The Influence of Transactional and Transformational Leadership Styles on Employee Performance Through Job Satisfaction

Effect of transactional leadership style and transformational leadership on employee performance through job satisfaction. Leadership Style relationship affecting employee Job Satisfaction, Transactional Leadership Style not affecting employee performance, Job Satisfaction affecting  employee performance. Transformational leadership style affecting job satisfaction, Transformational Leadership Style affecting Job Satisfaction Transformational Leadership Style affecting Employee Performance


INTRODUCTION
The increasingly widespread era of globalization requires human resources (HR) to be competent and high spirits in adapting to change and discipline in time, this is the wheel of the organization's movement towards its goals. Humans, who in this case are the main steering wheel in the organization, have a major role in bringing the organization to a more advanced stage, a more advanced stage is the successfullness of the company in reaching goals where in the company the intended goal is the achievement of maximum performance.
Performance achievement or performance measurement results are "comparisons between predetermined performance targets and their realization", so that to support or realize the realization of work requires competent human resource indicators, be it organizational leaders or employees in the organization.
PT Permodalan Nasional Madani (PT. PNM) is a "state-owned enterprise (SOE) financial services business. Established on 1-06-1999 to help micro, small, medium and cooperative businesses". The company PT. PNM is now "developing into a company that brings inspiration to many people, and becames a leading finance institution in enhancing added value for UMKMK based on Good Corporate Governance (GCG) Update data in 2022 until now PT PNM has 62 branches spread throughout Indonesia, one of which is PT PNM Pematang Siantar Branch. PT PNM Pematang Siantar branch has been established for approximately 10 years. During the 10 years of the establishment of this company, of course, there have been many journeys, both in business trips, performance achievements, employee effectiveness, leader exchanges and several other indicators that affect the process of running the wheels of the organization at PT. PNM Pematang Siantar Branch.
From the results of interviews, observations and target realization data from PT PNM Siantar Branch, researchers found that there were differences in the achievement of performance or target realization from PT PNM Siantar Branch from year to year which had a decrease such as in the vulnerable year 2022-June 2023 obtained quite high employee turnover, both employees who were absent, resigned and other things. In addition, in terms of business for the 1st quarter category in 2023 with the vulnerable months of January-June 2023, several business indicators were also not achieved, this was due to several factors, one of which was the quality of employee in the coordination of the leader. Based on the observations of researchers at PT PNM Pematang Siantar Branch, there are still many employees who have not been effective in working both from time discipline, work productivity, job satisfaction and others. objectives of this study are:

LITERATUR REVIEW
Rivai and Mulyadi (2019: 2) state that the success factor of a leader is a leader who can "create a situation so that his subordinates arise awareness to carry out what is desired." Seeing that transformational leadership capable applied properly by leaders in the company shall provide strong will for employees, so as to reach satisfaction at work, all will have a good impact on employee performance in taking responsibilities, this will also have a good impact on reducing employee turnover rates who will have a sense of satisfaction and comfort working for the company".

Transactional Leadership
According to Yukl (2010:290), Transactional leadership makes transactions to encourage their downline for their own personal interests." To encourage subordinates perform their responsibilities, transactional leaders heavily rely on a system of rewards and punishments. According to Bass (in Yukl 2010:306) "the ties between transactional leaders and subordinates is reflected in : 1) Related Awards,.
3) Passive Management. According to this opinion, transactional leadership style indicators are "Contingent Reward and Management by Exception in general regardless of whether the exception is active or passive". The leadership characteristics that underlie transactional leadership focus on inter-personal transactions, between management and employees, namely: a) "Leaders use contingent rewards to motivate employees. b) Leaders implement corrective actions only when members are unable to achieve performance goals as they should".

