The Inﬂuence of Transformational Leadership, Work Environment and

Job Satisfaction toward the Performance of Employees in the Ofﬁce of

Public Works, Housing, and Energy of Mineral Resource in the Special

Region of Yogyakarta

Titi Laras

, Nindyo Cahyo Kresnanto

, Rini Raharti

and Nurwiyanta

Janabadra University, Yogyakarta, Indonesia

Keywords:

Transformational Leadership, Work Environment, Job Satisfaction and Employee Performance

Abstract:

This study aims to determine the inﬂuence of transformational leadership, work environment and job satisfac-

tion on employee performance in the ofﬁce of public works, housing, and energy of mineral resource in the

Special Region of Yogyakarta (PUP Department Ofﬁce and ESDM DIY). Totaling respondents in this study

is 204 with proportional stratiﬁed random sampling method. The analytical tool used multiple regression with

F test and T test to test the hypothesis in this study. The results of this study concluded that variables of

transformational leadership, work environment and job satisfaction have a signiﬁcant effect simultaneous on

the performance employees of the ofﬁce of PUP Department and ESDM DIY and variables of transforma-

tional leadership, work environment and job satisfaction have positive effect and signiﬁcant individually on

the performance employees of the Ofﬁce of PUP Department and ESDM DIY.

1 INTRODUCTION

An organization that is always developing is every-

one’s dream. Both the government and the private

sector expect their organizations to grow and develop

well. With these developments, the organization is ex-

pected to be able to compete and accelerate with the

progress of the times. The fact shows that organiza-

tions that are not able to accelerate with the progress

of the times will be left behind to then sink into the

times. The level of success of an organization can

be seen from how the organization manages its re-

sources. Organizations with good performance, have

effectiveness in handling human resources, determine

goals that must be achieved both individually and in

their organizations.

Employee performance is one of the important as-

pects that must be considered in the organization, be-

cause employee performance guides the organization

to achieve its objectives. Employee performance is

a work achievement, a comparison between work re-

sults that can be seen clearly with the work standards

set by the organization (Dessler, 2006). The factors

that affect the decline in employee performance at

the Ofﬁce of PUP and ESDM DIY are the gaps in

mindset/ perspective between leaders and employees,

a less ideal work environment, timeliness in complet-

ing tasks, abilities possessed to utilize resources or

potential that exists, open communication is also one

of the factors that affect the decline in employee per-

formance. Communication that is established in the

PUP and DIY EMR Ofﬁce between leaders and em-

ployees is quite good, only because the level of lead-

ership is high enough so that it does not allow time

for any time to meet face to face or communicate di-

rectly, this causes a gap in communication relations

between leaders and employees. The delay or ab-

sence of employees entering the ofﬁce is also one of

the causes of the decline in employee performance, so

this certainly will affect the receipt of employee ben-

eﬁts. These problems are part of the causes of declin-

ing employee performance. Some of these problems

are indicated by three things: transformational lead-

ership, work environment and job satisfaction.

The Ofﬁce of PUP and ESDM DIY has the duty

to carry out the affairs of the Regional Government

in the ﬁelds of public works, housing, spatial plan-

ning, and energy mineral resources and Deconcen-

tration and Co-Administration tasks provided by the

Government. (PERGUB DIY No. 47 of 2008), while

the WWTP outline of this WWTP has three beneﬁts,

namely protection of water bodies (rivers and wells)

Laras, T., Kresnanto, N., Raharti, R. and Nurwiyanta, .

The Inﬂuence of Transformational Leadership, Work Environment and Job Satisfaction toward the Performance of Employees in the Ofﬁce of Public Works, Housing, and Energy of Mineral

Resource in the Special Region of Yogyakarta.

DOI: 10.5220/0009879101090114

In Proceedings of the 2nd International Conference on Applied Science, Engineering and Social Sciences (ICASESS 2019), pages 109-114

ISBN: 978-989-758-452-7

109

from household pollution, improvement and environ-

mental aesthetics, utilization of IPAL products in the

form of organic fertilizer from mud wastewater. Balai

PSDA is in charge of carrying out operational services

to the community in the ﬁeld of water resources, and

operational management of conservatio/preservation

of water and water resources and technical training in

water resources. (article 47) and BPIPBPJK (Center

for Testing, Settlement and Building Information and

Construction Services Development), tasked with su-

pervising the quality control process of development

tasks in order to realize the control system and quality

assurance, delivery of residential and building infor-

mation and construction services. (article 53).

From this description, the researcher needs to con-

duct research using the title: “The Inﬂuence of Trans-

formational Leadership, Work Environment and Job

Satisfaction Toward the Performance of Employees

in The Ofﬁce of Public Works, Housing, And Energy

of Mineral Resource in The Special Region Of Yo-

gyakarta” Based on this background, the problem can

be formulated as a problem as follows:

1. How is the effect of transformational leadership,

work environment and job satisfaction simultane-

ously on employee performance at the PUP Ofﬁce

and ESDM DIY?

