The Influence of Transformational Leadership and Work Motivation

THE INFLUENCE OF TRANSFORMATIONAL

LEADERSHIP AND WORK MOTIVATION
ON EMPLOYEE PERFORMANCE MEDIATED
BY JOB SATISFACTION
JAM
16, 1 Thoni Setyo Prabowo
Received, June 2017
September 2017
Master Program in Management, Faculty of Economics and Business Universitas Brawijaya
Revised, December 2017 Noermijati
Accepted, February 2018 Dodi Wirawan Irawanto
Faculty of Economics and Business Universitas Brawijaya

Abstract: This research aims to examine and to analyze the influence of transformational
leadershipand work motivation on employee performance Hotel Kartika Graha Malang in
Indonesia either through or without through job satisfaction.This study used a sample of
78 employees of Hotel Kartika Graha Malang in Indonesia. This research applies quantita-
tive analysis by using explanatory study. The data is analyzed by using PLS for significant
test and Sobel test for mediating test. The result shows that transformational leadership has
no significant influence on employee performance but has significant influence toward job
satisfaction. Nevertheless, work motivation has a significant influence on both employee
performance and job satisfaction. Moreover, job satisfaction has a significant influence on
employee performance. Job satisfaction is also fully mediated the influence of transforma-
tional leadership toward employee performance and partially mediated the influence of
work motivation toward employee performance. The indicator that causes the non-signifi-
cant influence of the transformational leadership toward employee performance is an indi-
vidualized consideration, which is not running optimally in Hotel Kartika Graha.

Keyword: transformational leadership, work motivation, job satisfaction, employee perfor-

mance, hospitality industry.

Competition in the business the hospitality services business at the moment. As

Journal of Applied world both in the field of at the end of 2015, competition in seizing market
Management (JAM) products and services in the share for hotel occupancy in Malang is considered
Volume 16 Number 1,
March 2018
current era of globalization more competitive. One of the factors that caused
Indexed in Google Scholar becomes very tight. Compe- the competition is due to the proliferation of new
tition is a challenge every hotels in Malang City (Maulida, 2015).
businessperson faces. Every The growing business in the field of hospitality
businessperson must have services, the hospitality business is required to be
Correspondention Author: the right strategy in order to able to transform in the concept and management
Thoni Setyo Prabowo maintain a competitive posi- system of the hotel. Transformation is required by
Master Program in Manage-
ment, Faculty of Economics and tion amid today’s competi- every hotel service business actor. This is accord-
Business Universitas Brawijaya tion. Speaking of competition ing to Sulastiyono (2001) required for the hotel is
DOI: http://dx.doi.org/
10.21776/ub.jam.2018.016. issues, it can be reflected in not assimilated by the development of other hotels
01.20
the competitive conditions in that have international chain network. Transforma-

