IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X.Volume 8, Issue 5 (Mar. - Apr. 2013), PP 50-58 www.iosrjournals.org www.iosrjournals.org 50 | Page Influence of Servant Leadership to Motivation, Organization Culture, Organizational Citizenship Behavior (OCB), and Employee’s Performance i n Outstanding Cooperatives East Java Province, Indonesia Wiwiek Harwiki Doctoral Student of Business Administration, Faculty of Administrative Science, Brawijaya University, Malang, Indonesia Abstract: Servant leadership style implementation on Cooperatives encourages the existence of organizations. Since most organizations –including Cooperatives- need to serve at all levels in order to keep their relationship to their members, employees, and environments. Servant leadership should be of i nterest for today’s cooperative leaders for it enablesand empowers employees to serve others. 25 Cooperatives have been honored as Outstanding Cooperatives in 2012 based on East Java Governor Act (SK GubernurJawaTimurNomor 188/389/KPTS/013/2012) were as an object of this research is located inEast Java. The data were obtained from 249 Employees, and 30 Managers of Outstanding Cooperatives. The data were analyzed using the Structural Equation Modeling with Partial Least Square Program. Empirical research on servant leadership has been scarce (Subramaniam, 2011), so this study will contribute to the body of knowledge with attempt to investigate the influences of servant leadership to motivation, organization culture, OCB, and employees’ performance; and the influences of motivation to OCB, and employees’ performance; and the influences of organization culture to OCB, and to employees’ performance; and the influence of OCB to employees’ performance. The research showed the following findings: (1)servant leadership influences to motivation, organization culture, and employees’ performance, but not to OCB; (2) motivation influences to OCB and employees’ performance; (3) organization culture influences to OCB and employees’ performance, and (4) OCB influences to employees’ performance of Outstanding Cooperatives in East Java. Suggestion that can be presented is that managers of Outstanding Cooperatives should be more empower themselves to help fellow workers carry out their tasks voluntarily, and implementing the real positive attitude, fostering sportsmanship, altruism, conscientiousness, courtesy, and civic virtue of the employees. Keywords: Servant Leadership, Motivation, Organization Culture, OrganizationalCitizenship Behavior (OCB), and Employees’ Performance. I. Background East Java as one of the biggest Province in Indonesia has more than 4,2 millions Small Medium Enterprises, number of Cooperatives was 29.145 units and absorbed man power as many as 75.430 people, with total business volume of about 26,29 trillions rupiahs in 2011 (Central Bureau of Statistic, 2012). Many reasons of conducting research on Outstanding Cooperatives as follows: (1) 0.08% of 29.145 units only (25 units) as Outstanding Cooperatives shows not only so rigid and competitive, but also as a big opportunity to be an Outstanding Cooperatives in East Java, (2) The result of Outstanding Cooperatives research beneficial as a trigger for ordinary other Cooperatives hopefully, and (3) The previous research of servant leadership has been conducted on voluntary organization and big company (Covey, 1995), not on Cooperatives, especially Outstanding Cooperatives. Servant leadership in Cooperatives relate to serve first, rather than to lead first, always striving to meet the highest priority needs of others. Servant leadership respects the capabilities of their followers and enable them to exercise their abilities, share powers, and do their best. The servant-leader is prepared to share power through empowerment, thereby involving followers in planning and decision making. Along with the servant leadership style of Outstanding Cooperatives which show concern for their employees, the overriding focus of the servant leader is upon service to the employees, as Russell (2001) stated that the servant leader are people oriented and focused on the needs of those around them. The existence of Small Medium and Cooperatives in East Java economic growths is important, especially in supporting of 53.04% for Total PDRB (Product Domestic Regional Brutto) on 2011 (Central Bureau of Statistic, 2012)- , means that leadershipare needed from the leaders who motivate their subordinates achieving a certain level that exerting a given level of effort will lead to a higher performance.