Transformational leadership and empowerment as driving factors for employee performance in Star-Rated Hotels in Central Java

https://doi.org/10.35912/ahrmr.v5i2.2828
Published: Jun 17, 2025

Abstract:

Purpose: The aim of this study is to examine how transformational leadership and employee empowerment can improve employee performance in four-star hotels in Central Java.

Research Methodology: The research was conducted in four-star hotels in Central Java, involving a survey of 185 hotel employees selected through proportional random sampling. The data was analyzed using Partial Least Square (PLS) to explore the causal relationships between the study variables.

Results: The study found that transformational leadership has a strong positive effect on employee empowerment. Additionally, employee empowerment positively influences employee performance. Transformational leadership also directly impacts employee performance in a positive manner. Furthermore, employee empowerment acts as a mediator between transformational leadership and employee performance, with a significant indirect effect. The proposed model exhibited strong predictive ability for both employee empowerment and employee performance. Overall, the relationships examined in the study were consistently positive and significant.

Conclusion: The research concludes that both transformational leadership and employee empowerment are crucial for enhancing employee performance in the hotel industry. The interaction between these factors significantly contributes to better performance outcomes

Limitations: A limitation of the study is that it focuses solely on four-star hotels in Central Java, which may not be generalizable to other types of hotels or regions.

Contribution: This study contributes to the fields of management and hospitality by providing insights into how leadership styles and employee empowerment can work together to boost employee performance. It is valuable for hotel managers, HR professionals, and researchers interested in improving workplace dynamics and performance in the hospitality industry.

Keywords:
1. Employee Empowerment
2. Employee Performance
3. Transformational Leadership
Authors:
1 . Krisnawati Setyaningrum Nugraheni
Sekolah Tinggi Ilmu Ekonomi Pariwisata Indonesia, Semarang, Indonesia
2 . Dyah Palupiningtyas
Sekolah Tinggi Ilmu Ekonomi Pariwisata Indonesia, Semarang, Indonesia
3 . Rudi Prasetyo Ardi
Binus University, Jakarta, Indonesia
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How to Cite
Nugraheni, K. S., Palupiningtyas, D., & Ardi, R. P. (2025). Transformational leadership and empowerment as driving factors for employee performance in Star-Rated Hotels in Central Java. Annals of Human Resource Management Research, 5(2), 231–242. https://doi.org/10.35912/ahrmr.v5i2.2828
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Issue & Section
Vol. 5 No. 2 (2025): June
Articles
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

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    AlKahtani, N., Iqbal, S., Sohail, M., Sheraz, F., Jahan, S., Anwar, B., & Haider, S. (2021). Impact of Employee Empowerment on Organizational Commitment Through Job Satisfaction in Four and Five Stars Hotel Industry. Management Science Letters, 11(3), 813-822. doi:https://doi.org/10.5267/j.msl.2020.10.022

    Ani, J., Lumanauw, B., & Tampenawas, J. (2022). Pengaruh Citra Merek, Promosi Dan Kualitas Layanan Terhadap Keputusan Pembelian Konsumen pada e-commerce Tokopedia di Kota Manado. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 10(1), 663-674. doi:https://doi.org/10.35794/emba.v10i1.38284

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    Avey, J. B., Hughes, L. W., Norman, S. M., & Luthans, K. W. (2008). Using Positivity, Transformational Leadership and Empowerment to Combat Employee Negativity. Leadership & Organization Development Journal, 29(2), 110-126. doi:https://doi.org/10.1108/01437730810852470

    Bose, I. (2018). Employee Empowerment and Employee Performance: An Empirical Study on Selected Banks in UAE. Journal of Applied Management and Investments, 7(2), 71-82. doi:http://dx.doi.org/10.13140/RG.2.2.23260.69765

    Buil, I., Martínez, E., & Matute, J. (2019). Transformational leadership and employee performance: The role of identification, engagement and proactive personality. International Journal of Hospitality Management, 77, 64-75.

