The Effect of Transformational Leadership on the Employees' Performance through Intervening Variables of Empowerment, Trust, and Satisfaction (A Study on Coal Companies in East Kalimantan)

Abstract

The objective of this research is to investigate the influence of the transformational leadership on the performance through empowerment, trust, and satisfaction with leaders. Its data were collected through questionnaire with 201 respondents and analyzed by using the path analysis method.

Transformational leadership is found to significantly influence empowerment and trust on the leaders as indicated by the significance value of < 0.05. Empowerment significantly influences satisfaction whereas trust on the leaders does not significantly influence satisfaction. The result of this research shows that directly, transformational leadership more effectively gives direct effect on the performance than through empowerment, trust, and satisfaction with the leaders. Empowerment and trust on the leaders, either completely or partially, influence satisfaction significantly. Based on the research result, it is suggested that the company leaders should increase transformational leadership, empowerment, trust on the leaders, performance, and satisfaction with the leaders in the company.