The Effect of Transformational Leadership, Rewards, and Quality of Work Life on Employee Performance through Job Satisfaction at PT Bank Rakyat Indonesia (Persero) Tbk, Manukan Branch, Surabaya
Abstract
Purpose: This study aims to examine the effects of transformational leadership, rewards, and quality of work life on employee performance, both directly and indirectly through job satisfaction as a mediating variable, among employees of PT Bank Rakyat Indonesia (Persero) Tbk, Manukan Branch, Surabaya.
Design/methodology/approach: This study employs a quantitative approach with a causal research design. Primary data were collected from 50 employees using a five-point Likert scale questionnaire and a census sampling technique. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS, and bootstrapping was used to test the direct and indirect effects among the variables.
Findings: The results show that transformational leadership, rewards, and job satisfaction have positive and significant effects on employee performance, while quality of work life has a positive but not significant effect. Furthermore, job satisfaction fully mediates the relationship between quality of work life and employee performance, indicating that quality of work life improves employee performance indirectly through job satisfaction.
Research limitations/implications: The results should be interpreted cautiously because this study was restricted to a single bank branch . It is recommended that future research broaden the study's focus and include other factors, including employee engagement or organizational commitment.
Practical implications: In order to promote job satisfaction and boost employee performance, bank management is urged to strengthen the implementation of transformational leadership, assess the equity of reward systems, and enhance the work environment and work-life balance.
Originality/value: This study provides new empirical evidence demonstrating the role of job satisfaction as a full mediator in the relationship between quality of work life and employee performance in Indonesian state-owned banks, an aspect that remains underexplored in previous research within this sector.
Paper type: Research Paper
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