2. How is the partial /individual inﬂuence of trans-

formational leadership, work environment and job

satisfaction on employee performance at the PUP

Ofﬁce and ESDM DIY?

2 HYPOTHESIS DEVELOPMENT

2.1 Transformational Leadership and

Employee Performance

(Burns and Leadership, 1978) states that the trans-

formational leadership model essentially emphasizes

that a leader needs to motivate his subordinates to

carry out their responsibilities more than they ex-

pected. Transformational leaders must be able to de-

ﬁne, communicate and articulate the organization’s

vision, and subordinates must accept and recognize

the credibility of their leaders. (Hater, 1998) states

that ”the dynamic of transformational leadership in-

volve strong personal identiﬁcation with the leader,

joining in a shared vision of the future, or going be-

yond the self-interest exchange of rewards for com-

pliance”.

Transformational leadership style can improve job

satisfaction for employees and in turn will improve

the performance of employees, because of the higher

needs of employees such as self-esteem needs and

self-actualization. The results of this study also re-

inforce the opinion of (Nicholls, 1994), Pawar and

Eastman (1997) that the practice of transformational

leadership style is able to bring more fundamental

changes such as employee values, goals, and needs

and these changes have an impact on increasing em-

ployee performance. Whereas (Bycio et al., 1995)

and Howell and Avolio (1993) suggest that transfor-

mational leadership has a positive relationship to em-

ployee performance because employees feel valued

existence, then transformational leadership style in-

ﬂuences employee performance. From the descrip-

tion, the hypothesis can be derived as follows:

H1 : Transformational leadership has a signiﬁcant

positive effect on employee performance, at the PUP

Ofﬁce and DIY ESDM.

2.2 Work Environment and Employee

Performance

(Sedarmayanti and Pd, 2001) work environment is

all the factors that surround the workplace for work

purposes. The work environment includes the physi-

cal work environment is a physical form of situation

that is around the workplace that can affect employ-

ees both directly and indirectly. Whereas the non-

physical work environment is all the situation that oc-

curs relating to work relations, both relationships with

superiors and relationships with colleagues, or with

subordinates. This work environment both directly

and indirectly will determine the level of comfort in

work.

(Ruky, 2001) states that ”performance is a trans-

lation of English” performance ”which is interpreted

by Bernadin and Russel as a record of the results ob-

tained from certain job functions or certain activities

during a certain period of time). In this deﬁnition, it

is clear that they emphasize the notion of achievement

as a result or thing that comes out of a job and their

contribution to the organization.

While an inadequate work environment can inter-

fere with the concentration of employees in carry-

ing out their work so as to cause errors in work and

employee performance will decrease (Siagian, 2002).

According to Nunung Ristiana (2012) there is a pos-

itive and signiﬁcant inﬂuence on the variables of the

work environment, the more comfortable the work en-

vironment, the more employee performance will be.

H2: The work environment has a signiﬁcant posi-

tive effect toward employee performance, at the PUP

Ofﬁce and DIY ESDM Ofﬁce.

ICASESS 2019 - International Conference on Applied Science, Engineering and Social Science

110

2.3 Job Satisfaction and Employee

Performance

According to (Hasibuan, 2013) job satisfaction is an

emotional attitude that is fun and loves his job. Em-

ployee job satisfaction must be created as well as pos-

sible so that work morale, dedication, love and dis-

cipline increase. This attitude is reﬂected by work

morale, discipline, and work performance. Job sat-

isfaction enjoyed in work, outside work, and a com-

bination of in and outside work.

(Rivai and Basri, 2005), states that performance

is a person’s overall results during a certain period

in carrying out tasks, such as work outcome stan-

dards, targets or targets or criteria predetermined and

agreed upon. According to (Sudarmanto, 2009) there

are three levels of performance, namely; (1) organiza-

tional performance, is an outcome (out come) at the

level or unit of analysis of the organization related to

organizational goals, organizational design, and orga-

nizational management; (2) process performance, is a

performance in the stage process in producing a prod-

uct or service that is inﬂuenced by process objectives,

process design, and process management; (3) the per-

formance of individuals / jobs, is the achievement of

effectiveness at the level of employees or jobs that

are inﬂuenced by job objectives, work design, and job

management and individual characteristics.

The relationship of Job Satisfaction with Perfor-

mance is more appropriately called the ”management

myth” and it is difﬁcult to determine in what direc-

tion the causal relationship between the two. But from

various studies found evidence that organizations that

have more satisﬁed employees tend to be more effec-

tive than organizations that have employees who are

less satisﬁed (Robbins and Judge, 2008).

