International Journal of Environmental, Sustainability, and Social Sciences ISSN 2720-9644 (print); ISSN 2721-0871 (online) https://journalkeberlanjutan.com/index.php/ijesss 181 THE EFFECT OF TRANSFORMATIONAL LEADERSHIP ON ORGANIZATIONAL COMMITMENT MEDIATED BY THE JOB SATISFACTION OF EMPLOYEES OF PT PLN (PERSERO) LAMPUNG DISTRIBUTION MAIN UNIT. Volume: 2 Number: 2 Page: 181-188 Refa James SIMATUPANG University of Lampung, Indonesia Corresponding author: Refa James Simatupang Email: simatupangrefajames@gmail.com Article History: Received: 2021-06-24 Revised: 2021-07-15 Accepted: 2021-07-25 Abstract: The problem in this study is that employees at PT PLN (Persero) Lampung Main Unit have low organizational commitment. Other issues include the workplace atmosphere, the presence of leadership in the Distribution Parent Unit of PT PLN (Persero) Lampung, the presence of employees at work, and the transformational leadership that has been operating at the Distribution Parent Unit of PT PLN (Persero) Lampung but has not been implemented effectively. Job satisfaction of workers at PT PLN (Persero) Lampung Distribution Main Unit is used as a proxy for an organizational commitment that has an impact on transformational leadership. As many as 22 employees of PT PLN (Persero) Lampung Distribution Main Unit became the research population. The Lampung Main Distribution Unit, PT PLN (Persero) Lampung, provided a sample of 69 employees for this study, which was conducted using a quantitative methodology. Based on the analysis results, transformational leadership has a positive and substantial effect on organizational commitment, has a positive and significant effect on job satisfaction, and has an effect on organizational commitment mediated by job satisfaction. Keywords: Transformational Leadership, Organizational Commitment, Job Satisfaction. Cite this as: SIMATUPANG, R.J. (2022) “The Effect Of Transformational Leadership On Organizational Commitment Mediated By Job Satisfaction Of Employees Of PT.PLN (Persero) Lampung Distribution Main Unit”. International Journal of Environmental, Sustainability, and Social Sciences, 2 (2), 181 - 188. INTRODUCTION According to Hay (2014), a transformational leader will work to inspire, interest subordinates, and motivate them while trying to persuade them about the organization's goals, vision, and mission. According to Koesmono (2013), a leader who practices transformational leadership offers inspiration and ideas to advance everyone's knowledge and make a difference in their own lives. Lok's research results from 2018 show that job satisfaction is a factor that can increase employee organizational commitment. On the other hand, according to Luthans (2016), job satisfaction is a positive or satisfying emotional situation that a person feels as a result of an appraisal of their job or work experience. This study focuses on the PT PLN (Persero) distribution unit based in Lampung. With a total of 629 personnel, the Distribution Unit of PT PLN (Persero) consists of 22 customer service units, one load control unit, one power plant project implementing unit, and three customer service implementing units (December 2020 data). At PT PLN (Persero) Lampung Distribution Parent Unit, the issue of employee commitment also affects human resources. The following are the data submission pledges made by 30 employees of PT PLN Persero Lampung for the last four months: mailto:simatupangrefajames@gmail.com International Journal of Environmental, Sustainability, and Social Sciences ISSN 2720-9644 (print); ISSN 2721-0871 (online) https://journalkeberlanjutan.com/index.php/ijesss 182 Table 1. Data on Employee Commitment of PT. PLN Persero Lampung Month Number of employees Number of Employees who follow Company Hours Number of Employees according to Quality of Work Number of Employees Adjusting Completion Quantity Number of employees who have good cooperation between employees Nov 2021 30 30 25 30 29 Dec 2021 30 28 30 30 30 Jan 2022 30 30 30 30 30 Feb 2022 30 28 25 30 29 Source: PT. PLN Persero Lampung and Processed by researchers, 2022 It can be seen from table 1.1 above that employee statistics at PT PLN Persero Lampung, in terms of the amount of employee working time, work quality, work quantity, and employee cooperation at PT PLN Persero Lampung, have a low level of employee satisfaction. Employee commitment to the organization decreases due to inadequate facilities, and some employees may resent their current position and seek work elsewhere. The work that gives one life forces them to offer