International Journal of Business

Management & Research (IJBMR)

ISSN(P): 2249-6920; ISSN(E): 2249-8036
Vol. 4, Issue 5, Oct 2014, 9-20
TJPRC Pvt. Ltd.

THE INFLUENCE OF LEADERSHIP OF JOB SATISFACTION WITH THE MEDIATORS

OF ORGANIZATIONAL COMMITMENT AND TRUST IN LEADER
(STUDY ON SETIA BUDI UNIVERSITY SURAKARTA)
EKO SANTOSA & MULYANTO
STIE AUB Surakarta, Indonesia

ABSTRACT
The purposes of this study are 1) To test whether leadership affect on organizational commitment, 2) To test
whether organizational commitment affect on employee job satisfaction, 3) To test whether leadership affect on trust,
4) To test whether trust affect on job satisfaction, 5) To test whether trust mediates the influence of leadership on job
satisfaction, 6) To test whether organizational commitment mediates the effect of leadership on job satisfaction, 7) To test
whether the leadership has an influence on job satisfaction
The population in this study is the entire staff of employees of University Setia Budi which amounts to
130 people. The sampling technique using a questionnaire based on the determination of rules of thumb samples for SEM
were as many as 130 people. Analysis and hypothesis testing using Structural Equation Modeling (SEM)
The results of this study include: 1) Leadership effect on University Setia Budi employees organizational
commitment, 2) organizational commitment effect on University Setia Budi employees job satisfaction, 3) Leadership
effect on the confidence of employees of University Setia Budi, 4) The trust not effect on University Setia Budi employee
job satisfaction, 5) The trust not mediate the effect of leadership on University Setia Budi employee job satisfaction,
6) organizational commitment mediate the effect of leadership on University Setia Budi employee job satisfaction,
7) leadership has an influence on University Setia Budi employee job satisfaction.

KEYWORDS: Leadership, Job Satisfaction, Organizational Commitment, Trust in Leader

INTRODUCTION
Background
The development of human role in an organization will certainly put human aspect before natural and
technological resources. Setia Budi University Surakarta as an organization in the field of education has reliable visions,
missions and goals. People who gather in that organization have varying conditions due to educational, knowledge, social,
cultural, economic background, etc. This condition will influence employees with different individual purposes from
organizational purposes. If a leader cant provide good services and examples for the employees, work result will be less
satisfactory. Without the support of high quality human resources, the management of the organization cant be managed
well, thus unable to give optimal benefits to improve competence in work environment.
Leadership is very important in running an organization. A leader in any level has leadership characteristic or
leadership style. In a correct leadership, all components, elements and strengths can be accommodated maximally and can
yield optimal results in increasing the achievement of employees in the organization.

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The subject of leadership in interesting for many researchers Advance researches on good leaders have produced
the development of many leadership theories. Researches are conducted to determine leadership behaviors which can be
used to influence employees to improve organizational outcome. In the last few decades, management experts have made a
revolution on how to define leadership and its behaviors. They have shifted from classical autocratic approach to creative
participative approach. The idea on management and leadership has change in the past few years. Now people have better
education and are more able of speaking well, not ordered as before. There is a requirement for more involvement and
participation at work. Leaders should also be trusted by the subordinates because trust can bind subordinates to their
superiors (Nanus, in Bartram, 2007: 5)
Organizational commitment has received substantial attention in previous studies. Organizational commitment has
been defined differently by various scholars depending on their background. The author defines organizational
commitment a relative power over an individuals identification and his/her involvement in an organization. According to
this definition, there are three components of organizational commitment, i.e: strong believe in organizational values and
goals (identification); willingness to use efforts which enable to be loyal to the organization (involvement); and strong
intention or desire to stay in an organization (loyalty) (Mowday, Porter, and Steer, in Tella, 2007: 6)
Job Satisfaction is one of the variables most often studied in industrial history and organizational psychology
(Spector et al; Pool in Palupi 2011: 3). Job satisfaction is behaviors formed by an individual in his/her relation with a job
as an employee (Pool, in Palupi 2011: 3). Job satisfaction is also an important behavior which can be used to assess an
employees entire contribution in an organization and intention to leave the organization. And if an organization is able to
measure factors influencing job satisfaction, the organization can strengthen the employees morale and give positive
outcome to the organization.
Based on the studies of Bartram and Casimir (2007), Yousef (2000), and Rad and Yarmohamadian (2006) there
are many antecedents for these two variables to study, one of them is leadership variable. Leadership style is a factor which
influences employees attitude to be loyal to the head of the company. Aside from organizational commitment and job
satisfaction variables, another variable which is interesting to study nowadays is trust in leaders. Trust in leaders is the
expectation of people who believe that the people they trust will not do anything that will endanger them (Atkinson and
Butcher; Sendjaya, Sen in Palupi 2011: 3). Trust in leader is a fundamental factor for the cooperation in an organization
and an individuals daily interactions. Whats interesting for the author is studies which produce inconsistent results, i.e.
studies which state insignificant results on the variables above, such as a study by Lok (2004: 332) which states that
leadership has negative influence on job satisfaction.
Several phenomenons which could be observed in Setia Budi University Surakarta related to matters of
leadership, job satisfaction, organizational commitment and trust in leaders were as follows:

Leadership is viewed as an important determinant and plays a central role. Leadership is a management function
directed toward human and social interaction, similar to the process of influencing people so they reach
organizational goals. As a group leader, someone must encourage members to perform activities while giving
suggestions and encouragement to reach the goals. All inputs from outside, whether ideas or thoughts, pressure,
or materials, should be processed under the leaders coordination. Based on experience from previous periods or
years, the leadership in Setia Budi University Surakarta today hasnt maximally accommodated all components,
elements and strengths and yield optimal results.

Impact Factor (JCC): 4.9926

Index Copernicus Value (ICV): 3.0

The Influence of Leadership of Job Satisfaction with the Mediators of Organizational

Commitment and Trust in Leader (Study on Setia Budi University Surakarta)

11

Job satisfaction is employees perception on how well a job provides things considered important, job satisfaction
is an emotional response to job situation, invisible but can be felt, also defined as how well the outcome meets the
expectation. Job satisfaction reflects several related behaviors which have very important job characteristics on
people who have effective response. According to (Luthan in Tella 2007: 4) it is: the job itself, payment,
opportunity for promotion, monitoring, and work partners. Based on observation, there were many employees
who hadnt experienced/enjoyed job satisfaction in Setia Budi University Surakarta.

Employees of Setia Budi University Surakarta didnt have high organizational commitment, tended to leave and
organization if they received offers from other institutions better in management of organization and other
aspects, giving bad impact to the progress of the Institution.

Trust in leader has many key elements i.e. integrity, competence, consistency, loyalty, wisdom, fairness,
fulfillment of promises, availability, openness and trust itself. With the indicators above, it was discovered that
most employees of Setia Budi University Surakarta didnt fully trust the leader.

Theoretical Basis

Job Satisfaction
Studies on Job satisfaction reflect how well an individual enjoys his/her job (Pool, in Palupi 2011: 18).

Therefore, job satisfaction in an emotional response to various aspects. Job satisfaction isnt a unitary concept,
because employees may be satisfied in one job aspect but not satisfied in another job aspect. (Locke and Lathan in
Adeyinka, 2007: 4) give comprehensive definition regarding job satisfaction and a positive and pleasant emotional status
produced by assessment on someones job or work experience. Robbins, 2005 in Yiing, 2009: 56) defines job satisfaction
as a set of feelings carried by employees in performing their jobs. Job satisfaction is the result of employees perception on
how well their jobs provide things considered important. Job Satisfaction is known as a component of organizational
commitment (Kovach, in Feinstein, 2008: 4). Job satisfaction is a statement of happiness obtained from implementing
ones values on the job (Locke, in Feinstein, 2008: 4). According to (Mitchell and Lasan, in Tella 2007: 4), it is generally
known in the field of organizational behaviors that job satisfaction is the most important and most often studied behaviors.

Leadership
Leadership is defined as articulation of urgent visions to subordinates, self-sacrificing behaviors, intellectually

stimulating subordinates and giving subordinates individual consideration (Bass, Klein and House, in Bartram, 2007: 5).
Leadership is an ability, process, r function in general to influence people to do something in order to reach certain goals.
It means this has to be mutually acknowledged, for example the target led must acknowledge the person as the leader.
Leadership is an effort to influence followers not by force to motivate people to reach certain goals. The process of
influencing other people is to understand and agree on what should be done and what to do to achieve common goals
(Yukl 2005: 4). The relation of leaders with members is related to the level of emotional quality of the relation, which
includes level of familiarity and acceptance of members to the leaders. The most sure and trusting the members in the
leaders, the more effective the group in reaching the goals. In the relation of leaders with members, anticipation of
members satisfaction should be considered and combined with group goals, members motivation should be maintained to
remain high, members maturity in decision making and strong willpower in reaching goals.