H3: Job satisfaction has a signiﬁcant positive ef-

fect on employee performance, at the PUP Ofﬁce and

DIY ESDM Ofﬁce.

2.4 Transformational Leadership, Work

Environment, and Job Satisfaction

and Employee Performance

The presence of leaders in the company is very im-

portant because of the backbone and has a strate-

gic role in achieving organizational goals. The right

leadership style can lead to employee motivation for

achievement, because the success or failure of em-

ployees in carving work performance can be inﬂu-

enced by leadership style. The work environment

is related to everything that is around the work and

which can affect employees in carrying out tasks in-

cluding employee service, working conditions, em-

ployee relations in the company concerned (Agus Ah-

yari, 1994). A good work environment is a pleas-

ant work environment and can provide security. That

work environment is what everyone wants. This can

motivate employees to work better, so that it will im-

prove employee performance. In addition, more sat-

isﬁed employees tend to be more effective than orga-

nizations that have employees who are less satisﬁed.

H4: Transformational leadership, work environment

and job satisfaction partially/individually have a sig-

niﬁcant positive effect on employee performance, at

the PUP and DIY ESDM Ofﬁce.

3 RESEARCH METHODOLOGY

3.1 Object of Research

The research was carried out at the DIY PUP and

ESDM Ofﬁce, which was located at Kyai Mojo Yo-

gyakarta Street and various Balai which was part of

the DIY PUP and ESDM Ofﬁce, with the object of re-

search being the employees of DIY PUP and ESDM

Ofﬁce, Balai PSDA, Balai BPIPJK, and the IPAL

Hall.

3.2 Data Source

The data sources used in this study are primary data

and secondary data. Primary data means data ob-

tained directly from the source, using instruments or

questionnaire tools that contain a number of struc-

tured written questions to obtain information from

respondents, both about the person and other things

needed in this study.

Secondary data is a way of collecting data ob-

tained from various library materials, both in the form

of books, magazines, journals or other documents that

have to do with the study material. Secondary data is

obtained by using documentation and literature.

3.3 Sampling Technique

Population is the object of the overall research whose

characteristics are to be expected (Djarwanto and

Subagyo, 1996). In this study, the population is 414

employees. Samples are a portion of the population

whose characteristics will be examined and consid-

ered to represent the whole of the population (Djar-

wanto and Subagyo, 1996). In this study, the deter-

mination of sample size was calculated based on the

The Inﬂuence of Transformational Leadership, Work Environment and Job Satisfaction toward the Performance of Employees in the Ofﬁce

of Public Works, Housing, and Energy of Mineral Resource in the Special Region of Yogyakarta

111

opinion of Solvin (Husein, 2005), so the sample num-

bered 203.4 respondents, rounded up to 204 respon-

dents.

The sampling technique used is proportional strat-

iﬁed random sampling method which is a sample se-

lection which can be done by ﬁrst classifying a popu-

lation into sub-populations.

3.4 Data Analysis Method

To test hypotheses one to four, the data analysis

method used in this study uses multiple linear regres-

sion. Multiple linear regression analysis is used to de-

termine the effect of several independent variables on

the dependent variable (Wiratna, 2007). The multiple

linear regression models in this study are as follows:

Y = a + b

+ b

+ e (1)

4 DISCUSSION

4.1 The Effect of Simultaneous

Transformational Leadership, Work

Environment and Job Satisfaction

on Employee Performance of PUP

Ofﬁce and DIY ESDM

Based on the results of the F test, it shows that signiﬁ-

cantly transformational leadership, work environment

and job satisfaction affect employee performance at

the PUP and DIY ESDM Ofﬁce simultaneously, be-

cause the calculated F value is greater than the F-

table (3.866> 2.65). This means that if the transfor-

mational leadership is good, the work environment is

good and the job satisfaction of the employees is more

satisﬁed, it will improve the performance of employ-

ees of the PUP Ofﬁce and DIY ESDM.

The results of this F test also show that the re-

gression model in this study can be declared ﬁt, be-

cause the probability of signiﬁcance is 0.003, where

this value is smaller than 0.05, and the contribution

of the independent variables (transformational leader-

ship, work environment and job satisfaction) on the

performance of employees it can be said that it ful-

ﬁlls the requirements because of the magnitude above

0.5, which is 0.527. This indicates that this equation

model can be applied by the leadership in order to

improve the performance of the PUP and DIY ESDM

staff employees.

The results of this study are supported by several

previous studies which were carried out among others

by (Aulia, 2015), (Mangkunegara and Huddin, 2016),

(TARTIB, 2013) (Handayani, 2013). From some of

these studies, concluded that transformational leader-

ship, work environment and job satisfaction simulta-

neously have a signiﬁcant effect on employee perfor-

mance.