    Chang, P.-C., & Chen, S.-J. (2011). Crossing the Level of Employee's Performance: HPWS, Affective Commitment, Human Capital, and Employee Job Performance in Professional Service Organizations. The international journal of human resource management, 22(4), 883-901. doi:https://doi.org/10.1080/09585192.2011.555130

    Chen, Y., Ning, R., Yang, T., Feng, S., & Yang, C. (2018). Is Transformational Leadership Always Good for Employee Task Performance? Examining Curvilinear and Moderated Relationships. Frontiers of Business Research in China, 12, 1-28. doi:https://doi.org/10.1186/s11782-018-0044-8

    Eliyana, A., & Ma’arif, S. (2019). Job satisfaction and organizational commitment effect in the transformational leadership towards employee performance. European Research on Management and Business Economics, 25(3), 144-150.

    Ghafoor, A., Qureshi, T. M., Khan, M. A., & Hijazi, S. T. (2011). Transformational Leadership, Employee Engagement and Performance: Mediating Effect of Psychological Ownership. African journal of business management, 5(17), 7391-7403. doi:https://doi.org/10.5897/ajbm11.126

    Guritno, B., Widagdo, C. S., & Nugraheni, K. S. (2024). The Impact of High Performance Work Systems (HPWS) on Employee Performance through Employee Empowerment as Mediation. Jurnal Ilmiah Edunomika, 8(3), 1-14. doi:https://doi.org/10.29040/jie.v8i3.14615

    Hanandriati, B., & Nugraheni, K. S. (2024). Transformational Leadership Style, Competence, and Employee Involvement on Employee Performance Hotel Grandhika Semarang. International Journal on Social Science, Economics and Art, 14(1), 130-137. doi:https://doi.org/10.35335/ijosea.v14i1.481

    Hariyono, T., Sanusi, A., & Triatmanto, B. (2017). The Effect of Transformational Leadership, Organizational Commitment and Empowerment on Managerial Performance Through Organizational Citizenship Behavior at PT. Cobra Direct Sale Indonesia. International Journal of Business and Management Invention, 6(6), 23-31.

    Ibrahim, I. A., El-Monshed, A. H., Altheeb, M., & El-Sehrawy, M. G. (2024). Transformational Leadership, Psychological Empowerment, and Organizational Citizenship Behaviors among Nursing Workforce: A Single Mediation Analysis. Journal of Nursing Management, 2024(1), 1-11. doi:https://doi.org/10.1155/2024/9919371

    Iqbal, K., Fatima, T., & Naveed, M. (2019). The Impact of Transformational Leadership on Nurses’ Organizational Commitment: A Multiple Mediation Model. European Journal of Investigation in Health, Psychology and Education, 10(1), 262-275. doi:https://doi.org/10.3390/ejihpe10010021

    Juliyanti, W. (2022). Studi Deskriptif: Determinan Teknologi, Informasi dan Komunikasi dalam Pengungkapan LKPD di Indonesia. Studi Akuntansi, Keuangan, dan Manajemen, 2(2), 121-134. doi:https://doi.org/10.35912/sakman.v2i2.1670

    Magasi, C. (2021). The Role of Transformational Leadership on Employee Performance: A Perspective of Employee Empowerment. European Journal of Business and Management Research, 6(6), 21-28. doi:https://doi.org/10.24018/ejbmr.2021.6.6.1137

    Mondiani, T. (2012). Pengaruh Kepemimpinan Transformasional dan Kompensasi Terhadap Kinerja Karyawan PT. PLN (Persero) UPJ Semarang. Jurnal Administrasi Bisnis, 1(1), 46-54. doi:https://doi.org/10.14710/jab.v1i1.4317

    Murray, W. C., & Holmes, M. R. (2021). Impacts of Employee Empowerment and Organizational Commitment on Workforce Sustainability. Sustainability, 13(6), 1-14. doi:https://doi.org/10.3390/su13063163

