Syaaf, Nabila Khalisa (2024) THE IMPACT OF TRANSFORMATIONAL LEADERSHIP AND EMPLOYEE WELL-BEING ON JOB SATISFACTION IN NONPROFIT ORGANIZATIONS. Undergraduate thesis, UNDIP: Fakultas Ekonomika dan Bisnis.

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Abstract

Nonprofit organizations often face significant challenges due to financial and human
resource limitations, particularly in retaining employees and members who contribute
without monetary incentives. The lack of salaries or profit-sharing mechanisms makes it
difficult to maintain long-term engagement, leading nonprofits to rely heavily on the intrinsic
motivation and dedication of individuals who are committed to the organization’s mission.
This makes it essential to adopt strategies that promote commitment, job satisfaction, and
overall well-being.
Transformational leadership emerges as a promising approach by inspiring and
motivating individuals, fostering a sense of ownership, and aligning personal values with
organizational goals. By creating an environment where individuals feel valued and driven,
transformational leadership may help overcome the absence of financial rewards and enhance
both job satisfaction and employee well-being.
This study investigates the impact of transformational leadership on employee wellbeing and job satisfaction within two nonprofit organizations. It explores how leadership
practices influence motivation, personal development, and emotional fulfillment, addressing
the unique challenges faced by nonprofits where financial compensation is limited. The
findings aim to demonstrate how effective leadership can improve retention, engagement,
and organizational performance, contributing to a positive work environment that supports
both individual and organizational success.

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