'Effectof Transjormationai utUfasfiip Towards 'Unpfoyu's Peifonn.onct. 'Ilirougfi Satisfaction aruf 'Motft.

ratti 6y Culture

EFFECT OF TRANSFORMATIONAL LEADERSHIP TOWARDS

EMPLOYEE'S PERFORMANCE THROUGH SATISFACTION AND
MODERATED BY CULTURE

Gilang Pratama
Fakultas Ekonomi Universitas Esa Unggul, Jakarta
Jalan Arjuna Utara No. 9 Kebon Jeruk Jakarta
[email protected]

Abstrak
Penelitian ini bertujuan untuk menganalisa dampak menyeluruh dari gaya kepemimpinan
transformasional terhadap kinerja karyawanbaik secara langsung maupun yang dimediasi
oleh kepuasan kerja dan dimoderasi oleh budaya organisasi. Lebih lanjut, penelitian ini
diadakanuntuk menemukanadanyapengan.:h antara gaya kepemimpinantransformasional,
kepuasaan kerja dan budaya organisasi terhadap kinerja karyawan didalam institusi
pendidikan di Indonesia. Penelitian ini dilakukanberdasarkanriset yang terdahap survey
yang diberikan kepada responden. Didalam penelitian ini digunakan pengumpulan data
primer dan sekunder. Data utama didapatkandari metode interview dan kuesioner baik
secara resmi yang bersifat administratif maupuntidak. Sampelpada penelitian ini sebesar
320 yang di analisisdengan metode deskriptif, uji validitas dan reabilitas serta di analisis
menggunakanpemodelanstructural equation. Hasil penelitian pada institusi pendidikan di
Indonesia menunjukkan bahwa gaya kepemimpinan transformasionalmemiliki pengaruh
positif terhadap kinerja karyawan,dimana hasil yang sama baiknya juga dinyatakan saat
pengaruh tersebut dipengaruhioleh mediasi kepuasankerja dan dimoderasi oleh budaya
organisasi. Pengaruh dengan nilai tertinggi dalam pencapaian pengningkatan kinerja
karyawan adalah faktor gaya kepemimpinantransformasional. Penelitian ini merupakan
kebutuhan dalam memperkayapengetahuan dalam bidang ilmu sumber daya manusia
khususnya gaya kepemimpinantransformasional,kepuasankerja, budaya organisasi dan
kinerja karyawan.

Kata Kunci: Pendidikan,Institusi, Kepuasan

Abstract
This paper aims to analyze the overall impact of transformational leadership style directly
and indirectly on employees' job performance mediating by work satisfaction and
moderating by organizaoonal culture. Furthennore, to find the influence of transformational
leadership on employees' job performance mediating by work satisfaction and moderating by
organizational culture within educational institution in Indonesia. This is a survey-based
research study. Primary and secondary data we!C' used in this study. Primary data were
gathered via questionnaire formal and informal interview. Sample size is (n 320); =
tneretore, descriptive sti/tistics, validity reability analysis and structural equation modelling
analysis have been used. The overall results support that transformational leadership style
has a significant positive impact on employees' job performance as well as mediating by
work satisfaction and moderating by culture at selected educational institution in Indonesia.
Transformational leadership style is the most important factor for achieving work satisfaction
goals. This study fulfils an acknowledged necessity of teaming the impact of transformational
leadership, work satisfaction, culture on employees' job performance.

Key words: Educational Institution, Satisfaction,

Background properly and accepted by all employees in the

Employee's job performace can be company. Company should be able to integrate
realized if the factors that have influences such organization goals and employee's persp
as works· satisfaction, good leadership style and Effective under good leadership style in
organizational calture can be accommodated order to achieve the company's objectives in

