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The Impact of Leadership and Human Resource Development on
Organizational Performance: A Case Study of KFC Store
Pengaruh Kepemimpinan dan Pengembangan Sumber Daya Manusia
terhadap Kinerja Organisasi: Studi Kasus di KFC
Maya Fitriani
1*
, Lola Anggraeni
2
1,2
Management Study Program, Faculty of Business and Humanities, Nusa Putra University, Indonesia
*Correspondence E-Mail:
maya.fitriani_mn23@nusaputra.ac.id
Abstract
This study examines the significant effects of leadership and human resource (HR) development on
organizational performance at KFC stores. The results indicate that effective leadership and strategic
HR development initiatives are crucial for enhancing employee productivity, job satisfaction, and
overall performance. Specifically, the average leadership score was 19.4, showing a moderate to strong
correlation with organizational performance. Likewise, HR development practices scored an average of
18.75, which also positively impacted performance outcomes. By aligning leadership with HR
development, organizations can create a supportive work environment that fosters improved
productivity and job satisfaction. This research emphasizes the synergy between leadership and HR
development as a key driver of organizational success. However, factors such as organizational culture
and external influences should also be considered for a more comprehensive understanding. Future
research should explore the combined effects of leadership and HR development in various
organizational contexts.
Keywords:
Leadership, Human Resource Development, Organizational Performance, KFC.
Abstrak
Penelitian ini mengkaji pengaruh signifikan dari kepemimpinan dan pengembangan sumber daya
manusia (SDM) terhadap kinerja organisasi di toko-toko KFC. Hasil penelitian menunjukkan bahwa
kepemimpinan yang efektif dan inisiatif pengembangan SDM yang strategis sangat penting untuk
meningkatkan produktivitas karyawan, kepuasan kerja, dan kinerja secara keseluruhan. Secara khusus,
skor rata-rata kepemimpinan adalah 19,4, yang menunjukkan korelasi yang moderat hingga kuat dengan
kinerja organisasi. Demikian pula, praktik pengembangan SDM memperoleh skor rata-rata 18,75, yang
juga berdampak positif terhadap hasil kinerja. Dengan menyelaraskan kepemimpinan dengan
pengembangan SDM, organisasi dapat menciptakan lingkungan kerja yang mendukung yang
mendorong peningkatan produktivitas dan kepuasan kerja. Penelitian ini menekankan pentingnya
sinergi antara kepemimpinan dan pengembangan SDM sebagai faktor kunci keberhasilan organisasi.
Namun, faktor-faktor seperti budaya organisasi dan pengaruh eksternal juga perlu dipertimbangkan
untuk pemahaman yang lebih komprehensif. Penelitian di masa depan sebaiknya mengeksplorasi
dampak gabungan antara kepemimpinan dan pengembangan SDM dalam berbagai konteks organisasi.
Kata Kunci:
Kepemimpinan, Pengembangan SDM, Kinerja Organisasi, KFC.
PUBLICUS Vol 3, No. 1, Februari 2025
FISIP UNIVERSITAS PATTIMURA
e-ISSN 2985-6361
p-ISSN 2985-637X
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INTRODUCTION
In a highly dynamic and competitive business world, organizations must be able to adapt quickly
in order to survive and thrive. Human resources (HR) play a critical role in achieving and sustaining
organizational goals, especially in industries focused on service, such as the fast food sector. Skilled,
motivated, and committed employees are essential to improving organizational performance. Therefore,
effective HR management through inspiring leadership and ongoing skills development is crucial for
ensuring long-term success.
Leadership and HR development have long been recognized as two key factors influencing
organizational performance (Bass, 1990; Yukl, 2008). Leadership plays a role in shaping the vision and
culture of the organization and directing collective efforts to achieve common goals. Meanwhile, HR
development, which includes training, career development, and performance management, provides the
foundation for employees to grow and perform their tasks effectively. In this context, the relationship
between leadership and HR development is crucial for creating a work environment that supports
optimal performance outcomes.
As research in this field progresses, new approaches to leadership and HR development are
emerging. One such approach is transformational leadership, which emphasizes the importance of
motivating, innovating, and engaging employees to achieve better outcomes (Bass & Riggio, 2006).
Transformational leadership is considered an effective model for enhancing individual and team
performance because it encourages employees to exceed their expectations (Avolio, Walumbwa, &
Weber, 2009). Additionally, HR development has also evolved with the introduction of new concepts
like continuous learning and competence enhancement through technology, which directly impact
organizational performance (Noe, 2017; Saks & Gruman, 2014).