everything they have to their employers. In this situation, it may take business, ability, loyalty, inventiveness, and other factors to provide the organization with the best human resources. If employees as business resources can produce high-quality work, the company will compensate them unfairly by offering extra money, benefits, facilities, career opportunities, job security, health insurance, and other things. The company's way of showing gratitude is something that can make employees happy. The pre-finding survey shows that some workers are not fully committed to the company. This can be seen from the actions or behavior of employees, such as late lunch breaks and late arrivals at the office. In addition, it was found that workers were absent when work was being carried out. Employees' dedication at PT PLN (Persero) Lampung Distribution Main Unit has decreased drastically. As a result, employees' enthusiasm for their work is reduced, and they become more concerned about all aspects of business operations. Situations that result in decreased organizational commitment result from a workplace culture that fails to inspire staff morale. Employees' work will be uncomfortable, affecting their productivity and job happiness. The low level of emotional commitment is another factor contributing to the decline in employee happiness in the workplace. This is proven when supervisors are carried out by superiors who provide quality work results, but if supervision is not provided, employees will work according to their wishes. Employees who want to leave the organization will have attitudes and change their behavior if they hold the commitment. Employees will choose to get another job that is simpler and more comfortable than working at PLN. If comfort at work is what they are looking for in a job, then employees do not have to worry about paychecks. The low loyalty of employees to continue working at PT PLN (Persero) Lampung Distribution Parent Unit is the root cause of the low normative commitment. At PT PLN (Persero) Lampung Distribution Main Unit, a supervisor in charge of the field has been unable to manage it properly. This is because the superiors who supervise employees cannot correctly direct and supervise their employees in completing them. Responsible field supervisors are young people or have staff members with high school diplomas. Because of this, there is no intimacy and personal bond between the manager and staff. Lack of input and inspiration given to employees, the inability of supervisors to foster a safe and pleasant workplace and infrequent direct monitoring of workers. Work goals are very important for a business or organization to be successful. Employee dedication to the company is correlated with their level of job satisfaction (Robbins, 2018). Based on this, employees' output and work results can grow ideally and maximally. Table 2 below also includes the factors that affect employee commitment: International Journal of Environmental, Sustainability, and Social Sciences ISSN 2720-9644 (print); ISSN 2721-0871 (online) https://journalkeberlanjutan.com/index.php/ijesss 183 Table 2. Pre-Survey Results of PT PLN Persero Lampung's Organizational Commitment No. Factors Affecting Employee Commitment Number of Answers Percentage (%) 1. Compensation 17 34,00 2. Leadership 19 38,00 3. Facility 7 14,00 4. Work colleague 3 6,00 Source: Processed by researchers, 2022 Income or compensation, leadership, facilities, and co-workers affect employee engagement at PT PLN Parent Unit (Persero) Lampung. The management of the distribution parent unit of PT PLN (Persero) Lampung does not provide space for employees to express their aspirations and seek to increase the workload of employees without paying attention to or recognizing employee complaints. As a result, the wage distribution system of PT PLN (Persero), the main unit of Lampung distribution, is uneven and fair to workers. The entry and exit of employees at PT PLN (Persero) Lampung Main Distribution Unit, the presence of workers who violate company policies, how employees feel about their remuneration, and if they work at PT PLN (Persero) Lampung Main Unit. Thus, it is clear that the incident was an employee complaint that could not be freely disclosed at the meeting place set by the company. Uncertainty in career structure is another source of complaint, along with unequal treatment of rewards and punishments, frequent management meetings that hinder innovation, and employee complaints against certain parties. The following table 3 