The Influence of Transformational Leadership and Organizational Culture on Employee Performance with Work Motivation as a Mediating Variable at the Gold Cooperative

Abstract

Organizational culture as a system of values, norms, and beliefs shared by all members of the organization also plays a vital role in shaping employee behavior and performance. A strong and positive culture creates a conducive work environment, increases organizational commitment, and encourages employees to give their best contribution. This study uses a quantitative approach with an explanatory survey research. Explanatory research aims to test the formulated hypotheses and explain the causal relationship between research variables. This study was designed to analyze the influence of transformational leadership and organizational culture on the performance of EMAS Cooperative employees with work motivation as a mediating variable. These findings prove that organizational cultural values such as innovation orientation, attention to detail, results orientation, people orientation, team orientation, and stability adopted by EMAS Cooperative members significantly encourage increased employee work motivation. Transformational leadership has a positive and significant effect on the performance of EMAS Cooperative employees (path coefficient = 0.238; t-statistic = 4.840; p-value = 0.000). Transformational leaders who lead by example, inspire vision, stimulate creativity, and provide personalized attention have been shown to improve work quality, quantity, punctuality, effectiveness, independence, and interpersonal impact for employees.