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 . 'Ii as 'Empfo!JU.'s Perjomtana 'IfrrougliSa tisfaaion arul 'Motft:ratu{6y Cu[w
'Ljfcr.t of 'Tm11sfomw t io11nf Lt.a1fcrsfiup 01ua" re
Transformational Leadership
general. Under the good leadership, employe~
Every leader has dissimilar leader h'
can manage with dedication and loyalty to their
style. Appropriate _ leadershi_p style in cornp~~P
work dearer guidance and direction as well as
will brrng a positive contribution in comp Y
better coordination to his subordinates. . .
management. Moreover, being able to impraony
wesee that ini this era of globahzat1on, . t I ve
or mo~1va e emp oyees . to work, QOOd
multinationals, and monolithic organization~ are
leadership style also contributes to increasing
considered similar to nations in their own right.
These organizations, due to their sheer size and productivity of employees (Bass and Riggio
history have developed a competency dr~ven
2005). According to Bass and Riggio (2oos)
culture of their own. The competency drrven introduce the concept of charisma in leadership.
culture has been shaped by the history of their It states the charismatic leader has a very
respective experiences as well as the leaders significant influence for his subordinates. Bass
who dedicated the policies in maximizing and Riggio (2005) describe that
employee's performance. transformational leadership is a process where
There is a management transformation leaders and subordinates develop integrated
in research object, where the exchange degree of morality and motivation.
leadership style in particular will have an impact Bass and Riggio (2005) indicates that a
on changes in work satisfaction and employee transformational leader is someone who creates
performance. It is importance to measuring the a charismatic leadership, inspirational
effects of such changes on the continuity of the leadership, intellectual stimulation and feeling
research object vision in the long term. In that all subordinates must be taken into one
particular, these management changes will team and one objective. DuBrin (2012) explains
have an impact on all organizations and that the transformational leaders will be able to
employees under the headquater of institution encourage, using the values, beliefs and can
management. meet the desires of subordinates. Leaders who
do it in a fast-changing situation called the
Literature Review leader of transformational crisis.
Human Resources Transformational leaders can succeed in
Human resources is the ability of the shifting the organization status quo by
human himself in order to achieve well-being. practicing appropriate behavior at every stage
Human resources is one very important factor of transformation process. When the old ways
in a company beside other factors such as considered to be no longer appropriate, at that
capital (Gibson, 2006). For that reason, the point leaders should draw up a new vision of
~uman resources must be managed properly to the future with a strategic focus and
1mpro~e ~he ~ffectiveness and efficiency of the motivational. The vision and functions should
orqaruzatlon, it should integrate as a function in
be clear in stating the organization purpose and
a company called Human Resource commitment.
Management (HRM) (Dessler, 2003).
In carrying out the functions of human
resource management in organization, human
Organizational Culture
Denison (1990) suggested that the
resource management have a role that is
organizational culture as a concept that to
expected' to help managers achieve the
measuring the suitability of the organization's
company s goals. According to Dessler (2003)
goals, strategy and organizational tasks, as well
the rol~ of Human Resource Management
as the resulting impact. Without a valid and
(HRM) is to. regulate and define staffing
program th~t l~ludes things like: first, set the reliable measure of the critical aspects of
amount which IS quality and job placement in organizational culture, the statement about the
accordance with impact of culture on performance will be
Second . company requirements.
established on speculation, personal
selecti , employee recruitment which is
observations and case studies.
emplo~~n~e:ployment of qualified staff and
According to Robbins (2006) sugges~
right people in th~~i~~tf~~~r words, place the that organizational culture is often portrayed in
sense that is shared. The patterns of beliefs,

---
symools, rituals, and myths developed over
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 'Effect of Transjormational f.Latfersfrip 'Towartfs 'Empfo!Jet 's Pujomuma 'lftmugfi Satisfaction and Afotkrattl 6!J Cuftu rt