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Eko Santosa & Mulyanto

Organizational Commitment
There are many definitions and measures of organizational commitment (Beckery, Randal, and Riegel in Tella

2007: 6) define the term in three dimensions.

A strong desire to remain a member of a certain organization;

A willingness to urge the upper level to be loyal to the organization;

A certain belief and acceptance toward organizational values and goals.

Trust in Leaders
There are several definitions of trust in management literature. Generally, trust is defined as a willingness to

depend on another party in the same way as the other party which is reciprocal if the individual is willing to cooperate and
involve risks (Mayers et al, in Bartram, 2007: 5). Ability to feel or competence is an essential thing (Cook and Wall,
in Bartram, 2007: 5) for trust in followers-organizational leaders relation, followers wont trust the superiors unless the
superiors have capability to fulfil their leadership role (Whitener et al, in Bartram, 2007: 5). Trust in leaders also mean an
individuals belief in the intention of another party, and mutually motivating (Butler and Cantrell, in Bartram, 2007: 5).
Trust also means credibility and integrity (Kouzes and Posner, in Bartram, 2007: 5).
Framework

Figure 1
Hypotheses
H1: Leadership has an influence on organizational commitment
H2: Organizational commitment has an influence on job satisfaction.
H3: Leadership has an influence on trust in leaders
H4: Trust in leaders has an influence in job satisfaction
H5: Trust in leaders mediates the influence of leadership on job satisfaction
H6: Organizational commitment mediates the influence of leadership on job satisfaction.
H7: Leadership has an influence on job satisfaction

Impact Factor (JCC): 4.9926

Index Copernicus Value (ICV): 3.0

The Influence of Leadership of Job Satisfaction with the Mediators of Organizational

Commitment and Trust in Leader (Study on Setia Budi University Surakarta)

13

METHODS
Operational Definitions of Variables

Job Satisfaction
Job satisfaction is positive and pleasant emotional status produced from assessment of someones job or work

experience in Setia Budi University Surakarta.Indicators of measurement of job satisfaction variable in this study consisted
of:

Job variation

Reward

Opportunity of self actualization

Having freedom

Having clear duties

Promotion

Self development

Work partners

Working conditions

Leaders competence in decision making.

Leadership
Leadership is a process to influence someone to understand and agree in something done and how its done

effectively and to achieve common goals set in Setia Budi University Surakarta. Indicators of measurement of leadership
variable in this study are the combinations of transformational leadership and transactional leadership which consisted of:

Ability

Motivation

Communication

Reward

Punishment

Organizational Commitment
Organizational commitment is behaviors reflecting employees loyalty to the organization, and a process which

runs through members of the organization which express employees concern toward the organization and its continuous
success in Setia Budi University Surakarta. Indicators of measurement of this organizational commitment variable
consisted of

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Eko Santosa & Mulyanto

Happiness

Discretion

Interest to develop

Problem

Order

Trust in Leaders
Trust can be defined as willingness to depend on another part and expectation which will be given by another

party if someone cooperates in Setia Budi University Surakarta. Indicators of measurement of trust in leaders variable
included:

Benevolence of leaders

Support and attention

Leaders integrity

Organizational interests

Leaders motives and intentions

Population and Sample

Population is a generalization area which consists of subjects or objects which have quantity and quality

determined by researches to be studied and to draw conclusion from. The population in this study was all employees of
SETIA BUDI UNIVERSITY SURAKARTA with total 200 people.
Sample is a part of population whose characteristics can be investigated and are considered able to represent the
whole population. Sampling is a process of selecting necessary elements from a population, so a study of sample and
understanding of its natures and characteristics will enable us to generalize the natures or characteristics in population
elements (Sekaran, 2007:123). Sampling technique in this study was random sampling, because total sample collected was
a part of employees of Setia Budi University. Sampling based on rules of thumb of sample selection for SEM Ferdinand
(2002:48) is determined as follows:

100 - 200 samples for Maximum Likelihood Estimation (ML) technique.

Depending on total estimated parameters. The guide is 5-10 times of total estimated parameters.

