The influence of organizational culture and transformational leadership on employee performance at PT PLN (Persero) South Sumatera, Jambi and Bengkulu

https://doi.org/10.35912/jomabs.v1i4.2340
Published: Sep 5, 2024

Abstract:

Purpose: The main goal of this research is to examine the relationship between the organizational culture of PT PLN (Persero) South Sumatera, Jambi, and Bengkulu, as well as the impact of transformational leadership on employee performance.

Method: This study's methodology is a quantitative analysis of survey data. The research population consisted of employees of PT PLN (Persero), South Sumatra, Jambi, and Bengkulu. The total sampling method was used. The study sample consisted of 288 participants. The data collection technique used a closed questionnaire from an employee survey. Data analysis was carried out using continuum lines and SEM-PLS analysis as well as hypothesis testing using full model Structural Equation Modeling (SEM) analysis with smartPLS This research was carried out at PLN South Sumatera, Jambi and Bengkulu using quantitative methods.

Results: Research shows that organizational culture is strong, transformational leadership is effective, and employee performance is high. In terms of the effects on employee performance, organizational culture is positively and significantly correlated with high scores, while transformational leadership is positively but not significantly correlated.

Limitations: Culture, transformative leadership, and performance metrics may be difficult to standardize and use in different work settings. The use of measurement tools that are not valid or reliable can affect the validity of conclusions. Research may be conducted in limited contexts or samples, which reduces the ability to generalize the findings to broader populations or organizations. Other factors outside the organizational culture and transformational leadership, such as economic factors, market conditions, and individual factors, can influence employee performance. The study's limitations in controlling for or including these factors may limit the validity of the findings.

Contributions: Aside from contributing to the growth of scientific understanding, this research has the potential to become a business strategy for enhancing the quality of organizational culture in accordance with the mission and vision of the company through the practice of transformational leadership and organizational culture

