RJOAS January 2025
by Hadi Saeful, Nurmayanti Siti, Saufi Akhmad (Master’s Study Program of Management, Faculty of Economics and Business, University of Mataram, Indonesia)
This study aims to examine the mediating role of job satisfaction in the influence of transformational leadership and organizational culture on employee performance at the Ministry of Health Poltekkes Mataram. This research is a causal associative study with a quantitative approach. The sampling method employed is a census, involving 67 respondents who are administrative civil servants at the Ministry of Health Poltekkes Mataram. Data analysis was conducted using the PLS-SEM technique with Smart PLS software. The results show that transformational leadership has a positive but insignificant effect on employee performance, while organizational culture has a significant positive effect on employee performance. Both transformational leadership and organizational culture have significant positive effects on employee performance and job satisfaction. Job satisfaction significantly and positively affects employee performance. Furthermore, there is an indirect effect of transformational leadership and organizational culture on employee performance through job satisfaction.
Human resources refer to employees who possess the capability, readiness, and commitment to help the company achieve its goals (Werther & Davis, 1996). The main element of human resources is their contribution to achieving organizational goals. Human resources are not only objects of change but also play an active role in the planned transformation processes within the organization (Moran & Brightman, 2000). In this regard, human resources are considered the most important asset of an organization (Suwandi, 2014). Rivai (2004) emphasized that organizations without the support of suitable employees in terms of quantity, quality, strategy, and operations will struggle to survive, grow, and compete in the future. With the increasing intensity of global competition, the role of human resources has become even more significant. One of the main strategies organizations use to compete is to maximize the empowerment and development of the full potential of their human resources
Performance refers to the work outcomes delivered by an employee in carrying out their duties and responsibilities to the organization. This aspect is influenced by spiritual, intellectual, and emotional intelligence, the ability to see opportunities within challenges, and physical skills utilized to optimize organizational resources (Gorda, 2006). Kasmir (2016) highlighted several factors that can drive employee performance, including leadership style, organizational culture, and job satisfaction. Previous studies have shown that transformational leadership can significantly enhance employee performance (Rino et al., 2023; Qalati et al., 2022). Moreover, research by Angelina (2018), Deddy (2022), Djuraidi & Laily (2020), Faridah et al. (2022), and Simatupang & Hayati (2023) confirmed that job satisfaction acts as a mediator between transformational leadership and employee performance. This study addresses an existing research gap, as previous studies have not sufficiently explored the role of job satisfaction as a mediator in this relationship.
Kasmir (2016) also stated that organizational culture is a factor influencing employee performance. Previous studies, such as those by Didit (2020), Tan (2019), and Rivai (2020), demonstrated that organizational culture can contribute to improving employee performance. Furthermore, research by Sari et al. (2022) and Ulum (2022) revealed that job satisfaction serves as a mediator in the relationship between organizational culture and employee performance. The findings of Sari et al. (2022) provide a significant contribution to addressing gaps in earlier studies, which were limited in exploring the role of job satisfaction as a bridge between organizational culture and employee performance.
Based on previous literature, inconsistencies in research findings have been identified, opening opportunities to further examine the influence of transformational leadership and organizational culture on employee performance, particularly among employees of the Ministry of Health Poltekkes Mataram, while considering the mediating role of job satisfaction. For instance, findings by Eliyana et al. (2019) and Prabowo et al. (2018) indicate that transformational leadership does not have a direct impact on employee performance. On the other hand, studies by Hidayat et al. (2018) and Girsang (2019) revealed that organizational culture does not significantly affect employee performance.
Based on the background description above, it is necessary to further investigate or analyze the influence of Transformational Leadership and Organizational Culture on Employee Performance with Job Satisfaction as a mediating variable among employees of the Ministry of Health Poltekkes Mataram.
Employee performance or work achievement refers to the work results, both in terms of quality and quantity, achieved by an individual in carrying out their duties and responsibilities (Mangkunegara, 2006). Meanwhile, Hariandja (2002) defines performance as the actual results or work behaviors demonstrated by an employee in their role within the organization to achieve specific goals. Gorda (2006) adds that performance is the contribution of an employee in carrying out tasks directly related to their responsibilities to the organization.