Depending on total indicators used in all latent variables. Total sample is total indicators times 5 to 10.

RESULTS
Direct and Indirect Influences
Analysis of the influence is presented to show the strength of the influence of a variable on another variable
directly or indirectly. The results of tests of direct influence, indirect influence and total influence are

Impact Factor (JCC): 4.9926

Index Copernicus Value (ICV): 3.0

15

The Influence of Leadership of Job Satisfaction with the Mediators of Organizational

Commitment and Trust in Leader (Study on Setia Budi University Surakarta)

Table 1: Standardized Direct Influence between Variables

Leadership (X) Trust (Y2) Commitment (Y1)
Trust (Y2)
0,887
Commitment (Y1)
0,684
Satisfaction (Y3)
0,433
0,203
0,405
Source: Processed primary data (2012)
Table 2: Standardized Indirect Influence between Variables
Leadership (X) Trust (Y2) Commitment (Y1)
Trust (Y2)
Commitment (Y1)
Satisfaction (Y3)
0,458
Source: Processed primary data (2012)
The interpretation of these results would have significant meaning to select a clear strategy in accordance with
theoretical review and the result of previous hypothesis test. Based on the analysis of standardized in the tables above, the
influence between variables can be presented as
Table 3: Standardized Total Influence between Variables
Leadership (X)
Trust (Y2)
0,887
Commitment (Y1)
0,684
Satisfaction (Y3)
0,891
Source: Processed primary data (2012)

Trust (Y2)
0,203

Commitment (Y1)
0,405

Table 4: Direct, Indirect and Total Influences

Variable
Independent
Dependent
Commitment
(Y1)
Leadership (X)
Trust (Y2)
Satisfaction (Y3)
Commitment(Y1) Satisfaction (Y3)
Trust (Y2)
Satisfaction (Y3)
Source: Processed primary data (2012)

Influence ()
Direct Indirect Total
0,684

0,684

0,887
0,433
0,405
0,203

0,458
-

0,887
0,891
0,405
0,203

Based on the measurement of direct influence, indirect influence and total influence, the direct influence of
leadership variable on job satisfaction is 0,433, the indirect influence of leadership on job satisfaction through trust in
leaders and organizational commitment is 0,458, sp total influence of leadership on job satisfaction is 0,891. Based these
results, trust in leaders mediated the influence of leadership on job satisfaction, therefore hypothesis 5 (H5) wasnt
supported because its Critical Ratio (CR) is 1,375 (< 1,96) with probability = 0,169 (p > 0,05) and hypothesis 6 (H6) in
this study was supported because its Critical Ratio (CR) is 3,138 (> 1,96) and probability = 0,002 (p < 0,05) with Critical
Ratio (CR) of 3,138 (> 1,96) and with = 0,002 (p < 0,05)

DISCUSSIONS
Based on significance test and path analysis of the result of SEM analysis using AMOS 4.01 program, the
summary of hypothesis test is presented in the following Table. Based on the table the explanation on the results of this
study are:

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Eko Santosa & Mulyanto

Table 5: Summary of Hypothesis Test Result

Code

Hypothesis Statement
Result
Estimation Conclusion
Leadership has an influence on
Positive
H1
0,684*
Supported
organizational commitment
Significant
Organizational commitment has an influence Positive
H2
0,405*
Supported
on job satisfaction.
Significant
Leadership has an influence on trust in
Positive
H3
0,887*
Supported
leaders
Significant
Positive
H4 Trust has an influence on job satisfaction
0,203* Not Supported
Insignificant
Trust in leaders mediates the influence of
Positive
H5
0,891* Not Supported
leadership on job satisfaction
Insignificant
Organizational commitment is a mediator of
Positive
H6 the influence of leadership on job
0,891*
Supported
Significant
satisfaction
Leadership has an influence on job
Positive
H7
0,433*
Supported
satisfaction
Significant
*) significant at alpha = 5%
Source: Processed primary data (2012)

The Influence of Leadership on Organizational Commitment

The result showed that leadership had positive influence on organizational commitment of employees of Setia

Budi University. And respondents answers showed that according to employees leaders can help employees in facing
challenges, become a successful figure for employees, and give reward to employees who successfully performed their
duties. It meant better leadership in Setia Budi University could increase employees organizational commitment, while
worse leadership could decrease employees organizational commitment.
The Influence of Organizational Commitment of Job Satisfaction
The result showed that organizational commitment had positive influence on the job satisfaction of employees of
Setia Budi University. It meant that higher organizational commitment of employees of Setia Budi University could
increase employees jobs satisfaction, conversely lower organizational commitment could decrease employees job
satisfaction. This result supported several prior studies which acknowledge that organizational commitment is an
independent variable with job satisfaction as the outcome (Bateman and Strasser, Vandenberg and Lance in Abuga,
2010:18
1.

