Abstract
This research was aimed to analyze direct and indirect effects of transformational leadership style on job satisfaction. The population of research included all employees at the Local Secretariat Office of Pasuruan Indonesia, which was counted for 170 persons. A questionnaire was distributed to this population, and 151 questionnaires were returned, which thus resulting in a response rate of 88.82%. Data analysis procedure is path analysis facilitated by a PLS computer software. Results indicated that: 1) There is a direct, positive and significant effect of transformational leadership style on job satisfaction; 2) There is a direct, positive, and significant effect of transformational leadership style on trust-in-leader; 3) There is a direct, positive, and significant effect of trust-in-leader on job satisfaction; 4) Trust-in-leader mediates the effect of transformational leadership style on job satisfaction. Given all these findings, this research not only has a good implication on practice but also to the literature concerning the effect of both transformational leadership style and trust-in-leader on job satisfaction. It is also expected that this research provides information that can be used as guidance by the Local Secretariat Office in Pasuruan City Indonesia when it decides to improve employee’s job satisfaction.
Highlights
Human resource is a resource that helps an organization to mobilize other resources
First is to analyze direct effect of transformational leadership style on job satisfaction, while the second is to examine the indirect effect of transformational leadership style on job satisfaction through trust-in-leader
The following hypothesis is Hypothesis 1 (H1): Transformational leadership style has a positive effect on job satisfaction
Summary
Human resource is a resource that helps an organization to mobilize other resources. Empowering organizational human resource is a very important action that must need a proper leadership style to ascertain the achievement of organizational goals. One important element to increase job satisfaction of employees is that leader must be able to give a proper direction for the followers to ascertain the achievement of the expected organizational goals. Some factors influence job satisfaction, and among others are leadership style and trust-in-leader. Very little work has been done on the relationship between transformational leadership on trust in leader (Lu, Siu & Shi, 2010; Braun et al, 2012). There are substantial volume of research that examines the effect of transformational leadership on job satisfaction, the results are still inconsistent. Researchers (Boamah et al, 2018; Saleem, 2014; Braun et al, 2012 ) have shown strong positive relationship between transformational leadership and job satisfaction. Previous studies have suggested that trust in the leader is one of a mediators between transformational leadership and followers' outcomes (Pillai & Williams, 2004). First is to analyze direct effect of transformational leadership style on job satisfaction, while the second is to examine the indirect effect of transformational leadership style on job satisfaction through trust-in-leader
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