Transformational leadership is a condition in which followers have trust, admiration, loyalty, and respect for their leader (Bass, 1985). Burns (1998) states that transformational leadership occurs through a process of mutual motivation between leaders and followers to achieve higher goals that meet the needs of both parties. Avolio (1999) explains that transformational leadership focuses on motivation and inspiration, encouraging followers to achieve organizational goals while developing their potential to become leaders in the future. Additionally, according to Mackenzie et al. (2001), transformational leaders give personal attention by valuing the opinions, feelings, and needs of each employee.
Organizational culture refers to the system of shared values and meanings embraced by the members of an organization, which distinguishes the organization from others (Robbins & Judge, 2008). Anthony and Govindarajan (2005) explain that organizational culture includes values, shared beliefs, behavior norms, and assumptions that are explicitly and implicitly applied throughout the organization. Luthans (2011) states that organizational culture functions as a guide in the form of norms and values that influence the behavior of organizational members, encouraging them to adapt in order to be accepted within the work environment.
Job satisfaction is a positive emotional attitude that reflects a person's feelings of pleasure and love toward their work. Job satisfaction or dissatisfaction is subjective, depending on an individual's perception of the alignment between their expectations and the results they achieve (Hasibuan, 2015). Greenberg & Baron (2008) define job satisfaction as an attitude, either positive or negative, that an individual holds toward the work they perform. Robbins (2008) adds that job satisfaction is a general attitude toward one's job, reflecting the level of happiness or dissatisfaction experienced in relation to the job as a whole. Colquitt et al. (2014) explain that job satisfaction is influenced by various factors, including the work itself, compensation, supervision, and promotion opportunities.
Transformational leadership occurs when leaders and followers empower each other to achieve better outcomes. Burns (1978) explains that transformational leaders not only provide direction but also motivate employees to achieve higher goals, which in turn enhances individual and group performance. Bass (1985) expanded on this theory by describing four main components: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration. Kirkpatrick & Locke (1996) emphasize that transformational leadership creates an environment that fosters growth, creativity, and collaboration, contributing to the improvement of individual and team performance. Research such as that conducted by Qalati et al. (2022) shows that the four dimensions of transformational leadership can encourage employees to exceed their performance limits, both individually and as teams. Rino et al. (2023) also reveal that transformational leadership enhances employees' intrinsic motivation, encouraging them to be more proactive in completing tasks and seeking creative solutions. Furthermore, leaders with this style can build strong emotional relationships with employees, creating a sense of ownership toward the organization's goals. Based on this review, the first hypothesis of this study is as follows:
H1: Transformational Leadership has a positive and significant effect on Employee Performance.
Organizational culture, according to Schein (1992), is a pattern of assumptions developed by groups in response to internal and external challenges. Schein identifies three levels of organizational culture: artifacts, stated values, and basic assumptions. Meanwhile, Hofstede (1980) suggests that cultural differences between countries can be explained through six key dimensions, such as power distance, individualism versus collectivism, and uncertainty avoidance, which affect work patterns and interactions within organizations as well as employee performance. Organizational culture functions as a framework that shapes employee behavior, where a strong culture can enhance motivation and performance by creating a sense of involvement and ownership among employees (Katz & Kahn, 1978). Research also supports the impact of organizational culture on performance, as found by Didit (2020), who states that organizational culture has a direct impact on employee performance and creates a work environment that supports productivity and job satisfaction. Tan (2019) adds that dynamic management of organizational culture can serve as a strategic tool to improve performance, particularly in facing rapid changes in the business environment. Rivai (2020) emphasizes that a strong organizational culture has a synergistic effect in driving performance improvement. Based on this review, the second hypothesis of this study is as follows:
H2: Organizational Culture has a positive and significant effect on Employee Performance.
Transformational leadership is a process in which leaders and followers influence and grow together. Transformational leaders not only provide direction but also inspire employees to enhance their work spirit (Burns, 1978). Kirkpatrick & Locke (1996) state that transformational leadership creates a positive relationship between leaders and employees, which increases job satisfaction. Goleman (1995) adds that the motivation and inspiration from leaders make employees more satisfied with their jobs. Deal & Kennedy (1982) also emphasize the importance of a conducive work environment to improve job satisfaction and employee performance. Research shows that transformational leadership has a positive effect on job satisfaction. Djuraidi & Laily (2020) found that this leadership style builds positive relationships and increases job satisfaction through motivation and inspiration. Angelina (2018) adds that leaders who provide direction and motivation create a work environment that supports job satisfaction. Simatupang & Hayati (2023) also reveal that transformational leadership significantly affects job satisfaction by creating a supportive work atmosphere. Based on this review, the third hypothesis of this study is as follows:
H3: Transformational Leadership has a positive and significant effect on Job Satisfaction.