    Nabilla, F. A., & Wibisono, D. (2025). Proposed Performance Management System (PMS) using Performance Prism Indicators Case Study at NGO XYZ. Jurnal Bisnis dan Pemasaran Digital, 4(2), 161-182. doi:https://doi.org/10.35912/jbpd.v4i2.4534

    Nawaz, N., Gajenderan, V., Manoharan, M., & Parayitam, S. (2024). Disentangling the Relationship Between Transformational Leadership and Work Engagement: Employee Empowerment as a Mediator and Work Experience and Gender as Moderators. Cogent Business & Management, 11(1), 1-27. doi:https://doi.org/10.1080/23311975.2023.2291851

    Nugraheni, K. S., & Triatmanto, B. (2022). The Role of Organizational Commitment as Mediation of The Influence of Transformational Leadership on Hotel Employee Performance. European Journal of Business and Management Research, 7(6), 84-88. doi:https://doi.org/10.24018/ejbmr.2022.7.6.1705

    Nurhidayati, & Najmah. (2022). Performance Enhancement Strategy through Work Engagement: The Role of Transformational Leadership and Structural Empowerment. E-Academia Journal, 11(1), 81-90. doi:https://doi.org/10.24191/e-aj.v11i1.18274

    Octafian, R., & Nugraheni, K. S. (2022). COVID-19: Analisis Job Insecurity dan Job Engagement Terhadap Job Performance Karyawan Hotel di Semarang. JENIUS (Jurnal Ilmiah Manajemen Sumber Daya Manusia), 5(2), 429-438. doi:https://doi.org/10.32493/jjsdm.v5i2.16930

    Okto, J., Yudhinanto, Y., Alie, M. S., Surya, A., Desmon, D., & Vilta, E. T. O. (2024). Efek Mediasi Kepuasan Kerja Karyawan pada Pengaruh Gaya Kepemimpinan dan Budaya Organisasi terhadap Kinerja Karyawan pada PT. Laundry Pro. Jurnal Akuntansi, Keuangan, dan Manajemen, 6(1), 61-79. doi:https://doi.org/10.35912/jakman.v6i1.3337

    Rumengan, M. T. A., Rumengan, M. T. I., Suhardis, A., & Riza, K. (2023). Pengaruh Kepercayaan, Keamanan dan Kualitas Pelayanan terhadap Keputusan Pembelian Barang secara Daring. Jurnal Bisnis dan Pemasaran Digital, 1(2), 99-106. doi:https://doi.org/10.35912/jbpd.v1i2.1936

    Stanescu, D. F., Zbuchea, A., & Pinzaru, F. (2021). Transformational Leadership and Innovative Work Behaviour: The Mediating Role of Psychological Empowerment. Kybernetes, 50(5), 1041-1057. doi:https://doi.org/10.1108/K-07-2019-0491

    Suryadi, D., Setyaningsih, S., & Tukiran, M. (2023). Strengthening of Transformational Leadership, Empowerment, Work Motivation and Trust in Enhancing Teacher Professional Commitment. Journal of Industrial Engineering & Management Research, 4(2), 42-56. doi:https://doi.org/10.7777/jiemar.v4i2.461

    Syarif, A., & Riza, K. (2022). Pengaruh Kepemimpinan Transformasional, Disiplin Kerja dan Komunikasi Terhadap Kinerja Pegawai pada Dinas Pendidikan Kepulauan Riau. Jurnal Humaniora dan Ilmu Pendidikan, 2(1), 33-41. doi:https://doi.org/10.35912/jahidik.v2i1.1664

    Wen, J., Huang, S. S., & Teo, S. (2023). Effect of Empowering Leadership on Work Engagement Via Psychological Empowerment: Moderation of Cultural Orientation. Journal of Hospitality and Tourism Management, 54, 88-97. doi:https://doi.org/10.1016/j.jhtm.2022.12.012

