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INTERNATIONAL JOURNAL of ACADEMIC RESEARCH

Vol. 7. No. 1. January, 2015

Library of Congress Classification: HF5601-5689

EFFECT OF TRANSFORMATIONAL LEADERSHIP AND


ORGANIZATIONAL CULTURE ON EMPLOYEE PERFORMANCE
TOWARD THE DEPARTMENT OF EDUCATION, YOUTH AND
SPORTS GORONTALO PROVINCE, INDONESIA
1

Juriko Abdussamad , Haedar Akib , Jasruddin , Josef Paramata

Doctoral Candidate In Public Administration State University of Makassar,


Professor of Public Administration, Post Graduate Program, State University of Makassar,
3
Lecturer at State University of Makassar, 4 Lecturer at State University of Gorontalo (INDONESIA)
E-mails: juriko_abdussamad@yahoo.com, haedar652002@yahoo.com,
jasruddin_mahande@yahoo.com. yoshpar@yahoo.com
2

DOI: 10.7813/2075-4124.2015/7-1/B.65
Received: 02 Sept, 2014
Accepted: 09 Dec, 2014
ABSTRACT
This study aims at exam ining and analyzing the effect of transformational leadership and organizational culture
mediated by work motivation on employee performance. This research was quantitative research by using survey
explanatory approach. This research used 153 people for samples. The data collection was trough questionnaires and
interviews. Analysis of the data used was Structural Equation Model (SEM). The results found that the work motivation is an
intervening variable that does not have a significant effect on the performance of employees. However, transformational
leadership, organizational culture and work motivation have a significant impact on performance improvement for the
employee at the Department of Education Office of Gorontalo simultaneously.
Key words: Performance, Transformational Leadership, Organizational Culture, Work Motivation
1. INTRODUCTION
The success of an organization to achieve an objective is determined by some factors, such as such as human
resources, facilities, and systems. Based on these factors, each organization is not necessarily able to achieve it. For the
public sector or government organizations, it often faces many problems, including internal and external problems to achieve
the required goals. Internally, the organization often ignores the main task, especially in fostering the employees who
manage the organization. Therefore, it has not been able to achieve the goals maximally. In contrast to a profit organization,
it can solve every problem internally and externally, so that it can realize the expected goals.
Similarly, in the Department of Education, Youth and Sports Gorontalo province, employee performance indicators
as noted has not been achieved in accordance with the demanded performance of employees. It is affected by some
aspects. The first is the aspects of the quality and quantity of employees' work characterized by the lack of timely completion
of work, low level of accuracy, and lack of idea contribution. The second is the skill of the employees who are still
questionable. There are employees who often ignore all the rules, including hours of work, neatness and cleanliness in
dress, the ability to determine and set priorities, the use of time efficiently, and the ability to maintain workplace. The third is
the communication aspect. The four is responsible aspect.
These aspects mentioned above indicate the need for any attempt to solve every problem faced by the organization.
Based on these problems, organizations need leaders who are able to understand the problem and then decide a solution to
improve the performance of the organization and the employees. Based on this phenomenon, researchers were interested in
making integrative analysis model of transformational leadership and organizational culture. Besides that, this study
examined the indirect effects of these two aspects of the performance mediated by factors of work motivation and the effect
of simultaneous aspects of leadership, culture, and motivation on employee performance comprehensively.
[1]
Bass and Avolio in Sedarmayanti state that transformational leadership is a leadership model for a leader who
tends to motivate subordinates to work better and focus on helping behavior in the transformation between the individual and
the organization. For productivity, dimensions or styles of transformational leadership consist of Charisma or idealized
influence, Inspiration motivation, Intellectual stimulation, Individualized consideration or individualized attention.
Transformational leadership is leadership manner that tend to motivate subordinates to reach the goals of the organization
led by directing them to focus on achieving goals by developing the potential of subordinates, so that the organization
becomes better than before.
Organizational Culture
[2]
Organizational culture affects the formation of good performance, as well as statements Imai in Surjadi that the
corporate culture is an organizational culture and structure of the psychological factors that determine the overall strength of
the company, productivity and competitiveness in the long term. There are seven primary characteristics that constitute the
[3]
essence of the culture of the organization according to Robbins , nam ely: Innovation and risk-taking, attention to detail,
results orientation, person orientation, team orientation, aggressiveness, and Stability.

