Job Demands, Transformational Leadership, and Organizational Commitment: The Mediating Role of Job Satisfaction in the Indonesian Public Sector

Nazhira Mutiara Recsamia; Ayu Aprilianti

doi:10.59261/inkubis.v8i3.300

Authors

Nazhira Mutiara Recsamia Universitas Indonesia
Ayu Aprilianti Universitas Indonesia

DOI:

https://doi.org/10.59261/inkubis.v8i3.300

Keywords:

Job Demands, Job Satisfaction, Organizational Commitment, Transformational Leadership

Abstract

Background: Organizational commitment plays a crucial role in enhancing employee performance and overall organizational effectiveness, especially within public sector institutions that are confronted with escalating job demands and intricate bureaucratic duties. While transformational leadership is anticipated to bolster employees' commitment, there is a scarcity of empirical evidence concerning the mediating role of job satisfaction in the interplay between job demands, transformational leadership, and organizational commitment especially within the Indonesian public sector.

Objective: The purpose of this study is to examine the impact of job demands and transformational leadership on the enhancement of organizational commitment, as well as to investigate the mediating role of job satisfaction in this relationship dynamic at the Directorate General of Fiscal Balance, Ministry of Finance.

Methods: The analytical technique employed in this research is the structural equation model (SEM). A quantitative approach is utilized, with digital questionnaires serving as the tool for gathering primary data.

Results: The results reveal that job demands exert a significant negative impact on organizational commitment (t = −2.25), while transformational leadership demonstrates a significant positive effect (t = 2.94). Additionally, job demands adversely affect job satisfaction, whereas transformational leadership positively influences job satisfaction. Moreover, job satisfaction serves as a partial mediator in the relationships between job demands and organizational commitment (t = −3.99) and between transformational leadership and organizational commitment (t = 4.54), suggesting that employees who are satisfied are more inclined to cultivate a stronger commitment to the organization.

Conclusion: This study offers practical contributions by delivering insights and recommendations to organizations regarding the elements that affect organizational commitment, thereby aiding in the enhancement of employee commitment within the organization.

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