The Influence of Transformational Leadership and Organizational Culture on Employee Performance with Work Motivation as a Mediating Variable at the Human Resources Development Agency of the Ministry of Villages and Development of Disadvantaged Regions

Abstract

Employee performance is a strategic concern in public organizations because it reflects the ability of government institutions to translate organizational objectives into effective work outcomes. This study examines the influence of transformational leadership and organizational culture on employee performance, with work motivation as a mediating variable, at the Human Resources Development Agency of the Ministry of Villages and Development of Disadvantaged Regions of the Republic of Indonesia. The study employed a quantitative survey approach. The population consisted of 188 employees, and 128 respondents were selected using the Slovin formula. Data were collected through a five-point Likert questionnaire and analyzed using Structural Equation Modeling-Partial Least Squares with SmartPLS 4. The results show that transformational leadership and organizational culture positively and significantly influence work motivation, while work motivation positively and significantly influences employee performance. In contrast, transformational leadership and organizational culture do not have significant direct effects on employee performance. Mediation testing indicates that work motivation fully mediates both relationships. The main novelty is the empirical confirmation that motivation is the key psychological mechanism through which organizational factors are translated into employee performance in an Indonesian public-sector human resource development institution.