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INTERNATIONAL JOURNAL of ACADEMIC RESEARCH

Vol. 7. No. 1. January, 2015

Work motivation
The activity of utilization of human resources determines the successful management of an organization. In this
case, a leader must have the techniques to be able to maintain performance, by providing motivation for the work of
[3]
subordinates in order to carry out duties in accordance with applicable regulations. Herzberg in Robbins divides the needs
into the intrinsic and extrinsic factors. Intrinsic factor is job satisfaction when the condition is a strong motivation to produce
good performance. However, if these factors are not present in the work, it will not cause an excessive sense of
dissatisfaction. Extrinsic factor is the circumstances that lead to job dissatisfaction among employees.
Employee performance
Employee performance is necessary, because the employees' ability to carry out the tasks assigned to them will be
[4]
known through the performance. Mitchell states that include some aspects of performance, namely: quality and quantity of
work, promptness, capability, communication, and initiative.
Based on the variables studied, the research hypothesis can be formulated as follows:

Fig. 1. Research framework


2. METHODOLOGY
The populations of this study are civil servants, amounting to 246 men and 153 samples, using proportionate
stratified random sampling technique. All indicators on each variable have a loading value> 0.50 and also significant (pvalue). Indicators that measure the latent variables have good reliability if the composite value> 0.70. The test results
showed that all reliable research instruments, because it has a composite reliability values> 0.70, so that the instrument is
valid for all variables.
3. RESULTS AND DISCUSSION
Model is said to be good if the development of a theoretical model of a hypothesis supported by empirical data. It is
relevant to construct the initial model test results using the criteria of the Goodness of Fit Index, which have compatibility with
critical values that will be presented in table 1.
Table. 1 Evaluation Criteria for Goodness of Fit Index
Goodness of fit index
Chi Square

Cutt of value
Expected small

Model Results
237.31

Information
Marginal Fit
Marginal Fit

Significane Probability

0,05

0,000

RMSEA

0,08

0.071

GFI

0,90

0.86

AGFI

0,90

0.81

Marginal Fit

CMIN/DF

2,00

1,83

Good Fit

TLI

0,95

0.98

Good Fit

CFI

0,90

0.98

Good Fit

Good Fit
Marginal Fit

Source: Adapted from primary data, 2013


The results of testing the model in Table 1 shows that the suitability index 4 is RMSEA, CMIN / DF, TLI and CFI has
met the implied value. Therefore, the basic model (the default model) has met one of the criteria for goodness of fit based on
the model of parsimony theory is acceptable and is not required to make modifications. In other words, based on parsimony
theory, if the basic model (the default model) has produced at least one criterion, then the model will certainly generate the
[5]
expected criteria. Thus, it was concluded that this model can be reasonably well accepted Ferdinand and can be used for
estimation.

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Based on empirical models proposed in this study can be tested against the hypothesis by testing the path
coefficients in structural equation models. As for knowing the value of the path coefficients and hypothesis testing, it can be
seen in Table 2.
Table 2. Coefficient Value Line and Hypothesis Testing
Path Coefficient

-0,39

2,46

Non Significant

0,55

2.07

Significant

Transformational leadership on work motivation

0.21

1,22

Non Significant

Organizational culture on work motivation

0.72

4,16

Significant

Work motivation on employee performance

0,79

2,59

Significant

Transformational leadership on employee performance mediated motivation to work

0.16

1,05

Non Significant

Organizational culture on employee performance mediated motivation to work

0,57

2,37

Significant

Relationship variables
Transformational leadership on performance
Organizational culture on employee performance

