The Influence of Leadership Style with Job Satisfaction as Mediating Variable on Employee Performance

Abstract

The purpose of this study was to determine the effect of leadership style on employee performance through mediation of job satisfaction. The leadership styles studied in this study are transformational and transactional leadership styles. Research data is taken from one of the largest mining contractors in Indonesia, which is spread across several mining operational areas. To measure aspects of leadership style, researchers used the Multifactor Leadership Questionnaire (MLQ-5X). The sampling method used in this study was purposive sampling. The data was collected by distributing questionnaires using google doc which were then processed by the structural equation modeling (SEM) method using the SmartPLS statistical software. The results of this study indicate that the transactional leadership style does not have a direct influence or through mediation of job satisfaction on employee performance. Conversely, transformational leadership style has a significant influence on employee performance. Even the transformational leadership style has a stronger influence on employee performance through mediating job satisfaction