The Influence of Leadership on Trust in Leaders

Result also showed that leadership had positive influence on trust in leaders in Setia Budi University. It meant

better leadership in Setia Budi University could increase employees trust in leaders, conversely worse leadership could
decrease the level of employees trust in leaders. Leadership is proven to be consistently related to trust in leaders
(Bass, Lowe et al., in Bartram, 2007:5). Leadership facilitates development of trust in leaders for various reasons:

Trust in Leaders as a Mediator of the Effect of Leadership on Jobs Satisfaction

This showed that leadership had positive influence on trust in leaders and job satisfaction of employees of Setia

Budi University. It meant better leadership in Setia Budi University could increase employees trust in leaders and
satisfaction, conversely worse leadership could decrease employees levels of trust in leaders and job
satisfaction.Leadership includes stimulating followers intellectually which then encourages employees to learn new ways
in performing their jobs (Bass, in Bartram 2007:6) and finally improves employees achievements. However, creation and
Impact Factor (JCC): 4.9926

Index Copernicus Value (ICV): 3.0

17

The Influence of Leadership of Job Satisfaction with the Mediators of Organizational

Commitment and Trust in Leader (Study on Setia Budi University Surakarta)

environmental facilities based on trust between transformational leaders and followers are required for leadership-based
learning.
High levels of satisfaction and achievement might need trust in leaders. Merely applying leadership behaviors
didnt guarantee satisfying followers or motivating employees to work. Followers must believe in leaders to have positive
feelings on the leaders and reinforces extra efforts to work effectively. If followers believed leaders didnt only care for the
leaders own welfare, lacking in integrity, or incapable, employees wouldnt trust leaders and as a result employees
wouldnt be satisfied in the leaders and not motivated to work with leaders, therefore influencing employees achievements
negatively.

Organizational Commitment as Mediator of Effects of Leadership of Job Satisfaction

The result showed that leadership had positive influence of organizational commitment of employees of Setia

Budi University and organizational commitment mediated the influence of leadership on job satisfaction. Variation in
leadership would produce variation of level of job outcome from job satisfaction, showing positive relation between
leadership and job satisfaction (e.g. Cheng and Yang, Swanson and Johnson, Euske and Jackson, Euske et al., Savery, in
Palupi 2011:27). Furthermore, Yousef (2000) learns that organizational commitment mediates leadership in its influence on
job satisfaction, meaning employees who are experience good leadership will be loyal to the institution and their job
satisfaction will increase.

The Influence of Leadership on Job Satisfaction

The result showed that leadership had positive influence on the job satisfaction on employees of Setia Budi

University. It meant that better leadership in Setia budi University could increase employees job satisfaction, conversely
worse leadership could decrease employees job satisfaction. Of various determinant factors of job satisfaction, leadership
was considered an important predictor and plays a major role. Leadership is a management function directed toward
subordinates and social interactions, similar to the process of influencing subordinates to achieve organizational goals
(Skansi, 2000 in Rad, 2006:13). Many studies in various countries show that there was positive correlation between
leadership and job satisfaction.

CONCLUSIONS
Based on the descriptions of results and research discussion above, the conclusions in this study were:
1.

Leadership had significant influence on the organizational commitment of employees of Setia Budi University
Surakarta.

2.

Organizational commitment has a significant influence on the jobs satisfaction of employees of Setia Budi
University Surakarta.

3.

Leadership had significant influence on the trust in leaders of employees of Setia Budi University Surakarta.

4.

Trust in leaders didnt influence the job satisfaction of employees of Setia Budi University Surakarta.

5.

Trust in leaders didnt mediate the influence of leadership on the job satisfaction of employees of Setia Budi
University Surakarta.

6.

Organizational commitment mediated the influence of leadership on the job satisfaction of employees of Setia
Budi University Surakarta.

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Eko Santosa & Mulyanto

7. Leadership had significant influence on the job satisfaction of employees of Setia Budi University Surakarta
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