The effect of transformational leadership on employee performance mediated by readiness to change & work motivation: A survey of PT. Karsa Utama Lestari employees

Abstract

The purpose of this study is to examine and analyze (1) the effect of transformational leadership on readiness to change, (2) the effect of transformational leadership on employee motivation, (3) the effect of readiness to change on employee performance, (4) the effect of employee motivation on employee performance, (5) the effect of transformational leadership on performance mediated by a readiness to change and (6) the effect of transformational leadership on employee performance mediated by employee motivation. The technique in this study uses a survey with 80 employees of PT. Lestari Main Karsa as a sample. The statistical method uses Partial Least Square (PLS). This study examines several hypotheses which include transformational leadership, readiness to change, employee motivation, and employee performance. The results of this study indicate that transformational leadership positively affects employee readiness to change. Transformational leadership also has a positive effect on employee motivation. The other hypotheses are that readiness to change has a positive effect on employee performance, and work motivation also has a positive effect. The mediating role of readiness to change and work motivation also has a positive effect on the relationship of transformational leadership to employee performance. Transformational leadership, readiness to change, and work motivation have a positive effect on performance. This study can be used as a guide for the company in improving employee performance.