The Effect of Transformational Leadership, Job Motivation, Reward on Job Satisfaction and Job Performance
Abstract
The study aimed to analyze the relationship among transformational leadership, motivation, and reward on job satisfaction, and also examine the effect of transformational leadership, motivation, reward, and job satisfaction on job performance in the Ministry of Industry. The population in this study are employees of the Ministry of Industry with a total of 202 employees as a sample. The determination of the sample was carried out using the non-probability sampling by purposive sampling method. The data analysis technique used is the Structural Equation Modelling (SEM) method. The technique of data collection used is by distributing questionnaires through the Google Form application. The analytical method used is SEM-PLS analysis. The results showed there was a significant effect of Transformational Leadership on Job Satisfaction. There was a significant effect of Motivation on Job Satisfaction. There was a significant effect of Reward on Job Satisfaction. There was no significant effect of Transformational Leadership on Job Performance. There was a significant effect of Motivation on Job Performance. There was a significant effect of Reward on Job Performance. There was no significant effect of Job Satisfaction on Job Performance. Transformational Leadership, motivation, and reward play essential roles to determine employee Job Satisfaction and Job Performance. Leaders can use Transformational Leadership, motivation, and reward as factors to enhance job satisfaction and job performance. Future research is expected to use mediating variables to analyze the role of job satisfaction which mediates the effect of Transformational Leadership, motivation, and reward on job performance.
Downloads
References
Abbas, J., un-Nisa Khan, N., Barkat Ali, S., & Kumari, K. (2021). Examining the Role of Motivation and Reward in Employees’ Job Performance through Mediating Effect of Job Satisfaction: An Empirical Evidence International Journal of Organizational Leadership. In International Journal of Organizational Leadership, 10(4):401-420 https://doi.org/10.33844/ijol.2021.60606
Abbas, J., & Sagsan, M. (2019). Identification of Key Employability Attributes and Evaluation of University Graduates’ Performance: Instrument Development nd Validation. Higher Education, Skills and Work-Based Learning, 10(3), 449-466. https://doi.org/10.1108/HESWBL-06-2019-0075
Aboramadan, M. and Dahleez, K.A. (2020), “Leadership Atyles and Employees’ Work Outcomes in Nonprofit Organizations: The Role of Work Engagement”. Journal of Management Development, 39(8), 869-893, https://doi.org/10.1108/JMD-12-2019-0499.
Adebisi, S. & Oladipo, A. (2015). Reward System as Strategy for Improving Employees’ Productivity in Nigeria. http://portaldeperiodicos.unisul.br/index.php/EeN/index
Ahsan, M. U., Nasir, M., & Abbas, J. (2020). Examining the Causes of Plastic Bags Usages and Public Perception about Its Effects on the Natural Environment. International Journal of Academic Research in Business and Social Sciences, 10(10), 80–96. http://dx.doi.org/10.6007/IJARBSS/v10-i10/7919
Aizza, A. W., Shakeel, K., & Hassan, S. S. (2018). Impact of Intrinsic and Extrinsic Motivation on Employee’s Retention: A Case from Call Center. International Journal of Academic Research in Business and Social Sciences, 8(6), 652–666.
Alamir, I., Ayoubi, R.M., Massoud, H. and Hallak, L.A. (2019), Transformational Leadership, Organizational Justice And Organizational Outcomes: A Study From The Higher Education Sector in Syria, Leadership and Organization Development Journal, 40(7), 749-763. https://doi.org/10. 1108/LODJ-01-2019-0033
Alhmoud, A., & Rjoub, H. (2020). Does Generation Moderate The Effect of Total Rewards on Employee Retention? Evidence from Jordan. SAGE Open, 10(3), 2158244020957039.
Ali, B. J., & Anwar, G. (2021). An Empirical Study of Employees’ Motivation and Its Influence Job Satisfaction. International Journal of Engineering, Business and Management, 5(2), 21–30.
