TRANSFORMING SERVANT LEADERSHIP TO IMPROVE EMPLOYEE PERFORMANCE: PERSPECTIVES ON ORGANIZATIONAL COMMITMENT

Abstract

This study aims to investigate the effect of servant leadership on employee performance, the effect of servant leadership on organizational commitment, the effect of organizational commitment on employee performance, and the effect of servant leadership on employee performance through organizational commitment as an intervening variable. The research locus includes five manufacturing companies in Bogor Regency, with a sample of 250 respondents using quota sampling. The study employs a survey method with a quantitative approach and data analysis using Structural Equation Modelling – Partial Least Square (SEM-PLS). The results of the study indicate that servant leadership has a direct, positive, and significant effect on employee performance. This suggests that a leadership style emphasizing service and empowerment of employees can enhance their productivity and work effectiveness. Furthermore, servant leadership also has a direct, positive, and significant effect on organizational commitment. Employees who feel cared for and supported by their leaders tend to exhibit higher loyalty and commitment to the organization. Additionally, the study finds that organizational commitment has a direct, positive, and significant effect on employee performance. Strong commitment to the organization motivates employees to work harder and achieve better results. Moreover, organizational commitment is found to mediate the relationship between servant leadership and employee performance, indicating that the effect of servant leadership on employee performance largely occurs through the enhancement of organizational commitment. This study provides practical implications for managers and organizational leaders to adopt a servant leadership style to improve employee performance. By enhancing organizational commitment, leaders can maximize employee potential and achieve organizational goals more effectively.