explains other phenomena: Table 3. Employee Engagement Index No Dimensions Employee Engagement Index 2019 2020 1 company policy 85.13 83.53 2 Working conditions 82.21 76.41 3 Organizational culture 84.02 80.24 4 Brand Reputation 87.23 85.60 5 Leadership and Supervision 84.68 82.48 6 Career Management 83.90 79.37 7 Compensation Benefits 85.54 83.10 8 Teamwork and Relationships 85.50 84.04 9 Training and development 84.57 81.46 10 Work management 84.25 80.66 11 Confession 83.83 79.87 12 Meaningful Work 84.86 82.06 Source: EES Survey, 2019:2020 Based on Table 3 above, cooperation, leadership, and organizational culture declined between 2019 and 2020. Employees of PT PLN (Persero) Lampung Distribution Main Unit, PT PLN (Persero) Lampung Distribution Main Unit, discovered the problem. Low organizational environmental commitment, unfriendly workplace, dissatisfied employees at work, employees who are dissatisfied with the management of PT PLN (Persero) Lampung Distribution Main Unit, and transformational leadership at PT PLN (Persero) Lampung Main Unit that has not been fully materialized. This impacts company personnel, who may leave or stop working. According to Robbins (2018), employee commitment is defined as an individual's effort to get involved in the business and make every effort to stay there rather than leave. Organizational commitment includes three signs, Lincoln and Bashaw (in Sopiah, 2008), namely having a will, having loyalty, and being proud as a worker. International Journal of Environmental, Sustainability, and Social Sciences ISSN 2720-9644 (print); ISSN 2721-0871 (online) https://journalkeberlanjutan.com/index.php/ijesss 184 1. Have a will. 2. Have loyalty 3. Proud as a worker According to (Boehenke et al., 2019), transformational leadership is generally understood as a leadership process in which leaders significantly more than most managers provide their subordinates with the five behaviors of vision, inspiration, motivation, training, and team building to help them succeed. Bass and Avolio's (2020) list of transformative leadership indicators includes: 1. When followers try to go beyond what is imagined, charisma leads to transformational leadership behavior. 2. Inspiring motivation is when the leader shows his goal only by focusing his activities or efforts using different symbols. 3. When a leader invites his followers to discuss with each other, create ideas and innovate. 4. Individual Factors, the Four Transforming Leaders function as coaches, consultants, teachers, moderators, facilitators and mentors to help everyone reach and maximize their potential. According to Handoko (2015), job satisfaction can be in the form of good or bad things experienced by people at work. According to Robbins (2018), the following are the dimensions of job satisfaction: 1. Satisfaction with compensation. 2. Satisfaction with the workload they have. 3. Promotional satisfaction. 4. Satisfaction with a superior relationship. 5. Co-worker satisfaction. 6. A worker who is happy with his position will have a good view of his work and be able to create a good work environment. METHOD The quantitative approach is a statistical analytical technique that uses data in the form of numbers, according to Sugiono (2019). This research is causal associative research, meaning that this research looks for the relationship or influence between the independent variable (X) and the variable based on the location analysis of the variable (Y). This study will look at how the leadership of PT PLN (Persero) Lampung unit feels about its position and how it affects the company's commitment to transformational leadership. Twenty-two PT PLN (Persero) Lampung Main Distribution Unit employees became the research population. For this investigation, the number of samples was determined using the Slovin formula. Two hundred twenty people constitute the total study population or one person for each unit. Based on Slovin's previous estimates, 69 respondents were the sample. In this study, a questionnaire was used to collect data. Respondents were asked to answer a series of questions or written comments using a data collection technique known as a questionnaire (Sugiyono, 2015). SPSS version 25.0 will be used by researchers to carry out the data analysis process. RESULTS AND DISCUSSION The results of distributing questionnaires to employees of PT PLN (Persero) Lampung Main Distribution Unit opening 22 people/unit with a total population of 220 and the number per unit of 10 being the basis of descriptive data, while the sample was