In the fast food industry, such as KFC, effective HR management becomes even more critical. This
industry is known for its high employee turnover, which can lower service quality and operational
performance (Huselid, 1995). Therefore, companies need to invest in HR development that focuses not
only on technical skills but also on soft skills and leadership development. Effective development
programs can reduce employee turnover, increase job satisfaction, and ultimately improve productivity
and overall organizational performance (Saks & Gruman, 2014).
This study aims to explore the impact of leadership and HR development on organizational
performance, with a focus on KFC as a case study. The research also adopts a more up-to-date approach
by including recent literature on HR development and leadership styles that offer more relevant
perspectives for readers. In this regard, it is important to examine the dynamic relationship between
leadership, HR development, and organizational performance, as they influence each other and can
generate synergy that enhances organizational effectiveness (Gartner, 2018).
Leadership is one of the key components in achieving organizational goals. Various leadership
theories have been introduced, including transformational leadership theory, which emphasizes the
importance of leaders who can inspire and motivate employees to achieve their best potential (Bass,
1990). Transformational leaders not only direct work but also motivate employees in a way that changes
their mindset to reach common goals. This leadership style is highly relevant in result-oriented
organizations like KFC, where effective leaders can create a productive and innovative work
environment (Avolio et al., 2009).
In addition, in recent years, the concept of inclusive leadership has emerged as an approach that
focuses on diversity and inclusion in leadership styles (Nembhard & Edmondson, 2006). Inclusive
leaders create a work environment that is open to all employees, which in turn improves collaboration,
innovation, and job satisfaction. Recent research suggests that inclusive leadership can enhance
organizational performance by increasing engagement and more effective decision-making among team
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members (Mor Barak, 2015). Therefore, this study will explore supportive and inclusive leadership as a
contributing factor to organizational performance.
HR development encompasses various practices aimed at improving employees' abilities to perform
their tasks and supporting their career growth. Effective development programs include technical
training, leadership skill development, and transparent and fair performance management (Saks &
Gruman, 2014). In fast food industries such as KFC, HR development becomes particularly important
because of the industry's reliance on technical and interpersonal skills, as well as the ability to work
under pressure.
Recent research shows that organizations that invest in HR development programs experience
significant improvements in job satisfaction and productivity (Noe, 2017). In the case of KFC, employee
training goes beyond technical skills such as food preparation or delivering quick and efficient customer
service; it also includes developing interpersonal skills like effective communication and time
management. Thus, comprehensive HR development can help improve individual and team
performance, which ultimately impacts overall organizational performance.
One crucial aspect of HR development is performance management, which involves providing
constructive feedback and recognition for individual achievements (Armstrong, 2014). Research by
Huselid (1995) shows that effective HRM practices, such as sound performance management, can
reduce turnover and increase employee loyalty. In this sense, good performance management helps
create a mutually beneficial relationship between employees and the company, which in turn improves
organizational performance outcomes.
Leadership and HR development cannot be separated, as both influence and contribute to
organizational performance. Effective leadership not only creates the vision and culture of the
organization but also plays a critical role in supporting HR development. Good leaders will encourage
employees to continuously learn and grow, while providing the resources needed to enhance their skills
(Gartner, 2018). Conversely, effective HR development programs can improve leadership quality within
an organization. Employees who develop into better leaders, in turn, can help guide and support HR
development initiatives.
Recent studies indicate that the success of HR development programs greatly depends on strong
leadership support. Leaders who champion training and employee development programs tend to create
a more collaborative and innovative culture (Bass & Riggio, 2006). Therefore, this study will analyze
how leadership and HR development work synergistically to enhance performance at KFC.
This study aims to explore the impact of leadership and HR development on organizational
performance at KFC. The research is expected to contribute to the understanding of how these two
factors interact to improve company performance, as well as provide insights into best practices that can
be applied in the fast food industry. This study also adopts the latest perspectives in literature on
leadership and HR development to provide a more relevant and up-to-date analysis. Therefore, the
findings of this research are expected to serve as a reference for other organizations looking to improve
their performance through better leadership and HR management practices.
METHODS
The methodology used in this study is designed to explore the influence of leadership and human
resource development (HRD) on organizational performance in KFC stores. A quantitative approach
was employed to ensure the collection of objective data that could be analyzed statistically. This method
provides the necessary framework for testing hypotheses and drawing conclusions about the
relationships between the variables of interest. The research methodology is structured into several
components, including the research design, sample, data collection methods, and data analysis
techniques.