Description

Significance level = 5% type 1-party test and degrees of freedom db = n-k-1 = 153-3-1 = 149
Based on the analysis in Table 2 will be described in the following explanation:
Hypothesis 1 (H1)
Based on the data path coefficients, the direct effect of transformational leadership variable (X1) on employee
performance (Y2) generating path coefficient -0.39 and t value of -2.46. These results indicate that the transformational
leadership has a positive and significant effect on the performance of employees, this means that the hypothesis is accepted.
However, the negative path coefficient means that the relationship between transformational leadership and employee
performance is not unidirectional. Transformational leadership increased and vice versa employee performance is
decreasing. Although the relationship is not unidirectional, but significant, which means higher transformational leadership
can degrade the performance of employees.
[6]
The results of this study are not consistent with previous research by Xenikou and Simosi that transformational
[7]
leadership has a positive effect on the performance of the service. This study is in line with research Avolio who found that
the leadership conyingency reward negative impact on the perform ance of individual followers. The results of inconsistencies
[8]
caused by the changes made transformational leader is not maximized, which according to the Pasolong is done by: (1)
increase employee awareness of the value and importance of tasks and jobs, (2) directing employees to focus on group and
organizational goals, not on personal interests, and (3) developing employee potential optimally.
Hypothesis 2 (H2)
The results of the analysis of the direct influence of organizational culture (X2) and employee performance (Y2) are
generating path coefficient of 0.55 and t-value (2.07). Based on these data it can be stated that organizational culture has a
positive and significant impact on the performance of an employee, or the hypothesis is accepted. On the positive path,
coefficient indicates that the relationship between organizational culture and employee performance unidirectional. This
means that the higher the organizational culture, employee performance will be higher.
[9]
The results of this study are consistent with research Nurjannah that organizational culture and a significant positive
[10]
effect on employee performance. Similarly, research Koesm ono
on the influence of organizational culture on employee
performance in manufacturing companies that organizational culture positive and significant effect on the performance of
employees through motivation and job satisfaction as an intervening variable. Research on the direct relationship of
[11]
organizational culture on the performance of employees in the banking industry in Nigeria is done by Olu Ojo also showed
that there is a positive and significant influence of organizational culture on employee performance.
Hypothesis 3 (H3)
The test results influence variables transformational leadership (X 1) to work motivation (Y1) produces the coefficient
lines value of 0.21 and t value of 1.22. This result suggests that transformational leadership is a positive and significant effect
on the motivation of working. A positive sign means that the line coefficient of relationship between organizational culture and
employee perform ance in the same direction. This means that the higher the motivation to work, employee performance is
[12]
also getting higher, although the relationship not significant in this study. This contrasts with research Eyal and Roth
regarding the contributions of transformational leadership style of motivation that transformational leadership style finding
that contribute significantly to the motivation.
Hypothesis 4 (H4)
Based on the results of the analysis of the direct influence of organizational culture (X 1) to work motivation (Y1)
produces the coefficient value of 0.72 and t lines of orders of 4.16. These results suggest that organizational culture positive
and significant effect on the work motivation, accepted. Positive coefficient line indicates that organizational culture increases
[13]
the work motivation. The results of this research have in common with Schein research state that the organizational
culture will motivate employees to collaborate productively. Based on the results of research can conclude that a strong
culture within the organization can provide the compulsion to force or its members to behave as expected by the
organization.

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Vol. 7. No. 1. January, 2015

