THE EFFECT OF TRANSFORMATIONAL LEADERSHIP ON EMPLOYEE CREATIVITY THROUGH PROMOTION FOCUS AND CREATIVE PROCESS ENGAGEMENT AS MEDIATING VARIABLES

Human resources are essential, therefore, the company should have a leader who is able to provide trust, direction, and motivation (transformational leadership). Thus, the employees are more focused on achieving achievement (promotion focus). To achieve performance, employees must be able to identify problems, find information, and generate ideas to solve problems with different ideas (creative process engagement). It makes employees are able to apply ideas on themselves (employee creativity). This study aims to analyze the effect of transformational leadership on employee creativity through promotion focus and creative process engagement as the mediating variables. This study used a quantitative approach. The technique of data collection was done by distributing questionnaires. The population of this study was 140 employees. The sample was obtained by the census method. The data testing technique used was PLS 2.0. The result of this study indicates that transformational leadership has a positive effect on employee creativity through promotion focus and creative process engagement as mediating variables with a significance level of 0.645 in the strong category (substantial). Transformational Leadership has a good impact on providing motivation, trust, and challenges to employees so that they are able to increase creativity and ultimately achieve the targets set by the company.