Article 7
Article 7
Corresponding Author:
Jeje Abdul Rojak
Universitas Negeri Surabaya, Indonesia; [email protected]
1. INTRODUCTION
In the discipline of change management, transformational leadership plays an important role to
respond to the dynamics of organizational change. It has become relevant due to its potential to effectively
manage the change process, especially to deal with the uncertainty and complexity of today's business
environment (Chen & Wang, 2022). Transformational leadership stands out because it emphasizes
developing a strong vision, building empathic relationships, and providing encouragement for
innovation to deal with organizational change.
The vision promoted by transformational leaders is a direction, and an inspiring picture of the future
(Yukl, 2012). The vision provides a clear purpose for employees and allows them to understand their role
and contribution to the changes that are taking place. By having a strong understanding of the vision,
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employees tend to feel more engaged and motivated in working towards achieving common goals.
Change efforts are accompanied by uncertainty, and this high sense of engagement and motivation is
crucial to face every challenge (Kumar & Maheshwari, 2019).
The relationships built between transformational leaders and their subordinates also have a major
role to play in managing change. An empathic and inclusive relationship creates an environment where
employees feel heard, valued, and cared for. This helps build trust and deeper engagement among team
members, which is indispensable for navigating complex change transitions. When employees feel that
their leaders pay attention to and understand their feelings and views, they are more likely to be
committed to the organization and their tasks, and more prepared to adapt to change (Hossain et al., 2019;
Al Hakim & Hariani, 2021).
Employee performance is a measure of how well they perform their tasks at work (Kahya, 2009;
Groen et al., 2019). It involves various aspects such as productivity, quality of work, initiative, and
attendance rate (Darmawan et al., 2020). The importance of employee performance cannot be
underestimated, as well-performing employees can make a positive contribution to organizational
success and productivity. They not only complete their tasks well, but can also be an example for their
peers, motivating them to improve their own performance (Mardikaningsih et al., 2017).
Pattnaik and Pattnaik (2021) mentioned that there are three main indicators to measure employee
performance. First, task performance, which includes how well employees complete the work given to
them. This includes the efficiency and quality of the work done. Second, interpersonal facilitation, which
refers to the employee's ability to interact and cooperate with coworkers and superiors. This includes the
ability to communicate well and collaborate in teams. Third, work dedication, which indicates how much
employees are motivated and committed to their work. This includes good attendance, engagement, and
passion for doing a good job.
In change management, employee performance becomes very important because change often
affects the way of working, processes, and job demands (Karanja, 2015). When an organization undergoes
change, be it in the form of restructuring, new technology implementation, or policy changes, employees
need to be able to adjust quickly in order to maintain productivity and work quality. This is because
changes often affect daily tasks and require adaptability from employees.
When an organization faces change, employees need to be able to change their tasks according to
new demands. For example, if there are changes in work processes or task priorities, employees need to
be able to adjust quickly to remain efficient and productive. Employees who have good task performance
will be able to handle these changes more smoothly, allowing the organization to keep running without
too much disruption. In the implementation of change management, employees who have good task
performance can help the organization adjust to changes quickly and effectively (Zada, 2022).
Furthermore, the encouragement for innovation and creativity provided by transformational leaders
is a major element to overcome the barriers that arise during the change process. Transformational leaders
encourage employees to think creatively, take necessary risks, and explore new solutions (Bogar, 2019).
This creates an environment where innovative ideas can arise and be implemented, strengthening the
organization's ability to adjust to environmental changes effectively (Eisenbeiß & Boerner, 2013).
By paying attention to transformational leadership principles and practices, organizations can better
manage change, improve employee performance, and build a strong foundation for long-term growth
and success (Eisenbeiß & Knippenberg, 2021). Through this approach, organizations can optimize the
change process, improve employee performance, and build a strong foundation for long-term growth
and success. This study will observe transformational leadership variables to develop employee
performance.
Transformational leadership is a leadership approach that focuses on inspiring and motivating staff
to achieve higher goals. In addition, it also focuses on changes in organizational culture and encourages
innovation. According to Jensen et al. (2018), one of the key characteristics of transformational leadership
is the ability to communicate a clear and compelling vision to staff. Transformational leaders are able to
Jeje Abdul Rojak, Sanaji, Andre Dwijanto Witjaksono, Anang Kistyanto / The Influence of Transformational Leadership and Organizational
Culture on Employee Performance
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paint a compelling picture of the desired future for the organization, thus motivating staff to work
towards that vision.
Saad Alessa (2021), states that transformational leadership indicators consisting of idealized
influence, inspirational motivation, intellectual stimulation, and individual consideration, have a crucial
role to form a leadership style that drives change. Inspirational motivation encourages employees to work
towards the vision with passion and dedication, strengthening their involvement in the change.