    Wesly, J., Kristiana, V., Bong, T., & Saputra, N. (2021). Pengaruh Digital Leadership, Total Quality Management, dan Knowledge Management terhadap Sustainability Management pada Perusahaan di DKI Jakarta. Studi Ilmu Manajemen dan Organisasi, 2(2), 97-124. doi:https://doi.org/10.35912/simo.v2i2.543

    Zoghbi-Manrique-de-Lara, P., & Ting-Ding, J.-M. (2017). Task and Contextual Performance as Reactions of Hotel Staff to Labor Outsourcing: The Role of Procedural Justice. Journal of Hospitality and Tourism Management, 33, 51-61. doi:https://doi.org/10.1016/j.jhtm.2017.09.007

  1. Afif, M. (2019). Pengaruh Motivasi dan Lingkungan Kerja Terhadap Kinerja Karyawan Bagian Packing Produk Minuman PT. Singa Mas Pandaan. JAMIN: Jurnal Aplikasi Manajemen dan Inovasi Bisnis, 1(2), 104-125. doi:http://dx.doi.org/10.47201/jamin.v1i2.11
  2. Al-Amin, M. (2017). Transformational Leadership and Employee Performance Mediating Effect of Employee Engagement. North South Business Review, 7(2), 28-40.
  3. AlKahtani, N., Iqbal, S., Sohail, M., Sheraz, F., Jahan, S., Anwar, B., & Haider, S. (2021). Impact of Employee Empowerment on Organizational Commitment Through Job Satisfaction in Four and Five Stars Hotel Industry. Management Science Letters, 11(3), 813-822. doi:https://doi.org/10.5267/j.msl.2020.10.022
  4. Ani, J., Lumanauw, B., & Tampenawas, J. (2022). Pengaruh Citra Merek, Promosi Dan Kualitas Layanan Terhadap Keputusan Pembelian Konsumen pada e-commerce Tokopedia di Kota Manado. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 10(1), 663-674. doi:https://doi.org/10.35794/emba.v10i1.38284
  5. Asbari, M., & Novitasari, D. (2024). Kepemimpinan Transformasional sebagai Katalisator Inovasi dan Kinerja Organisasi: Tinjauan Literatur. Journal of Information Systems and Management (JISMA), 3(6), 86-108. doi:https://doi.org/10.4444/jisma.v3i6.1149
  6. Avey, J. B., Hughes, L. W., Norman, S. M., & Luthans, K. W. (2008). Using Positivity, Transformational Leadership and Empowerment to Combat Employee Negativity. Leadership & Organization Development Journal, 29(2), 110-126. doi:https://doi.org/10.1108/01437730810852470
  7. Bose, I. (2018). Employee Empowerment and Employee Performance: An Empirical Study on Selected Banks in UAE. Journal of Applied Management and Investments, 7(2), 71-82. doi:http://dx.doi.org/10.13140/RG.2.2.23260.69765
  8. Buil, I., Martínez, E., & Matute, J. (2019). Transformational leadership and employee performance: The role of identification, engagement and proactive personality. International Journal of Hospitality Management, 77, 64-75.
  9. Chang, P.-C., & Chen, S.-J. (2011). Crossing the Level of Employee's Performance: HPWS, Affective Commitment, Human Capital, and Employee Job Performance in Professional Service Organizations. The international journal of human resource management, 22(4), 883-901. doi:https://doi.org/10.1080/09585192.2011.555130
  10. Chen, Y., Ning, R., Yang, T., Feng, S., & Yang, C. (2018). Is Transformational Leadership Always Good for Employee Task Performance? Examining Curvilinear and Moderated Relationships. Frontiers of Business Research in China, 12, 1-28. doi:https://doi.org/10.1186/s11782-018-0044-8
