The Role of Motivation in Mediating the Influence of Transformational Leadership on Employee Performance in the Agency Finance and Regional Assets of North Sumatra Province

Abstract

This study aims to analyze the influence of transformational leadership on employee performance with work motivation as an intervening variable in the Regional Finance and Assets Agency of North Sumatra Province. The research method used is a quantitative approach with data collection techniques through the distribution of questionnaires to employees. The number of samples was determined by the purposive sampling technique with a sample number of 80 respondents. Data analysis was carried out using a path analysis model to see the direct and indirect influence between variables. The results of the study show that transformational leadership has a positive and significant effect on employee work motivation. Furthermore, work motivation has a positive and significant effect on employee performance. In addition, transformational leadership has a positive and significant effect directly on employee performance. These findings indicate that work motivation is able to mediate the influence of transformational leadership on employee performance. This research is expected to contribute to the management in formulating strategies to improve employee performance through strengthening transformational leadership and increasing work motivation.