Title:
THE EFFECT OF TRANSFORMATIONAL LEADERSHIP ON REWARD: MODERATING ROLE OF PUBLIC SERVICE MOTIVATION AND MISSION VALENCE (A STUDY ON FACILITY UNIT, REGION 2 BANDUNG OF PT KERETA API INDONESIA (PERSERO)

Authors:
Tiven Ronikko, Sinto Sunaryo, Indonesia

Abstract:

This study aimed to examine the effect of transformational Leadership on the reward when public service motivation and mission valence serve as the moderating variables. Conducted in PT KAI’s Facility Unit of Region 2 Bandung, this study involved 220 participants. To this end, Structural Equation Modeling (SEM) was applied. The result showed that both intrinsic and extrinsic rewards affected performance. Whereas it was found that transformational leadership did not affect performance. It was also found that public service motivation and mission valence did not moderate the effect of transformational leadership on performance.  Future studies are recommended to investigate leadership styles that influence employee’s performance, as well as a more effective reward system for improving employee's performance.