  11. Eliyana, A., & Ma’arif, S. (2019). Job satisfaction and organizational commitment effect in the transformational leadership towards employee performance. European Research on Management and Business Economics, 25(3), 144-150.
  12. Ghafoor, A., Qureshi, T. M., Khan, M. A., & Hijazi, S. T. (2011). Transformational Leadership, Employee Engagement and Performance: Mediating Effect of Psychological Ownership. African journal of business management, 5(17), 7391-7403. doi:https://doi.org/10.5897/ajbm11.126
  13. Guritno, B., Widagdo, C. S., & Nugraheni, K. S. (2024). The Impact of High Performance Work Systems (HPWS) on Employee Performance through Employee Empowerment as Mediation. Jurnal Ilmiah Edunomika, 8(3), 1-14. doi:https://doi.org/10.29040/jie.v8i3.14615
  14. Hanandriati, B., & Nugraheni, K. S. (2024). Transformational Leadership Style, Competence, and Employee Involvement on Employee Performance Hotel Grandhika Semarang. International Journal on Social Science, Economics and Art, 14(1), 130-137. doi:https://doi.org/10.35335/ijosea.v14i1.481
  15. Hariyono, T., Sanusi, A., & Triatmanto, B. (2017). The Effect of Transformational Leadership, Organizational Commitment and Empowerment on Managerial Performance Through Organizational Citizenship Behavior at PT. Cobra Direct Sale Indonesia. International Journal of Business and Management Invention, 6(6), 23-31.
  16. Ibrahim, I. A., El-Monshed, A. H., Altheeb, M., & El-Sehrawy, M. G. (2024). Transformational Leadership, Psychological Empowerment, and Organizational Citizenship Behaviors among Nursing Workforce: A Single Mediation Analysis. Journal of Nursing Management, 2024(1), 1-11. doi:https://doi.org/10.1155/2024/9919371
  17. Iqbal, K., Fatima, T., & Naveed, M. (2019). The Impact of Transformational Leadership on Nurses’ Organizational Commitment: A Multiple Mediation Model. European Journal of Investigation in Health, Psychology and Education, 10(1), 262-275. doi:https://doi.org/10.3390/ejihpe10010021
  18. Juliyanti, W. (2022). Studi Deskriptif: Determinan Teknologi, Informasi dan Komunikasi dalam Pengungkapan LKPD di Indonesia. Studi Akuntansi, Keuangan, dan Manajemen, 2(2), 121-134. doi:https://doi.org/10.35912/sakman.v2i2.1670
  19. Magasi, C. (2021). The Role of Transformational Leadership on Employee Performance: A Perspective of Employee Empowerment. European Journal of Business and Management Research, 6(6), 21-28. doi:https://doi.org/10.24018/ejbmr.2021.6.6.1137
  20. Mondiani, T. (2012). Pengaruh Kepemimpinan Transformasional dan Kompensasi Terhadap Kinerja Karyawan PT. PLN (Persero) UPJ Semarang. Jurnal Administrasi Bisnis, 1(1), 46-54. doi:https://doi.org/10.14710/jab.v1i1.4317
  21. Murray, W. C., & Holmes, M. R. (2021). Impacts of Employee Empowerment and Organizational Commitment on Workforce Sustainability. Sustainability, 13(6), 1-14. doi:https://doi.org/10.3390/su13063163
  22. Nabilla, F. A., & Wibisono, D. (2025). Proposed Performance Management System (PMS) using Performance Prism Indicators Case Study at NGO XYZ. Jurnal Bisnis dan Pemasaran Digital, 4(2), 161-182. doi:https://doi.org/10.35912/jbpd.v4i2.4534