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This study uses a descriptive and correlational research design to examine the impact of leadership
and HR development on organizational performance. Descriptive research is valuable for providing a
detailed picture of the existing conditions in the study area, while correlational research helps in
determining the nature and strength of relationships between the variables being studied (Creswell,
2014). In this case, the study aims to describe how leadership styles and HR development practices are
currently implemented in KFC stores and how they correlate with performance outcomes. The goal is
to identify whether a statistically significant relationship exists between the leadership and HRD
variables and organizational performance.
The population of this study includes employees working in KFC stores, specifically those in
managerial and non-managerial positions who are involved in or impacted by leadership and HR
development programs. The total population is estimated to consist of a significant number of employees
across various KFC outlets, but for the purpose of this study, a smaller, manageable sample size of 20
respondents was selected using convenience sampling. Convenience sampling was chosen because it
allows researchers to collect data from available and willing participants in a practical and efficient
manner (Etikan, Musa, & Alkassim, 2016).
The sample consists of employees who have been employed at KFC for at least six months, as this
period is considered sufficient for employees to have experienced the leadership styles and HR
development initiatives within the company. This ensures that the respondents can provide informed
and relevant insights into the relationship between leadership, HR development, and organizational
performance.
The data collection process was conducted through a structured questionnaire designed to assess
the variables of interest: leadership, human resource development, and organizational performance. The
questionnaire was divided into three sections corresponding to these variables:
1.
Leadership: The leadership section was designed to assess the style and effectiveness of
leadership within the KFC stores. It included questions about the leadership approach,
communication effectiveness, and the ability to inspire and motivate employees.
2.
Human Resource Development: This section aimed to measure the extent to which KFC invests
in HR development programs, such as training, career development, and performance
management. Questions included the frequency and quality of training programs, opportunities
for career advancement, and the perceived value of HR development initiatives.
3.
Organizational Performance: This section focused on assessing organizational performance
through indicators such as productivity, job satisfaction, and employee engagement.
Respondents were asked to evaluate how leadership and HRD practices have influenced their
personal performance and the overall performance of the store.
The survey utilized a Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree), allowing
respondents to express their opinions on a continuum. This scale is commonly used in social science
research to measure attitudes, perceptions, and behaviors (Fink, 2013).
Once the data were collected, they were processed and analyzed using statistical methods. The
analysis was conducted in two stages:
1.
Descriptive Statistics: Descriptive statistics, including mean, median, and mode, were
calculated for each item in the survey. This helped provide an overview of the respondents'
characteristics and their responses regarding leadership, HR development, and organizational
performance. Descriptive statistics also allowed the researcher to summarize large amounts of
data and identify patterns and trends within the sample.
2.
Inferential Statistics: To determine the strength and significance of the relationships between
leadership, HR development, and organizational performance, inferential statistical methods
were employed. The primary method used was correlation analysis, specifically the Pearson
correlation coefficient, which measures the degree of linear association between two
continuous variables. Additionally, regression analysis was conducted to assess the predictive
power of leadership and HR development on organizational performance. The statistical
significance of these relationships was tested using a significance level of 0.05, with a p-value
less than 0.05 indicating a significant relationship (Field, 2013). The data were processed using
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statistical software, such as SPSS (Statistical Package for the Social Sciences), to ensure
accurate and reliable results.
To ensure the validity and reliability of the data collection instrument, a pilot test was conducted
with a small sample of KFC employees prior to the main data collection. The pilot test helped identify
any ambiguities or issues in the survey and allowed for revisions to improve the clarity and relevance
of the questions. The reliability of the questionnaire was assessed using Cronbach’s alpha, a coefficient
that measures the internal consistency of the instrument (Cronbach, 1951). A Cronbach’s alpha score
above 0.7 was considered acceptable for ensuring that the items in the survey consistently measure the
intended variables.
Ethical considerations were paramount in this research. Informed consent was obtained from all
respondents, ensuring they were aware of the study’s purpose, the voluntary nature of their participation,
and the confidentiality of their responses. The respondents were assured that their participation would
not affect their employment status, and they were free to withdraw from the study at any time without
consequence. Data privacy was respected, and the collected data were anonymized to protect the
identities of the respondents.
While this research provides valuable insights into the relationship between leadership, HR
development, and organizational performance at KFC stores, it is not without limitations. One limitation
is the small sample size, which may affect the generalizability of the findings. Future research could
expand the sample size to include a broader range of KFC stores in different geographic locations.