1) Transformational Leadership
Transformational leader is charismatic and have a strategic role to reach organizational purpose. Transformational leaders should have a visionary skill with their downline, and increase the importance downline at a higher level. Burns (in Yukl, 2010: 290) said Transformational leadership fundamental in moral values from downline to raise their awareness of ethical issues and arrange their resources and energy for better company." According to Bass 1990 (in Yukl 2010:305) the factors of transformational leadership are as follows: Intellectual Stimulus According to the explanation of the previous opinion, it can be concluded that the extent to which a leader is said to have a transformational leadership style can be seen from the four things above, namely charisma, individualized consideration, inspirational motivation, and intellectual stimulus.
Mangkunegara states performance is a quantity/quality of jobs in carrying out employees duties related with the responsibilities given to him" (Mangkunegara, 2011: 67). Moeller and Witt stated that a leader has a great influence in encouraging and improving employee performance both in quality/quantity. So through this the role of the leader and the effectiveness of employee performance affect the achievement of performance both in quality/quantity and the job satisfaction will directly affect employee performance.

METHODOLOGY
Using quantitative research, nonprobability sampling with a purposive sample technique. A total of 100 respondents and two analysis methods used, namely outer model analysis with Convergent Validity, Discriminant Validity, Composite Reliability, Cronbach's Alpha and using inner model analysis with Hypothesis Test.

RESEARCH RESULT
Scientific method uses scientific characteristics, systematic, empirice and rational. Rational research in a way accepted by common sense , so that it is possible for reasoning. Empirice observed by the human sense. Sugiyono (2018) said quantitative research produces data in numbers and usually analyzed using inferential or descriptive ". For research using quantitative Respondent is someone who is able to answer questions submitted in writing, orally or questionnaires from researchers. 100 employees of PT PNM are the respondent. The object of research is described by demographic aspects consisting of education, length of service, age.  (2023) Correlation between indicators and their constructs have a correlation value (loading factor) below 0.7. So it is necessary to do stage 2 calculations to eliminate / delete values below 0.7. The following is a picture of the results of stage 2 analysis.  (2023) The picture above is a stage 2 calculation that has eliminated / deleted values below 0.7.  (2023) Apart from outer loading, another parameter of convergent validity is Average Variance Extracted (AVE). all value variable must be above 0.50 so that the convergent validity test on the AVE parameter is declared valid.

Discriminant Validity
Second is discriminant validity. The parameters used in discriminant validity are cross loadings, where the cross loadings value should above 0.70.  (2023) The table shows the value of cross loadings of all variables above 0.70 and the correlation of constructs with their indicators is higher than the size of other constructs, for example the KEP1 indicator of the Job Satisfaction variable is worth 0.721 which is greater than transactional leadership, Employee 2093 Performance and Transformational Leadership variables which are worth 0.540 -0.538 -0.613 respectively.

Reliability Test
Third is reliability test. Variables are reliable if the Cronbach's alpha and composite reliability value above 0.70.   (2023) Using SmartPLS 4, it starts by looking at the R-square, for each independent latent variable. R Square score 0.75 is strong, 0.50 is moderate, 0.25 is weak. R-square score of job satisfaction is 0.616. This shows that the effect of Transactional and Transformational Leadership variables on job satisfaction provides an R-Square value of 0,616 or 68.6% and is included in the moderate category. It can be interpreted that the Job Satisfaction variable is influenced by the Transactional and Transformational Leadership variables by 61.6% percent, while the other 39.4% influenced by other variables R-square score for the Employee Performance variable is 0,675 or 67.5% and is included in the Moderate category. This means that 67.5% percent of Employee Performance can be interpreted by the Transactional Leadership and Transformational Leadership variables, while the other 33.5% influenced by other variables.

Hypothesis Test
Hypothesis testing can be seen from the T-statistics and pvalue values. To find out the effect can be done by looking at the T-statistics output which indicates a positive or negative effect, while to find out the level of significance can look at the p-value.

Transactional Leadership Style Affecting Job Satisfaction
With a P-value of 0.004 below the significance level of 0.05 and a t statistics 2,987 which is greater than t