Job Satisfaction as a Mediation of Transformational Leadership on Organizational Commitment and Employee Performance

Abstract

Objective: In the current era of globalization, competition between institutions is increasingly high, both profit-oriented and non-profit-oriented institutions. One of the most important is improving the performance of human resources (HR), which aims to enable companies to face increasingly tight competition and increasingly high demands from customers/consumers. Theoretical Framework: This study aims to determine the effect of job satisfaction as a mediator of transformational leadership on organizational commitment and employee performance. Method: This study uses quantitative research type. This study aims to determine the effect of job satisfaction as a mediator of transformational leadership on organizational commitment and employee performance. This study focuses on employees of office companies in Indonesia, by applying the Non-Probability Sampling technique to determine the sample. And the population obtained in this study was 200 respondents. The data analysis technique used is Smart PLS. Results and Discussion: The results of this research analysis have found that transformational leadership has a positive effect on organizational commitment and employee performance. And job satisfaction is able to mediate transformational leadership on organizational commitment and employee performance. Research Implications: Overall, transformational leadership not only increases employee commitment to the organization, but also encourages them to achieve better performance. This relationship is mutually beneficial, where high commitment can improve performance, and good performance can strengthen commitment to the organization. Job satisfaction acts as a bridge connecting transformational leadership with increased organizational commitment and employee performance. Originality/Value: In further research, we can add new variables that have not been studied in this study.