ANALYZING THE IMPACT OF TRANSACTIONAL AND TRANSFORMATIONAL LEADERSHIP STYLE ON EMPLOYEE PERFORMANCE IN PT POS INDONESIA KOTA BANDUNG

• Main Author: Dzaki Nurhidayat, Naufal
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/41060
• Institution: Institut Teknologi Bandung

The increasingly competitive environment has made a lot of organization rallying against each other to gain the highest profit. Employees are expected to give their best performance. In order to maintain high employee performance, a good leader with proper leadership is needed. If there is a mismatch between what the employees are hoping from a leader, especially on how the leader leads a team, overall performance can experience a decline. This problem occured at PT Pos Indonesia. Currently, managers at PT Pos Indonesia give utmost authority to employees without much managing from managers themselves. However, employees are unable to perform well without clear order on what to do. Because of this, employees feel the way managers lead the team is unclear and unfair and thought that their managers do nothing while employees do everything. As a result, employees conduct a strike action. This affects the company performance to decline drastically. One of the ways to solve this problem is to truly understand the employee’s expectation of an ideal leader by knowing their preferred leadership style. There are various leadership styles, but the researcher focused on Transformational leadership style and Transactional leadership style as they are the most effective leadership style that can either improve employee performance significantly or maintain the employee performance constantly. The purpose of this research is to know currently used leadership style, the influence of both leadership style to employee performance, and which leadership style suits the company. Due to the limited time and scope, the researcher decided to take 85 respondents in total from employees to managerial level. Respondent are asked to complete a five-points likert scale question. In this research, Transformational and Transactional leadership style act as the independent variables and employee performance act as the dependent variable. This research uses multiple linear regression tool to analyze the siginificance influence of both leadership style to the employee performance. The final result shows that transformational leadership style is currently used by the company and both leadership style give a positive influence to the employee performance and with transactional leadership style giving the highest influence to employee performance. Following that, 89% of managers uses transformational leadership style but 60% of employees prefer transactional leadership style. However, in reality, employees with transactional leadership style perform better in employee performance than employees with transformational leadership style. Thus, it is best for PT Pos Indonesia to convert into transactional leadership style as it is proven to be able to increase overall employees’ performance. Through this research, it is hoped that PT Pos Indonesia could improve their current performance and help the organization to solve the crisis they face currently. This research also can be helpful for both organization that facing the same problem and researcher that wanted to used this research as reference.