A strong organizational culture creates a supportive work environment where employees feel valued and supported. According to Deal & Kennedy (1982), a conducive environment enhances job satisfaction, which positively impacts performance. Meyer & Allen (1991) add that attachment to organizational culture improves job satisfaction and employee well-being. Greenhaus et al. (2000) also state that support for career development enhances job satisfaction. Other studies, such as those conducted by Artini et al. (2023) and Didit (2020), show that a culture that supports collaboration and innovation improves employee well-being and satisfaction. Sari et al. (2022) reveal that organizational culture aligned with employees' values increases job satisfaction and commitment to the organization, while Ulum (2022) emphasizes that a strong culture creates a sense of belonging and pride among employees, thus enhancing job satisfaction. Therefore, the fourth hypothesis is as follows:
H4: Organizational Culture has a positive and significant effect on Job Satisfaction.
Job satisfaction is an emotional condition that reflects the positive or negative feelings employees experience toward their work. Locke (1976) defines job satisfaction as a pleasurable or positive emotional state resulting from the assessment of one's job and work experiences. Harter et al. (2002) reveal a strong relationship between job satisfaction and individual performance, where satisfied employees are more engaged in their work and demonstrate better performance. Spector (1997) also emphasizes the connection between job satisfaction and employee performance, particularly in roles that require social interaction and team collaboration, concluding that job satisfaction significantly influences performance. Several studies, such as the one conducted by Inuwa (2016), reveal that job satisfaction has a positive and significant impact on employee performance, while dissatisfaction can reduce motivation and individual productivity, negatively affecting organizational performance. Susilowati et al. (2022) also found that job satisfaction positively and significantly impacts employee performance. Based on these findings, the fifth hypothesis of this study is as follows:
H5: Job Satisfaction has a positive and significant effect on Employee Performance.
Transformational leadership is a leadership style aimed at creating positive change within an organization and encouraging employees to reach their full potential. Bass & Avolio (1994) mentioned that this leadership style consists of four main elements: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration. Employee performance refers to behaviors that support the achievement of organizational goals, involving work outcomes, quality, and task execution effectiveness (Campbell, 1990). Meanwhile, job satisfaction is a positive emotional response to work experienced by individuals, which according to Locke (1976) arises from their assessment of the job and work experiences. Employees who feel inspired by transformational leaders tend to have higher levels of job satisfaction, which in turn can improve their performance (Bass, 1998). Research by Luthans and Stajkovic (1999) also shows that transformational leadership not only increases job satisfaction but also has a positive impact on employee performance. Several related studies, such as those by Faridah et al. (2022), reveal that job satisfaction acts as a mediator between transformational leadership and employee performance. This indicates that the freedom and innovation encouraged by the leader can enhance job satisfaction, which then influences the improvement of performance. Other studies, such as those by Angelina (2018), confirm that transformational leadership positively impacts employee performance, with job satisfaction as a mediating variable. Further studies by Anggara et al. (2022), Deddy (2022), Djuraidi & Laily (2020), Sardi (2017), and Simatupang & Hayati (2023) also conclude that job satisfaction plays an important role in bridging the impact of transformational leadership on employee performance. Based on these findings, the sixth hypothesis of this study is as follows:
H6: Job Satisfaction mediates the effect of Transformational Leadership on Employee Performance.
Job satisfaction refers to the positive feelings individuals have toward their work. Locke (1976) stated that job satisfaction can influence employee behavior and performance. A conducive organizational culture plays an important role in enhancing job satisfaction. Schneider et al. (2013) revealed that employees who feel supported by a good organizational culture tend to be more satisfied, which contributes to improving their performance. Furthermore, a supportive organizational culture can motivate employees, thereby strengthening their job satisfaction. Harter et al. (2002) demonstrated that high job satisfaction is strongly correlated with employee engagement, which supports the achievement of better performance. A healthy organizational culture also plays a role in improving employees' mental health and well-being. Grawitch et al. (2006) mentioned that employees who are satisfied with their work are better able to cope with stress and challenges, which in turn enhances their performance. Several studies, such as those by Didit (2020), Sari et al. (2022), and Ulum (2022), indicate that job satisfaction can mediate the impact of organizational culture on employee performance. These findings emphasize that a positive organizational culture can improve job satisfaction, which ultimately contributes to enhancing employee performance. Therefore, the seventh hypothesis of this study is as follows:
H7: Job Satisfaction mediates the effect of Organizational Culture on Employee Performance.