Additionally, this study relies on self-reported data, which may introduce bias or inaccuracies in the
responses. Future studies could include objective performance data or conduct interviews with managers
to gain a more comprehensive understanding of the impact of leadership and HR development.
RESULTS AND DISCUSSION
Results
This study aimed to examine the significant effects of leadership and human resource (HR)
development on organizational performance at KFC stores. Based on the data collected from a sample
of 20 respondents, various descriptive and inferential analyses were conducted to understand the
relationships between leadership, HR development, and organizational performance. The results of these
analyses are summarized in Table 1 below:
Table 1. Sample Data on Leadership, HRD, and Organizational Performance
Leadership
HRD
Organizational Performance
19.4
18.75
25.5
20
19
26
18.5
17.5
24
22
19.5
27
18
18
25
21
17
26.5
17.5
20
24.5
19.5
19
25.5
20
18.5
27
21
20.5
28
Source: Research Results, 2024.
Leadership and Organizational Performance
The data revealed a moderate to strong relationship between leadership and organizational
performance. The average score for leadership was 19.4, which suggests that leadership quality plays a
pivotal role in influencing employee performance and overall store operations. Leaders who effectively
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communicate, motivate, and support their teams can directly contribute to enhanced employee
engagement, leading to improved organizational outcomes (Bass, 1990). This positive correlation is
consistent with the notion that leadership is integral to fostering high-performing work environments
(Yukl, 2008).
HRD and Organizational Performance
The results also show a positive relationship between HR development practices and organizational
performance. The average score for HR development was 18.75, which reflects the impact of HR
initiatives on employees' capabilities, job satisfaction, and overall performance. HR development
practices, including continuous training and career development, are essential in enhancing employees'
technical and interpersonal skills, which in turn boost organizational performance (Noe, 2017). The data
indicated that KFC employees who reported higher engagement with HR development programs
performed better, underscoring the importance of employee empowerment through skill-building and
leadership development programs (Saks & Gruman, 2014).
Combined Impact of Leadership and HRD on Organizational Performance
When considering both leadership and HR development variables together, the data suggest a
synergistic relationship. For example, employees who experienced both positive leadership and strong
HR development initiatives showed higher organizational performance scores. This reinforces the idea
that leadership and HR development are not isolated factors but interdependent elements that, when
aligned, result in enhanced organizational outcomes (Gartner, 2018). The synergy between leadership
and HR development creates a conducive environment for employees to thrive, leading to greater overall
performance.
Statistical Analysis
To assess the strength of the relationships between leadership, HR development, and organizational
performance, correlation analysis was performed. The results indicated significant positive correlations
between leadership and organizational performance (r = 0.859), and HR development and organizational
performance (r = 0.921). These high correlation values suggest that both leadership and HR development
are essential determinants of organizational success. The regression analysis further supported this,
revealing that the combination of leadership and HR development significantly predicts organizational
performance outcomes. This statistical evidence reinforces the notion that these two elements play a
critical role in shaping the success of KFC stores (Huselid, 1995).
Discussion
The results of this study underscore the importance of leadership and human resource development
(HRD) in shaping organizational performance, particularly within KFC stores. The findings reveal that
both leadership and HRD have a positive and significant relationship with organizational performance.
This section discusses these findings in the context of existing literature and theoretical frameworks,
emphasizing the role of leadership and HRD in improving performance outcomes.
Leadership and Organizational Performance
The positive correlation between leadership and organizational performance aligns with a wealth
of literature that suggests leadership is one of the most influential factors affecting an organization's
success. As shown in the data, leadership in KFC stores, with an average score of 19.4, plays a pivotal
role in driving better employee performance, customer service, and overall store productivity.
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Leadership, particularly transformational leadership, is known to have a strong impact on employee
motivation, job satisfaction, and engagement (Bass, 1990). Transformational leaders inspire and
motivate their employees by creating a shared vision, offering support, and fostering an environment of
collaboration (Yukl, 2008). These behaviors were likely present in KFC stores, leading to improved
organizational performance.
In the context of the fast food industry, leadership is particularly critical. The industry’s high
turnover rates and fast-paced nature require leaders who can manage stress, inspire their teams, and
ensure that employees are committed to delivering high-quality service. As noted by Lussier and Achua
(2015), effective leadership not only helps in improving operational efficiency but also influences
employee satisfaction and retention. KFC’s performance appears to improve significantly when
leadership practices are robust and supportive.
HRD and Organizational Performance
Human resource development also plays a crucial role in enhancing organizational performance.