Al-Ali, W., Ameen, A., Isaac, O., Khalifa, G. S., & Shibami, A. H. (2019). The Mediating Effect of Job Happiness on the Relationship between Job Satisfaction and Employee Performance and Turnover Intentions: A Case Study on the Oil And Gas Industry in the United Arab Emirates. Journal of Business and Retail Management Research, 13(4), 103–116.
Alrowwad, A. and Abualoush, S.H. (2020). Innovation and Intellectual Capital as Intermediary Variables among Transformational Leadership, Transactional Leadership, and Organizational Performance. Journal of Management Development, 39(2), 196-222. https://doi.org/10.1108/ JMD-02-2019-0062
Alshmemri, M., Shahwan-Akl, L., & Maude, P. (2017). Herzberg’s Two-Factor Theory. Life Science Journal, 14(5), 12–16.
Alsafadi, Y., & Altahat, S. (2021). Human Resource Management Practices and Employee Performance: The Role of Job Satisfaction. The Journal of Asian Finance, Economics, and Business, 8(1), 519–529.
Ampofo, E. T. (2020). Mediation Effects of Job Satisfaction and Work Engagement on The Relationship between Organisational Embeddedness and Affective Commitment among Frontline Employees of Star–Rated Hotels in Accra. Journal of Hospitality and Tourism Management, 44, 253-262.
Badura, K. L., Grijalva, E., Galvin, B. M., Owens, B. P., & Joseph, D. L. (2020). Motivation to lead: A Meta-Analysis and Distal-Proximal Model of Motivation and Leadership. Journal of Applied Psychology, 105(4), 331.
Banks, G.C., McCauley, K.D., Gardner, W.L. and Guler, C.E. (2016). A Meta-Analytic Review of Authentic and Transformational Leadership: A Test for Redundancy. The Leadership Quarterly, 27(4), 634-652.
Barnett, D.E. (2018). Online Adjunct Faculty: A Quantitative Examination of the Predictive Relationship between Leadership and Job Satisfaction. International Journal of Research in Education and Science, 4(1), 226-236.
Bartram, T. and Casimir, G. (2007). The Relationship between Leadership and Follower In-Role Performance and Satisfaction with the Leader: The Mediating Effects of Empowerment and Trust in the Leader. Leadership and Organization Development Journal, 28(1), 4-19. https://doi.org/10. 1108/01437730710718218
Bass, B.M. and Riggio, R.E. (2010). The Transformational Model of Leadership, Leading Organizations: Perspectives for a New Era, 2, 76-86.
Bayraktar, C. A., Araci, O., Karacay, G., & Calisir, F. (2017). The Mediating Effect of Rewarding on the Relationship between Employee Involvement and Job Satisfaction. Human Factors and Ergonomics in Manufacturing & Service Industries, 27(1), 45–52.
Breaugh, J., Ritz, A., & Alfes, K. (2018). Work Motivation and Public Service Motivation: Disentangling Varieties of Motivation and Job Satisfaction. Public Management Review, 20(10), 1423–1443.
Campbell, J. P., & Wiernik, B. M. (2015). The Modeling and Assessment of Work Performance. Annual Review of Organizational Psychology and Organizational Behavior, 2(1), 47–74.
Catharina, T., & Victoria, V. (2015). The Impact of Extrinsic and Intrinsic Motivation towards Job Satisfaction in Finance Service Department of PT. XYZ. IBuss Management, 3(2).
Chan, S.C. (2020). Transformational Leadership, Self-Efficacy and Performance of Volunteers in Non Formal Voluntary Service Education. Journal of Management Development, 39(7/8), 929-943. https://doi.org/10.1108/JMD-03-2020-0078
Chang, S. and Lee, M. (2007). A Study on Relationship Among Leadership, Organizational Culture, the Operation of Learning Organization and Employees’ Job Satisfaction, The Learning Organization, 14(2), 155-185. https://doi.org/10.1108/09696470710727014
Chipunza, C., & Matsumunyane, L. L. (2018). Motivation Sources and Leadership Styles among Middle Managers at a South African University. SA Journal of Human Resource Management, 16(4), e1-e13. https://doi.org/10.4102/sajhrm.v16i0.985
Danish, R. Q., & Usman, A. (2010). Impact of Reward and Recognition on Job Satisfaction and Motivation: An Empirical Study from Pakistan. International Journal of Business and Management, 5(2), 159–167. https://doi.org/10.5539/ijbm.v5n2p159
Dobre, O. I., 2013. Employee Motivation and Organizational Performance. Review of Applied Socio-Economic Research, 2013, vol. 5, issue 1, 53-60.