Intellectual stimulation evokes creativity and innovation, encouraging employees to think beyond the
usual boundaries. Meanwhile, individual consideration shows the leader's attention and support for each
employee's unique needs, desires, and potential, creating strong personal bonds to manage change. By
bringing all these indicators together, transformational leadership becomes a powerful tool to facilitate
organizational change and move employees towards long-term success.
Transformational leadership has a very important role. Transformational leadership focuses not only
on achieving organizational goals, but also on encouraging and inspiring employees to reach their full
potential. Transformational leadership style creates an environment where employees feel supported,
inspired, and motivated to achieve superior performance (Dvir et al., 2002; Liang & Steve Chi, 2013; Ng,
2017; Buil et al., 2019; Shang, 2023).
In discussions in the field of change management, transformational leadership has a very important
role to facilitate and manage organizational change effectively (Eisenbach et al., 1999). Transformational
leadership is not only about creating an inspiring vision for the future of the organization, but also about
mobilizing and motivating employees to actively participate in the change process (Azim, 2019).
In addition to transformational leadership as a key element of change management, organizational
culture is a variable that is synonymous with organizational identity. It becomes interesting the cultural
density in organizations relative to efforts to implement change management.
Organizational culture is an important concept in change management because it reflects the values,
norms, and behaviors embraced by the organization, and has a significant impact in shaping attitudes
and responses to change (Hariani, 2021). In implementing change management, organizational culture
acts as a strong and comprehensive foundation to unite individuals in the organization and form a shared
perception of the changes that occur.
Organizational culture sets the standards of behavior shared by members of the organization. The
values reflected in the organizational culture provide guidance to individuals on how they should act and
interact in the work environment. When these values align with change objectives, they can provide clear
direction on how individuals should respond to and participate in the change process. For example, if the
organizational culture emphasizes innovation and collaboration, then members of the organization will
tend to be more open to change and more active in seeking new solutions to address emerging challenges.
In addition, organizational culture also creates social norms that govern interactions between
individuals in the organization. These norms influence the dynamics of inter-personnel relationships and
play an important role in shaping attitudes towards change. For example, if the organizational culture
encourages open communication and collaboration, then members of the organization will feel more
comfortable sharing ideas, providing feedback, and working together to deal with change. Conversely, if
the organizational culture tends to be centered on hierarchy and control, then there may be resistance to
change and a lack of active participation from organizational members.
Furthermore, organizational culture creates a shared understanding of the changes taking place in
the organization (Abu-Jarad et al., 2010). When the values and norms in the organizational culture are in
line with the goals of change, individuals are likely to have a positive perception of the change. They will
see change as something that is consistent with the identity and direction of the organization, not as a
threat or a destabilizing disruption. Therefore, a cohesive and change-oriented organizational culture can
provide strong support for the change process and implementation of change more smoothly.
To implement change management, it is important for leaders and managers to understand and pay
attention to the organizational culture. They need to actively seek to understand the values, norms and
attitudes present in the organizational culture, and adapt their change strategies accordingly. This
Jeje Abdul Rojak, Sanaji, Andre Dwijanto Witjaksono, Anang Kistyanto / The Influence of Transformational Leadership and Organizational
Culture on Employee Performance
EDUKASIA: Jurnal Pendidikan dan Pembelajaran, Vol. 5, 1 (June 2024): 977-990 980 of 990
involves communicating the vision for change in a way that is consistent with the organization's values,
building support from key stakeholders and creating a work environment that promotes cooperation and
creativity. By strengthening the cohesiveness of organizational culture, leaders and managers can
maximize the chances of success for implementing change and building an organization that is adaptive
and responsive to change (Bramwel et al., 2023).
Organizational culture, which is an identity that describes the values, norms, and behaviors
embraced by an organization and plays an important role in directing how change is accepted and
implemented (Irfan & Al Hakim, 2022).
Robbins and Judge (2019) state that organizational culture has a similar concept, but there are
differences in perspective related to its evolution and development. Organizational culture can be created
by anyone, whether individuals or groups, and can come from the bottom or top of the company (Denison
& Neale, 1996). However, according to Kotter and Heskett (1992), the creation of organizational culture
follows a sequential pattern that begins with top management. Furthermore, Denison (1990) developed a
cultural model based on 4 cultural characteristics, namely involvement, consistency, adaptability, and
mission. Denison et al. (2006) also used three component indices, each with a five-point scale, to assess
each of these traits. Organizational leaders consider organizational culture as an important element in the
decision-making process because of its significant influence on performance (Indiya et al., 2018). Uddin
et al. (2013); Vargas-halabi and Yagüe-Perales (2023) found a positive influence of several dimensions of
organizational culture on performance in organizations.
