THE IMPACT OF WORK ENVIRONMENT AND TRANSACTIONAL LEADERSHIP STYLE ON EMPLOYEES’ PERFORMANCE: JOB SATISFACTION AS A MEDIATOR

Abstract

Tourism has supported Malaysia's rapid economic expansion; it is the third largest contributor to the country's GDP, following manufacturing and commodities. The hotel industry also helps to the expansion of local and international tourism. Given the tourism industry's rapid annual changes and the unexpected shift in the economic situation, hotel owners should reconsider their client loyalty and performance strategies. Furthermore, the international environment, such as the global spread of dangerous diseases, may influence hotel performance. The COVID-19 outbreak has taken a significant toll on the travel and tourist industry. Using quantitative methodologies, the researcher identified two elements that influence employee performance: work environment and transformational leadership. In addition, this study will look into the role of job satisfaction as a mediator in the interaction between work environment and transformational leadership in terms of employee performance in a five-star hotel in Selangor. This study discovered that firms in the hospitality industry rely largely on their employees to deliver services in order to obtain a competitive advantage and achieve long-term success. As seen in the service profit chain, satisfied employees can increase tourist satisfaction and hotel profitability. Furthermore, pleased employees are expected to reduce disengagement and promote corporate citizenship. This study aims to assess employee job satisfaction and its relationship to attrition intentions and organizational citizenship actions in Malaysian hospitality.