The study's findings indicate a positive relationship between HRD and performance, with an average
score of 18.75 for HRD practices. This result is consistent with the work of Sedarmayanti (2017), who
argues that HRD programs, such as training, skill development, and career advancement opportunities,
are key to improving workforce competence and engagement. By offering continuous learning
opportunities, KFC stores ensure that employees are well-equipped to handle customer demands and
operational challenges.
HRD contributes to employee satisfaction, which, in turn, affects overall performance.
Organizations that invest in HRD typically see a reduction in turnover and an increase in productivity
and job satisfaction (Huselid, 1995). The findings from this study suggest that KFC stores with higher
HRD scores experience better organizational performance outcomes, further reinforcing the positive
impact of HRD on employee engagement and effectiveness.
Additionally, HRD helps in aligning employees' skills with organizational needs, enabling KFC to
maintain high standards of service and productivity despite the high turnover typically observed in the
fast food industry. As suggested by Armstrong (2014), HRD programs that focus on training and skill
enhancement can bridge performance gaps and contribute significantly to a company’s success.
Combined Impact of Leadership and HR Development on Organizational Performance
The combined effect of leadership and HRD on organizational performance is particularly
noteworthy. The findings indicate a synergistic relationship between these two variables, with stores
exhibiting both strong leadership and effective HRD practices showing the highest levels of
performance. This result is consistent with the strategic HR management perspective, which emphasizes
the importance of integrating leadership and HRD practices to create a supportive environment that
fosters improved performance outcomes (Huselid, 1995).
Research suggests that when leadership and HRD work in tandem, they create a holistic
environment that drives organizational success. Leaders who understand the importance of HR
development initiatives and support them through effective leadership practices are more likely to create
a high-performance culture. This was likely the case in KFC stores, where leaders not only inspire and
motivate employees but also ensure that HRD initiatives are implemented to enhance employee skills
and competencies. As noted by Noe (2017), this alignment between leadership and HRD is crucial for
maximizing organizational performance and achieving strategic goals.
The results of this study are aligned with previous research that highlights the interdependence of
leadership and HRD in driving organizational success. Effective leadership enhances the outcomes of
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HRD initiatives, while HRD provides the tools and resources needed to empower employees, leading to
improved job satisfaction and performance (Lussier & Achua, 2015). Therefore, KFC's success can be
attributed to the synergy between leadership practices and HRD, both of which are integral to enhancing
organizational performance.
Statistical Significance of Leadership and HRD
The correlation analysis further supports the importance of leadership and HRD in driving
organizational performance. The strong positive correlations between both leadership (0.859) and HRD
(0.921) with organizational performance suggest that these factors are statistically significant in
influencing the performance outcomes in KFC stores. This reinforces the findings of earlier studies that
assert the pivotal role of leadership and HRD in improving organizational outcomes (Bass, 1990;
Huselid, 1995). The regression analysis conducted in this study also indicates that leadership and HRD
together have a significant predictive power on organizational performance, which underscores the
critical importance of these variables in shaping the success of the organization.
CONCLUSION
Conclusion
Based on the findings of this study, it is evident that both leadership and human resource
development (HRD) play critical roles in enhancing organizational performance at KFC stores. The
positive correlations between leadership, HRD, and organizational performance indicate that effective
leadership styles and robust HRD practices contribute significantly to improving employee engagement,
productivity, and overall performance outcomes. Leadership, particularly transformational leadership,
is crucial for motivating and inspiring employees, fostering a work environment that encourages high
performance and collaboration. Similarly, HRD initiatives, such as training, career development, and
performance management, help improve employee skills and competencies, leading to enhanced job
satisfaction and performance. Moreover, the synergy between leadership and HRD practices creates a
supportive environment where organizational success is more achievable. These results align with
existing literature and highlight the importance of integrating both leadership and HRD strategies to
maximize organizational performance.
Recommendations
KFC should focus on strengthening leadership development programs to ensure that leaders are
well-equipped with the skills to inspire, motivate, and effectively manage their teams, particularly
through transformational leadership styles. Furthermore, enhancing HRD initiatives, including training,
career development opportunities, and performance management, will help employees enhance their
skills and competencies, leading to higher productivity and job satisfaction. It is also essential for KFC
to integrate leadership and HRD practices to work synergistically, fostering a high-performance culture.
Lastly, future research should include a broader sample and diverse methodologies, such as interviews
with leaders and employees, to gain deeper insights into the factors influencing performance. By
focusing on these areas, KFC can enhance its organizational performance and maintain its competitive
edge in the fast food industry.
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