In implementing change management, organizational culture acts as a rooted foundation to unite
individuals in the organization and form a shared understanding of the changes taking place (Park &
Doo, 2020; Hariani, 2023). Therefore, attention to the density of organizational culture is important for
implementing change management, because a solid organizational culture that is in line with the goals of
change can provide strong support for the change process (Tulcanaza-Prieto et al., 2021).
Organizational culture has been recognized as a crucial element in its influence on employee
attitudes, behaviors, and performance in an organization. However, the question that remains
unanswered is the extent to which organizational culture variables affect employee performance,
especially when the organization is undergoing change. Through this study, we aim to explore the
relationship between organizational culture variables and employee performance during periods of
organizational change. We will identify how values, norms, and practices in organizational culture affect
employee engagement, motivation, and productivity during the change process. Organizational culture
variables need to be observed for their role in shaping employee performance. Whether organizational
culture variables have a role to develop employee performance as change management is implemented.
Thus, overall, the main objective of this study is to investigate and better understand the role that
transformational leadership and organizational culture play in developing employee performance when
organizations undergo change. Transformational leadership, with its focus on developing an inspiring
vision, building empathic relationships, and encouraging innovation, is expected to have a significant
impact on employee motivation, engagement, and performance. In addition, organizational culture,
which reflects the values, norms, and practices espoused by the organization, is also believed to play a
crucial role in shaping employee attitudes and behaviors. By understanding the role of these two
variables, effective strategies can be developed to manage change, maximize employee performance, and
achieve organizational goals. Through a research approach to this theme, it is expected that new insights
will be discovered that can make valuable contributions to the practice of change management and
human resource development in various organizations.
2. METHODS
This quantitative research will be conducted in three universities located in Surabaya with the aim
of investigating the relationship between several independent variables and dependent variables
relevant for university staff. The research sample is selected through purposive sampling method, in
which respondents are selected based on certain relevant criteria, such as job position, work experience,
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Culture on Employee Performance
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and organizational unit. The number of staff respondents to be taken as the research sample was 120,
taking into account the balanced proportion between the three colleges.
The research instrument used is a questionnaire designed to measure the variables under study,
namely employee performance, transformational leadership, and organizational culture. The
questionnaire will consist of items that refer to the concepts and indicators of the research variables.
Employee performance is the result of work performed by individuals in accordance with
predetermined standards, based on the responsibilities assigned to them (Schmitt et al., 2003). Based on
the opinion of Pattnaik and Pattnaik (2021), employee performance indicators consist of (a) task
performance; (b) interpersonal facilitation; and (c) work dedication.
Berson and Avolio (2004) put forward the definition of transformational leadership as a leadership
style in which the leader motivates his followers to put the interests of the organization ahead of their
personal interests, by inspiring them to achieve common goals. Indicators of transformational
leadership, namely (a) idealized influence; (b) inspirational motivation; (c) intellectual stimulation; and
(d) individual consideration (Saad Alessa, 2021).
According to Rai (2011), organizational culture is a shared value framework embraced by
organizational members that differentiates the organization from others. There are four indicators to
measure organizational culture variables, namely (a) reward system; (b) communication; (c) teamwork;
and (d) management support (Olayuwola & Akeke, 2022).
This research uses survey methods and statistical analysis to identify and analyze the relationship
between the variables studied. The data collected will be analyzed using multiple linear regression
analysis to evaluate the relationship between these variables. With this approach, the research aims to
investigate and understand the influence of the variables under study on staff performance. By
combining surveys with statistical analysis, the research can provide a deep insight into the factors that
influence staff performance in an organizational context.
Multiple linear regression analysis will allow the researcher to identify how much influence the
independent variables (transformational leadership and organizational culture) have on the dependent
variable (employee performance), as well as how significant that influence is after considering control
factors.
By using this survey method and statistical analysis, it is expected that this study can provide a
better understanding of the relationship between transformational leadership, organizational culture,
and employee performance in higher education institutions in Surabaya. The validity and reliability of
the research instruments will be ensured to ensure the reliability and validity of the research results.
The validity and reliability of the questionnaire will be tested before it is used in data collection, through
techniques such as content validity test, Cronbach's alpha reliability test, and factor analysis.
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Culture on Employee Performance
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supporting the goals and mission of higher education institutions. By understanding this work
experience profile, colleges can more effectively plan and manage staff development and maximize
their potential to support institutional quality and performance.
In the education category, there were three groups: three staff (2.5%) with high school graduates;
89 staff (74.2%) with undergraduate degrees; and 28 staff (23.3) with postgraduate degrees.
Respondents with high school graduates (2.5%) are technical staff with low operational responsibility.