Eliophotou Menon, M. (2014). The Relationship between Transformational Leadership, Perceived Leader Effectiveness and Teachers’ Job Satisfaction. Journal of Educational Administration, 52(4), 509-528. https://doi.org/10.1108/JEA-01-2013-0014
Febrianti, N. T., & SE, S. (2020). The Effect of Career Development and Motivation on Employee Performance through Job Satisfaction in PT Jabar Jaya Perkasa. International Journal of Business and Social Science Research, 1(2).
Glaz, V., Glaz, Y., Rusetskaya, E. and Zhuravleva N. (2017). The Improvement of Labor Activity Motivation of Workers in the Process of Their Socialization in the Organization: The Influence of Organizational Culture. Journal of History Culture and Art Research. https://doi.org/10.7596/taksad.v6i6.1355
Griffith, J. (2004). Relation of Principal Transformational Leadership to School Staff Job Satisfaction, Staff Turnover,aAnd School Performance. Journal of Educational Administration, 42(3), 333-356. https://doi.org/10.1108/09578230410534667
Guo, Y., & Ling, B. (2020). Effects of Leader Motivating Language on Employee Task and Contextual Performance: The Mediating Role of Feedback Quality. Psychological Reports, 123(6), 2501-2518.
Hair, J.F., Black, W.C., Babin, B.J. and Anderson, R.E. (2014), Multivariate Data Analysis, 7th ed., Pearson Education, London.
Han, S.-H., Oh, E.G. and KangPil, S. (2020). The Link between Transformational Leadership and Work-Related Performance: Moderated-Mediating Roles of Meaningfulness and Job Characteristics, Leadership and Organization Development Journal, 41(4), 519-533. https://doi.org/10.1108/LODJ-04-2019-0181
Hayati, K., Yuningsih, Y., & Caniago, I. (2018). Can Islamic Work Ethics and Ethical Climate Reduce Counterproductive Work Behavior? International Journal of Economics, Business, and Entrepreneurship, 1(2), 95-101.
Hidayat, K. C. (2019). The Effect of Extrinsic Rewards qnd Intrinsic Rewards towards Motivation and Job Performance of Employees in DKI Jakarta Are (Doctoral dissertation). Sekolah Tinggi Manajemen IPMI.
Hilton, S.K., Madilo, W., Awaah, F. and Arkorful, H. (2021). Dimensions of Transformational Leadership and Organizational Performance: The Mediating Effect of Job Satisfaction. Management Research Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MRR-02- 2021-0152
Hu, Y., Yang, Y. and Islam, M. (2010). Leadership Behavior, Satisfaction, and The Balanced Scorecard Approach: An Empirical Investigation of the Manager-Employee Relationship at Retail Institutions in Taiwan. International Journal of Commerce and Management, 20(4), 339-356. https://doi.org/10.1108/10569211011094659
Hughes, L.W. and Avey, J.B. (2009). Transforming with Levity: Humor, Leadership, and Follower Attitudes. Leadership and Organization Development Journal, 30(6), 540-562. https://doi.org/10. 1108/01437730910981926
Hünefeld, L., Gerstenberg, S., & Hüffmeier, J. (2020). Job Satisfaction and Mental Health of Temporary Agency Workers in Europe: A Systematic Review and Research Agenda. In Work and Stress, 34(1), 82–110. https://doi.org/10.1080/02678373.2019.1 567619
Idris, Adi, K. R., Soetjipto, B. E., & Supriyanto, A. S. (2020). The Mediating Role Of Job Satisfaction on Compensation, Work Environment, and Employee Performance: Evidence from Indonesia. Entrepreneurship and Sustainability Issues, 8(2), 735-750. https://doi.org/10.9770/jesi.2020.8.2(44)
Jung, D.I. and Avolio, B.J. (2000). Opening the Black Box: An Experimental Investigation of the Mediating Effects of Trust and Value Congruence on Transformational and Transactional Leadership. Journal of Organizational Behavior, 21(8), 949-964.
