The Relationship of Transformational Leadership, Organizational Justice and Organizational Commitment: a Mediation Effect of Job Satisfaction

Abstract

This research aimed to measure the effect of organizational justice and transformational leadership on organizational commitment of the employee of an automotive industry in Tangerang which are mediated by job satisfaction. Data collection was done by simple random sampling to 351 population of employees. The returned and valid questionnaire results were 221 samples. Data processing was used SEM method with Smart PLS 3.0 software. The results of this research concluded that organizational justice and transformational leadership have positive and significant effect on job satisfaction. Organizational justice have not significant effect on organizational commitment, but transformational leadership have a posit if and significant effect on organizational commitment. Job satisfaction has a significant effect as a mediator between organizational justice, transformational leadership and organizational commitment. This new research proposed a model for building the organizational commitment among the automotive industry employees in Tangerang through enhancing organizational justice and transformational leadership with job satisfaction as a mediator. This research could pave the way to improve employee readiness in facing the industrial revolution 4.0era.