p–ISSN: 2723 - 6609 e-ISSN: 2745-5254

Vol. 5, No. 6 Juny 2024 http://jist.publikasiindonesia.id/

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 1

Increasing Employee Job Performance, the Effects of

Perceived Organizational Support and Transformational

Leadership, Mediated By Work Engagement

Andri Pongoh

, Andreas Gunawan

, Justine Tanuwijaya

Universitas Trisakti, Jakarta, Indonesia

Email: [email protected]

, [email protected]

[email protected]

*Correspondence

ABSTRACT

Keywords: Perceived

organizational support,

transformational

leadership, work

engagement, job

performance.

Rapid developments in the financing industry sector in

Indonesia have created a dynamic and challenging business

competition. Sustainable business growth is one crucial

achievement that is a point of competition between finance

companies. Therefore, the optimal job performance of each

employee is a significant factor. Previous studies have

shown a connection between job performance with variables

such as POS, transformational leadership, and work

engagement in other industrial sectors. This study was aimed

at analyzing the influence of said variables among finance

company employees in Central Jakarta and South Jakarta.

The research was conducted in quantitative methods with

primary data collection using questionnaires. The sample

was taken using a purposive sampling technique, with a total

of 250 respondents who are employees of finance companies

in selected areas. Data analysis used the Structural Equation

Model (SEM) with AMOS version 22 software and the

Sobel Test to calculate the effects of each variable and its

connection. This research results show that POS and

transformational leadership have a positive influence on the

job performance of finance company employees in

Indonesia. It was also revealed that work engagement does

have a mediating role in the relationship between the

previous variables and job performance. In this context, the

study indicates that factors from within and outside

employees, such as POS and transformational leadership,

play a role in improving their job performance by also

increasing work engagement.

Introduction

Finance companies play a central role in supporting economic activity by providing

diverse financial solutions. Financing can help the functioning of a circular economy by

slowing down or increasing the productivity of resource use (Bocok, Hinke, & Abraham,

Andri Pongoh, Andreas Gunawan, Justine Tanuwijaya

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 2

2023). The rapid development of the finance company sector in Indonesia, especially

those operating in Central Jakarta, has created dynamic and challenging business

competition. Sustainable business growth is an important factor that is a point of

competition between finance companies. Growth in asset value and profitability also

makes the company better in the eyes of investors, providing more significant investment

opportunities (Dedi, Seyla, & Lilia, 2022). Employees are a crucial element in the

company, and company achievements are closely related to employee performance.

Therefore, in creating and maintaining sustainable business growth in finance companies,

the optimal performance of each employee is a very important factor.

Job performance can be defined as something that an individual does and can be

observed, thereby producing value and contributing to the goals of the organization where

he works (Campbell & Wiernik, 2015). Job performance is closely related to individual

behavior at work because this is a manifestation of actions or activities that are considered

important for achieving organizational goals. Employees who always dedicate time to

carry out activities that are already, or are not, their obligations, will undoubtedly produce

higher value and contribution than employees who wait for work to come to them. This

certainly applies in general, including to employees of finance companies. Therefore,

company leaders need to identify and implement things that make their employees'

behavior in line with company goals.

One of the things that finance companies need to pay attention to in improving the

job performance of employees is the factors that influence it. Several previous studies

have shown the influence of work engagement on job performance (Mufarrikhah,

Yuniardi, & Syakarofath, 2020). A study of 399 employees at a well-known information

technology company in China confirmed that the level of work engagement has a positive

and significant impact on performance. Research conducted on 389 middle-class

employees at travel agency companies in Egypt also showed the same results (El-

Sherbeeny et al., 2023).

Work engagement can be influenced by two factors, namely situational factors and

personal factors (Karatepe & Aga, 2016). Situational work engagement includes the

organization, socio-cultural environment, and work, which includes working conditions,

feedback, and interpersonal climate. Personal factors that can influence work engagement

include demographic and psychological. Perceived organizational support (POS) is a

situation where employees perceive the organization as supporting and caring about their

welfare. POS is a perspective that itself comes from the employee's personality, however,

it is very much determined by the work situation within the organization, which is related

to the interpersonal climate, working conditions, and the feedback they get at work.

Transformational leadership is a form of leadership that prioritizes dedication to the

success of the organization rather than personal interests and can have a significant

influence on team members or subordinates. Inspirational motives in this leadership style

can influence employees' active participation in tasks within the organization and increase

work engagement.