Keskes, I., Sallan, J.M., Simo, P. and Fernandez, V. (2018). Transformational Leadership and Organizational Commitment: Mediating Role of Leader-Member Exchange. Journal of Management Development, 37(3), 271-284. https://doi.org/10.1108/JMD-04-2017-0132
Khan, M.A., Md Yusoff, R., Hussain, A. and Binti Ismail, F. (2019). The Mediating Effect of Job Satisfaction on the Relationship of HR Practices and Employee Job Performance: Empirical Evidence from Higher Education Sector. International Journal of Organizational Leadership, 8, 78-94.
Koralege, J., & Priyashantha, K. (2019). Impact of Rewards on Individual Job Performance: With Special Reference to Vogue Tex (Pvt.) Ltd.
Liu, Y., Hassan, M., Chupradit, S., Ageli, M., Shoukry, A. M., & Aldeek, F. F. (2021). Aggressive Workplace Behavior, Motivation, and Worker’s Output: Mediating Effect of Religiosity among the Service Sector Employees. Aggression and Violent Behavior, 101625.
Luthans, F. (2011). Organizational Behavior: an Evidence-Based Approach, 12th ed., McGraw-Hill Irwin, New York.
Martono, S., Khoiruddin, M., & Wulansari, N. A. (2018). Remuneration Reward Management System as a Driven Factor of Employee Performance. International Journal of Business & Society, 19(S4), 535–545.
Mickson, M.K., Anlesinya, A. and Malcalm, E. (2020). Mediation Role of Diversity Climate on Leadership and Job Satisfaction in The Ghanaian Public Sector. World Journal of Entrepreneurship, Management and Sustainable Development, 17(2), 167-188, https://doi.org/10.1108/WJEMSD-10-2019-0080
Mohammad, J. U., Miah, M. A. S., Rahman, M. M., & Rahaman, M. S. (2017). Mediation Role of Job Satisfaction on HRM-Operational Performance Relationship: A Three-Way Moderation Effect by Gender. The Journal of Developing Areas, 51(3), 437-452.
Nazir, S., Shafi, A., Qun, W., Nazir, N., & Tran, Q. D. (2016). Influence of Organizational Rewards on Organizational Commitment and Turnover Intentions. Employee Relations, 38(4), 596–619. https://doi.org/10.1108/ER-12-2014-0150
Nyinyimbe, S. E. (2020). The Impact of Employee’s Motivation on Organization Effectiveness a Case Study of the National Social Security Fund (NSSF) at Kinondoni District. COSTECH Integrated Repository. Retrieved from http://hdl.handle.net/11192/3792
Paais, M., & Pattiruhu, J. R. (2020). Effect of Motivation, Leadership, and Organizational Culture on Satisfaction and Employee Performance. The Journal of Asian Finance, Economics, and Business, 7(8), 577–588.
Pang, K. and Lu, C.-S. (2018). Organizational Motivation, Employee Job Satisfaction and Organizational Performance: An Empirical Study of Container Shipping Companies in Taiwan, Maritime Business Review, 3(1), 36-52. https://doi.org/10.1108/MABR-03-2018-0007
Prasetiyani, D., Kristianti, L. S., Andi, D., & Abid, M. (2021). The Effect of Rewards and Motivation on Employee Productivity at PT. Sinar Kencana Jaya in Surabaya, 1(1), 43–47.
Pujol-Cols, L., & Dabos, G. E. (2019). Dispositional and Situational Factors at Work: A Validation of Scales and Examination of Effects on Job Satisfaction. Academia Revista Latinoamericana de Administración.
