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Research Article | Volume 1 Issue 3 (May, 2020)
Effect of Job Promotion and Transactional Leadership on Company Performance Through Organizational Commitments As Mediation Variables in Pt Nittoh Presisi Indonesia
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Under a Creative Commons license
Open Access
Published
Sept. 10, 2020
Abstract
This study aims to examine the effect of job promotion and transactional leadership on company performance through organizational commitment as a mediating variable at PT. Nittoh Presisi Indonesia. This study uses an explanatory analysis approach. This means that each variable presented in the hypothesis will be observed through testing the causal relationship of the independent variable to the dependent variable. The population in this research are employees who work at the PT. Nittoh Presisi Indonesia. While the sample used includes 133 employees who work in company offices. This sampling uses the saturated sample method because it uses all employees at the company office. The results showed that job promotion variables partially influence organizational performance. Transactional leadership variables partially influence organizational performance. The organizational commitment variable partially affects organizational performance. Job promotion variables partially affect organizational commitment. Transactional leadership variables partially influence organizational commitment. The effect of promotion on organizational performance is 0.526. The effect of promotion on performance through organizational commitment is 0.795 x 0.826 = 0.561. In this case, the indirect effect is greater than the direct effect, so it can be said that the work organizational commitment variable is intervening. The direct effect of transactional leadership on organizational performance is 0.596. Meanwhile, the effect of transactional leadership on organizational performance through organizational commitment is 0.795 x 0.826 = 0.657. In this case, the indirect effect is greater than the direct effect, so it can be said that the work organizational commitment variable is intervening.
Keywords
Job promotion
Transactional leadership
Organizational commitment
Company performance.
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