Keywords:
1. Organizational Culture
2. Transformational Leadership
3. Employee Performance
Authors:
1 . Mochammad Iqbal Wahab
Telkom University, Indonesia
2 . Ratri Wahyuningtyas
Telkom University, Indonesia
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How to Cite
Wahab, M. I., & Wahyuningtyas, R. (2024). The influence of organizational culture and transformational leadership on employee performance at PT PLN (Persero) South Sumatera, Jambi and Bengkulu. Journal of Multidisciplinary Academic Business Studies, 1(4), 985–997. https://doi.org/10.35912/jomabs.v1i4.2340
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Issue & Section
Vol. 1 No. 4 (2024): August
Articles
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  2. Avolio, B. J., Bass, B. M., & Jung, D. I. (1999). Re?examining the components of transformational and transactional leadership using the Multifactor Leadership. Journal of occupational and organizational psychology, 72(4), 441-462.
  3. Bass, B. M., & Avolio, B. J. (1995). Multifactor Leadership Questionnaire.
  4. Colquitt, J. A., Lepine, J. A., & Wesson, M. J. (2015). Organizational behavior: Improving performance and commitment. Organizational Behaviour. McGraw-Hill Education. www. mhhe. con.
  5. Denison, D. (2009). Getting started with your Denison organizational culture survey results. Erlangga, Jakarta.
  6. Denison, D. (2011). Denison Overview: Introduction to the Denison Model. Denison Consulting LLC, 1(4), 1-4.
  7. Denison, D., Nieminen, L., & Kotrba, L. (2014). Diagnosing organizational cultures: A conceptual and empirical review of culture effectiveness surveys. European Journal of Work and Organizational Psychology, 23(1), 145-161.
  8. Denison, D. R., & Mishra, A. K. (1995). Toward a theory of organizational culture and effectiveness. Organization science, 6(2), 204-223.
  9. Ghozali, I. (2016). Aplikasi analisis multivariete dengan program IBM SPSS 23.
  10. Gomes, F. C. (2003). Manajemen Sumber Daya Manusia. Edisi Kedua. Yogyakarta: Penerbit Andi Offset.
  11. Hair, J. F., Ringle, C. M., Sarstedt, M., & Hult, G. T. M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM).
  12. Harper, G. (2015). The relationship between organizational culture and employee engagement. Adler University.
  13. Indiyati, D. (2018). The role of organisational culture, intellectual capital and competitive advantage in supporting the government policies in education. International Journal of Economic Policy in Emerging Economies, 11(1-2), 68-82.
  14. Jatmiko, R., & Wahyuningtyas, R. (2021). The Influence of Leadership 3.0 Implementation and Work Motivation On Employee Performance of Telkom Witel Banten. Paper presented at the Proceedings of the 1st International Conference on Sustainable Management and Innovation, ICoSMI 2020, 14-16 September 2020, Bogor, West Java, Indonesia.
  15. Kasmir. (2018). Analisis Laporan Keuangan.
  16. Keller, R. T. (1992). Transformational leadership and the performance of research and development project groups. Journal of management, 18(3), 489-501.
  17. Kennedy, A. A. (1982). Corporate cultures: The rites and rituals of corporate life: Reading, Mass.; Don Mills, Ontario: Addison-Wesley Publishing Company.
  18. Koesmono, H. T. (2005). Pengaruh budaya organisasi terhadap motivasi dan kepuasan kerja serta kinerja karyawan pada sub sektor industri pengolahan kayu skala menengah di Jawa Timur. Jurnal manajemen dan kewirausahaan, 7(2), 171-188.
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  20. Kusumawati, R. (2008). Analisis pengaruh budaya organisasi Dan gaya kepemimpinan terhadap Kepuasan kerja untuk meningkatkan Kinerja karyawan (studi kasus pada rs roemani semarang). PROGRAM PASCA SARJANA UNIVERSITAS DIPONEGORO.
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  22. Mangkunegara, A. P., & Prabu, A. (2000). Manajemen sumber daya manusia perusahaan. Bandung: PT Remaja Rosdakarya (2013). Perencanaan dan Pengembanga Sumber Daya.
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  24. Prahalad, C. K., & Hamel, G. (1994). Strategy as a field of study: Why search for a new paradigm? Strategic management journal, 15(S2), 5-16.
  25. Ramadhan, N., & Sembiring, J. (2014). Pengaruh Employee Engagement Terhadap Kinerja Karyawan di Human Capital Center PT. Telekomunikasi Indonesia, Tbk, 14(1), 1-12.
  26. Robbins, S. P. (2011). Organizational Behavior.
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  29. Robbins, S. P., & Judge, T. A. (2011). Perilaku Organisasi: Organizational Behavior, Buku 2.
  30. Rukmana, A., & Sembiring, J. (2014). Pengaruh Kepemimpinan Transformasional Dan Budaya Organisasi Terhadap Employee Engagement Di BPJS Ketenagakerjaan. eProceedings of Management, 1(3).
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  32. Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach: john wiley & sons.
  33. Sugiyono. (2017). Metode Penelitian Pendidikan Pendekatan Kuantitatif, Kualitatif dan R&D.
  34. Sugiyono, P. (2015). Metode penelitian kombinasi (mixed methods). Bandung: Alfabeta, 28(1), 12.
  35. Sugiyono, P. (2018). Metode penelitian kuantitatif/Prof. Dr. Sugiyono: vol.
  36. Suharti, L., & Suliyanto, D. (2012). The effects of organizational culture and leadership style toward employee engagement and their impacts toward employee loyalty.
  37. Suliyanto, S., & Si, M. (2006). Metode Riset Bisnis. Yogyakarta: Andi.
  38. Tucker, B. A., & Russell, R. F. (2004). The influence of the transformational leader. Journal of Leadership & Organizational Studies, 10(4), 103-111.
  39. Widodo, S. E. (2015). Manajemen pengembangan sumber daya manusia.