THE EFFECT OF TRANSFORMATIONAL LEADERSHIP AND WORK MOTIVATION ON EMPLOYEE PERFORMANCE WITH JOB SATISFACTION AS A MEDIATION VARIABLE

Abstract

This study aims to determine the effect of transformational leadership style, motivation, job satisfaction on employee performance. This study tested seven hypotheses: (1) Transformational leadership influences job satisfaction; (2) Work motivation influences job satisfaction; (3) The transformational leadership style directly influences employee performance; (4) Work motivation directly influences employee performance; (5) Job satisfaction influences employee performance; (6) The transformational leadership style directly influences employee performance through job satisfaction; (7) Work motivation directly influences employee performance through job satisfaction. This study took a sample of 80 respondents from permanent employees of Bank BNI Branch of Universitas Brawijaya. While the data analysis techniques used are descriptive analysis, factor analysis, and path analysis. The conclusions of this study are: (1) there is a significant effect of transformational leadership style on job satisfaction; (2) there is a significant effect between work motivation on job satisfaction; (3) there is a significant effect between transformational leadership style on employee performance; (4) there is a significant effect between work motivation on employee performance; (5) there is a significant effect between job satisfaction on employee performance; (6) transformational leadership style has an indirect and significant effect on employee performance through job satisfaction; (7) Work motivation has an indirect and significant effect on employee performance through job satisfaction. Some of the suggestions submitted are that the transformational leadership style is carried out properly and improved so that a harmonious relationship is established between the leadership and employees, increasing employee motivation. Later the company will get results in the form of improving employee performance. Company leaders should always strive to increase work motivation to increase job satisfaction by paying attention to various employee needs.