The Influence of Transformational Leadership and Competency Development on Employee Performance through the Mediation of Work Motivation
DOI:
https://doi.org/10.21111/at.v11i2.15364Keywords:
Transformational Leadership, Competency Development, Work Motivation, Employee Performance, Furniture IndustryAbstract
Employee performance is a crucial factor in maintaining the competitiveness of manufacturing companies, particularly in the furniture industry, which demands timeliness, product quality, and operational efficiency. This study aims to analyze the influence of transformational leadership and competency development on employee performance with work motivation as a mediating variable at PT Chia Jiann Indonesia Furniture Jepara (Mahogany). The research employs a quantitative approach with a descriptive and associative design. The research population consists of all 150 employees of the company, all of whom were selected as respondents using a census sampling technique. Data were collected through a Likert-scale questionnaire and analyzed using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) method with SmartPLS 4.0 software. The results indicate that transformational leadership and competency development have a positive and significant effect on work motivation. Work motivation is also proven to have a positive and significant effect on employee performance. However, transformational leadership and competency development do not have a significant direct effect on employee performance. The analysis of indirect effects shows that work motivation significantly mediates the relationship between transformational leadership and competency development on employee performance. These findings confirm that improving employee performance in the furniture manufacturing industry is not solely determined by leadership practices and employee competency levels, but also heavily depends on the organization’s ability to build and strengthen work motivation. This study provides theoretical contributions to the development of human resource management literature as well as practical implications for companies in designing sustainable employee performance improvement strategies.References
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