The Influence of Transformational Leadership and Servant Leadership on Employee Satisfaction and Organizational Performance at the Coal Mining Company in Indonesia (IDX-Listed)

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Joko Triraharjo, Ahmad Hidayat Sutawidjaya, Ahmad Badawi Saluy, Havidz Aima


The Indonesia Stock Exchange (IDX-Listed) announced that in 2019 there were 21 listed coal mining companies in Indonesia. The phenomenon gap was found in the average company performance in the 2013 - 2017 period both in terms of production quantity and financial performance. This study aims to investigate the performance gap from the perspective of human resource management and provide recommendations for improvements to the company. The exogenous variables in this study are transformational leadership and servant leadership. The endogenous variables are employee satisfaction and organizational performance. Employee satisfaction is hypothesized to be a mediation of transformational leadership and servant to organizational performance. This type of research is quantitative with 201 respondents from 15 coal mining companies on the Indonesia Stock Exchange (IDX-Listed). Analysis of correlation and significance between variables and dimensions using the Structural Equation Model - Analysis of Moment Structures (SEM-AMOS) and Sobel test were used to determine the significance of the mediator variables. The results of this study indicate that transformational leadership has a significant effect on employee satisfaction and employee satisfaction has a significant effect on organizational performance.  The most strategic dimension in this study is the dimension of Inspirational Motivation (X1.2) in transformational leadership because it can stimulate employee satisfaction in dispositional / genetic components (Y1.5), then employee satisfaction in terms of dispositional / genetic components (Y1.5) can improve organizational performance in terms of productivity (Y2.5). Company leaders are advised to be inspirational and concrete, explain the company's vision and mission that are easy to understand and can be executed and consider individual employee input in deciding company policies. In addition, the placement of employees should also consider the passion of employees who are at the forefront of the company in order to create sustainable added value for the company.

KEYWORDS: Transformational Leadership, Servant Leadership, Employee Satisfaction, Organizational Performance.

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