calculated using the solving formula, including up to 69 individuals. There were 26 female and 43 male respondents in this survey, with a ratio of 62.3% for men and 37.7% for women. Consequently, it is clear from the results of this study that the majority of the respondents were male (a total of 43, or 62.3%). Respondents with the latest educational background include nine respondents with a percentage of 13% with a high school diploma, 14 respondents with percentage of 20.3% with a International Journal of Environmental, Sustainability, and Social Sciences ISSN 2720-9644 (print); ISSN 2721-0871 (online) https://journalkeberlanjutan.com/index.php/ijesss 185 diploma, 36 respondents with a percentage of 52.2% with a bachelor's degree, and ten respondents with a percentage of 14.5% with S2/S2 degree. This shows that in this survey, 52.2%, or as many as 36 respondents, the last education characteristic is a Bachelor's degree. Based on the characteristics according to age, it can be seen that there are 26 respondents aged between 20 to 30 with a proportion of 37.7%, 36.2% for those aged 30 to 40, and 12 respondents aged between 40 years and 50 has a proportion of 17.4% and as many as six respondents, or 8.7% aged between 50 and 60 years. With this, respondents are dominated by the age range of 20-30 years. Table 4. Normality Test Results One-Sample Kolmogorov-Smirnov Test N 69 Normal Parametersa,b Mean ,0000000 Std. Deviation 2,37622402 Most Extreme Differences Absolute ,067 Positive ,067 Negative -,050 Test Statistic ,067 Asymp. Sig. (2-tailed) ,200c,d Source: SPPS Output Results (2022) With a value of Asymp.Siq (2-tailed) 0.200. Therefore, this study is normally distributed because it is greater than 0.05 and can be continued in hypothesis testing. Table 5. Linearity Test Results Sum of Squares df. Mean Square F Sig. Y * X Between Groups (Combined) 1339.276 19 70.488 11.806 .000 Linearity 1247.868 1 1247.868 209.009 .000 Deviation from Linearity 91.408 18 5.078 .851 .635 Within Groups 292.550 49 5.970 - - Total 1631.826 68 - - - Source: SPPS Output Results (2022) The results of the linearity test are in table 5 with sig 0.635 > 0.05. With this, there is a linear relationship between the independent and dependent variables. Table 6. Multicollinearity Test Results Unstandardized Coefficients Standardized Coefficients t Sig. Correlations Collinearity Statistics Model B Std.Error Beta Zero-order Partial Part Tolerance VIF 1 (Constant) - 5,544 3,851 - - 1,439 ,155 - - - - - X ,834 ,057 ,874 14,756 ,000 ,874 ,874 ,874 1,000 1,000 Source: SPPS Output Results (2022) With a tolerance value of 1,000 (> 0.10) with a VIF value of 1,000 (< 10). So in this study, there are no symptoms of multicollinearity, and it is feasible to test the hypothesis. Table 7. Partial Test Results of Organizational Commitment Variable (Y) Outcome Variable: Y International Journal of Environmental, Sustainability, and Social Sciences ISSN 2720-9644 (print); ISSN 2721-0871 (online) https://journalkeberlanjutan.com/index.php/ijesss 186 Model Summary R R-sq MSE F df1 df2 p ,9250 ,8556 3,5693 195,5916 2,0000 66,0000 ,0000 Model coeff se t p LLCI ULCI Constant -7,3092 3,0519 -2,3950 ,0195 -13,4025 -1,2159 X ,5352 ,0644 8,3144 ,0000 ,4067 ,6637 Z ,9060 ,1405 6,4477 ,0000 ,6254 1,1865 Source: SPPS Output Results (2022) 1. Dampak kepemimpinan transformasional (X) pada komitmen organisasional (Y) dengan thitung 8,3144 > ttabel 1.66827 dan sig 0,00<0,05. Disimpulkan kepemimpinan transformasial (X) memilki dampak pada komitmen organisasional (Y). 2. Dampak Kepemimpinan transformasional (X) pada kepuasan kerja (Z) dengan thitung 6,4477 > ttabel 1.66827 dan sig 0,00<0,05. Maka, Kepemimpinan transformasional (X) memilki dampak pada kepuasan kerja (Z). Table 8. Coefficient of Determination Test Results Model R R Square Adjusted R Square Std. Error of the Estimate 1 ,874a ,765 ,761 2,39389 Source: SPPS Output Results (2022) The coefficient of determination test with the results of R Square 0.765 (76.5%). It is known that 76.5% of organizational commitment is clearly found in transformational leadership and mediated by job satisfaction, and 23.5% in other variables. Table 9. Partial Test Results Job Satisfaction Variable (Z) Outcome Variable: Z Model Summary R R-sq MSE F df1 df2 p ,7207 ,5195 2,6982 72,4287 1,0000 67,0000 ,0000 Model coeff se t p LLCI ULCI Constant 1,9488 2,6427 ,7374 ,4634 -3,3261 7,2238 X ,3302 ,0388 8,5105 ,0000 ,2527 ,4076 Source: SPPS Output Results (2022) Hasil uji parsial (uji T) kepuasan kerja (Z) dengan thitung 8,5105 > ttabel 1.66827 dan sig 0,00<0,05, dengan ini adanya dampak Kepuasan Kerja (Z) kepada komitmen organiasasional (Y). Table 10. Sobel Test Results Direct and Indirect Effects of X on Y Direct Effects of X on Y Effects se t p LLCI ULCI ,5352 ,0644 8,3144 ,0000 ,4067 ,6637 Source: SPPS Output Results (2022) The Effect of Transformational Leadership on Organizational Commitment. Sobel test results t-count 8.3144 > t-table 1.66827 with sig 0.00 <0.05. It is concluded that transformational leadership (Y) has an impact on organizational commitment (Z) mediated by job satisfaction (Z). Employees have a high organizational commitment as a result of revolutionary leadership. Highly International Journal of Environmental, Sustainability, and Social Sciences ISSN 2720-9644 (print); ISSN 2721-0871 (online) https://journalkeberlanjutan.com/index.php/ijesss 187 committed employees will have worked for the organization in the past, engaged in active participation in the workplace, and demonstrated devotion and excitement to it. Therefore, it can be argued that a leader's ability to inspire and empower their team can influence their commitment to the organization. The Effect of Transformational Leadership on Job Satisfaction. Through the partial test (T- test), it is concluded that there is an impact of transformational leadership (X) on job satisfaction (Z). Employees will feel comfortable working if the leader can inspire others, inspire, demonstrate intelligence, and understand their workforce well. Transformational leadership impacts employee job satisfaction (Kebede & Demeke, 2017). It is well known that there is a one-way relationship between transformational leadership and job satisfaction, which means that the more transformational leadership approaches are used, the more people report that they are satisfied with their jobs (Permita et al., 2020). The Effect of Job Satisfaction on Organizational Commitment. It is concluded that there is an effect of job satisfaction (Z) on organizational commitment (Y) partially or individually based on the results of research on the effect of job satisfaction on organizational commitment through a partial test (T-test). Employee commitment to the organization increases job satisfaction and vice versa. If they are unsatisfied at work, their commitment to the company will decrease. Work satisfaction has been measured from workload, compensation, progress, superiors and co-workers, and job satisfaction has been managed well to support organizational commitment. The Effect of Transformational Leadership on Organizational Commitment Mediated by Job Satisfaction. According to the findings of Sobel's experimental study on the impact of transformational leadership on organizational commitment mediated by job satisfaction, transformational leadership (Y) has a direct impact on organizational commitment and organizational performance (Z), which is then mediated by job satisfaction (Z) as an intermediary variable. Organizational commitment and job satisfaction are closely related. Before an employee commits to the company, job satisfaction is the first goal that must be met. Therefore, it is recommended to have a function or contribution that is large enough to maximize the impact of transformational leadership on employee job satisfaction. Employee job satisfaction will increase leadership's impact on their commitment level. CONCLUSIONS The following is a summary of the results of this study, namely: 1. Organizational commitment is directly influenced by transformational leadership, in whole or part. 2. Job satisfaction is directly influenced by transformational leadership, either partially or individually. 3. Organizational commitment is directly affected by job satisfaction, partially or completely. Here are some suggestions for what you can do: 1. To increase job satisfaction and employee engagement in the workplace, the management of PT PLN Main Distribution Unit (Persero) Lampung will provide intellectual stimulation in the form of alternative changes or updates related to work for each employee. 2. Management of PT PLN (Persero) Lampung parent unit should approach employees in a way that supports or promotes each employee's work so that employees are satisfied with the attitude of their superiors. 3. To instill a sense of pride in workers, increase employee happiness, and increase organizational commitment, the leadership of PT PLN (Persero) Lampung Distribution Main Unit must also develop transformational leadership. 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