger sense of belonging. Meanwhile, effective leaders can provide direction, emotional support, and help resolve workplace conflicts. Together, these conditions can create a more stable working environment.

Lower Stress Is Linked to Higher Job Satisfaction

The study also found a significant negative relationship between work stress and job satisfaction. Employees experiencing higher levels of work stress tended to report lower job satisfaction.

The researchers explain that poorly managed stress can contribute to concentration problems, emotional exhaustion, lower productivity, frustration, and discomfort in the workplace. These effects can eventually influence how employees evaluate their jobs and working environment.

At the same time, organizational culture and leadership had positive and significant effects on job satisfaction.

The statistical results showed:

  • Organizational culture → job satisfaction: positive and significant, with a direct effect coefficient of 0.355.
  • Leadership → job satisfaction: positive and significant, with a direct effect coefficient of 0.380.
  • Work stress → job satisfaction: negative and significant, with a regression coefficient of -0.284.
  • Organizational culture + leadership → work stress: R² = 87.5%.
  • Organizational culture + leadership + work stress → job satisfaction: R² = 87.7%.

The findings also show that work stress partially mediates the relationship between both organizational culture and job satisfaction, and leadership and job satisfaction. The Sobel test produced values of 2.00 for organizational culture and 2.15 for leadership, exceeding the 1.96 threshold reported by the authors.

What the Findings Mean for Companies

The results suggest that improving employee satisfaction cannot rely solely on salary, promotion, or other individual employment benefits. The broader organizational environment also matters.

For manufacturing companies, strengthening organizational culture can involve encouraging open communication, teamwork, recognition, role clarity, and opportunities for development. Leadership can be improved by providing clear direction, supporting employees individually, encouraging participation, and creating a shared sense of purpose.

The authors emphasize that work stress should be managed as part of an integrated organizational strategy. Reducing stress is not only a matter of employee well-being; it can also support higher job satisfaction and a healthier workplace climate.

Johnnyfan, Thomas Sumarsan Goh, and Henri Saragih of Universitas Methodist Indonesia essentially show that workplace culture and leadership function as interconnected elements. A positive culture can reduce psychological pressure, while effective leadership can provide employees with the direction and support needed to cope with workplace demands. When stress is reduced, employees are more likely to experience greater satisfaction with their jobs.

Author Profiles

Johnnyfan — Universitas Methodist Indonesia.
Thomas Sumarsan Goh — Universitas Methodist Indonesia.
Henri Saragih — Universitas Methodist Indonesia.

Source

Article Title: The Role of Work Stress in Mediating the Effects of Organizational Culture and Leadership on Job Satisfaction at PT. Samawood Utama Works Industry
Authors: Johnnyfan, Thomas Sumarsan Goh, Henri Saragih
Journal: International Journal of Sustainable Applied Sciences (IJSAS)
Publication Year: 2026
Volume/Issue: Vol. 4, No. 9, pp. 1259–1268
DOI: https://doi.org/10.59890/ijsas.v4i9.76
Official Journal URL: http://ijsasjournal.my.id/index.php/ijsas

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