The Influence of Transformational and Transactional Leadership Styles on Employee Performance (Case Study at PT Perkebunan Nusantara 1 Regional 7, Kedaton District, Bandar Lampung City)

Farida Nababan; Dora Rinova

doi:10.47134/jees.v2i2.609

Authors

Farida Ayu Nababan University of Bandar Lampung
Dora Rinova University of Bandar Lampung

DOI:

https://doi.org/10.47134/jees.v2i2.609

Keywords:

Leadership Style, Transformational Leadership, Transactional Leadership, Employee Performance

Abstract

This study examines the impact of transformational and transactional leadership styles on employee performance at PT Perkebunan Nusantara 1 Regional 7. Employee performance is a crucial factor in achieving organizational goals, and leadership style plays a significant role in shaping motivation and productivity. Using a quantitative approach, data were collected through questionnaires distributed to 80 employees across four divisions. The findings indicate that transformational leadership positively influences employee motivation and engagement, while transactional leadership ensures task completion through structured reward and penalty mechanisms. The study concludes that a combination of both leadership styles leads to optimal employee performance, balancing innovation with efficiency.

References

Abiddin, N. Z. (2024). A Deep Dive into Leadership Styles in Shaping the Higher Education Institution’s Value and Culture. Pakistan Journal of Life and Social Sciences, 22(2), 3854–3868. https://doi.org/10.57239/PJLSS-2024-22.2.00283 DOI: https://doi.org/10.57239/PJLSS-2024-22.2.00283

Alghizzawi, M. (2024). A key factor in leadership style with employee performance: a comparative analysis. Studies in Systems, Decision and Control, 525, 873–883. https://doi.org/10.1007/978-3-031-54383-8_66 DOI: https://doi.org/10.1007/978-3-031-54383-8_66

Aljaddouih, H. N. (2024). Impact Of Leadership Style On Employee Performance And Job Satisfaction Among Jordanian Physiotherapists. Asia Pacific Journal of Health Management, 19(1). https://doi.org/10.24083/apjhm.v19i1.2715 DOI: https://doi.org/10.24083/apjhm.v19i1.2715

Alshammari, W. M. (2024). Role of leadership styles in escalating the employee productivity: Moderating role of knowledge sharing. Edelweiss Applied Science and Technology, 8(5), 207–224. https://doi.org/10.55214/25768484.v8i5.1682 DOI: https://doi.org/10.55214/25768484.v8i5.1682

Al-Smadi, R. W. (2024). The impact of leadership styles on marketing effectiveness and financial performance in Jordanian banks sectors: Corporate social responsibility as a mediator. Uncertain Supply Chain Management, 12(4), 2673–2682. https://doi.org/10.5267/j.uscm.2024.5.004 DOI: https://doi.org/10.5267/j.uscm.2024.5.004

Altassan, M. A. (2024). How the Leadership Style Influences the Firm’s Sustainable Performance by Boosting Employee Satisfaction and Productivity: The Role of Green Organizational Culture. Pakistan Journal of Life and Social Sciences, 22(1), 1198–1219. https://doi.org/10.57239/PJLSS-2024-22.1.0082 DOI: https://doi.org/10.57239/PJLSS-2024-22.1.0082

Bass, B. M. (2020). Leadership and Performance Beyond Expectations. Free Press.

Hasbu, W. Y. (2024). The influence of leadership style, business ethics, and environmental performance toward corporate social performance and its impact on corporate financial performance. International Journal of Management and Sustainability, 13(2), 182–202. https://doi.org/10.18488/11.v13i2.3631 DOI: https://doi.org/10.18488/11.v13i2.3631

Judge, T. A., & Piccolo, R. F. (2004). Transformational and transactional leadership: A meta-analytic test of their relative validity. Journal of Applied Psychology, 89(5), 755–768. DOI: https://doi.org/10.1037/0021-9010.89.5.755

Kelmendi, J. (2024). The influence of organizational culture and communication on leadership style. Quality - Access to Success, 25(201), 215–224. https://doi.org/10.47750/QAS/25.201.23 DOI: https://doi.org/10.47750/QAS/25.201.23

Maharani, A. (2024). The role of disruption in the impact of multiple leadership styles on bank performance: evidence from Indonesia. Banks and Bank Systems, 19(3), 151–163. https://doi.org/10.21511/bbs.19(3).2024.13 DOI: https://doi.org/10.21511/bbs.19(3).2024.13

Mangkunegara, A. P. (2017). Manajemen Sumber Daya Manusia Perusahaan. PT Remaja Rosdakarya.

Nayyar, V. (2024). A paradigm shift in human resource policies: Adaptation of the neuro style of leadership. Neuroleadership Development and Effective Communication in Modern Business, 228–240. https://doi.org/10.4018/979-8-3693-4350-0.ch012 DOI: https://doi.org/10.4018/979-8-3693-4350-0.ch012

Nguyen, M. H. (2024). Unlocking employees’ work performance in Vietnamese small and medium construction firms: exploring the impact of leadership styles, knowledge sharing and organisational commitment. International Journal of Management and Enterprise Development, 23(3), 264–288. https://doi.org/10.1504/IJMED.2024.141372 DOI: https://doi.org/10.1504/IJMED.2024.141372

Northouse, P. G. (2020). Leadership: Theory and Practice. Sage Publications.

Rachman, G., & Oktaviannur, M. (2021). PENGARUH GAYA KEPEMIMPINAN TRANSFORMASIONAL TERHADAP KINERJA PEGAWAI PADA KANTOR SATUAN POLISI PAMONG PRAJA PROVINSI …. repository.ubl.ac.id.

Rao, K. K. (2024). A New Optimised Whale Optimisation Technique for Analysing the Impact of Leadership Styles on Logistic. International Journal of Intelligent Systems and Applications in Engineering, 12(1), 633–646. https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85173771609&origin=inward

Ren, Q. (2024). Transformational Leadership and Sustainable Practices: How Leadership Style Shapes Employee Pro-Environmental Behavior. Sustainability (Switzerland), 16(15). https://doi.org/10.3390/su16156499 DOI: https://doi.org/10.3390/su16156499

Rachman, G., & Oktaviannur, M. (2021). Pengaruh Gaya Kepemimpinan Transformasional Terhadap Kinerja Pegawai Pada Kantor Satuan Polisi Pamong Praja Provinsi …. repository.ubl.ac.id. https://repository.ubl.ac.id/1007/

Schmidt, F. L., & Hunter, J. E. (2020). The validity and utility of selection methods in personnel psychology: Practical and theoretical implications of 100 years of research findings. Psychological Bulletin, 124(2), 262–274. DOI: https://doi.org/10.1037//0033-2909.124.2.262

Sugiyono. (2018). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Alfabeta.

Vera, D., & Crossan, M. (2020). Strategic leadership and organizational learning. Academy of Management Review, 29(2), 222–240. DOI: https://doi.org/10.5465/amr.2004.12736080

Wang, H., Law, K. S., Hackett, R. D., Wang, D., & Chen, Z. X. (2022). Leader-member exchange as a mediator of the relationship between transformational leadership and followers’ performance and organizational citizenship behavior. Academy of Management Journal, 48(3), 420–432. DOI: https://doi.org/10.5465/amj.2005.17407908