This study uses a quantitative approach with a causal associative type, which examines the relationships between one or two variables and the mediating effect, focusing on the impact of transformational leadership and organizational culture on employee performance mediated by job satisfaction among employees at the Ministry of Health Poltekkes Mataram. Data is collected through a census sampling, with the population consisting of all Civil Servants (ASN), including 67 educational staff that is selected as respondents. The data collection technique uses a questionnaire with a Likert scale. The collected data is analyzed using path analysis techniques with SmartPLS 4 software, which includes evaluation of the measurement model (outer model) through loading factor (validity value > 0.500), convergent validity (AVE value > 0.500), discriminant validity, and composite reliability (value > 0.700), evaluation of the structural model (inner model), as well as model quality and goodness-of-fit evaluation using R-Square (R²), and (F²).
Data analysis from 67 respondents at the Ministry of Health Poltekkes Mataram showed that the majority were male (52.24%). The primary age group was 34 to 39 years old (31.34%), followed by the 40 to 45 years old group (25.37%), those over 46 years old (20.90%), the 28 to 33 years old group (14.93%), and those under 27 years old (7.46%). Most respondents had more than 15 years of service (35.83%), followed by 6 to 10 years of service (25.37%), with the same number for less than 5 years and 11 to 15 years of service (19.40%). In terms of education, the majority had a D-IV or S1 degree (52.24%), followed by high school to S1 with the same number (22.39%), and S2 (2.99%).
Based on the results of the outer loading measurement for the variables of transformational leadership, organizational culture, job satisfaction, and employee performance, they have met the criteria for use as measurement variables due to having outer loading values greater than 0.500 (outer loading > 0.500) (Chin, 1998). Therefore, all variables are considered feasible or valid to be used for further research analysis.
Discriminant validity is measured using the square root of the Average Variance Extracted (AVE) value, with a recommended value above 0.500 (Hair et al., 2021). Based on the table above, all research variables show AVE values greater than 0.500 (AVE > 0.500), indicating that each variable meets the discriminant validity standard. Therefore, the variables in this study can clearly distinguish themselves from other variables, showing that the constructs being measured are valid and reliable, and the research results have good validity and can be relied upon for accurate conclusions.
A construct is considered reliable if the composite reliability value is above 0.700 (Sekaran, 2014). The reliability test can be reinforced by using the Cronbach's alpha value. A variable can be considered reliable or meet Cronbach's alpha if it has a Cronbach's alpha value > 0.700 (Sekaran, 2014).
Based on the table above, the results show that the composite reliability and Cronbach's alpha values for all variables are greater than 0.7. Therefore, this result indicates that each research variable has met the Cronbach's alpha requirements, and it can be concluded that all variables have a high level of reliability.
Based on the results presented, it shows a positive relationship direction on all paths that have been tested. Transformational leadership influences employee performance with a coefficient of 0.165, and organizational culture with a coefficient of 0.386. Transformational leadership influences job satisfaction with a coefficient of 0.318, and organizational culture with a coefficient of 0.649. Job satisfaction influences employee performance with a coefficient of 0.367. Additionally, transformational leadership influences employee performance mediated by job satisfaction with a coefficient of 0.117, and organizational culture influences employee performance mediated by job satisfaction with a coefficient of 0.238. All relationships show that improvements in the exogenous variables contribute to the enhancement of the related endogenous variables.
Based on the data presented in the table above, it can be seen that the R-Square value for the employee performance variable is 0.770. This value explains that 77% of employee performance is influenced or explained by transformational leadership and organizational culture. The R-Square value for the job satisfaction variable is 0.853. This value indicates that job satisfaction among employees at the Ministry of Health Poltekkes Mataram can be explained by transformational leadership and organizational culture by 85.3%.
Based on the results in the table above, it is known that the f-square value for the transformational leadership variable on employee performance is 0.034, which is below 0.15, indicating a small or weak effect. The organizational culture variable on employee performance has a value of 0.115, also below 0.15, indicating a small or weak effect. The job satisfaction variable on employee performance has a value of 0.086, which is below 0.15, indicating a small or weak effect. The transformational leadership variable on job satisfaction has a value of 0.248, which is above 0.15, indicating a medium effect. The organizational culture variable on job satisfaction has a value of 1.034, which is above 0.35, indicating a large or strong effect.