DIKTI ACCREDITED SK NO. 36a/E/KPT/2016 171 ISSN: 1693-5241 171

 Thoni Setyo Prabowo, Noermijati, Dodi Wirawan Irawanto

tion needs to be done by the perpetrators of hospi- cause basically job satisfaction is a psychological
tality services, because at the end of 2015, Indone- aspect that reflects one’s feelings towards a job.
sia is committed to developing the tourism industry. The research of Gu and Siu (2009), Tsai, et al.
According to Riyani (2015), the hotel services sec- (2010), Maharani, et al. (2013), Rahayu (2014), and
tor supports the government’s efforts with many Elgelal and Noermijati (2015), found a positive cor-
improvements related to the MICE-based tourism relation between job satisfaction and performance
industry (Meeting, Incentive, Convention, and Ex- employees within an organization. The brief descrip-
hibition). tion is that if employees are satisfied with their work,
One important aspect to consider in maximiz- then they are willing to sacrifice themselves and
ing employee performance is to look at the leader- devote to the organization.
ship style applied to the hospitality business. Lead-
ership has an important role in an organization, es- LITERATURE REVIEW
pecially in increasing the role of the employees them- Transformational leadership
selves and coordinating to work together to over-
Transformational leadership is a type of lead-
come the problems that exist in an organization.
ership that is able to integrate creative insight, per-
According to Maharani, et al. (2013), Muthuveloo
sistence, energy, intuition, and sensitivity to employ-
et al. (2014), Rasool et al. (2015), Noermijati (2015),
ees to gain organizational goals or desires and have
and Akbar, et al. (2016), it is said that the transfor-
a tremendous impact on these employees. Accord-
mational leadership style has an influence on em-
ing to Boehnke, et al. (2002), transformational lead-
ployee performance. Leadership applied in an or-
ganization, especially the hotel is expected to pro- ership styles articulate a realistic vision of the
vide a good organizational climate and can improve organization’s future, stimulate followers in an in-
employee performance. As stated by Buble, et al. tellectual way, and put attention to the differences
(2014), leadership is an individual’s ability to influ- that its followers have. The existence of transfor-
ence, motivate, and make others contribute to the mational leaders has an effect both at the organiza-
effectiveness and success of an organization. Re- tional level and on the individual level. There are
search conducted by Hinkin and Tracey (1996), says four dimensions of transformational leadership by
that transformational leadership is very suitably ap- Bass & Avolio (1997) in Rothfelder, et al. (2013),
plied to the service business or industry dynamic which is an idealized influence, inspirational moti-
and always changing according to the times, just vation, intellectual stimulation, and individualized
like hospitality. This is because transformational consideration.
leadership has a good impact on satisfaction and
can later explain the direction and mission of an or- Work motivation
ganization. Work motivation can be interpreted as the
Work motivation is needed to improve employee power possessed by someone who can increase their
performance at Hotel Kartika Graha Malang. Ac- potential in carrying out an activity. Work motiva-
cording to Chuang, et al. (2009), with high motiva- tion can be sourced from within the individual itself
tion in an organization, especially hospitality services, or from outside the individual. Herzberg’s two-fac-
the impact will be able to lead a person to achieve tor theory has many terms in the world of educa-
the satisfaction of a certain needs and expectations. tion, especially in Work motivation. In order to mea-
Job motivation variables are said to affect employee sure work motivation there are eleven dimensions
performance, it is the same as research that exam- that refer to Herzberg’s two-factor theory, combin-
ines the relationship between work motivation on ing the dimensions of motivator according to Chitiris
employee performance. In accordance with re- (1988), and the dimensions of hygiene according to
search from Chitiris (1988) and Jayaweera (2015). Noermijati (2013), that is initiative, advancement in
Job satisfaction is needed in improving employee hierarchy, content of work itself, opportunity to learn
performance at Hotel Kartika Graha Malang be- and grow, merit bonuses, company policies, rela-

172 JOURNAL OF APPLIED MANAGEMENT VOLUME 16 NUMBER 1 MARCH 2018

 The Influence of Transformational Leadership and Work Motivation

tionships with colleagues, job security, personal life, RESEARCH METHODS

working conditions, and status. This study uses quantitative methods with ex-
planatory study approach. This study was done at
Job satisfaction Hotel Kartika Graha Malang. The sample popula-
Job satisfaction is a perception of a pleasant or tion in this study is 78 people. Data collection tech-
unpleasant emotional state in an employee when niques used primary and secondary data through
looking at his or her own work and it also has an questionnaires and interviews. Variable measure-
impact on an employee’s performance. According ment technique using a Likert scale, while data
to Paracha, et al. (2012), job satisfaction is a very analysis method using SEM-PLS and Sobel test for
important aspect of a modern organization. There a test of mediation variable.
are four dimensions in job satisfaction that refer to The population in this research are employees
Clark’s research, et al. (2009), in Rothfelder, et al. who work in Hotel Kartika Graha Malang with to-
(2013), that is your overall job, your supervisor, the tal employee counted 78 people consisting of per-
support provided by your organization, and your sonnel, front office, food and beverage, housekeep-
opportunities for advancement with this organiza- ing, engineering, accounting, and sales and market-
tion. ing. Selection of the population because each part
has the same contribution to the Hotel Kartika Graha
Employee performance Malang.
The success of an organization can be seen The sampling technique used in this study is a
from the performance of the organization itself in census or saturated samples, which is by involving
managing existing resources. Brown & Arendt all members of the population, which is all the em-
(2010), states that employee performance is basi- ployees who fit the sample criteria. The criteria in-
cally what is done or not done by employees who volve employees who have a working period of one
are in the organization. In order to measure em- year at Hotel Kartika Graha Malang. As stated by
ployee performance refers to the opinion of Brown Sekaran (2010) that the census sample is a sample
& Arendt (2010), it is because in this study em- determination technique when all members of the
ployee performance is measured by developing re- population are used as a sample. This can be done
liable research items that measure employee per- if the population size is relatively small.
formance specifically in the field of hospitality ser-
vices. RESULTS
The following is the result of information pro-
cessing from the description or correlation relation-
ship of the four variables obtained from research at
Hotel Kartika Graha Malang.

