Volume 2, Issue 1, December 2020 E-ISSN : 2715-4203, P-ISSN : 2715-419X Available Online: https://dinastipub.org/DIJDBM Page 104 DOI: https://doi.org/10.31933/dijdbm.v2i1 Received: 27 th October 2020, Revised: 15 th November 2020, Publish: 10 th December 2020 THE OPTIMIZATION OF LEADERSHIP MEDIATION, WORK ENVIRONMENT, AND COMMUNICATION FOR EMPLOYEE PERFORMANCE IN DISTRICT SERVICE DIVISION IN PT. STATE ELECTRICITY COMPANY Nuzulul Fatimah 1 , Anis Eliyana 2 , Noneng R Sukatmadiredja 3 , Ilham 4 , Tatag Herbayu L 5 , Abid Fareed 6 , Heri Cahyo Bagus Setiawan 7 1 Faculty of Economics and Business, Airlangga University, Dharmawangsa Dalam Selatan Street Surabaya, Jawa Timur, Indonesia, 60286, nuzulul.fatimah@stiemahardhika.ac.id 2 Airlangga University Faculty of Economics, Dharmawangsa Dalam Selatan Street Surabaya, Jawa Timur, Indonesia, 60286, anis.eliyana@feb.unair.ac.id 3 Institute of Economic Science Mahardhika, Wisata Mananggal Street 42 Dukuh Menanggal Gayungan Surabaya, Jawa Timur, Indonesia 60234, 4 Sunan Ampel State Islamic University, Ahmad Yani Street, Surabaya, Indonesia, ilham@uinsby.ac.id 5 Airlangga University Faculty of Economics, Dharmawangsa Dalam Selatan Street Surabaya, Jawa Timur, Indonesia, 60286, tatagherbayu@gmail.com 6 Airlangga University Faculty of Economics, Dharmawangsa Dalam Selatan Street Surabaya, Jawa Timur, Indonesia, 60286, abid.fareed-2001@feb.unair.ac.id 7 Airlangga University Faculty of Economics, Dharmawangsa Dalam Selatan Street Surabaya, Jawa Timur, Indonesia, 60286, hericbs@umg.ac.id Corresponding Author: First Author Abstract: This study identifies and analyzes optimization by work morale to mediate leadership style, work environment, and communication on the performance of employees of PT. State Electricity Company (PLN PERSERO) Customer Service Unit. This research was conducted using a quantitative, descriptive approach. The population in this study were employees of PT. State Electricity Company (PLN PERSERO) of the Customer Service Unit, amounting to 48. We use path analysis techniques to determine the direct and indirect relationship between leadership style, work environment, and communication on employee performance. As well as how the enthusiasm of work mediates the variables of leadership, work environment, and communication on the performance of employees in the Nuisance Services Division at the PT State Electricity Company, Network Service Unit. The results of this study conclude that (1) leadership style has a positive effect on morale, (2) leadership style directly has a positive effect on work performance, (3) work environment has a positive effect on morale, (4) the work environment directly has a positive effect on work performance. (5) Communication has a positive effect on morale, (6) communication directly has a positive effect on work performance, (7) work performance has a positive effect on morale. (8) Leadership style indirectly positively influences work performance through work morale as an intervening variable, (9) work environment has a positive effect on work performance through work morale as an intervening variable, (10) communication style positively influences work performance through work morale as an intervening variable in service division employees at PT. State Electricity Company (PLN PERSERO) Customer Service Unit. Keywords: Leadership Style, Work Environment, Communication, Work Spirit, Employee Performance.