Hypothesis 1: States that there is a positive but not significant effect of transformational leadership, which is not able to improve employee performance, so the first hypothesis (H1) is rejected.
Hypothesis 2: States that there is a positive and significant effect of organizational culture, which, the stronger it becomes, is able to improve employee performance, so the second hypothesis (H2) is accepted.
Hypothesis 3: States that there is a positive and significant effect of transformational leadership, which, the more effective it becomes, is able to improve job satisfaction, so the third hypothesis (H3) is accepted.
Hypothesis 4: States that there is a positive and significant effect of organizational culture, which, the stronger it becomes, is able to improve job satisfaction, so the fourth hypothesis (H4) is accepted.
Hypothesis 5: States that there is a positive and significant effect of job satisfaction, which, the higher the satisfaction, is able to improve employee performance, so the fifth hypothesis (H5) is accepted.
Hypothesis 6: States that there is a positive and significant effect of transformational leadership, which, the more effective it becomes, is able to improve employee performance through job satisfaction, so the sixth hypothesis (H6) is accepted.
Hypothesis 7: States that there is a positive and significant effect of organizational culture, which, the stronger it becomes, is able to improve employee performance through job satisfaction, so the seventh hypothesis (H7) is accepted.
The Effect of Transformational Leadership on Employee Performance. The hypothesis testing results show that there is no significant effect between transformational leadership and employee performance at the Ministry of Health Poltekkes Mataram. Although transformational leadership, which includes ideal influence, inspirational motivation, intellectual stimulation, and individualized consideration, is able to provide inspiration and motivation and meet employees' individual needs, its impact on improving employee performance is still not optimal. This indicates that although the components of transformational leadership have been implemented, other factors that play a greater role in driving employee performance need to be considered, such as job satisfaction, trust in leadership, personality, and employee mood.
The characteristics of the research respondents show that employees with mature age (34-39 years) and more than 15 years of work experience have considerable work experience. Despite being in a productive age and having experience, the effectiveness of transformational leadership as a key driver of performance is still not optimal. This indicates that employees are more influenced by intrinsic factors, such as personal motivation, or work environment factors, such as support from coworkers and organizational conditions. In addition, management policies, reward systems, and workload balance also play important roles in improving employee performance.
Transformational leadership involves empowering both leaders and followers to achieve better outcomes. Leaders not only give instructions but also motivate employees to reach higher goals, thereby enhancing individual and team performance (Burns, 1978). However, Eliyana et al. (2019) found that the influence of transformational leadership on employee performance is more effective when mediated by other variables, such as job satisfaction and organizational commitment. Prabowo et al. (2018) also found that transformational leadership does not have a direct significant effect on employee performance; rather, job satisfaction serves as the linking factor for that influence.
Therefore, organizations need to adopt a more holistic approach to improve employee performance, such as enhancing employee well-being, providing ongoing professional development, and creating a conducive work environment. Understanding the specific needs of employees based on their age and experience can help organizations design more effective strategies to optimize overall employee performance.
The Influence of Organizational Culture on Employee Performance. The results of hypothesis testing indicate a positive and significant relationship between organizational culture and employee performance at the Ministry of Health, Poltekkes Mataram. The stronger the organizational culture, the higher the employee performance achieved. The strong organizational culture at Poltekkes Mataram includes dimensions such as innovation, risk-taking, attention to detail, results orientation, people orientation, team orientation, aggressiveness, and stability. This culture enables employees to feel more motivated, engaged, and have a sense of ownership over their work, which in turn drives high performance.
According to Schein (1992), organizational culture is a pattern of assumptions developed by a group to solve internal and external challenges. Schein divides organizational culture into three levels: artifacts, stated values, and basic assumptions. Hofstede (1980) adds that cultural differences between countries, such as power distance, individualism versus collectivism, and uncertainty avoidance, influence work patterns and interactions within organizations and contribute to employee performance. A strong organizational culture can shape employee behavior, enhance motivation, and improve performance, as employees feel more involved and have a sense of ownership towards the organization (Katz & Kahn, 1978).
Research by Didit (2020) supports this finding, showing that a positive organizational culture can create a conducive work environment, which in turn increases productivity and job satisfaction. Tan (2019) adds that to leverage organizational culture as a tool for improving performance, management must be able to manage dynamic cultural changes. An adaptive and flexible culture is especially important in organizations facing rapidly changing business environments, and this can become a competitive advantage. Rivai (2020) also affirms that a strong organizational culture has a synergistic impact on performance improvement.
