Mediating Transformational Leadership and Employee Performance through Organizational Culture

Leadership style has been believed to have an influence on employees or subordinates in an organization. Transformational leadership can affect the ability and performance of subordinates in achieving predetermined goals. The organizational culture that prevails in an organization can also affect employee performance. This study aims to determine the influence of transformational leadership style on employee performance through organizational culture as a mediating variable in PTPN I Region 7 employees in the Southern Sumatra region. This study uses a quantitative design approach with ex post facto by using a survey method in collecting data. This study used primary data of 310 respondents taken using a questionnaire on transformational leadership style, organizational culture, and employee performance distributed to all employees at the company. The research data analyzed uses Structural Equation Modelling (SEM) with partial least square (PLS). The results of the study show that not all these studies support the hypotheses proposed, namely that transformational leadership style does not have a significantly positive effect on employee performance but has a significantly positive effect on employee performance through organizational culture. Transformational leadership style has a significantly positive effect on organizational culture and organizational culture has a significantly positive effect on employee performance, so that organizational culture can be a mediating variable on the positive influence of transformational leadership style on employee performance at PTPN I Region 7. The results of the study suggest that leaders pay more attention to employees as personal individuals, as employees in the organization, and encourage their employees to be more active in improving their negotiation skills.