Klabat Journal of Management
Vol. 5 No. 2 (2024): Klabat Journal of Management

The Impact of Transformational and Transactional Leadership on Employee Performance

Wuryaningrat, Nikolas Fajar (Unknown)
Hidayat, Nurul (Unknown)
Kumajas, Merry L. (Unknown)



Article Info

Publish Date
09 May 2024

Abstract

Transformational leadership is a dynamic approach that motivates individuals to work together in achieving organisational goals. It emerges whenever someone exhibits the ability to guide others' behaviours towards a common objective. This leadership style enables leaders to inspire their subordinates positively. The objective of implementing transformational leadership is to improve employee performance within the banking industry in North Sulawesi, Indonesia. The study focuses on three banks, namely Bank BRI, BNI, and BSG, which have branches throughout the North Sulawesi region. A total of 176 employees participated as respondents. Following the collection of data, an analytical method known as Partially Least Squares Structural Equation Modelling (PLS-SEM) was employed for the purpose of analysis. The results provide empirical evidence that transformational leadership has a positive influence on employee performance, particularly in the realms of individual consideration and individual inspiration. Nevertheless, dimensions such as intellectual stimulation and inspirational motivation do not exhibit a significant correlation with performance-related activities. Moreover, the contingent reward aspect of transactional leadership does not demonstrate a significant impact on employee performance.

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Journal Info

Abbrev

kjm

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Klabat Journal of Management (KJM) offers a wide-ranging and widespread analysis of all surfaces of management and science. Published two times per year, it delivers an emphasis on universal proficiency in the vital methods, techniques, and areas of research; presents an opportunity for its readers ...