Therefore, an organizational culture that supports innovation, team collaboration, and attention to detail motivates employees to feel more responsible for their work. This contributes to the improvement of individual performance and the overall organization. Furthermore, a positive organizational culture creates an environment conducive to continuous improvement, which impacts the effectiveness of health and administrative programs implemented within the organization.
The Influence of Transformational Leadership on Job Satisfaction. The results of hypothesis testing indicate a positive and significant relationship between transformational leadership and job satisfaction among employees at the Ministry of Health, Poltekkes Mataram. The more effective the transformational leadership implemented, the higher the level of job satisfaction achieved. This suggests that the implementation of transformational leadership at Poltekkes Mataram is effective, where respondents feel that the leadership applied provides clear direction and inspiration for employees. The high level of leader involvement in supporting employees also contributes positively to the increase in their job satisfaction.
Transformational leadership, as described by Burns (1978), is a process in which leaders and followers mutually influence and develop together. Transformational leaders not only give instructions but also serve as inspirators who ignite employees' work enthusiasm. According to Kirkpatrick & Locke (1996), transformational leadership can create positive relationships between leaders and employees, which improves job satisfaction. Goleman (1995) also adds that when employees feel motivated and inspired by their leaders, they tend to be more satisfied with their work.
Related research, such as that conducted by Djuraidi & Laily (2020), shows that transformational leadership has a significant effect on employee job satisfaction. This leadership style can build positive relationships through an inspirational and motivational approach, which in turn improves employees' positive attitudes and job satisfaction. Research by Angelina (2020) also explains that leaders who provide direction, motivation, and inspiration create a work environment that supports employee satisfaction. Similarly, Simatupang & Hayati (2023) found that transformational leadership significantly influences job satisfaction, as leaders who inspire and motivate create a conducive work atmosphere, thus increasing employee satisfaction.
Overall, the results of this study indicate that the transformational leadership applied at Poltekkes Mataram can significantly improve employee job satisfaction. Effective leadership, which provides clear direction, motivation, and continuous support, creates a positive work environment and encourages employees to contribute better. Therefore, the more effective the implementation of transformational leadership, the higher the level of job satisfaction created, which in turn can also improve employee performance.
The Influence of Organizational Culture on Job Satisfaction. The results of hypothesis testing show that organizational culture has a positive and significant effect on employee job satisfaction at the Ministry of Health, Poltekkes Mataram. This means that the stronger the organizational culture applied, the higher the level of employee job satisfaction. This indicates that the organizational culture at Poltekkes Mataram is strong, as seen from the encouragement to try new ideas, as well as the implementation of innovation and risk-taking. Such support fosters a sense of satisfaction among employees, especially when they feel valued and recognized for their contributions.
A strong organizational culture creates a supportive and positive work environment, where employees feel appreciated, given opportunities to innovate, and receive the necessary support. Deal & Kennedy (1982) revealed that a conducive work environment plays a crucial role in improving employee job satisfaction, which ultimately affects their performance. Meanwhile, Meyer & Allen (1991) stated that when employees feel connected to the organizational culture, they tend to be more satisfied with their jobs and feel more overall well-being. Greenhaus et al. (2000) also added that organizational support in career development can make employees feel valued, which in turn increases their job satisfaction.
This research is consistent with findings from Artini et al. (2023), who stated that a positive organizational culture helps create a work environment that supports and facilitates employees' comfort and job satisfaction. Research by Didit (2020) also revealed that organizational culture plays a key role in determining employee job satisfaction, with cultures that encourage openness, collaboration, and innovation improving employee well-being and satisfaction. Sari et al. (2022) found that job satisfaction increases when organizational culture aligns with employees' expectations and values. Additionally, Ulum (2022) showed that a strong organizational culture can create a sense of belonging and pride among employees, leading to increased job satisfaction.
Overall, the results of this study indicate that a strong organizational culture at Poltekkes Mataram has a significant impact on improving employee job satisfaction. A culture that supports innovation, risk-taking, and collaboration creates a positive and inclusive work atmosphere, where employees feel valued and supported. Therefore, a strong organizational culture can enhance job satisfaction, which ultimately has a positive effect on employee performance and productivity.