Transformational
Transformational
leadership
leadership
0.084

2.201
Employee
Employee
Job
Jobsatisfaction
satisfaction 6.542
performance
performance
2.935

2.956

Work
Work motivation
motivation

Figure 1 Path Analysis

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 Thoni Setyo Prabowo, Noermijati, Dodi Wirawan Irawanto

The results obtained related to the basis of de- Statistics greater than the value of t Table of 1.960
cision making for testing the hypothesis in this study shows a significant influence.
is to use the statistic t-test, where the value of t

Table 1 Path Analysis and Hypothesis Testing

Influence Coefficient Std. Error t Statistics Information

TL  EP 0.008 0.093 0.084 Not significant
WM  EP 0.294 0.100 2.956 Significant
TL  JS 0.194 0.088 2.201 Significant
WM  JS 0.310 0.106 2.935 Significant
JS  EP 0.599 0.092 6.542 Significant
TL  JS  EP 0.116 0.055 2.088 Significant
WM  JS  EP 0.186 0.069 2.667 Significant

Information: through job satisfaction declared significant effect

TL = Transformational Leadership on employee performance. Next result in point 7
EP = Employee Performance shows that the value of t Count is greater than the
WM = Work Motivation value of t Table (2.667> 1.960). It means that Work
JS = Job Satisfaction motivation if through job satisfaction is stated sig-
nificant effect on employee performance.
The results in Table 1 point 1 show that the
value of t Count is smaller than the value of T Table DISCUSSION
(0.084 <1.960). This means that Transformational The analysis results found that H1 is rejected.
leadership declared no significant effect on em- It means that the potential of Transformational Lead-
ployee performance. The next result in point 2 shows ership in encouraging employee performance has
that the value of t Calculate is greater than the value no effect as it is because leaders pay less attention
of T Table (2.956> 1.960). This means that Work to the characteristics of Transformational Leader-
motivation is said to have a significant effect on ship and apply the Transformational Leadership
employee performance. The next result in point 3 characteristic, mainly related to the lowest value
shows that the value of t Calculate is greater than obtained on the Individualized consideration. Sub-
the value of T Table (2.201> 1.960). This means mission of expectations on individualized consider-
that Transformational leadership is said to have a ation indicators has the lowest value compared to
significant effect on job satisfaction. The next re- other indicators. The matter is supported by the
sult in point 4 shows that the value of t Calculate is opinion of Personnel Manager Hotel Kartika Graha
greater than the value of T Table (2.935> 1.960). Malang, who said that the style of Transformational
This means that Work motivation is said to have a leadership applied at Hotel Kartika Graha Malang
significant effect on job satisfaction.Next result in is in the transition process. This is supported by re-
point 5 indicates that the value of t Calculate is search conducted by Moeljanto (2009), Brown &
greater than t value of Table (6.542> 1,960). This Arendt (2010), Nugroho (2014), Indrayanto, et al.
means that job satisfaction is said to have a signifi- (2014), and Elgelal & Noermijati (2015), stating that
cant effect on employee performance. The next Transformational leadership has no effect on em-
result in point 6 shows that the value of t Calculate ployee performance in an organization. While the
is greater than the value of T Table (2.088> 1.960). results do not support research conducted by Ma-
This means that Transformational leadership if harani, et al. (2013), Muthuveloo, et al. (2014),

