The times are increasing rapidly, the education was already more advanced and rivalries between universities became more stringent. If a university wanted to survive amid fierce competition, certainly the university needs the support of its employees is to give the best performance. Of course, that employees in delivering good performance should be supported by certain factors the most important is employee satisfaction because it was found that the more satisfied karyawana then the employee will give better performance, nor vice versa if the employee is not good then its performance or its performance will be decreased . Employee job satisfaction is influenced by several factors and in this research used the transformational leadership factors and the compensation system because of two factors seem quite significant. This research will be tested whether or not there is influence between transformational leadership and the system of compensation to employee satisfaction. The research was conducted at Atma Jaya Catholic University of seeing the progress that is owned by the Catholic University of Atma Jaya thus conducted at Catholic University of Atma Jaya.In this study, testing the hyothesis by using the concept of SEM (structural equation modeling) with the software used is LISREL. Based on the results of processing the data using LISREL program will produce a conclusion whether there is influence of transformational leadership on job satisfaction of employees and whether there is influence of the compensation system on employee job satisfaction. Key words: transformational leadership, compensation system, employee’s job satisfaction, SEM, LISREL, university. |