The Influence of Job Satisfaction on Employee Performance. The results of hypothesis testing show that job satisfaction has a positive and significant effect on employee performance at the Ministry of Health, Poltekkes Mataram. In other words, the higher the level of job satisfaction, the better the employee performance. This indicates that employee job satisfaction is at a satisfactory level. Respondents, on average, feel satisfied with various aspects influencing job satisfaction, such as work that aligns with their interests and skills, ease in understanding and performing tasks, as well as openness and trust in work relationships. Additionally, the support provided by the organization also plays an important role in helping employees achieve their work goals. Respondents also feel appreciated for their contributions, which has a positive impact on improving employee performance.
Job satisfaction is an emotional condition that reflects the positive or negative feelings employees have towards their work. Locke (1976) defines job satisfaction as a pleasant or positive emotional state resulting from the appraisal of work and work experiences. Harter et al. (2002) emphasize the close relationship between job satisfaction and individual performance, where satisfied employees are more likely to be engaged in their work and show better results. Spector (1997) also shows that job satisfaction has a significant impact on performance, especially in roles that require social interaction and team collaboration.
This research is consistent with findings by Inuwa (2016), which revealed that job satisfaction positively and significantly affects employee performance. Susilowati et al. (2022) also explain that job satisfaction positively impacts employee performance. Therefore, this study reaffirms that employees who are satisfied with their jobs tend to be more engaged, enthusiastic, and perform better.
Creating a work environment that supports employee satisfaction can drive more optimal performance improvement. Job satisfaction is achieved through a clear understanding of tasks, good working relationships, and recognition of employee contributions. This contributes to increasing commitment and effectiveness in completing tasks. This study emphasizes the importance of paying attention to factors that influence job satisfaction, as these factors have a direct impact on improving employee performance at the Ministry of Health, Poltekkes Mataram.
The Influence of Transformational Leadership on Employee Performance through Job Satisfaction Mediation. The results of hypothesis testing show that job satisfaction mediates the effect of transformational leadership on employee performance at the Ministry of Health, Poltekkes Mataram. In other words, transformational leadership can improve employee performance through increased job satisfaction. When transformational leaders provide strong support and create a positive work environment, employees feel valued and appreciated. This enhances their job satisfaction, which in turn has a positive impact on employee performance. Employees who feel valued tend to be more committed, proactive, and motivated in achieving organizational goals.
Indicators of transformational leadership, particularly idealized influence, play a key role in improving employee job satisfaction. When leaders act as role models, trust the decisions made, and demonstrate integrity in their actions and decisions, employees feel more satisfied with their work. The increased job satisfaction then drives employees to work harder and contribute more to the organization.
Transformational leadership consists of four main elements: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration (Bass & Avolio, 1994). Employee performance includes various aspects such as work results, quality, and effectiveness in task execution (Campbell, 1990). Employees who are inspired by transformational leaders tend to feel more satisfied with their work, which in turn enhances their performance. Research by Luthans and Stajkovic (1999) shows that transformational leadership not only increases job satisfaction but also has a positive impact on employee performance.
The findings of this study align with the results of Faridah et al. (2022), which show that job satisfaction serves as a mediator in the influence of transformational leadership on employee performance. This study is also supported by other studies, such as those by Angelina (2018), Anggara et al. (2022), Deddy (2022), Djuraidi & Laily (2020), Sardi (2017), and Simatupang & Hayati (2023), all of which conclude that job satisfaction plays a key role in bridging the effect of transformational leadership on employee performance.
Thus, the results of this study indicate that job satisfaction serves as a mediator linking transformational leadership to improved employee performance. Effective transformational leadership can create a positive work environment, which in turn enhances job satisfaction. High job satisfaction contributes to improved employee performance, making them more committed, motivated, and proactive in achieving organizational goals.
The Influence of Organizational Culture on Employee Performance through Job Satisfaction Mediation. The results of hypothesis testing show that job satisfaction mediates the effect of organizational culture on employee performance at the Ministry of Health, Poltekkes Mataram. This means that a strong organizational culture can enhance employee performance through increased job satisfaction. When organizational culture creates a supportive and conducive environment, employees feel more stable and confident in completing their tasks. A supportive organizational culture also helps employees feel more engaged and motivated because the organization’s values align with their personal goals.
Job satisfaction, which is a positive feeling towards work, is closely related to the level of employee engagement, which in turn contributes to their performance. This study emphasizes that a supportive organizational culture can increase employee motivation, which contributes to job satisfaction. When employees feel supported by a good organizational culture, they will feel more satisfied, and this satisfaction will improve their performance. Therefore, a positive organizational culture can create an environment that not only enhances job satisfaction but also improves employee performance.
