IJAFIBS, 11 (4) (2024) pp.

776-782
Published by: TRIGIN Publisher

International Journal of Applied Finance and Business Studies

Journal homepage: www.ijafibs.pelnus.ac.id

The role of transformational leadership and work motivation

on employee performance
Abdul Rohman1, Putri Eriana Oktapiani2, Siti Pujaroh3, Didit Haryadi4
1,2,3,4Prody Management, Department of Economics and Business, Primagraha University, Serang, Indonesia

ARTICLE INFO ABSTRACT

Article history: Employee performance is an essential factor influencing success. In

an organization, this is one of the most critical functions of a company.
Received Dec 19, 2023 This study aims to determine the variables that affect employee
Revised Dec 25, 2023 performance and develop a theoretical basis and research model. This
Accepted Jan 1, 2024 study used an associative descriptive quantitative method with a
population of 43 respondents drawn into a sample using non-
Keywords: probability sampling, saturated sampling / total sampling method—and
data analysis techniques using linear regression with the help of SPSS
Employee Performance; software version 26. The results of this study show that the first
Transformational Leadership; hypothesis of transformational leadership does not affect employee
Work Motivation. performance. Thus, the second hypothesis states that employee
performance is influenced by work motivation, meaning that the higher
the work motivation, the higher the employee performance will be. The
third hypothesis is that employee performance is influenced by
transformational leadership and work motivation that can
simultaneously improve employee performance. This research is
expected to provide theoretical contributions to the literature in this
context, certainly in the context of human resource management.
This is an open-access article under the CC BY-NC license.

Corresponding Author:
Abdul Rohman,
Prody Management,
Department of Economics and Business,
Primagraha University,
Komplek Griya Gemilang Sakti, Jl. Trip Jamaksari No. 1A Kaligandu, Serang, Banten 42111, Indonesia
Email: abdulrohman220503@gmail.com

1. INTRODUCTION
The most important thing to achieve a maximum goal is to start from the most supportive thing to
accomplish a goal, namely human resources (Susan, 2019). A company's success is determined
by its resources, especially the human resources used for the company's survival. Human
resources play a role in determining the company's success in achieving its goals (Bariqi, 2018).
Resources are a company's most unique, vulnerable, purest, and hardest-to-estimate asset. Each
employee has a different set of backgrounds, which will affect their respective expectations and, in
turn, affect the dynamics of the relationship between humans and the company's organization
(Putri et al., 2023). Quality human resources will be produced if human resource management is
done well and can shape employee performance better so that it can have a positive impact on the
effectiveness of interpretation within the company as a whole (Al Amin et al., 2023; Alfarizi et al.,
2022; Anshori et al., 2022). Human Resource Management can be interpreted as science applied
in the management of Human Resources and is one of the main elements of the organization to
achieve the goals that have been set. The success or failure of an organization in realizing its goals
depends mainly on the human resources owned by the company (Gunawan et al. 2022; Haryadi.
D, 2022; Haryadi. D et al., 2021). Human resources play a significant role in organizations'

Journal homepage: www.ijafibs.pelnus.ac.id

IJAFIBS ISSN 2338-3631 (Print), 2809-9982 (Online)  777

achieving competitive advantage. The development of technology and environmental changes

