THE INFLUENCE OF TRANSFORMATIONAL LEADERSHIP, COMPETENCE AT WORK, AND JOB CHARACTERISTICS ON THE EMPLOYEE PERFORMANCE THROUGH ORGANIZATIONAL COMMITMENT: A SOCIAL EXHCHANGE PERSPECTIVE

Abstract

Employee performance is a critical contributing factor in terms of enhancing organizational performance. It is established knowledge that the success or failure of any organization mainly depends upon the performance of its employees. Therefore, the present research aims to explore the factors that may enhance employees’ performance. Specifically, the study intends to analyze the effect of transformational leadership, competence, and job characteristics on the performance of organic employees of shipping organizations, directly and indirectly through organizational commitment. A sample of 253 out of 685 employees of PT.PELNI (an Indonesian shipping organization) is drawn by using the Slovin formula. The survey method is used to collect primary data for the study. The collected data is subsequently analysed using both descriptive and inferential statistics and by using the Structural Equation Modeling (SEM) technique for further data analysis. The results of the study confirm the direct relationships of transformational leadership, competence, and job characteristics with the performance of organic employees. The study also confirms the indirect effect of transformational leadership, competence, and job characteristics on the performance of organic employees through organizational commitment. The limitations, research implications and directions for future research are also include in the concluding part of the study.