time and serves as the glue that holds the Employee Performance
organization. Culture can be defined as the Every human being has the potential to
interaction of various traits habits that affect act in various forms of activity. The ability of
groups of people in their environment. In the human acts can be obtained either naturally
establishment of the organization's culture (present at birth) or studied. Although humans
there are two important things to note, they are have the potential to behave in certain ways,
constituent elements of organizational culture but it is only behavior at certain times only.
and organizational culture formation process Potential to behave in certain ways it is called
itself. The ability, whereas the expression of this
potential is known as the performance (Mathis
lob Satisfaction and Jackson,2001). Employee'sperformance is
Job satisfaction is defined by how influenced by organizational performance itself,
individuals feel positively or negatively which are including the development of the
depending various factors or dimensionsin job organizational management, the compensation
environment (Smith, Kendall, and Hulin, 2004). plan, the communication system, managerial
Job satisfaction is a pleasant emotional style, organization structure, policies and
disposition and loves in his job. This attitude is procedures. Robbins (2006) suggested that
reflected by a self-esteem (Hasibuan, 2000). another term for human performance is
Job satisfaction itself can be interpreted as the measurable output of productivity,
result that based on a comparisonof what is absenteeism, turnover, citizenship, and
received from his job compared to what was satisfaction.
expected, desired and thought as the proper Whereas Baron and Greenberg (1990)
thing or entitled for employee. suggested that the performance of the
Further, Elenkov (2002) suggestedthat individual is also referred to job performance,
job satisfaction is an assessment, a feeling or work outcomes, and task performance.
attitude of a person or employee to work and Performanceand organizational goals can be
relate to work environment, types of shaped quantitative and qualitative output,
employment, compensation, labor relations creativity, flexibility, reliable, or anything else
among networks, social relations at work, and that is desired by the organization. The
so on. So it can be said that job satisfaction is emphasisof the performance can be short term
the fulfillment of some desires and needs or long term, it also be at the level of
through work activities. Robbins (2006) individuals, groups or organizations.
suggested that job satisfaction is part of the Performance management is a process that
motivation process. Robbins (2006) suggested designed to link organizational goals to
that job satisfaction is as a general attitude of individual goals, so both of those goals should
employee towards his job. Work requires have met and intgratec!. Performance can also
interaction with colleaguesand superiors,follow be an act or execution of tasks that have been
the rules and policies of the organization, meet completed by a person in a certain period of
the performance standards, life on the working time and can be measured. There are four
conditions and similar rules. elements: the results of job functions, factors
According Elenkov(2002) suggests that that affect the achievement of employees; the
there are two factors that affect job achievement of organizational goals; and a
satisfaction, they are factor in employee and specifictime period.
factor in job. Factors that exist in employees
are intelligence (IQ), a special skill, age, sex, Hypotheses
physical condition, education, work experience, In general, work satisfaction can be
employment, personality, emotions, ways of determined whether or not is led to a leader.
thinking, perception, and work ethic. The work Good leader will have positive influence on
factors are type of work, organizational work satisfaction and have a control within
structure, rank (class), notch, quality business activity in general. Employees who
supervision, financial security, opportunities for feel satisfaction in a job, would prefer their
promotion, social interaction, and labor work than remuneration even though the
relations. remuneration is Important, it is will drive the

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 . ..r. nee rrftrouaft Satisfactiunaruf Motkratuf 6y Cufture
'a is 'bn foyet s Pe'J orma
'Ejfa.t oj'Transformatiorwfuaifers!Up'Towa~
1' • .
. HZ' Transformational Leadership will improve
. ·t· In a previous · ~
success of business act1v1 1es. .. (ZOOg), employee pe11ormanc~ ..
study conducted by Zaman and affect '."ng
Generally, within organization, job
Sadasa (2013) state that lead~rsh1p _can d satisfaction assessment is formed by
job satisfaction. Further attention. Chi, Yeh a~ accumulating feeling and employee attitude
Yu (2014) state that tr~~sfor~ation lea~ers~~ towards his job, work ~nvironm~nt, type of
have significant positive . i~pact 0 Jh employment, compensation, relations among
satisfaction. From. t~e descnpti~n above, t e partners, social relationship at ~ork and similar
proposed hy~thes1~ rs ~s follows. things. Employee who has satisfied a~ut his
H1'. Le~dersh1p will increase employee job jobs, work environment and co~pensat1?n ~ill
sattsfaction. . fl have high motivation in work. High rnotivation
Leadership is an attempt to in u~nct~ ~ in work will certainly encourage the employee
lot of people throuqh the. c~mm1um~~~fs to improve performance in work. In a previous
process to achieve orgarnz~ iona .. · d ducted by Amburgey {2005)
Appropriate leader can dynamically rnobiltze stu Y con . . . . .
and encourage and mot.1va t e orqanization suggeste.d t.hat JOb satlsfaction has a positive
members in order to achieve the goals in and significant effect . o.n emp1oyee
accordance with the line that has performance. Fro~ ~he description above, the
established been proposed hyP?thes:s IS a~ fol_lows:
by the management.
form of leadership style can The exact H3: Job satisfaction will improve employee
motivate
employees to improve performancein general. performance.
A leader who has the charisma of leadership An organizational culture is the habits
will be able to become a figure for his that affect groups of people within
subordinates. This figure is to be a role model organization, culture or personality of the
and became a symbol that reflects the soul of organization should capable to supporting and
the organization. An organization that has a influencing employee satisfaction and employee
good leadership style will be able to encourage performance as well as greater impact on
the performance of subordinates. With a strong culture development. In a previous study
figure, motivation and culture can be built the conducted by Kathrins (2007) Olasupo (2011)
improvement of organizationalperformance in and Fakhar (2014) states that organizational
general and performance of employees culture can affect employee performance. From
particularly. In a previous study conducted by the description above, the proposed hypothesis
Zaman and Yiing (2009) similarly Huu, Liu, Hsu is as follows:
and Yu (2014) suggested that the leadership H4: Organizational culture will improve
style can encourage and improve employee employee performance.
performance and company performance in
general. From the description above, the
From the proposed hypothesis above, the
proposed hypothesis is as follows:
relationship between variables can be visualized
as follows:

Hl
Wor\; Sorisfxtion

H2
H3

·0
Or!arn1:11i_~n
Culn1~
. : ;
·:. ·------.
·
------\
H4
~
:-~
~01;,,,,,,::: )

-~---- Figure 1 ~
HypothesesDevelopment
Source: data processingresult.
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 'Effectof Tmnsformational uaikrsfrip Towards 'Empfoyu 's Pr.iformana 'Ifirougfr. Satisfacticm aruf Moaurit.ttf6!J Culture

Research Design Research Result

This study is an exploratory and First stages in this study, researchers
explanatoryresearch,in determinationto prove conduct validity and reability analysis by
a causal relationship between independent distributing questionnaires to 30 respondents
variable, intervening variable, moderating within researchobject that meets the criteria to
variable on dependent variable. As well as be used as the respondentsin this study. This
correlational research,the research sought to analysis is to determine whether the user
see whether between two or more variables charging, construct questions and other
have a relationshipor not, also how much the important parts of the questionnaire can be
relationshipwas and how the direction of the understood and indeed accurately represent
relationship. From the research models that each variable tested. The validity and reability
have been developed,it is expectedto explain analysisfound 20 indicators are invalid or can
the cause and effect relationships among not be used for further research and rest of it
variables and be able to make some useful are reliables. This study using structural
managerialimplicationsin accordancewith the equation modeling(SEM) where the respondent
study variables. data analyzedusing analysissoftware.
In this study, to analyze and determine From the analysis, group one to group
significant levels and the relationship between seven several tests show sufficient
variables, using method of analysis structural compatibility. They are Chi Square, RMSEA,
equation modeling(SEM). With this methodcan ECVI, AIC and CAIC, and Fit Index. There
be seen the influenceand relationshipbetween results in a poor fit and marginal fit in between
exogenousand endogenousvariablesrelated to the results for GFI, AGFI and Critical N. From
the problems examined (Dasqupta, 2006). the above results, we can conclude a match
Population amount is 2197, a sample of 320 throughout the model (goodness of fit) in this
respondentswere taken accordingto indicators model is eligible. Furthermore, this study
measurement research were it is number of resuiting the path diagram as in the picture as
samples that multiplied by the number of follows:
indicator 5-10 times (Ferdinand,2006).
.I

u; ac
~
·-

"
\ \.·•-•o
\
"'·'~ Ki.nuaa -e-e

Figure 1
T-Value
Source:data processingresult.

Managerial Implication between transformational leadership and job

From this study, it was found that there satisfaction in researchobject.
are factors that are proven have influence on Based on some points mentioned above
job satisfaction and employee performance. will be outlined also some important managerial
The highest factor that have influence is implications for management that crucial to
transformasional leadership towards job discuss what and how to shape the strategies
satisfaction. Following factor is influences of that should be applied.
organizational culture towards relationship Based on analysis results can be made
an outline for some managerial implicati0ns,

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.• r: . 'Ii rtls 'Dnpfoget•5 Pe'J orma 'a
'£!fut oj'Tronsformational Lt.atfwrup owa _ . . .
. . object. Furthermore, this nnplication managerial
they are as has been proven that m this stuh~ can manage in action plan below:
there is influence of transformational leaders '?
towards work satisfaction and employees
performance as well as organizational culture
towards employee's performance in research
Table 1
Action Plan
Time
Activity Series
No Program

