| Changes that occur in this day and age is so rapid , especially in any organization or company that exists for the more competitive to survive . In the business world ,leadership styles have a big impact on the course of an organization as well as the survival of the organization . Leadership role has an impact on the culture and behavior of an organization or company , as well as strategic importance in an organization or company as one of the determinants of success in achieving the mission , vision and goals of an organization . Therefore , the challenge in every developing strategy on the one hand lies in the organization itself , but on the other hand depends on the style of leadership . Not only the style of leadership , interpersonal communication also plays an important role in the course of an organization . Communication is a leader who made an effort to explain to the employees about what to do , how well they are doing and what can be done to improve performance if it was below the standard , while the communication between employee competencies that will help employees to be able to acquire and developing task to bear , so that the level of performance of an organization or company to get better . The case studies in this research conducted at the small and medium enterprises located in Sungkai Indah Jl. Raya Bekasi, East Jakarta Km.17. Sungkai Indah are engaged in a variety of chairs and tables made from Jepara carving teak wood. Tools that are used toperform measurements in this study is the structural model developed based on theory and previous related research and elaborated that can be arranged questionnaire.There are leadership style and interpersonal communication are analyzed in this study. Both of these manifest variables analyzed its effect on employee performance. Data processing is done with the help of software SmartPLS. PLS chosen because it assumes that no particular distribution of data, can be used on small samples, and can predict the model is built to achieve the main objectives of the study. This study identifies the factors that affect each variable significantly. The results showed that the negative effect of leadership styles on employee performance, while interpersonal communication positively influence the performance of employees in Sungkai Indah. |