174 JOURNAL OF APPLIED MANAGEMENT VOLUME 16 NUMBER 1 MARCH 2018

 The Influence of Transformational Leadership and Work Motivation

Rasool, et al. (2015), Noermijati (2015), and Akbar, job satisfaction has a role to increase employee per-
et al. (2016), which states that Transformational formance. This is in line with research from Gu and
leadership affects employee performance. Siu (2009), Tsai, et al. (2010), Maharani, et al.
Based on the analysis results found that H2 is (2013), Rahayu (2014), and Elgelal & Noermijati
accepted. This is because basically Work motiva- (2015), which results in the study illustrates that job
tion employees have a very important role to in- satisfaction significantly affects employee perfor-
crease employee performance. Theoretically Work mance. Support from colleagues and supervisors is
motivation has a role to improve organizational per- considered a factor that can encourage job satis-
formance through employee performance. This is faction that will have a positive impact on employee
in accordance with research conducted by Putra & performance.
Subudi (2013), Bana (2015), and Jayaweera (2015), Based on the analysis results found that H6
which states that work motivation directly has a accepted. This is because basically job satisfaction
positive and significant impact on employee perfor- employees have a very important role in Transfor-
mance. In the study, it is said that employees per- mational leadership to improve employee perfor-
form better performance when they are motivated. mance Hotel Kartika Graha Malang. Theoretically,
Next, the analysis results found that H3 ac- Transformational leadership has a role to increase
cepted. This is because basically, Transformational employee performance through job satisfaction. This
leadership employees have a very important role to is in line with research from Paracha, et al. (2012),
increase job satisfaction. Theoretically, Transforma- Risambessy, et al. (2012), and Elgelal & Noermijati
tional leadership has a role to increase job satisfac- (2015), in which both transactional and transforma-
tion. This is in accordance with research from tional leadership significantly have a positive influ-
Tracey and Hinkin (1996) and Rothfelder, et al. ence on employee performance. Another important
(2013), where the results of these studies indicate finding is that job satisfaction does not mediate be-
that job satisfaction is strongly influenced by lead- tween transactional leadership and employee per-
ership behaviors. The results also explain that the formance, but rather mediates Transformational
most appropriate and positive leadership behavior leadership with employee performance.
to influence employee job satisfaction is Transfor- Based on the results of the analysis it was found
mational leadership, where it is explained that Trans- that H7 was accepted. This is because basically job
formational leadership has a direct impact on em- satisfaction employees have a very important role
ployee satisfaction perceptions and leader effective- in Work motivation to improve employee perfor-
ness. mance Hotel Kartika Graha Malang. Theoretically
Based on the results of the analysis it was found Work motivation has a role to increase employee
that H4 was accepted. This is because basically performance through job satisfaction. This is in line
Work motivation employees have a very important with research conducted by Vandenabeele (2009),
role to increase job satisfaction. Theoretically Work Sunarni (2011), Hayati and Caniago (2012), and
motivation has a role to increase job satisfaction. Noermijati (2013), which states that a sense of sat-
This is in line with research from Tyilana (2005) isfaction in an organization will be able to encour-
and Chuang (2008), where the results in the study age employees to work better and have responsibil-
say that high work motivation will have an impact ity and able to accomplish their tasks very well.
and influence on employee job satisfaction level,
especially in hotel services like Hotel Kartika Graha LIMITATION OF RESEARCH
Malang. This study has limitations that allow weakening
Based on the results of the analysis it was found the outcome. The limitations arise after the known
that H5 was accepted. This is because basically job results of the distribution of respondents based on
satisfaction employees have a very important role the level of educational employees who average is
to increase employee performance. Theoretically, D1. The level of education tends to have difficulties

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 Thoni Setyo Prabowo, Noermijati, Dodi Wirawan Irawanto

to understand the statements of abstract research Suggestion

variables, such as the merit bonuses of the Work Provide socialization and knowledge related to
motivation variables. So that can reduce the level how to unify the understanding between leaders and
of accuracy of answers to the questionnaire. employees, namely by paying attention to what the
employee needs and what the leader expects. Par-
CONCLUSIONS AND RECOMMENDA- ties Hotel Kartika Graha Malang need to conduct
TIONS periodic appraisal work in order to monitor employee
Conclusion performance. Performance appraisal needs to be
Transformational leadership has no significant done so that the Hotel Kartika Graha Malang can
effect on employee performance. This means that have standards in order to maintain and raise em-
the implementation of the Transformational leader- ployee performance. There are many other vari-
ship model in Hotel Kartika Graha Malang has no ables that can be added in future researchers, such
role in encouraging efforts to improve employee as commitment, organizational culture, and organi-
performance. Work motivation has a significant in- zational citizenship behavior (OCB). Expanding the
fluence on employee performance. This means that object of research, for example, further research
the implementation of Work motivation model in can be done on the financial services business firm.
Hotel Kartika Graha Malang plays a role in encour- The expansion aims to improve the results of re-
aging efforts to increase employee performance. search as well as to generalize a phenomenon that
Transformational leadership has a significant influ- is found.
ence on job satisfaction. It shows that Transforma-
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