Entrepreneurship, Leadership & Business Communication

ASSIGNMENT
“Why transformational leadership might increase employee
performance”

Arranged by:

Syafira Azzahra 165020307141011

INTERNATIONAL UNDERGRADUATE PROGRAM IN ACCOUNTING

FACULTY OF ECONOMICS AND BUSINESS
BRAWIJAYA UNIVERSITY
MALANG
2019
 INTRODUCTION

A company leader must be able to create a good relationship between leaders and
employees. A leader is someone who uses his leadership authority to direct others and
be responsible for work in achieving organizational goals. To influence and direct
employees, leaders have different ways or characteristics called leadership styles.
Leadership style has an important role for leaders in influencing, directing, and
showing their abilities so that the company's goals can be achieved in accordance with
what has been determined. The success and failure of an organization can be
determined by the quality of the leader in leading the organization. Transformational
leadership is one of the leadership styles that inspires followers to put aside their
personal interests and have extraordinary influencing abilities (Robbins & Judge,
2008, p. 90). Employee Performance is the result of work or achievement in quality
and quantity achieved by an employee in carrying out his duties in accordance with
the responsibilities given. To increase employee performance requires leaders who are
able to influence employees and actively involve employees in achieving these goals
through appropriate leadership styles. Transformational leadership style is considered
important to be used to lead an organization. Bass in Yukl (2010, p. 305) says
"Transformational leadership further increases motivation and performance of
followers, because employees will feel trust, admiration, loyalty and respect for
leaders and they are motivated to do more than initially expected of them". The
purpose of this literature review is to find out whether transformational leadership has
an effect on increasing employee performance.

Relationship Between Transformational Leadership To Employee Performance

The relationship between leaders and employees is an interdependent relationship that

is generally not balanced. Employees generally feel more dependent on leaders than
vice versa. The process of interaction that occurs between leaders and employees,
takes place interdependent processes in which leaders try to influence their employees
to behave in accordance with their expectations. The attitude of a leader will
determine the development of the team in the company organization which will
ultimately affect the achievement of employee performance productivity. The skill of
developing a team by a leader is the key to the success of a company's activities. The
influence of Transformational Leadership Style on employee performance is to
motivate employees to do better than what can be done, in other words can increase
employee self-confidence which will later affect the improvement of employee
performance. Employees will be more trusting and respectful of leaders so they try to
complete work tasks in accordance with predetermined targets. Good
Transformational Leadership for employees is expected to be the performance of
each. The results of research conducted by Tria Mondiani (2012), show that
Transformational Leadership style has a positive effect on employee performance.

CONCLUSION

With the existence of Transformational Leadership, employees will be more trusting

and respectful of leaders so they try to complete work tasks in accordance with
predetermined targets. The results of the study according to Mondiani (2012), that
transformational leadership has a positive effect on employee performance. Consistent
with the results of Akbar's research, Hamid and Hakam, (2015) which states that if the
transformational leadership style gets better, employee performance will be higher.

REFERENCES

Conger, J. A. (n.d.). Transformational and Visionary Leadership. Encyclopedia of

Leadership. doi:10.4135/9781412952392.n357

Hunt, J. G., Tichy, N. M., & Devanna, M. A. (1988). The Transformational

Leader. Administrative Science Quarterly,33(1), 132. doi:10.2307/2392861

Mossop, S. (2013). So what is ‘transformational change’? Achieving Transformational

Change in Academic Libraries,3-20. doi:10.1016/b978-1-84334-724-8.50001-8

Satriadi, D. (2017). Pengaruh Gaya Kepemimpinan Dan Motivasi Terhadap

Produktivitas Kerja. Jurnal Benefita,2(1), 33. doi:10.22216/jbe.v2i1.1271

Transformational Leadership Guide: Definition, Qualities, Pros & Cons, Examples.

(2018, February 15). Retrieved April 23, 2019, from
https://www.cleverism.com/transformational-leadership-guide/