DOI: 10.21276/sjbms.2017.2.3.7 157 Saudi Journal of Business and Management Studies ISSN 2415-6663 (Print) Scholars Middle East Publishers ISSN 2415-6671 (Online) Dubai, United Arab Emirates Website: http://scholarsmepub.com/ Effect of Job Satisfaction and Leadership Style towards Employee Productivity at PT Asuransi Umum Bumiputera Muda 1967 Margarita Thessa Maida 1 , Setyo Riyanto 2 , and Hapzi Ali 3 1 Manager at Bumi Putera Muda 1967, Jakarta Indonesia 2 Lecturer of Mercu Buana University, Jakarta Indonesia 3 Lecturer of Postgraduate Mercu Buana University, Jakarta Indonesia *Corresponding Author: Prof. Dr. Hapzi Ali Email: prof.hapzi@gmail.com Abstract: The objective of this study was to investigate the effect of working satisfaction and leadership style to productivity of PT Asuransi Umum Bumiputera Muda’s 1976 employee. The rationale for utilizing this variable was based on the previous study and literature review result. This study used simple random sampling method. The number of sampling formula in this study used Slovin formula, with 88 respondents. The data was analyzed with SPSS 20.0 for window software. Multiple linear regression was performed to investigate the effect of working satisfaction and leadership style to employee’s productivity. The results showed that there was a significant influence between working satisfaction and employee’s productivity, leadership style and employee’s productivity, and simultaneously there was a significant effect for both of variables to productivity of PT Asuransi Umum Bumiputera Muda’s 1976 employee . Keywords: working satisfaction, leadership style and employee’s productivity INTRODUCTION Insurance underwriting business is a growing business. Insurance companies are indirectly supporting the country's economic growth in investments in the real sector. According to data from the BPS in 2013 the average expenditure per capita Indonesia for insurance is still very low at around 1.6% of the total expenditure per month. The percentage still allows the insurance industry to continue to improve themselves so that the insurance awareness can grow and thrive in the community in order to ultimately consume for insurance coverage is expected to improve the welfare of the community. This is a challenge for PT Asuransi Umum Bumiputera Muda 1967 (Bumida) as one of the companies that is engaged in insurance. In 2013 Bumida did not get awards and even included as one of the insurance companies that did not qualify for a rating on a research conducted by LRMA. This is unfortunate because earlier in 2012 Bumida has finished 17th of 82 general insurance companies. Bumida market share in the general insurance industry in 2013 was 1.04% down compared to the year 2012 which reached 1.31%. Based on the 2013 balance sheet solvency ratio Bumida level attained by only 63.42%. In accordance with Article 43 paragraph 2 Decree of the Minister of Finance No. 424 / KMK.06 / 2003 on the Financial Health of Insurance and Reinsurance Company, attainment of the solvency ratio is at least 120%. It can be concluded that there is a possibility Bumida having problems with productivity. Table 1 below is a description of the achievement of production targets and realization Bumida from 2009 to 2013. Table-1: Data of Target and Actual Production in PT. Asuransi Umum Bumiputera Muda 1967 Year Target Realization Ratio 2009 396.641.800.000 385.290.423.352 97.14% 2010 410.175.754.206 417.171.845.855 101.71% 2011 448.300.000.000 449.389.680.234 100.24% 2012 550.000.000.000 520.263.653.801 94.59% 2013 600.000.000.000 521.102.222.333 86.85% Source: Data Report Exum (Executive Summary) year 2009-2013 The table above illustrates the production data of the company in 2013 was very low. In 2013, it declined in production drastically compared to the data of production in the last 5 years. Since production targets were not achieved, we can conclude that there is a gap between the expectations of management on the