The Effect of Organizational Transformation, Organizational Culture, and Transformational Leadership on Employee Performance Through Job Satisfaction: An Evidence from Automotive Component Manufacturing Companies

Ahmad Azmy · Denny Krisnawan Hartono · M. Aslam Mirza

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Employee Performance and Management Job Satisfaction and Organizational Behavior Employee Performance and Leadership

Abstract

This study aimed to analyze organizational transformation, organizational culture, and transformational leadership in relation to employee performance, with job satisfaction serving as a mediating variable. The participants consisted of 101 employees from automotive component manufacturing companies. They were selected using purposive sampling techniques to ensure alignment with the research objectives. Data were analyzed using Partial Least Squares (PLS) to illustrate the variables and indicators influencing employees' performance. The results indicated that organizational transformation, organizational culture, and transformational leadership had a positive impact on employee performance. Furthermore, the mediating role of job satisfaction in relation to employee performance was also observed. Therefore, organizations should optimize job satisfaction to enhance employee competencies in response to business challenges. By implementing organizational transformation, fostering a positive organizational culture, and promoting transformational leadership, organizations can potentially increase satisfaction, responsiveness, and performance, thereby supporting business innovation. Job satisfaction plays a crucial role in maintaining performance stability, as the business process appears to be highly reliant on organizational transformation, organizational culture, and transformational leadership. The variables examined in this study demonstrate that job satisfaction enhances employees' responsiveness to the company's operations. Consequently, organizations should prioritize responsiveness and adaptability when empowering their human resources.

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References

2020Digital transformation: a review, synthesis and opportunities for future research 2004The effect of organisational culture and leadership style on job satisfaction and organisational commitment 2012Making sense of change management: a complete guide to the models, tools, and techniques of organizational change 2019Determining the impact of entrepreneurial orientation and organizational culture on job satisfaction, organizational commitment, and employee’s performance 2019Teachers’ Job Satisfaction and Work Performance 2021The competing value framework model of organizational culture, innovation and performance 2018The Path Is the Goal: How Transformational Leaders Enhance Followers’ Job Attitudes and Proactive Behavior 2009Organization Development: The Process of Leading Organizational Change

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