1 Build leadershipto increasingjob satisfact~on

First
Expanding objective with HR developing Workshop
Semester
clear visi and mission
organization
Make trusted Structural communication by Weekly
and
communication between management via corporate
Monthly
leader or supervisor and email, online workgroup and
subordinates official corporate social
media.
2 Build organization culture to increasing employee's ~rf?rmance.
Create established Determine orqanizational First
organizationalculture work culture including its Semester
value and dimensions.
Socializing and Integrating work culture Weekly
implementing organizational within organization process and
work culture including its business Monthly
value and dimensions
Selecting suitable employee Selecting new employee and Yearly
into organizationalculture rotating current employee to
suitable their culture with
organizational culture
Source: data processing result.

Conclusion very significant influence for his subordinates to

From analysis results, found that increasing productivity of employees.
analysis results support the hypothesis Hl with The analysis results also state that the
t-values 12.27. These findings indicate that transformational leadership as an effort to
good leader will have positive influence on work influenc.e a lot of people through the
satisfaction and have a control within business communication process to achieve
activity in general. Employees who feel organizational goals that are expected to lead
satisfaction in a job, have a clear purpose and to positive changes in the form of a force that
spirit to having satisfaction in their work. is dynamic and can mobilize and encourage
Appropriate leadership style in company will employee performance that has been set by
bring a positive involvement in company company management.
management. Next finding shows that the analysis
Second finding show that that the results support the hypothesis HJ with t-value
analysis results support the hypothesis H2 with 3.62. These results indicate that the work
t-value 6.14. These results indicate that the satisfaction can be mediating relationship
transformational leadership have positive between transformational leadership and
significanties towards employee's performance. employee's performance. A wise and good
Moreover~ transformational leadership being leader will certainly have a positive impact on
able to improve or motivate employees to work the work satisfaction as well as ari impact on
and also states the charismatic leader has a employee's performance.

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 'Effectof 'Tmns[ormationai Lt.atfersliip 'Towarl.s 'Empfoyee's Perjormana 'Ifirougli. Satisfaction aruf Motferatetf6y Culture

Furthermore, these findings indicate Chi, H.-K., Yeh, H.-R., & Yu, C.-H. (2008). 'The
that the employee's performance is result of Effects of Transformation Leadership,
quality and satisfaction that can be achieved by Organizational Culture, Job Satisfaction
an employee in performing tasks according on the Organizational Performance in
responsibilitiesgiven to him was influenced by the Non-profit Organizations'. The
the transformational leadership. Journal of Global BusinessManagement,
The results also prove that the culture 4(1), 129-137.
of the organization has been able to
accommodate some of the diversity contained Dasgupta,S., Papadimitrou,, C., & Vazirani, U.
within an organization and can provide comfort (2006). 'Algorithms'. England:
and satisfaction in work. cambridge Univesrsity Press.
This study also finds that supporting the
hypothesis H4 with t-value 5. 93, which states Denison, A. (1990). 'Cooperate Culture and
that the organizational culture is the result of OrganizationalEffectiveness'. New York:
the interaction of traits habits that affect groups Wiley.
of people within the organization, to form a
subjective perception the entire organization DuBrin, A. J. (2012). 'Leadership' (Terjemahan
based on primary aspect such as ed.). Jakarta: PrenadaMedia.
transformational leadership that can affect
employee performance. Elenkov, D. (2002). 'Effects of Leadership on
In summary it can be concluded that: Motivation and Performance in Russian
transformational leadership have positive Companies'. Journal of Business
significant to work satisfaction as well as to Research, 55, 467-480.
employee's performance, work satisfaction has
positive mediating effect between relationship Fakhar, Shahzad, (2014} "Impact of
and employee's performance, and the last is organizationalculture on employees' job
organization culture have positive significant performance: An empirical study of
impact on relationship between software houses in Pakistan",
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represent all variables result in measuring and Manajemen'.Semarang: Badan Penerbit
evaluating for Indonesia region. Development UniversitasDiponegoro.
advice that can be given is the next study
should develop wider research coverage on Gibson, J. L. (2006). 'Organizations (Behavior,
several similar educational foundation so that it Structure, Processes)' (12 ed.). New
can representwider findings nationally. York: Mc Graw-Hill.

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