  23. Nawaz, N., Gajenderan, V., Manoharan, M., & Parayitam, S. (2024). Disentangling the Relationship Between Transformational Leadership and Work Engagement: Employee Empowerment as a Mediator and Work Experience and Gender as Moderators. Cogent Business & Management, 11(1), 1-27. doi:https://doi.org/10.1080/23311975.2023.2291851
  24. Nugraheni, K. S., & Triatmanto, B. (2022). The Role of Organizational Commitment as Mediation of The Influence of Transformational Leadership on Hotel Employee Performance. European Journal of Business and Management Research, 7(6), 84-88. doi:https://doi.org/10.24018/ejbmr.2022.7.6.1705
  25. Nurhidayati, & Najmah. (2022). Performance Enhancement Strategy through Work Engagement: The Role of Transformational Leadership and Structural Empowerment. E-Academia Journal, 11(1), 81-90. doi:https://doi.org/10.24191/e-aj.v11i1.18274
  26. Octafian, R., & Nugraheni, K. S. (2022). COVID-19: Analisis Job Insecurity dan Job Engagement Terhadap Job Performance Karyawan Hotel di Semarang. JENIUS (Jurnal Ilmiah Manajemen Sumber Daya Manusia), 5(2), 429-438. doi:https://doi.org/10.32493/jjsdm.v5i2.16930
  27. Okto, J., Yudhinanto, Y., Alie, M. S., Surya, A., Desmon, D., & Vilta, E. T. O. (2024). Efek Mediasi Kepuasan Kerja Karyawan pada Pengaruh Gaya Kepemimpinan dan Budaya Organisasi terhadap Kinerja Karyawan pada PT. Laundry Pro. Jurnal Akuntansi, Keuangan, dan Manajemen, 6(1), 61-79. doi:https://doi.org/10.35912/jakman.v6i1.3337
  28. Rumengan, M. T. A., Rumengan, M. T. I., Suhardis, A., & Riza, K. (2023). Pengaruh Kepercayaan, Keamanan dan Kualitas Pelayanan terhadap Keputusan Pembelian Barang secara Daring. Jurnal Bisnis dan Pemasaran Digital, 1(2), 99-106. doi:https://doi.org/10.35912/jbpd.v1i2.1936
  29. Stanescu, D. F., Zbuchea, A., & Pinzaru, F. (2021). Transformational Leadership and Innovative Work Behaviour: The Mediating Role of Psychological Empowerment. Kybernetes, 50(5), 1041-1057. doi:https://doi.org/10.1108/K-07-2019-0491
  30. Suryadi, D., Setyaningsih, S., & Tukiran, M. (2023). Strengthening of Transformational Leadership, Empowerment, Work Motivation and Trust in Enhancing Teacher Professional Commitment. Journal of Industrial Engineering & Management Research, 4(2), 42-56. doi:https://doi.org/10.7777/jiemar.v4i2.461
  31. Syarif, A., & Riza, K. (2022). Pengaruh Kepemimpinan Transformasional, Disiplin Kerja dan Komunikasi Terhadap Kinerja Pegawai pada Dinas Pendidikan Kepulauan Riau. Jurnal Humaniora dan Ilmu Pendidikan, 2(1), 33-41. doi:https://doi.org/10.35912/jahidik.v2i1.1664
  32. Wen, J., Huang, S. S., & Teo, S. (2023). Effect of Empowering Leadership on Work Engagement Via Psychological Empowerment: Moderation of Cultural Orientation. Journal of Hospitality and Tourism Management, 54, 88-97. doi:https://doi.org/10.1016/j.jhtm.2022.12.012
  33. Wesly, J., Kristiana, V., Bong, T., & Saputra, N. (2021). Pengaruh Digital Leadership, Total Quality Management, dan Knowledge Management terhadap Sustainability Management pada Perusahaan di DKI Jakarta. Studi Ilmu Manajemen dan Organisasi, 2(2), 97-124. doi:https://doi.org/10.35912/simo.v2i2.543
  34. Zoghbi-Manrique-de-Lara, P., & Ting-Ding, J.-M. (2017). Task and Contextual Performance as Reactions of Hotel Staff to Labor Outsourcing: The Role of Procedural Justice. Journal of Hospitality and Tourism Management, 33, 51-61. doi:https://doi.org/10.1016/j.jhtm.2017.09.007