EXAMINE THE RELATIONSHIP AMONG TRANSFORMATIONAL LEADERSHIP, ORGANIZATIONAL COMMITMENT AND WORK ENGAGEMENT ON EMPLOYEE PERFORMANCE

The objectives of this study are to examine the influence of transformational leadership on organizational commitment and work engagement and how organizational commitment and work engagement can enhance the effect of transformational leadership on employee performance. This study employed a quantitative approach. Data was gathered using a survey of 121 permanent employees of Indonesian Railway Company. Data was analyzed using descriptive and partial least square structural equation modeling (PLS-SEM). The results show that transformational leadership has a direct and significant effect on employee performance, and the effect of transformational leadership on employee performance is stronger through work engagement. Meanwhile, organizational commitment does not affect employee performance directly. This result indicates that employee performance can be improved and enhanced by a leader who has the vision to create a better organization. The highest score of transformational leadership indicator is the idealized influence dimension, which can be concluded as the leader should gaintrust from the employee first before giving motivation to the employee.