The Effect of Transformational Leadership and Competence Improvement Programs on Employee Satisfaction and Performance in Representative Offices Bank Indonesia DIY
Abstract
This study aims to analyze the influence of transformational leadership and competency improvement programs on employee satisfaction and performance at the Bank Indonesia DIY Representative Office. This study was motivated by the relatively low employee performance of 35%. The research method used was quantitative with the SmartPLS approach. The research sample was 113 employees at the Bank Indonesia DIY Representative Office. The results of the study indicate that 1) Transformational leadership has a positive and significant effect on employee performance; 2) Competency improvement programs have a positive and significant effect on employee performance; 3) Transformational leadership has a positive and significant effect on employee job satisfaction; 4) Competency improvement programs have a positive and significant effect on employee job satisfaction; 5) Job satisfaction has a positive and significant effect on employee performance; 6) Job satisfaction mediates the effect of transformational leadership on employee performance and 7) Job satisfaction mediates the effect of competency improvement programs on employee performance. The practical implications of this study are the need for the application of transformational leadership styles in the work environment, the development of competency improvement programs according to employee needs and job demands and should pay attention to factors that influence job satisfaction such as reward provisions, role clarity, good communication and workload balance.
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