make human resources a critical factor in determining the ability of organizations or companies in
global competition (Haryadi. D et al., 2022; Haryadi. D & Wahyudi, 2020; Karsikah et al., 2023).
Performance is defined as what employees do or don't do. Employee performance
influences how much they contribute to the organization (Mukhlisin et al., 2023; Mulyadi et al.,
2023; Oktaviani et al., 2023). Performance is the result of work that a person or group of people
can achieve in a company under their respective authorities and responsibilities to achieve
organizational goals illegally, does not violate the law, and does not conflict with morals and ethics
(Perry et al., 2023; Purnamasari et al., 2023; Princess et al., 2023). Performance (work
performance) is the result of work in quality and quantity achieved by an employee in carrying out
his duties under the responsibilities given to him ( Rahmatullah et al., 2022; Riyanto et al., 2022;
Salahudin et al., 2023; Setiadi et al., 2023). Performance is the implementation of the plan that has
been prepared. Human resources implement performance with the ability, competence, motivation,
and interests. How organizations value and treat their human resources will affect their attitudes
and behaviors in performing (Tajudin et al., 2023; Tania et al., 2021; Wahyudi et al., 2023).
Employee performance is influenced by leadership. Transformational leadership can
integrate creative insight, perseverance, energy, intuition, and sensitivity to employees to obtain
organizational goals or desires and have a tremendous impact on those employees (Prabowo,
Noermiat, & Irawanto, 2018). According to Hasibuan (2012), Leadership is critical in management
because of leadership; the management process will run well, and employees will be passionate
about doing their duties. (Marjaya & Pasaribu, 2019) Transformational leadership is the process by
which a person engages with others, creating relationships that increase motivation and
morale.(Nguyena et al., 2023).
Every company always wants to achieve maximum goals, which can be achieved if the
performance of employees is good. For this reason, the company tries to motivate or encourage
employees to perform well by giving rewards, achievement opportunities, more meaningful work,
job security, and company policies. The forms of motivation that have been given so far include
decent salaries, health insurance, benefits, conducive working conditions, promotions and
development opportunities for outstanding employees, and rewards for good performance.(Ady &;
Wijono, 2013). Work motivation also has a dominant role in improving employee performance. This
can all be supported by the provision of motivation because, indirectly, motivation is a stimulant for
employees to work better and can encourage employees to be more active in performing and more
passionate, it will benefit the company (Ahlstedt et al., 2023; Collie, 2023). Motivation itself is one
of the factors that can affect employee performance in the company and is a factor that moves
someone to have the desire and willingness to work (Li et al., 2023; Popoola & Fagbola, 2023).
Even employees who are motivated in carrying out their work have the assumption that their task is
a challenge that must be completed, and they will exert all their abilities to finish the position
enthusiastically; for employees who are not motivated, their performance cannot be maximized,
and company goals cannot be achieved (Heidari et al., 2024; Kohnen et al., 2023).
PT. Parkland World Indonesia II is a company engaged in manufacturing industries that
produce and distribute shoes for the New Balance (NB) brand, which is located in Jl. Raya Lanud
Gorda Maja no km 68, Julang, Cikande District, Serang Regency, West Java 42186. It is one of the
shoe manufacturers with the most extended history in producing shoes and international standards
for the New Balance (NB) brand. PT PWI II can create as many as 1.3 million quality shoes
monthly. Equipped with modern engine technology and supported by an experienced team.
This study aims to develop a model examining the three variables the author has analyzed
to find out the factors that can improve employee performance. This research is expected to make
theoretical contributions to the literature in this context, including in the context of human resource
management.

2. RESEARCH METHOD
In this study, the method used by the author is quantitative descriptive research with a causal
approach. The causal process is an analysis that will look for a picture of relationships, influences,
impacts, and causal effects from various concepts or factors or, in some ways, designed in

Abdul Rohman, The role of transformational leadership and work motivation on employee performance
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management science. The population in this study was PT Parkland World Indonesia II Sewing
Cell Division II, which amounted to 43 respondents. A saturated sampling technique means the
entire population is taken as a sample. The data collection technique used in this study used a
questionnaire with a Likert scale of 1-5 using the scale method of strongly disagree, disagree,
doubt, agree, and strongly agree. Based on the research sample, 43 respondents were obtained
from the questionnaire. The data analysis technique in this study is a descriptive analysis using the
SPSS assistance program version 25, then to determine the influence between variables using
inferential analysis with the SPSS assistance program version 26 through validity test analysis,
reliability calculations, and then classical assumption tests including data normality. In this study,
the author formulated a research hypothesis and formulated an idea, namely H1: There is a
significant influence of transformational leadership on employee performance, H2: Work motivation
affects employee performance, and H3: transformational leadership and work motivation
simultaneously affect employee performance.

