The Mediating Role of Motivation and Job Satisfaction on the Influence of Ethical Leadership and Career Management on Employee Performance at PT PLN (Persero) Aceh Regional Main Unit

Abstract

This study was aimed to examine the effect of ethical leadership and career management variables on motivation and satisfaction as well as their impact on employee performance. The survey was conducted PT PLN (Persero) Aceh Regional Main Unit amounting to 276 people. The sampling technique used was probability random sampling, where all members of the population have the same opportunity to be sampled. Structural Equation Modeling (SEM) was used to determine the effect of all the variables involved. The result reveals that Ethical leadership affects motivation, Ethical leadership affects job satisfaction, Ethical leadership affects employee performance, Career management affects employee motivation, Career management affects job satisfaction, Career management does not affect employee performance, Motivation affects employee performance, Job satisfaction affects employee performance, Job satisfaction partially mediates ethical leadership effect on employee performance, Job satisfaction fully mediates career management effect on employee performance, Motivation partially mediates ethical leadership effect on the employee performance, and Motivation fully mediates career management effect on employee performance. It can be seen that the function of job satisfaction and motivation when career development is necessary to increase employee performance is to function as a full mediator, and when ethical leadership is necessary to increase employee performance to function as a partial mediator. This is the uniqueness of the test results of this research model. Thus, it concludes that the model for improving employee performance at PT PLN (Persero) Aceh Regional Main Unit is a function of improving ethical leadership and improving career management, as well as increasing motivation and job satisfaction.