According to Locke (1976), job satisfaction influences employee behavior and performance, while a conducive organizational culture plays a key role in improving job satisfaction. Schneider et al. (2013) added that employees who feel supported by a good organizational culture tend to be more satisfied, which in turn improves their performance. Harter et al. (2002) showed that high job satisfaction correlates with greater employee engagement, which ultimately contributes to better performance outcomes. Moreover, a healthy organizational culture also contributes to improving employees' mental health and well-being, thereby enhancing their performance (Grawitch et al., 2006).
The findings of this study are consistent with research by Didit (2020), Sari et al. (2022), and Ulum (2022), which show that job satisfaction can mediate the effect of organizational culture on employee performance. This study affirms that a positive organizational culture can improve job satisfaction, which ultimately impacts employee performance.
Thus, the results of this study indicate that a strong and positive organizational culture plays an essential role in improving employee performance through job satisfaction. When organizational culture creates a mutually supportive, appreciative, and motivating environment, employees are likely to feel satisfied with their work, which enhances their performance. Therefore, organizations need to focus on developing a culture conducive to employee job satisfaction, which can directly impact productivity and overall organizational performance. This study provides strong evidence that job satisfaction acts as a mediator, strengthening the relationship between organizational culture and employee performance.
Based on the results of this study, it can be concluded that transformational leadership has a positive but not significant effect on employee performance, organizational culture has a positive and significant effect on employee performance, transformational leadership has a positive and significant effect on job satisfaction, organizational culture has a positive and significant effect on job satisfaction, and job satisfaction has a positive and significant effect on employee performance. Furthermore, job satisfaction mediates the influence of transformational leadership and organizational culture on employee performance at the Ministry of Health, Poltekkes Mataram.
Theoretically, this study emphasizes the important role of job satisfaction as a mediating variable in the relationship between transformational leadership, organizational culture, and employee performance. This study found that transformational leadership does not have a significant direct effect on employee performance but contributes positively through improving job satisfaction. Additionally, organizational culture was proven to have a positive and significant effect on employee performance, indicating that a supportive work environment can directly drive productivity. Furthermore, job satisfaction serves as the main link that strengthens the effect of transformational leadership and organizational culture on employee performance. Therefore, this study reinforces existing theories that employee performance improvement is influenced not only by leadership and organizational culture factors directly, but also through high levels of job satisfaction. These findings provide a relevant theoretical contribution to support a management approach based on job satisfaction as a key element in creating a productive organization.
Managerially, this study provides strategic guidance for the Ministry of Health, Poltekkes Mataram in improving organizational and employee performance. First, the importance of transformational leadership plays a central role, where leaders are expected to demonstrate integrity, transparency, and exemplary behavior in every decision-making process. By building strong trust between leaders and employees, the organization can create an inspiring work environment that fosters productivity. Second, regarding organizational culture, the study emphasizes the need to strengthen the focus on results by developing a reward system that motivates employees and conducting regular performance evaluations. This aims to address barriers to achieving optimal results and enhance the effectiveness of organizational strategies. Third, in terms of job satisfaction, good supervision is an essential element. The Ministry of Health, Poltekkes Mataram is expected to strengthen communication, enhance task clarity, and create more open and trust-based working relationships. Providing relevant training and support to employees is also a crucial step in improving work well-being and motivation. Fourth, regarding employee performance, focusing on effectiveness and efficiency should be prioritized. An inspirational leadership style, goal-oriented approach, and efficient use of resources can significantly improve work effectiveness and drive employee performance. Overall, the implementation of these recommendations is expected to create a more productive, effective, and efficient organization.
This study has limitations, including a limited respondent scope, the insignificant effect of transformational leadership on employee performance, and the potential bias from the use of questionnaires. Therefore, future research is recommended to explore additional variables, develop interventions to improve performance and job satisfaction, and expand the research object to organizations with different characteristics to generate broader and more comprehensive recommendations.
Based on the research findings, it is recommended that the Ministry of Health, Poltekkes Mataram, strengthen leadership's attention to the individual needs of employees to enhance motivation and job satisfaction, improve organizational culture with a focus on employee well-being and positive aggressiveness, ensure that employees' tasks align with their expertise while creating a supportive work environment, and enhance employees' ability to maintain the stability of performance quantity to support overall organizational productivity.
Original paper, i.e. Figures, Tables, References, and Authors' Contacts available at http://rjoas.com/issue-2025-01/article_08.pdf