Abstract

This study analyzes the influence of mediation on organizational commitment in the relationship between transformational leadership and job satisfaction on employee performance. This research method uses quantitative techniques by distributing questionnaires. The sample of this study was 200 employees at PT. Margaria Group Yogyakarta with the number of questionnaires returning 141 copies. Data analysis was carried out using Structural Equation Model (SEM) analysis with Partial Least Squared (PLS) method. The results of this study indicate that transformational leadership has a significant positive effect on employee performance, job satisfaction has a significant positive effect on employee performance, transformational leadership has no significant effect on organizational commitment, job satisfaction has a significant positive effect on performance, organizational commitment has a significant positive effect on employee performance. There is no effect of mediating organizational commitment in the relationship between transformational leadership on performance, the mediating effect of organizational commitment has an effect on the relationship between job satisfaction and performance.

Keywords— Transformational Leadership, Job Satisfaction, Organizational Commitment, Employee Performance