Increasing Employee Job Performance, the Effects of Perceived Organizational Support and

Transformational Leadership, Mediated By Work Engagement

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 3

Previous research discussed the influence of POS on the performance of banking

employees in North Cyprus with work engagement (Junça Silva & Lopes, 2023) as well

as the influence of transformational leadership on the performance of nurses in two

hospitals in Taiwan (Lai et al., 2020). There still needs to be more research that discusses

the influence of POS and transformational leadership on performance through work

engagement in employees of non-bank financial industry companies operating in the

financing sector. This research was conducted to determine the effect of POS and

transformational leadership on employee performance through increasing work

engagement at several financing companies in the Tanah Abang, North Jakarta, and

Setiabudi, South Jakarta areas.

Research conducted by Uçar and Kerse (2022) found that POS had a positive effect

on the job performance of 222 workers in the manufacturing sector in Turkey. Similar

results were also found by Ratnasari et al. (2023) in their research on 157 non-medical

health workers at Aliyah RSU, Kendari City. On the other hand, research by Wójcik-

Karpacz et al. (2019) on 478 workers in the technology industry in Poland also indicated

that POS has a positive influence on job performance. Based on the studies above, the

following hypothesis is formulated:

H1: Perceived Organizational Support has a positive effect on Job Performance

Research by (Lai, Tang, Lu, Lee, & and Lin, 2020), 507 nurses in two hospitals in

Taiwan showed that there was a positive influence between the transformational

leadership applied by their supervisors on performance. In addition, research on 845 hotel

employees in Jiangsu, China by (Jiatong et al., 2022) also shows that transformational

leadership has a positive effect on employee performance. Research (Anggiani, 2021) on

85 employees of the company PT XL Axiata, Tbk. also shows the same thing.

Method

This research is included in the causal research category, which was carried out by

collecting data from finance companies around Tanah Abang District, Central Jakarta,

and Setiabudi District, South Jakarta as research objects with a cross-sectional design.

The independent variables studied were perceived organizational support (POS) and

transformational leadership. The dependent variable in this research is job performance,

and the mediating variable in this research is work engagement. The research sample was

selected using a non-probability sampling method and a purposive sampling type with a

total of 250 employees as respondents. The questionnaire indicators for each variable

used for this research were taken from (Rhoades & Eisenberger, 2002) for POS with 9

statement items, (Zheng, Wu, Xie, & Li, 2019) for transformational leadership with five

statements, (Charli, Masnum, Hidayat, Menhard, & Hartoyo, 2023) for work engagement

with 17 statements, and (Kundu, Kumar, & Gahlawat, 2019) with four statements. All

variables and indicators are measured using an interval scale with a Likert scale

measurement scale using 5 selected scores. Data analysis used to test the hypotheses uses

the Structural Equation Model (SEM) with the software used SPSS version 22, AMOS

22 to test direct effects, and Sobel Test to test indirect effects between variables.

Andri Pongoh, Andreas Gunawan, Justine Tanuwijaya

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 4

Figure 1 Research SEM Model

Validity and Reliability Test

The validity test aims to assess whether the questionnaire is valid or not. The

validity of a questionnaire can be considered fulfilled if the statements in the

questionnaire can be measured and successfully reveal the aspects you want to measure

in the research. The validity testing process was carried out using the SPSS version 22

application, which correlated the indicator item scores with the total score. Because the

number of respondents is 250 people, each indicator must have a factor loading of at least

0.35 (Hair, Risher, Sarstedt, & Ringle, 2019). From the results of data processing using

this application, it was found that each indicator for each variable was declared valid.

Reliability tests are carried out to evaluate the extent to which measurement results

remain consistent when measurements are carried out repeatedly. The purpose of

reliability testing is to assess the reliability of a measuring instrument, especially a

questionnaire. A measuring instrument is said to be reliable if the measurement results

are consistently reliable; in other words, repeated use of the measuring instrument will

produce results that are relatively similar to the previous measurement. Measuring the

reliability of this research scale or questionnaire was carried out using Cronbach's Alpha

method with a minimum value of 0.60. From the results of data processing using the SPSS

version 22 application, it was found that each indicator for each variable was declared

reliable.