4.2 The Inﬂuence of Transformational

Leadership on Employee

Performance of PUP Ofﬁce and DIY

ESDM

Based on the results of the t test, transformational

leadership has a positive and signiﬁcant effect on

the performance of employees of the PUP and DIY

ESDM Ofﬁce. This is evident from t count¿ t table

(3.719> 1.962) and Sig ¡0.05 (0.002 <0.05). This

means that if transformational leadership is carried

out well, it will increase the performance of employ-

ees of the DIY PUP and ESDM Ofﬁce ofﬁces.

Based on the positive responses of the respon-

dents, where in the respondent’s answer from 204 re-

spondents it was known that 58.33% of respondents

agreed and 35.78% of respondents stated strongly

agree with the statements contained in the question-

naire of transformational leadership variables, and

5.88% expressed doubt. This indicates that the trans-

formational leadership style is appropriately applied

to the Ofﬁce of PUP and DIY ESDM.

The results of this study are supported by several

previous studies that have been carried out, among

others, by (Yuliandi, )(Cahyono et al., 2014), (So-

fyan, 2013)(Setiawan, 2013) where the conclusions

from their studies are that transformational leadership

has a positive and signiﬁcant effect on performance

employee. For this reason, the transformational lead-

ership style that has been applied to the PUP Ofﬁce

and ESDM DIY Ofﬁce needs to be maintained and it

will be even better if the quality is improved.

4.3 Effect of Work Environment on

Employee Performance of PUP

Ofﬁce and DIY ESDM Ofﬁce

Based on the results of the t test, the work environ-

ment has a positive and signiﬁcant effect on the per-

formance of employees of the PUP and DIY ESDM

Ofﬁce. This is evident from t count¿ t table (2.359>

1.962) and Sig <0.05 (0.007 <0.05). This means that

if the work environment supports it, it will improve

the performance of the employees of the DIY PUP

and ESDM Ofﬁce ofﬁces.

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112

These results indicate that the working environ-

ment at the PUP and DIY ESDM Ofﬁce is ideal.

This is reinforced by the results of the analysis of

respondents’ answers to the statements contained in

the work environment variable questionnaire, which

states agree at 59.80%, and which states strongly

agree at 39.71%. Nevertheless, there were still 0.49%

who expressed doubts. This indicates that in relation

to the work environment according to the PUP and

DIY ESDM staff, there were still some respondents

who actually wanted to disagree, but maybe because

of shame and so on they ﬁnally answered doubtfully.

The results of this analysis stating that the work

environment has a positive and signiﬁcant effect on

employee performance is supported by several pre-

vious studies, including (Yunanda, 2013) (Sofyan,

2013)(Putra, 2013) (Suryani, 2013), where the results

of their research concluded that the work environment

has a positive and signiﬁcant effect on employee per-

formance.

4.4 Effect of Job Satisfaction on

Employee Performance of PUP

Ofﬁce and DIY ESDM

Based on the results of the t test, job satisfaction has

a positive and signiﬁcant effect on the performance of

employees of the PUP and DIY ESDM Ofﬁce. This is

evident from t count> t table (2,072> 1,962) and the

Sig value <0,05 (0,009 <0,05). This means that if the

employees are more satisﬁed, then this will improve

the performance of employees of the DIY PUP and

ESDM Ofﬁce ofﬁces.

The results of this study are supported by sev-

eral studies that have previously been carried out by

among others (Hakim, 2013), (Sofyan, 2013), (Stiven

et al., 2014)(Furi, 2012). Their results show that job

satisfaction has a positive and signiﬁcant effect on

employee performance. Thus, the results of this study

are the same as the results of previous research stud-

ies.

Job satisfaction has a signiﬁcant effect on the

performance of employees of PUP Ofﬁce and DIY

ESDM, so the situation that causes employee job sat-

isfaction needs to be improved, among others: From

the dimensions of the work itself, it is necessary to

increase the self-conﬁdence of employees in order to

work more seriously and Responsible for his work.

From the dimensions of promotion, an open promo-

tion system can be accepted by all employees, be-

cause with a clear promotion system, employee ex-

pectations for a career will be more real, so that it

will have an impact on the performance of employ-

ees. From the supervision dimension, the inherent su-

pervision that has been carried out, needs to be im-

proved, for example by monitoring the work results

of employees, and providing direction and guidance

to employees. From the dimensions of woker a good

relationship between employees will have an impact

on the calm and comfort of employees in work so that

it can improve employee performance.

5 CONCLUSIONS

Based on the result of this study, it is proven that the

transformational leadership, work environment, and

job satisfaction have a signiﬁant effect both partially

and simultaneously on the performance of PUP and

DIY ESDM staff employees.

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