THE ROLE OF DEMOCRATIC TRANSFORMATIONAL LEADERSHIP STYLE IN SUPPORTING CLAN ORGANIZATIONAL CULTURE (A CASE STUDY OF PT. XYZ)

• Main Author: Hafian Wahyuwardhana, Muhammad
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/80811
• Institution: Institut Teknologi Bandung

This paper delves into the pivotal role of leadership in shaping organizational culture, specifically within a prominent automotive dealership company in Indonesia, with the goal of fortifying its clan culture. The study aims to assess the current leadership approach within the company and pinpoint a style that would better support a clan culture. Primary data for the investigation were obtained through a quantitative survey involving a sample of 324 employees, selected using Slovin's formula. The Vannsimpco Leadership Survey (VLS) was employed as the questionnaire model. The reliability analysis, employing Cronbach's Alpha, yielded an exceptionally high value of .973 across 54 survey items, surpassing the accepted standard of .70 and indicating a highly consistent and reliable measurement of the targeted leadership constructs. The data analysis utilized descriptive analysis and gap analysis techniques. The results reveal that the organization predominantly exhibits an AutocraticTransformational leadership approach. In contrast, the anticipated leadership style, as indicated by the findings, is Democratic-Transactional. The recommendation based on these results is for the company to strategically realign its leadership approach to a Democratic-Transformational style. This shift would emphasize participative decision-making, open communication, and collaborative, employee-focused strategies, fostering a clan culture within the organization. To conclude, this research sheds light on the critical connection between leadership style and organizational culture, providing actionable insights for the automotive dealership company in Indonesia to enhance its clan culture through a carefully calibrated leadership approach.