The Influence of Transformational Leadership and Workplace Spirituality on Employee Performance in Mediated by Organizational Commitments in Village Credit Institutions in Kediri District

I Wayan Pradnya Jaya, Agoes Ganesha Rahyuda
2020 The International Journal of Business & Management  
Introduction Human resource management is very important for organizations in managing, managing, and utilizing employees so that they can function productively for the achievement of company goals. Human resources in the company need to be managed professionally in order to create a balance between the needs of employees with the demands and capabilities of the company. The existence of professional human resource management arrangements is the base of the company's desire to get employees who
more » ... have good performance. In the literature related to improving the performance of employees in a company there is a matter about the importance of adopting factors that affect the increase in company performance. As with previous studies (Ullah et al., 2018; Kayode et al., 2016; Sintaasih et al, 2019; Budiono et. Al., 2014) have examined various factors of employee performance. The focus of this research is related to factors that affect employee performance. This research refers to the important role of HR in a company. This condition causes the organization to pay attention to employee performance appraisal by reviewing aspects that affect employee performance, including transformational leadership, workplace spirituality, organizational commitment and employee performance. The purpose of this study, we surveyed serious performance problems experienced by managers and employees of 21 LPDs (lembagaperkreditandesa or village creditinstitutions) in Kediri District and tested the theoretical models of employee performance using the Structural Equation Model (SEM). Abstract: Human resources are an important factor for a company in order to maintain the survival of the company to be able to face competition in an increasingly tight business world. In this literature, it becomes increasingly important to understand the factors that influence employee performance. In social exchange theory we examine a model that proposes that employee performance is influenced by several factors including transformational leadership, workplace spirituality and organizational commitment. This research is motivated by the needs of companies that expect quality human resources, because whether or not the company's goals are achieved is influenced by the performance of human resources themselves. This study applies an explanatory research model (explanatory research) to test the hypothesis that transformational leadership, workplace spirituality, organizational commitment will affect employee performance. We surveyed serious performance problems experienced by managers and employees of 21 LPDs (Lembaga Perkreditan Desa or Village Credit Institutions) in Kediri District. Structural Equation Model (SEM) shows a reasonable match of the proposed model with survey data. Analysis of latent variables shows that transformational leadership, workplace spirituality influences employee performance, and organizational commitment is able to mediate the relationship between transformational leadership and workplace spirituality on employee performance. This research can be used as input to organizations to pay attention to factors that can improve employee performance such as transformational leadership and workplace spirituality that have been proven to significantly affect employee performance. A leader in a company needs to create positive things for employees when they evaluate their work by increasing transformational leadership, workplace spirituality and organizational commitment so that their performance will also improve. Literature Review Performance is a picture of the results of achieving an organizational activity that has a strong relationship with the organization's strategic objectives. According to Iskandar (2018), performance in organizations and companies has a close relationship with the management of human resources (HR), for organizations that are able to manage and optimize the capabilities of existing HR will be able to produce high employee performance, so achieving these goals will motivate employees to behave properly and take appropriate actions for the company. Knowing the importance of HR's role in an organization, the organization must pay attention to the factors that influence employee performance improvement such as transformational leadership, workplace spirituality and organizational commitment.
doi:10.24940/theijbm/2020/v8/i6/bm2006-028 fatcat:f7pi2yw6rzb37epqpyazmr7l4m