The Influence of Transformational Leadership and Workplace Spirituality on Employee Performance in Mediated by Organizational Commitments in Village Credit Institutions in Kediri District

Abstract

Human resources are an important factor for a company in order to maintain the survival of the company to be able to face competition in an increasingly tight business world. In this literature, it becomes increasingly important to understand the factors that influence employee performance. In social exchange theory we examine a model that proposes that employee performance is influenced by several factors including transformational leadership, workplace spirituality and organizational commitment. This research is motivated by the needs of companies that expect quality human resources, because whether or not the company's goals are achieved is influenced by the performance of human resources themselves. This study applies an explanatory research model (explanatory research) to test the hypothesis that transformational leadership, workplace spirituality, organizational commitment will affect employee performance. We surveyed serious performance problems experienced by managers and employees of 21 LPDs (Lembaga Perkreditan Desa or Village Credit Institutions) in Kediri District. Structural Equation Model (SEM) shows a reasonable match of the proposed model with survey data. Analysis of latent variables shows that transformational leadership, workplace spirituality influences employee performance, and organizational commitment is able to mediate the relationship between transformational leadership and workplace spirituality on employee performance. This research can be used as input to organizations to pay attention to factors that can improve employee performance such as transformational leadership and workplace spirituality that have been proven to significantly affect employee performance. A leader in a company needs to create positive things for employees when they evaluate their work by increasing transformational leadership, workplace spirituality and organizational commitment so that their performance will also improve.