The Effect of Transformational Leadership Model on Employees’ Job Satisfaction and Performance at Perusahaan Listrik Negara (PLN Persero) in South Sulawesi, Indonesia

Abstract

This study aims at examining the effects of transformational leadership model on employees’ job satisfaction and performance at PLN Persero in South Sulawesi Province. The population of the study consisted of 836 people. As many as 270 people took part as the sample of the study. They consisted of middle managers, first-line managers, top supervisors, middle supervisors, and first-line supervisors. Samples were taken from five PLN offices in South Sulawesi Province. These offices were (1) South Sulawesi regional office, (2) a steam power plant in Tello, (3) an office in Makassar, (4) a distributional and electrical load management office for South Sulawesi Province, and (5) a distributional management office for South Sulawesi Province. Data was collected through questionnaires and interviews. Data was analyzed quantitatively by employing a Generalized Structured Component Analysis (GSCA). The results of the study suggest that transformational leadership model positively and significantly affects employees’ job satisfaction, but this model does not significantly affect employees’ performance. Transformational leadership model indirectly affects employees’ performance through an intervening variable of job satisfaction. Job satisfaction positively and significantly affects employees’ performance.

Keywords: transformational leadership, job satisfaction, performance