International Journal of Management Science and Information Technology (IJMSIT)
Vol. 4 No. 2 (2024): July - December 2024

The Influence of Transformational Leadership on Employee Motivation and Performance in the Banking Industry

Oroh, Oliviane (Unknown)
Yusuf Ariyadi, Muhammad (Unknown)
Fauzan Fadlan, A. (Unknown)



Article Info

Publish Date
14 Aug 2024

Abstract

This study analyzes the effect of transformational leadership on employee motivation and performance in the banking industry. The research method used is quantitative with a survey approach, involving 200 employees from several leading banks in Indonesia. Data were collected through a questionnaire that measured the respondent's profile, perceptions of transformational leadership, and employee motivation and performance. The results showed that transformational leadership has a significant positive effect on employee motivation and performance. Characteristics of transformational leadership such as charisma, intellectual stimulation, inspirational motivation, and individual consideration increase intrinsic motivation and employee performance. Employees feel appreciated, have challenging tasks, and get significant career development opportunities. This study concludes that transformational leadership can provide a significant competitive advantage for banking companies by increasing employee motivation and performance. Therefore, banking companies are advised to adopt and develop this leadership style in order to achieve long-term success.

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Journal Info

Abbrev

IJMSIT

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

The development of science related to good technology, information, and communication, both theoretically and empirically has proven to have a positive impact on various aspects of people lives. The development of the science of Information and Communication Technology provides many benefits to ...