Increasing Employee Job Performance, the Effects of Perceived Organizational Support and

Transformational Leadership, Mediated By Work Engagement

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 5

Table 1

Validity and Reliability Test

Indikator

Factor

Loadings

Cronbach’s

Alpha

Conclusion

Perceived Organizational Support (POS)

POS1

0.606

0,919

VALID AND

RELIABLE

POS2

0.794

POS3

0.808

POS4

0.811

POS5

0.741

POS6

0.859

POS7

0.859

POS8

0.793

POS9

0.722

Transformational Leadership (TL)

TL1

0.855

0,915

VALID AND

RELIABLE

TL2

0.905

TL3

0.899

TL4

0.805

TL5

0.857

Work Engagement (WE)

WE1

0.654

0,913

VALID AND

RELIABLE

WE2

0.712

WE3

0.696

WE4

0.720

WE5

0.636

WE6

0.584

WE7

0.817

WE8

0.837

WE9

0.775

WE10

0.777

WE11

0.537

WE12

0.551

WE13

0.417

WE14

0.758

WE15

0.671

WE16

0.544

WE17

0.374

Job Performance (JP)

JP1

0.841

0,839

VALID AND

RELIABLE

JP2

0.829

JP3

0.855

JP4

0.767

Goodness of Fit Test

The goodness of fit index is used to determine how precisely the observed variables

correspond to the expected results. It could be concluded that this research model fell

within the goodness of fit criteria. This is shown from the results that there are still criteria

from the GOF test that are included in these criteria, namely the CFI criteria, where the

Andri Pongoh, Andreas Gunawan, Justine Tanuwijaya

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 6

calculation results show that the CFI value is greater than the criteria (≥ 0.90), namely

0.901 for CFI, then the AGFI criteria, where the stipulation value is ≤ GFI, then the

calculation results show that the value obtained is appropriate, namely 0.552 ≤ 0.606.

Thus, the model used in this research is considered good. Therefore, it is fit for hypothesis

testing.

Results and Discussion

Responses from a total of 250 employees to the variables are explained using the

average value of each variable as a measurement of the respondent's answers to the

research variables used. The following are descriptive statistics or conclusions about the

characteristics of the respondents' answers to each of the research variables in a 1 to 5

Likert scale.

Table 2

Descriptive Statistics of Variables

Variable

Total Mean

Avg. Std.

Deviation

POS

3.617

0.891

3.658

0.955

3.524

0.993

3.972

0.838

In this study, there were seven hypotheses tested. Hypothesis testing in this research

uses SEM analysis with the AMOS software and the Sobel Test. The error tolerance limit

used is 5% (a = 0.05) based on decision making; if p-value ≤ 0.05, then H0 is rejected and

Ha is supported; if p-value ≥ 0.05, then H0 is supported and Ha is rejected. The test

decision can be concluded that if the hypothesis has a p-value ≤ 0.05, it means the

hypothesis is supported, and there is an influence between the variables. Then, if the p-

value ≥ 0.05 the hypothesis fails to be supported, and there is no influence between the

variables.

Table 3

Results of Direct Effects

Variables

Theory

Beta

Std.

Error

TStat

Conclusion

POS→JP

0.24

0.108

8.196

Supported

TL→JP

0.13

0.055

1.500

Supported

POS→W

0.28

0.102

2.839

Supported

TL→WE

0.30

0.065

4.623

Supported

WE→JP

0.74

0.109

6.840

Supported

The result shows that POS has a coefficient value of 0.241, meaning that the higher

the POS perception value, the higher the perception of performance (JP), namely 0.241

Increasing Employee Job Performance, the Effects of Perceived Organizational Support and

Transformational Leadership, Mediated By Work Engagement

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 7

units. The statistical test results show a beta sign by the proposed hypothesis, where POS

has a positive effect on job performance, as shown in the output results table above so H1

is accepted. This indicates that the perception of organizational support received by

employees contributes positively and meaningfully to increasing their performance. The

greater the support felt by the organization, such as recognition, assistance, or a

supportive work environment, the greater the level of performance of finance company

employees.

In the case of hypothesis 2 (H2), the higher the perceived value of transformational

leadership (TL), the higher the perception of job performance. In this case, TL has a

coefficient value of 0.138 on JP. Results of the statistical test show that the beta sign is

by hypothesis 2. Transformational leadership does have a positive effect on job

performance. Thus H2 is accepted. This shows that a leadership style that inspires,

motivates, and guides subordinates in a transformative manner has an impact that supports

improving the performance of finance company employees.