3. RESULTS AND DISCUSSIONS

Before a hypothesis test can be performed, a validity test must be conducted to show the extent to
which the instrument method or measurement method of something is positively designed. Five
statements and five ideas measured employee performance, and transformational leadership and
work motivation were measured by five survey statements collected. This study seeks to validate
the validity of the corrected item-total correlation value by looking at its importance in comparing
the r-count with the r-table with the validity number Sakhikh has obtained. In addition, the value of
Cronbach's alpha also received the value of reliability calculations that are very reliable, and the
results of validity tests and reliability calculations for each variable with indicators can be seen in
the table below.

Table 1. Validity and reliability test

Item Validity Reliability
r-table Decision
Statement Convergent Convergent
Employee
Performance
EP_1 .933 0,301 Valid
EP_2 .553 0,301 Valid 0.921
EP_3 .713 0,301 Valid
EP_4 .917 0,301 Valid
EP_5 .894 0,301 Valid
Work Motivation
WM_1 .888 0,301 Valid
WM_2 .486 0,301 Valid
0.868
WM_3 .354 0,301 Valid
WM_4 .880 0,301 Valid
WM_5 .888 0,301 Valid
Work Discipline
WD_1 .617 0,301 Valid
WD_2 .864 0,301 Valid
0.943
WD_3 .935 0,301 Valid
WD_4 .935 0,301 Valid
WD_5 .935 0,301 Valid

Table 1 shows that all statement indicator variables for each variable on each indicator
have an r-count value of > 0.301, which automatically meets the data validity standard. A needle is
considered accurate if each r-calculate point r-validity value is > 0.301. Not only look at the validity
of the reliability value as well, which must be greater than 0.60. The average alpha value lies above
0.60. The following are the results of the classic assumption test from normality data that are
proven to be normally distributed data, as seen in Table 2 below.

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Table 2. One-sample kolmogorov-smirnov test

One-Sample Kolmogorov-Smirnov Test
Unstandardized
Residual
N 43
Normal Parametersa,b Mean .0000000
Std. Deviation 2.86975793
Most Extreme Differences Absolute .120
Positive .092
Negative -.120
Test Statistic .120
Asymp. Sig. (2-tailed) .132c
a. Test distribution is Normal.
b. Calculated from data.
c. Lilliefors Significance Correction.

Table 2 shows the magnitude of Kolmogorov-Smirnov normality; the 2-tale significance

normality test is Unstandardized Residual 0.132), which is residual data having a significance value
greater than 0.05. It can be concluded that the data is typically distributed. The following
multicollinearity test results can be seen in Table 3 below.

Table 3. Multiklonieritas test

Tableicientsa
Model Collinearity Statistics
Tolerance VIF
Transformational_Leadership .712 1.404
1
Work_Motivation .712 1.404
a. Dependent Variable: Employee Performance

The multicollinearity test obtained a Variance Inflation Factor (VIF) value of 1.404 and a
Tolerance value of 0.712. The result of the decision for the multicollinearity test is that if the
tolerance value (0.712) > 0.10 and VIF (1.404) < 10, it can be interpreted that there are no
symptoms of multicollinearity, so it can be concluded that the model used does not contain signs of
multicollinearity. The results of linear regression analysis can be seen in Table 4 below.

Table 4. Regresregressionr test

Coefficients a
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) 3.583 2.850 1.257 .216
1 Transformational_Leadership -.018 .135 -.017 -.132 .896
Work_Motivation .822 .147 .729 5.613 .000
a. Dependent Variable: Employee Performance

A positive constant of 3,583 means that if the value of transformational leadership and
cooperation motivation equals zero, then the level or magnitude of employee performance is 3,583.
The regression coefficient of the transformational leadership variable has a negative value of -
0.018, which means that if the value of transformational leadership decreases one hundred
percent, employee performance decreases -0.018 times. The value of the regression coefficient of
the work motivation variable is positive by 0.822. This explains that if the value of work motivation
increases by one hundred percent, then the employee performance variable increases by 0.822
times. The following analysis results in hypothesis testing are presented in Table 5 below.

