Effects of transformational leadership styles on job performance with job motivation as mediation: A study in a state-owned enterprise

Abstract

A transformational leader is able to unite all subordinates and change beliefs, attitudes, and personal goals of all subordinates to achieve his/her goals, and even surpasses the goals set. Support from the leader may motivate the employee to work better, which could affect employee performance. This study aims to examine the effect of transformational leadership on employee performance, with employee motivation as an intervening variable. The population of the study includes all 285 employees from PT. Kereta Api Indonesia. The study uses path analysis and the results show that transformational leadership had significant effect on employees' job performance with job motivation as an intervening variable. Employees' job motivation also had significant influence on employees' job performance.