The Role of Organizational Commitment in Mediating the Effect of Transformational Leadership on Employee Performance at the Pratama Tax Service Office Medan Belawan

Abstract

Employee performance is a strategic factor in determining the success of public sector organizations, especially in tax agencies that have high performance demands, regulatory complexity, and strict state revenue targets. This study aims to analyze the influence of transformational leadership on employee performance and examine the role of organizational commitment as a mediating variable at the Medan Belawan Primary Tax Office. This study uses a quantitative approach with a survey method. The research population consisted of all 100 permanent employees of the Medan Belawan Primary Tax Office, all of whom were included in the sample (census). Data were collected through questionnaires and analyzed using the Partial Least Squares (PLS) method with the help of SmartPLS. The results showed that transformational leadership had a positive and significant effect on employee performance and organizational commitment. Furthermore, organizational commitment was proven to have a positive and significant effect on employee performance. The results of the indirect effect test showed that organizational commitment acted as a significant mediating variable in the relationship between transformational leadership and employee performance. These findings indicate that transformational leadership will be more effective in improving employee performance if it is able to build and strengthen organizational commitment. This study provides theoretical contributions to the development of human resource management in the public sector, particularly regarding the role of leadership and organizational commitment. Practically, the results of this study are expected to be taken into consideration by the leadership of KPP Pratama Medan Belawan in formulating leadership strategies oriented towards continuously improving employee commitment and performance.