Saengchai, S., Siriattakul, P., & Jermsittiparsert, K. (2019). Exploring the Link between HR Practices, Employee Motivation, Employee Empowerment and Employee Performance in Engineering Firms of Indonesia. International Journal of Psychosocial Rehabilitation, 23(4), 734–748.
Safdar, B., Habib, A., Amjad, A., & Abbas, J. (2020). Treating Students as Customers in Higher Education Institutions and Its Impact on Their Academic Performance. International Journal of Academic Research in Progressive Education and Development, 9(4), 176–191.
Shah, S.S., Shah, A.A. and Pathan, S.K. (2017). The Relationship of Perceived Leadership Styles of Department Heads to Job Satisfaction and Job Performance of Faculty Members. Journal of Business Strategies, 11(2), 35-56.
Sim, Y. and Lee, E.-S. (2018). Perceived Underqualification and Job Attitudes: The Role of Transformational Leadership. Leadership and Organization Development Journal, 39(8), 962-974. https://doi.org/10.1108/LODJ-03-2018-0127
Suranta, S. (2002). Dampak Motivasi Karyawan pada Hubungan antara Gaya Kepemimpinan dengan Kinerja Karyawan Perusahaan Bisnis. Jurnal Empirika, 15 (2), 116-138.
Sugiyono. (2018). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta.
Sureephong, P., Dahlan, W., Chernbumroong, S., & Tongpaeng, Y. (2020). The Effect of Non-Monetary Rewards on Employee Performance in Massive Open Online Courses. International Journal of Emerging Technologies in Learning, 15(1), 88–102.
Tian, A. Y., Ahammad, M. F., Tarba, S. Y., Pereira, V., Arslan, A., & Khan, Z. (2021). Investigating Employee and Organizational Performance in a Cross‐Border Acquisition - A Case of Withdrawal Behavior. Human Resource Management, 60(5), 753–769
Tran, T. T., & Do, Q. H. (2020). Factors Affecting Job Motivation among Faculty Members: Evidence From Vietnamese Public Universities. The Journal of Asian Finance, Economics, and Business, 7(9), 603-611. https://doi.org/10.13106/JAFEB.2020.VOL7.NO9.603
Triswanto, H., & Yunita, L. (2021). The Influence of Intrinsic Motivation and Extrinsic Motivation on Employee Performance Productivity of PT. Weigh Deli Indonesia. Journal of Economics and Business (JECOMBI), 1(2), 155–161.
Willsen, W. (2020). The Influence of Incentive and Rewards Towards Employee Performance at The Traders Restaurant Medan (Unpublished Doctoral Dissertation). Universitas Pelita Harapan.
Wolomasi, A. K., Asaloei, S. I., & Werang, B. R. (2019). Job Satisfaction and Performance of Elementary School Teachers. International Journal of Evaluation and Research in Education, 8(4), 575–580.
Yaghoubipoor, A., Puay Tee, O. and Musa Ahmed, E. (2013). Impact of the Relationship Between Transformational and Traditional Leadership Styles on Iran’s Automobile Industry Job Satisfaction. World Journal of Entrepreneurship, Management and Sustainable Development, 9(1), 14-27. doi: 10.1108/20425961311315692.
Yang, Y., & Ai, X. (2020). An Empirical Study on Relationship between Rewards and Employee Creativity in Advertising Agencies: Motivation as a Mediator. Proceedings of the 4th International Conference on Innovation in Artificial Intelligence, 205-210.
Yousuf, S., & Siddiqui, D. A. (2019). Factors Influencing Employee Retention: A Karachi Based Comparative Study on IT and Banking Industry. International Journal of Human Resource Studies, 9(1), 42–62.
Zainal, H. (2017). Influence of Work Motivation and Discipline on Work Productivity. Proceedings of the 2nd International Conference on Education, Science, and Technology, 149, 25–27. https://doi.org/10.2991/icest-17.2017.9
Copyright (c) 2023 Regina Anindita, Justine Tanuwijaya
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
