Impact of Self-Efficacy and Employee Empowerment on Employee Performance: Mediating Role of Job Satisfaction

Purpose – This study examines the influence of self-efficacy and employee empowerment on employee performance and the mediating effect of job satisfaction. Methodology – The sample consists of 180 employees from PT. PNM Mekaar Syariah (Persero) Aceh. The analytical tool used is path analysis with structural equation modelling (SEM) using AMOS. Findings—The results show that each variable, self-efficacy and employee empowerment, influences job satisfaction and employee performance. The relationship between self-efficacy and employee performance is partially mediated by job satisfaction, and the relationship between employee empowerment and employee performance is also partially mediated by job satisfaction. Originality – In the realm of employee performance and job satisfaction, a novel approach can be explored by investigating the combined impact of work environment, leadership style, and organizational culture on employee performance.