Improving Employee Performance at Pt. Hop Lun Indonesia Based on Transformational Leadership: The Role of Employee Engagement and Employee Empowerment as Intervening Variables
Abstract
This study aims to analyze the effect of transformational leadership on the employee performance of PT. Hop Lun Indonesia, with employee engagement and employee empowerment as intervening variables. The research background is based on the phenomenon of suboptimal employee performance over the past four years, despite the company operating in the competitive textile industry. The research method employed is explanatory research with a quantitative approach. The study population consists of all employees of PT. Hop Lun Indonesia, totaling 135 people, with a census technique resulting in 120 respondents who met the criteria. Data analysis was conducted using the Partial Least Square (PLS) method. The results indicate that transformational leadership has a positive and significant effect on both employee engagement and employee empowerment. Furthermore, both employee engagement and employee empowerment have a positive and significant impact on employee performance. Transformational leadership also significantly influences employee performance, both directly and through the mediating roles of employee engagement and employee empowerment. These findings reinforce the importance of transformational leadership in enhancing engagement, empowerment, and employee performance in the textile industry environment. This research provides practical implications for the management of PT. Hop Lun Indonesia in formulating more effective human resource development policies.
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