Table 5. Hipotesis test

Variable T-value P-values Result
TL ⟶ EP -.132 0.896 Rejected
WM ⟶ EP 5.613 0.000 Accepted
TL & WM ⟶ EP 21.580 0.000 Accepted
Source: Results of research data processing 2023

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Table 5 shows statistically the first hypothesis, the results of the t-test on the assumption of
transformational leadership affect employee performance, obtained t-count -0.132 and t-table on
degrees of freedom (dk) = n-2 (43-2=41) obtained by 2,020 so that t-count < t-table (-0.132 <
2.023) with a significance level of 0.000 (0.896 > 0.05) so that there is no effect of transformational
leadership on employee performance. Transformational leadership has several weaknesses and
criticisms; defects and criticisms of transformational leadership theory lack conceptual clarity; the
parameters of transformational leadership often overlap with other conceptualizations of
leadership; some transformational factors correlate with transactional and laissez-faire factors,
transformational leadership treats leadership as a personality trait or talent, trains people in This
approach is problematic, and not everyone fits into the transformational leadership approach. In
addition, transformational leadership is not suitable for organizations that are new for a lifetime and
do not have structure and are not ideal for running organizations or teams that are formed
temporarily in the framework of specific projects (Anah, Widayati, & W, 2020; Vipraprastha et al.,
2018).
The second finding in this study is the second finding which becomes the second
hypothesis; the results of the t-test on the assumption of work motivation affect employee
performance obtained a t-count of 5,613 and t-table on degrees of freedom (dk) = n-2 (43-2 = 41)
obtained by 2,023 so that t-count > t-table (5,613 > 2,023) with a significance level of 0.000 (0.000
< 0.05) so that there is an influence of work motivation on employee performance. Explanation
itself is one of the factors that can affect employee performance in the company and is a factor that
moves someone to have the desire and willingness to work (Li et al., 2023; Popoola & Fagbola,
2023).
The third finding is that transformational leadership and work motivation affect employee
performance. They have obtained an F-count of 544.892 and F-table at Degrees of Freedom (dk) = n-k-
1 or 43-2-1= 40 of 3.23 so that F-count > F-table (21.580 > 3.23) with a significance level of 0.000
(0.000 < 0.05) so that there is an influence of transformational leadership and work motivation on
employee performance. Transformational leadership can integrate creative insight, perseverance,
energy, intuition, and sensitivity to employees to obtain organizational goals or desires and have a
tremendous impact on those employees (Prabowo et al., 2018). In comparison, motivation itself is
one of the factors that can affect employee performance in the company and is a factor that moves
someone to have the desire and willingness to work (Li et al., 2023; Popoola & Fagbola, 2023).
Even employees who are motivated in carrying out their work have the assumption that their task is
a challenge that must be completed. They will exert all their abilities to finish the position
enthusiastically, and for employees who are not motivated, their performance cannot be
maximized, and company goals cannot be achieved (Heidari et al., 2024; Kohnen et al., 2023).

4. CONCLUSION
From the discussion results, the first hypothesis states that transformational leadership does not
affect employee performance. The second hypothesis is that employee performance is influenced
by work motivation, meaning that the higher the work motivation possessed by an employee, the
higher the employee's performance. The third hypothesis is that employee performance is
influenced by transformational leadership and work motivation. Transformational leadership and
work motivation are included in the excellent category because the results of descriptive analysis
often show qualified as an indicator analysis of cooperative attitudes in the company used for
performance appraisal, and it is necessary to maintain harmonious relationships between
employees to have a sense of togetherness between employees is increasing to improve human
resources. This research is expected to make theoretical contributions to the literature in this
context, including in the context of human resource management.

ACKNOWLEDGEMENTS
The author would like to express my deepest gratitude for the expression and dedication of the
entire team. The International Journal of Applied Finance and Business Studies has reviewed the
article and published the author's paper. In addition, the author also would like to thank all peer

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reviewers who have collaborated and supported the preparation of this article so that it can be
successful and published in the International Journal of Applied Finance and Business Studies

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