Implement a combination of transformational and transactional leadership

Oct 13, 2025 by magicalceylontours.com 11 views

The Influence of Transformational Leadership and Transactional Leadership on Employee Performance with Motivation as an Intervening Variable at PT Sinar Sosro Tanjung Morawa

Introduction

Leadership plays a crucial role in the development of a company and the motivation and performance of its employees. In today's highly competitive business environment, it is essential for companies to determine effective leadership strategies that can drive success. PT Sinar Sosro Tanjung Morawa, a leading company in the industry, recognizes the importance of leadership in achieving its goals. This study aims to investigate the influence of transformational leadership and transactional leadership on employee performance with motivation as an intervening variable at PT Sinar Sosro Tanjung Morawa.

The Importance of Leadership in Employee Motivation and Performance

Leadership has a significant impact on employee motivation and performance. Effective leadership can inspire and motivate employees to work towards a common goal, leading to increased productivity and job satisfaction. On the other hand, poor leadership can lead to demotivation, low morale, and decreased performance. In today's competitive business environment, companies need to adopt effective leadership strategies that can drive success.

Transformational and Transactional Leadership

Transformational leadership and transactional leadership are two types of leadership styles that have been widely studied in the literature. Transformational leadership is a style of leadership that inspires and motivates employees to work towards a common goal. It is characterized by a focus on the future, a sense of urgency, and a willingness to take risks. Transactional leadership, on the other hand, is a style of leadership that focuses on the present and is characterized by a focus on tasks and procedures.

Research Methodology

This study uses a correlational research design with a cross-sectional approach. The population studied is all employees of the production department at PT Sinar Sosro Tanjung Morawa, totaling 180 employees. The sample size is 123 people, selected using simple random sampling. The analysis method used is path analysis with the Bayesian approach.

Results

The results of this study show that transformational and transactional leadership have a significant influence on motivation as an intervening variable. However, the impact is relatively small, with a coefficient of determination (R²) of 11.5% for the Y1 equation. For the Y2 equation, the coefficient of determination (R²) reached 24.3%, indicating that transformational leadership, transactional leadership, and motivation contribute to employee performance.

Discussion

The results of this study suggest that transformational leadership is more dominant in increasing employee motivation, which in turn has an impact on performance. However, a small value in the coefficient of determination also shows that other factors may play a role. Therefore, companies need to continue to implement effective leadership strategies by combining both types of leadership, as well as considering other variables that can contribute to employee motivation and performance.

Conclusion

In conclusion, this study highlights the importance of leadership in employee motivation and performance. The results of this study suggest that transformational leadership is more dominant in increasing employee motivation, which in turn has an impact on performance. However, a small value in the coefficient of determination also shows that other factors may play a role. Therefore, companies need to continue to implement effective leadership strategies by combining both types of leadership, as well as considering other variables that can contribute to employee motivation and performance.

Recommendations

Based on the findings of this study, the following recommendations are made:

Implement a combination of transformational and transactional leadership: Companies should adopt a combination of transformational and transactional leadership styles to drive success.
Consider other variables that contribute to employee motivation and performance: Companies should consider other variables that can contribute to employee motivation and performance, such as job satisfaction, organizational commitment, and employee engagement.
Continuously evaluate and improve leadership strategies: Companies should continuously evaluate and improve their leadership strategies to ensure that they are effective in driving success.

Limitations of the Study

This study has several limitations. Firstly, the sample size is relatively small, which may limit the generalizability of the findings. Secondly, the study only focuses on the production department at PT Sinar Sosro Tanjung Morawa, which may not be representative of the entire company. Finally, the study only uses a correlational research design, which may not establish causality between the variables.

Future Research Directions

Future research should aim to address the limitations of this study. Firstly, a larger sample size should be used to increase the generalizability of the findings. Secondly, the study should be replicated in other departments and companies to increase the representativeness of the findings. Finally, a longitudinal design should be used to establish causality between the variables.

References

Bass, B. M. (1985). Leadership and performance beyond expectations. New York: Free Press.
Burns, J. M. (1978). Leadership. New York: Harper & Row.
House, R. J. (1971). A path-goal theory of leader effectiveness. Administrative Science Quarterly, 16(3), 321-339.
Podsakoff, P. M., MacKenzie, S. B., & Bommer, W. H. (1996). Transformational leader behaviors and substitutes for leadership as determinants of employee satisfaction, commitment, trust, and organizational citizenship behaviors. Journal of Management, 22(2), 259-298.
Yukl, G. A. (1989). Leadership in organizations. Englewood Cliffs, NJ: Prentice Hall.
Frequently Asked Questions (FAQs) about Transformational and Transactional Leadership

Q: What is transformational leadership?

A: Transformational leadership is a style of leadership that inspires and motivates employees to work towards a common goal. It is characterized by a focus on the future, a sense of urgency, and a willingness to take risks.

Q: What is transactional leadership?

A: Transactional leadership is a style of leadership that focuses on the present and is characterized by a focus on tasks and procedures. It is a more traditional and bureaucratic approach to leadership.

Q: What are the key characteristics of transformational leadership?

A: The key characteristics of transformational leadership include:

A focus on the future
A sense of urgency
A willingness to take risks
Inspiring and motivating employees
Encouraging employee participation and involvement

Q: What are the key characteristics of transactional leadership?

A: The key characteristics of transactional leadership include:

A focus on tasks and procedures
A more traditional and bureaucratic approach
A focus on rewards and punishments
A more autocratic approach to decision-making

Q: How do transformational and transactional leadership styles differ?

A: Transformational leadership is more focused on inspiring and motivating employees, while transactional leadership is more focused on tasks and procedures. Transformational leadership is also more focused on the future, while transactional leadership is more focused on the present.

Q: What are the benefits of transformational leadership?

A: The benefits of transformational leadership include:

Increased employee motivation and engagement
Improved job satisfaction and performance
Increased creativity and innovation
Improved communication and collaboration

Q: What are the benefits of transactional leadership?

A: The benefits of transactional leadership include:

Increased efficiency and productivity
Improved task completion and deadlines
A more structured and organized approach to leadership
A more predictable and stable work environment

Q: Can a leader use both transformational and transactional leadership styles?

A: Yes, a leader can use both transformational and transactional leadership styles. In fact, many leaders use a combination of both styles to achieve their goals.

Q: How can a leader develop their transformational leadership skills?

A: A leader can develop their transformational leadership skills by:

Focusing on inspiring and motivating employees
Encouraging employee participation and involvement
Developing a vision and strategy for the organization
Building strong relationships with employees and stakeholders
Continuously learning and developing new skills and knowledge

Q: How can a leader develop their transactional leadership skills?

A: A leader can develop their transactional leadership skills by:

Focusing on tasks and procedures
Developing a clear and concise communication style
Setting clear goals and expectations
Providing feedback and coaching to employees
Continuously evaluating and improving processes and procedures

Q: What are some common challenges associated with transformational leadership?

A: Some common challenges associated with transformational leadership include:

Difficulty in inspiring and motivating employees
Difficulty in building trust and credibility with employees
Difficulty in making decisions and taking risks
Difficulty in managing conflict and resistance to change

Q: What are some common challenges associated with transactional leadership?

A: Some common challenges associated with transactional leadership include:

Difficulty in inspiring and motivating employees
Difficulty in building trust and credibility with employees
Difficulty in managing conflict and resistance to change
Difficulty in adapting to changing circumstances and priorities.