Leadership Style and Perceived Meritocracy: Work Engagement as a Mediator of Job Satisfaction

Abstract

The management of non-organic workers requires organizations to pay attention not only to supervisory practices but also to the fairness and objectivity of employment-related decisions. This study examines the effects of leadership style and perceived meritocracy on job satisfaction, with work engagement serving as a mediating variable among non-organic workers at PT Petrokopindo Cipta Selaras. The study employed a quantitative explanatory design and analyzed data from 100 respondents using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The measurement model consisted of 16 indicators representing leadership style, perceived meritocracy, work engagement, and job satisfaction. The results show that leadership style does not significantly affect either work engagement (β = -0.023, p = 0.891) or job satisfaction (β = 0.126, p = 0.303). In contrast, perceived meritocracy has a positive and significant effect on work engagement (β = 0.706, p < 0.001) and job satisfaction (β = 0.323; p = 0.032). Work engagement also positively affects job satisfaction (β = 0.439, p = 0.001). The mediation analysis further indicates that work engagement does not mediate the relationship between leadership style and job satisfaction, whereas it significantly mediates the relationship between perceived meritocracy and job satisfaction (β = 0.310, p = 0.003). These findings highlight the importance of merit-based workforce management in strengthening work engagement and job satisfaction among non-organic workers.