IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 20, Issue 8. Ver. V (August. 2018), PP 62-69 www.iosrjournals.org DOI: 10.9790/487X-2008056269 www.iosrjournals.org 62 | Page How Transformational Leadership Style Of Head Nurse The Influence On Performance Of Nurses By Mediated Job Satisfaction : A Case Study In Hospital Industry Indonesia Fetti Arisa 1 , Tantri Yanuar Rahmat Syah 2 Magister Management Esa Unggul University Jakarta Corresponding Author: Fetti Arisa1 Abstract: Nurses dissatisfaction in work becomes something that needs to be considered by management, because it can the influence performance on of nurses, including leadership style and job satisfaction. Nurses who feel dissatisfied can take actions cause disruption to health services. The evidenced by several studies that have been done before, shows significant influence of transformational leadership style on job satisfaction and performance. But not all nurses feel that the nurse performance is strongly influenced by the leadership style of the nurse head and the job satisfaction itself. So far, no researched has been found that make nurses a source of research and job satisfaction as mediating variable in the hospital industry. So in this study, aims to examine the influence of the head nurse transformational leadership style on nurse performance mediated by job satisfaction that was not found in previous studies. This study was conducted on 140 respondents nurse or male nurse with status as employees or permanent employees inpatient room at a hospitals in North Jakarta, Indonesia using a questionnaire. The method used is the Structural Equation Model (SEM) Lisrel program. The results of this study found that a good head nurse transformational leadership style would increase job satisfaction and the performance of the nurse. Leaders who have attention or support for subordinates have a higher level of job satisfaction than those who do not care about their subordinates. High job satisfaction will improve the performance of the nurse nurse compared to those who feel dissatisfied. Keywords: transformational leadership style, job satisfaction, performance, structural equation model --------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 13-08-2018 Date of acceptance: 30-08-2018 --------------------------------------------------------------------------------------------------------------------------------------- I. Introduction Competition does not only occur in private hospitals, but also in government owned hospitals. In the face of competition, there is a need for creative and effective strategy planning and the role of management improving the quality of service that is continuous and complete. Management can be interpreted as coordination and integration of sources through planning, organizing, coordinating, directing and controlling in achieving the objectives of focusing on the system and structure (Nursalam, 2014). The role of management inpatient has a major influence improving the quality of service in the hospital, carried out by the head nurse as manager or leader who determines the success in providing health services inpatient. Many nurses are considered not disciplined in attendance, there are still nurses who work not using SOP (Standard Operational Procedures) and SAK (Nursing Care Standards), so that job satisfaction and nurse performance need to be improved. Job satisfaction and high nurse performance can provide quality nursing care for patients. This is inseparable from the influence of the head nurse leadership in increasing job satisfaction and nurse performance. Nurses have a decisive position towards the high and low quality of health services in hospitals, because they are the ones who make direct contact and have the most time to interact with patients. The largest human resources in health services in hospitals are occupied by nurses (PPSDM Kesehatan, Kemenkes RI, 2016). Factors that influence to optimize the performance of nurses in hospitals, including leadership style and job satisfaction. Transformational leadership style can be interpreted as one of the most important types of leadership needed by health care (Abdelhafiz, et al., 2015). In line with Bass (1993) and Avolio (1991) shows that transformational leadership can improve employee job satisfaction through ideal influences, inspirational motivation, intellectual stimulation, and individual attention. In relation to transformational leadership style towards job satisfaction, it is said that a good transformational leadership style can increase job satisfaction and performance. Job satisfaction or dissatisfaction can be related to leadership style in an organization. Employees need leadership that can lead employees to face real conditions and bring employees from different situations and conditions to improve job satisfaction and performance (Widodo, 2014). Job satisfaction is needed to support employee performance, employees who have high job satisfaction, will have positive trust in the organization. Conversely, if employees feel dissatisfied, they can do some actions such as not following, leaving