This study aims to determine the effect of situational leadership in improving employee performance. This research uses descriptive qualitative research method. The population in this study were several employees of Bank Syariah Mandiri KCP (Branch Office) Kaliurang, namely 8 employees and interviews with 2 lecturers in the field of Human Resources Management, UniversitasMuhammadiyah, Yogyakarta. Data collection techniques used observation, interview, and documentation. The results of this study are (1) situational leadership has a positive effect on improving employee performance. (2) There are factors that influence situational leadership in improving employee performance, namely: first, derived from the background and knowledge of the leader, secondly from employee maturity and independence, and thirdly derived from the work environment.