Regarding the third hypothesis (H3), the results show POS has 0.289 points of

coefficient value on work engagement (WE). The higher the POS perception value, the

higher the perception of work engagement, in this case, 0.289 units. As shown in the

output results table above, the beta sign is also by the proposed hypothesis, where POS

has a positive effect on work engagement, meaning H3 is accepted. This means that

employee perceptions of perceived support from the organization, such as appreciation,

attention to employee needs, or efforts to create a supportive work environment, are

positively related to the level of involvement of finance company employees.

The test on hypothesis 4 (H4) results in transformational leadership with a

coefficient value of 0.300. This means the perceived value of transformational leadership

is equivalent to 0.300 units of the perception in work engagement. Statistical results

showed the beta sign is in line with the fourth hypothesis, where transformational

leadership has a positive effect on work engagement. This result makes H4 accepted. The

outcome of the tests indicates that an inspirational leadership style, guiding, and oriented

toward individual development can directly influence the level of engagement of

employees in work. An adored leader will make their employees agree to attach

themselves further to the job they are performing and the organization itself.

The higher the perceived value of work engagement, the higher the perception of

job performance. The tests showed that work engagement has a coefficient value of 0.749

towards job performance. Statistical results showed a beta sign by the fifth hypothesis

(H5), where job performance is affected positively by work engagement, therefore H5 is

accepted. The output results shown in the table above indicate that the level of employee

engagement in work has a meaningful positive relationship with their level of job

performance. The more an employee is engaged with their work, the more their

performance in that working activity improves.

Table 4

Andri Pongoh, Andreas Gunawan, Justine Tanuwijaya

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 8

Results of Indirect Effects

Variables

Estimat

ion

P-Value

Conclus

ion

POS→WE

→JP

0.157

0.04453

814

Support

TL→WE

→JP

0.045

0.02749

605

Support

Results from the testing of hypothesis 6 (H6) show that POS influences job

performance which is mediated by work engagement at 0.157 points of coefficient value.

As per the previous connections, the higher the perception of work engagement which

mediates the relationship of POS towards job performance, the higher the perception of

job performance itself. The test results above show that the p-value is at 0.04453814 <

0.05 (alpha 5%), thus Ha is accepted and Ho is rejected. It can be concluded statistically

at a confidence level of 95%, work engagement can fully mediate between POS and job

performance, thus H6 is accepted. Lastly, results from testing hypothesis 7 (H7) show the

coefficient value of transformational leadership on job performance which is mediated by

work engagement is at 0.045 points. This means that the higher the perception of work

engagement which mediates the relationship between transformational leadership and job

performance, the higher the perception of job performance itself. The p-value is

0.02749605 < 0.05 (alpha 5%) so Ha is accepted and Ho is rejected. This means that at a

confidence level of 95%, work engagement may fully mediate the relationship between

transformational leadership and job performance, making H7 also accepted. The shown

result means that there is a mechanism where the influence of POS and transformational

leadership on job performance is largely or completely explained through the level of

employee work engagement. In other words, POS and transformational leadership

influence job performance not only directly but also through their influence on levels of

work engagement.

Conclusion

Based on the data analysis and discussion that has been carried out, in this study it

can be concluded that all research hypotheses are supported. There is a positive influence

of POS and transformational leadership on job performance. Work engagement also acts

as a significant mediator, explaining most of the relationship between POS,

transformational leadership, and job performance. The implication is that perceived

organizational support (POS) and transformational leadership contribute positively to

employees' work engagement, which in turn improves their performance on the job.

Companies must be able to show that their employees are subjects whose existence and

efforts are appreciated. Company leaders must be able to inspire and foster a sense of

loyalty in each employee. The findings of this research underline the importance of

creating a supportive work environment and inspirational leadership in increasing work

Increasing Employee Job Performance, the Effects of Perceived Organizational Support and

Transformational Leadership, Mediated By Work Engagement

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 9

engagement and employee performance, especially within the scope of finance

companies in Indonesia.

Researchers suggest that finance companies should prioritize employees in

leadership roles who have the competence, knowledge, and soft skills to motivate and

inspire their subordinates so that their performance in doing jobs may increase. No less

important, companies can build a good work environment as a performance indicator in

managing human resources as company capital. Apart from that, the researcher hopes to

be able to expand the reach of this research to a wider scope, therefore the researcher

provides suggestions for future researchers to conduct studies in other regions or other

non-bank financial industries in Indonesia. Researchers also provide suggestions for

examining the influence of POS and transformational leadership on other dependent

variables such as employee turnover, or examining the influence of other independent

variables such as ergonomics on employee performance.

Andri Pongoh, Andreas Gunawan, Justine Tanuwijaya

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 10

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