ABSTRACT : This study aim is to assess, to analyze and demonstrating empirically effects of Transformational and Transactional Leadership on Employee Performance of Konawe Education Department at Southeast Sulawesi Province. This study is an explanatory approach using associative primary data from questionnaires. Sample size was determined by Slovin formula. Number of samples is 126 respondents from 185 Konawe Bureau staff. Analysis technique used is descriptive statistical analysis using path analysis tool. This study examined four variables namely transformational leadership (XI) and transactional leadership (X2) as independent variables, work motivation (97) as an intervening variable, and employee's performance (Y2) as dependent variable. These four variables were tested by partial/direct effect and simultaneous effect between variables. Partial test results are follows (a) effect of transformational leadership on performance is 0.646. (b) Effect of transactional leadership on performance is 0.173, (c) effect of work motivation on performance is 0.698. Simultaneous test result are follows: (a) effect of transformational and transactional leadership on work motivation is equal to 0.484 and (b) effect of transformational leadership, transactional and work motivation on performance value of 0.628. With the results of this test indicate that either partial or simultaneous test the variables have positive and significant effect. KEYWORDS: Transformational Leadership. Transactional Leadership. Work Motivation, Employee Performance 1. INTRODUCTION Leadership is a very important factor in an organization because most of success and failure of an organization is determined by leadership. As proposed by James M. Black on Management: A Guide to Executive Command (Marno et.al, 2008:187), "Leadership is ability to convince and mobilize others to work together as a team under his leadership to achieve a certain goal. While Indrfachrudi (2006:2) stated "Leadership is an activity to guide a group in such a way in order to reach goal". Leadership emphasizes a change in most comprehensive and deals with leadership in 21st century namely transformational and transactional leadership. Transformational leadership seeks to transform of visionary become collective vision where subordinates work to realize the vision into reality. In other words, transformational process can be seen through a number of transformational leadership behaviors as: attributed charisma, idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration (Bass and Avolio, 2003). Transactional leadership is a leadership style that emphasizes to transactions between leaders and subordinates. Bass and Avolio (2003) suggest that characteristics of transactional leadership consist of two aspects, namely contingent reward and exception management. Contingent reward is leaders make agreement about what must subordinate do and promising reward obtained when goal is achieved. While exception management is leader monitor deviations from established standards and take corrective action. Leader with transformational leadership style always gives work motivation with an emphasis on social relationships to employees to achieve good performance. Rival (2004) says that leader always involve employees in decision making, putting subordinates as partners as well as promoting a sense of social that will foster a positive attitude of subordinates. Subordinates/employees under transformational leadership really want to do superiors desires. Subordinates will not reject or ignore the wishes of leader, so this leadership makes lower work absenteeism. Yukl (2007) states that application of transformational leadership style can improve performance because transformational leadership wants to develop knowledge and employees potential. Leader with transformational leadership provides opportunity and confidence to his subordinates to carry out duties in accordance with his mindset to achieve organizational goals. Similarly, transactional leadership style is one leadership style that emphasizes on transaction between leaders and subordinates. Transactional leadership motivates and influencing subordinates by exchanging reward with a particular performance. In a transaction the subordinate promised to be given rewards when subordinates able to complete their duties in accordance with agreements. In other words, he encourages subordinates to work. Konawe Education Department is one agency with 185 personnel. It consist of 66 staff/employees, 13 kindergarten supervisors, 63 elementary school supervisor, 28 junior high supervisors, 13 high school superintendent and 2 superintendent SMK. Initial observation of leadership style, job motivation and employees performance at Kendari District Education Office show that leadership style of head unit is very motivated, enthusiastic and self belief to grow subordinates in carrying out task and involving subordinates in problem solving, as well as emphasizing the importance to maintain moral values and work. In another unit, head unit embraces subordinates only if he needs information or has a personal interest. There is also a relationship in a limited two-way communication between superiors and subordinates, but only for special interests to consult to superiors. However, there are also several work units that implementing only unidirectional communication from top to down and requires the tasks completion regardless of work support facilities. The above phenomenon is result of leader behavior. Basically every leader has a different behavior in leading his followers. It is called leadership style. Leadership style is consistent with leadership paradigm. Twenty first century involves transformational and transactional leadership's style. It no longer based on nature, behavior and certain situations but it based on leader ability emphasize a change comprehensively with regard to leadership in a century 21 (Bass, 2005). Leadership style application is determined by leaders themselves. IF leadership style applied is good and can give a good direction to subordinates, then it create confidence and work motivation to employees, thus increasing employee morale which also affects on better employee performance. Motivation is something essential in transformational and transactional leadership, because lead is motivating, leaders must work together with subordinates/employees to achieve better performance. Similarly, employee performance is very influenced by leadership style. Transformational and transactional leadership affect on performance employee. Haryadi (2003) says that transformational leadership and transactional leadership has a positive effect on performance. This leader able to motivate subordinates employees. Employees who have a high work motivation usually have a peak performance. Suharto and Cahyono (2005) and Judge (2006) say that motivation is one factor that affects performance, where motivation is a condition that moves someone to achieve a goal or achieve desired results. In this connection, Rival (2004) says stronger work motivation will provide a significant improvement to increase employee's performance in carrying out their work. Starting from effect of transformational and transactional leadership on work motivation and employee's performance, this research is intended to test and analyze empirically effect of transformational leadership and transactional leadership on job motivation and employees performance. Study subjects were civil servants on Department of Education Konawe. Therefore, this research will be done with title: Effects of Transformational and Transactional Leadership on Employee Performance of Konawe Education Department at Southeast Sulawesi Based on explanation above the problem of this study are follows: 1. Is transformational leadership affect on employee performance of Konawe Education Department? 2. Is transactional leadership affects on employee performance of Konawe Education Department? 3. Is work motivation affect on employee performance of Konawe Education Department? 4. Is transformational leadership and transactional leadership simultaneously affect on employee motivation of Konawe Education Department? 5. Is transformational leadership and transactional leadership and work motivation simultaneously affect on employee performance of Konawe Education Department