Hypothesis 5 (H5)
Results of the analysis of the influence of directly to work motivation (Y1) to employee performance (Y2) conductive
a coefficient 0.79 and t value of 2,59. These results suggest that the positive effect of work motivation and significantly to the
employees performance. Positive coefficient line indicates that the motivation of working increases employee performance. It
[14]
is in accordance with the results of the research Agustina influence motivation factors on performance of employees who
find that intrinsic and extrinsic motivation are very influential on performance of employees. Similarly, according to the
[15]
research results accordance Kamal and friends written in: Motivation and Impact on Job Performance in Pakistan that
there is a significant relationship between motivation and performance of the employee. In addition, it is accordance with the
[16]
conclusions of the study results Caroline H Liu state that significantly affects motivation on performance.
Hypothesis 6 (H6)
The analysis results of the influence of indirectly variables transformational leadership (X 1) to employee
performance (Y2) through work motivation (Y1) conductive coefficient line of 0.16 and t value of 1.05. This result rejects the
hypothesis that transformational leadership has positive and significant impact on the performance of the employee. It is
mediated by the work motivation. The coefficient of the variable indicates that the positive motivation of work does not
mediate the transformational leadership against the performance of employees. These findings are relevant to the research
[17]
results and Nuraini Aisiyah Heri Susanto that influence employees' performance in Land Registry Office in Kebumen is
insignificant, where the leadership of the indirect effect on performance of employees through motivation. Leadership roles
that include exampley, discipline and assertiveness of less determine the success and effectiveness of the accomplished
tasks performed by the employee, whereas the organization wants a leader succeed in influencing and motivating (attempted
leadership) employees to follow and perform the actions. Those are ordered with the awareness of the benefits arising from
the results of employees work so that the objectives of the organization can achieve.
Hypothesis 7 (H7)
The analysis results of the influence of indirect aspects of organizational culture (X 2) to performance of an employee
(Y2) through work m otivation (Y1) conductive the coefficient line of 0.57 and t value of 2.37. This result received with
hypothesis states that the organizational culture positive and significant effect on the performance of employees in a
workplace motivation was mediated. Although positive and significant coefficient in its path, but the value of the coefficient of
the direct influence of 0.55 and indirectly of 0.57 where totalling nearly the same magnitude, it can be told work motivation
[18]
does not mediate the transformational leadership to performance Solimun . Organizational culture has three important
[10]
functions such as: as a system of supervision, social relationships, and adhesives of mutual understanding. Koesmono
researching on the influence of organizational culture on performance of employees, obtained the results that the
organizational culture has a significant positive influence on performance of employees through motivation and job
satisfaction as an intervening variable.
Results of the analysis of the influence of transformational leadership (X 1), organizational culture (x 2) and work
motivation (Y1) to performance of an employee (Y2) simultaneously generate koefiein value determinant of 0.99 and based
on a test of significance at the 5% with the error level value F = 1192,00; where: F > (F tables = 2.67). The results of this
analysis showed that transformational leadership was accepted hypothesis and culture organizations collectively contributing
positively and significantly to the performance of employees.
Based on that data, give you an idea that the leaders are expected to understand the meaning and nature of
motivation and able to control the situation so it can regenerate a boost for its employees to behave positively. Benchmark
the success of a leader toactuate the subordinates betwixt, depending on their ability to motivate each subordinate.
Psychological processes represent motivation that led to the onset and persistence of voluntary activities briefing geared
[19]
towards the achievement of the objectives Mitchell in Winardi . A strong culture can assist organizational performance
because creating an incredible motivation to employees. Behavior and shared values embraced together make som eone feel
comfortable on work.
4. CONCLUSION
The results of this research show that employee performance can be achieved optimally in transformational
leadership, organizational culture, and work motivation goes according to the conditions of employees on their surroundings.
Results of hypothesis testing can be summed up as follows. First, a high transformational leadership is decrease
performance of employee. Second, there is a direct influence of organizational culture on the performance of employees.
Third, there is no direct effect of transformational leadership on work motivation. Fourth, organizational culture directly affects
the work motivation. Fifth, the work motivations have an effect on the performance of employees. Sixth, work motivation does
not mediate between transformational leadership to the performance of employees. Seventh, the work m otivations not
mediate the organizational culture with respect to the performance of employees. Results of this study confirm that the
motivation of working not as a variable of mediation. Eighth, transformational leadership simultaneously, organizational
culture, and work motivation performance to employees in Department of Education District Youth and Sports Gorontalo
Province.
It is recommended to further research in order to further investigate the determinants of employee performance
outside Transformational Leadership, Organizational Culture, and Work Motivation. Similarly, do some research on other
human resources outside the official sector of education, youth and sports.
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