THE INFLUENCE OF TRANSFORMATIONAL LEADERSHIP AND FINANCIAL COMPENSATION ON ORGANIZATIONAL COMMITMENT WITH JOB SATISFACTION AS A MEDIATION VARIABLE (Study of all Village Office Employees in Pringgasela District, East Lombok Regency)

ABSTRACT : This research aims to determine and analyze the role of job satisfaction as a mediating variable in the influence of transformational leadership and financial compensation on organizational commitment to study at village offices in Pringgasela District, East Lombok Regency. This type of research is causal associative. The data collection method used in this research is the census. The population in this study was all 105 village office employees in Pringgasela District, East Lombok Regency. The sampling technique used was saturated sampling or census. Of the 105 questionnaires distributed that were returned to the researchers, there were 98 questionnaires with a response rate of 93.33%. The analysis tool used is path analysis with Smart PLS. The results of this research indicate that transformational leadership and financial compensation directly have a negative and insignificant effect on organizational commitment. Transformational leadership has a positive and significant effect on job satisfaction. Financial compensation has a positive and significant effect on job satisfaction. Job satisfaction has a positive and significant effect on organizational commitment. Transformational leadership has a positive and significant effect on organizational commitment, mediating with job satisfaction. Financial compensation has a positive and significant effect on organizational commitment, mediating with job satisfaction. Transformational leadership influences employee job satisfaction through aspects such as inspiration, motivation and emotional support. Increased job satisfaction resulting from a transformational leadership style can contribute to employees’ positive roles and increase organizational commitment. Adequate financial compensation creates feelings of appreciation and satisfaction in employees, which, in turn, leads to higher levels of commitment to the organization.

Keywords ::Transformational Leadership, Financial Compensation, Job Satisfaction, Organizational Commitment