THE ROLE OF JOB STRESS ON EMPLOYEE PERFORMANCE THROUGH MENTAL HEALTH AS A MEDIATING VARIABLE AND SERVANT LEADERSHIP AS A MODERATING VARIABLE: A STUDY ON TOYOTA EMPLOYEES IN JAKARTA

Abstract

Performance management is a systematic procedure that enables firms to increase productivity, efficiency, and overall employee performance. This includes setting clear expectations and offering regular feedback on how staff are meeting those standardsEmployee performance has a significant impact on an organization's overall success. This study proposes to evaluate the impact of occupational stress on the performance of Toyota dealer employees in Jakarta, utilizing mental health as a mediator and servant leadership as a moderator variable. This study was done to analyze the impact of work stress on employee performance in the face of high competition in the business sector. Partial Least Squares Structural Equation Modeling (PLS-SEM) is used for analysis in this quantitative descriptive study. 137 Toyota dealer employees in Jakarta were polled for this study. The results of the study show that each of the five hypotheses examined was significant. Employee performance has been shown to be significantly impacted negatively by work stress, as evidenced by a path coefficient of -0.374, T-statistic of 2.542 (> 1.96), and P-value of 0.011 (< 0.05). With a path coefficient of -0.763, a t-statistical value of 14.221 (> 1.96), and a p-value of 0.000 (< 0.05), workplace stress significantly impairs mental health. Having a healthy mental state has a considerable positive impact on employee performance (path coefficient off 0.199, t-statistic = 2.065 (> 1.96), p-value = 0.039 (< 0.05). With a t-statistic of 2.081 (>1.96) and a p-value of 0.037 (<0.05), the mental health path coefficient, which is -0.152, mediates the relationship between employee performance and work stress. With a p-value of 0.001 (< 0.05), a t-statistic of 3.230 (> 1.96), and a moderation coefficient of 0.230, servant leadership balances the relationship between job stress and employee performance. This study is unusual in that it uses an empirical model that includes four variables to examine the role of servant leadership moderation and the impact of mental health mediation on Toyota dealer employees in Jakarta.