Bachelor graduates (74.2%) as the majority of respondents in the job position of administrative staff, or
education personnel. This suggests that most college staff have higher education relevant to their
position, and may have diverse roles in academic and administrative activities. While postgraduates
(23.3%) are less numerous than undergraduates, this group remains significant as they have more
specific or technical responsibilities. Thus, the educational structure of the college staff affects their
composition and contribution in academic and administrative activities. It also illustrates the
importance of educational diversification to meet the diverse needs of colleges and support the
complete development of staff performance.
The integration of these categories of work experience and education provides a comprehensive
understanding of the college staff profile, which is highly relevant for assessing the influence of
transformational leadership and organizational culture on staff performance development from the
point of view of respondents' perceptions. Maturity of thought due to work experience and educational
background makes greater opportunities for staff to assess more objectively the culture, policies,
development programs, leadership practices in the college as well as individual staff performance.
There were eight questions for the transformational leadership variable, there were eight for
organizational culture, and there were six for employee performance. Validity was calculated using
corrected item-total correlation, where the desired value is above 0.3. The validity test results are
presented in Table 1 (validity results), showing that the overall value of the transformational leadership,
organizational culture, and employee performance variable indicators resulted in a corrected item-total
correlation greater than 0.3. Thus, this indicates that each indicator can be declared capable of
measuring variables.
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Culture on Employee Performance
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In order to determine the reliability of the construct, there are several tests, one of which is the
Cronbach alpha reliability test. The test criteria are declared reliable if the Cronbach alpha is above 0.6. The
results of the Cronbach alpha discrimination reliability test are presented in Table 2. Table 2 informs that
the Cronbach alpha value of all variables has a value above 0.6 (informational leadership = 0.868,
organizational culture = 0.782, and employee performance = 0.912). These results can be declared
reliable.
Next, normality testing was carried out. If the data distribution is normal, then data analysis and
hypothesis testing can use parametric statistics. A good regression model is one that has a normal or
near-normal distribution. Normality can be checked by looking at the normal probability plot. If the
data points are evenly spread along the diagonal lines in the plot, it indicates that the data follows a
normal distribution. The assumption of normality can also be seen from the data histogram which
shows the distribution of data that is close to the normal curve. In addition, the distribution of data
around the diagonal lines in a normal P-Plot plot also indicates that the data is normally distributed.
Multiple regression equations need to be tested for homoscedasticity, that is, whether the variance
of residuals between one observation and another is consistent or not. If the residual variance is
constant, it indicates homoscedasticity, while if the variance is not constant, it indicates
heteroscedasticity. A good regression equation will have homoscedasticity. Through the Scatter Plot,
the results of the homoscedasticity test can be obtained as follows:
From Figure 2, there is no obvious pattern as the dots are located above and below 0 on the Y-axis.
Consequently, the dots are scattered randomly and irregularly, without forming a consistent pattern.
Therefore, it can be concluded that the data tested does not indicate the presence of heteroscedasticity.
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Culture on Employee Performance
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Based on the results of data processing in table 3 by conducting an autocorrelation test, the
relationship between transformational leadership variables and organizational culture on staff
performance variables. Detection of autocorrelation if the Durbin-Watson value of -2 to 4 indicates
freedom from autocorrelation. This study obtained a Durbin-Watson value of 2.070. The Durbin-
Watson value shows a number between -2 and 4, with this it can be stated that it does not have
autocorrelation symptoms.
The multicollinearity assumption test aims to measure the degree of relationship, relationship
closeness, or linear relationship between independent variables. One commonly used multicollinearity
test is the Variance Inflation Factor (VIF). If the VIF value of variable X is less than 10, it can be
concluded that there is no multicollinearity. In addition, the tolerance test is also used, where if the
tolerance value of variable X is more than 0.1 (or > 1 in decimal form), it can be considered that there is
no multicollinearity. Based on Table 5, the VIF and tolerance values of each variable (X1 =
transformational leadership and X2 = organizational culture) are less than 10 and 1. It can be concluded
that the data tested does not occur multicollinearity.
R2 employee performance has a value of 0.554 or 55.4%. This shows that the employee performance
variable can be explained by transformational leadership and organizational culture. While the
remaining (100% - 55.4%) of 44.6% of employee performance (Y) is influenced by other variables outside
this study.
Table 4. F Test Results
Model Sum of Squares df Mean Square F Sig.
1 Regression 5471.955 2 2735.977 72.523 .000b
Residual 4413.912 117 37.726
Total 9885.867 119
Jeje Abdul Rojak, Sanaji, Andre Dwijanto Witjaksono, Anang Kistyanto / The Influence of Transformational Leadership and Organizational
Culture on Employee Performance
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From Table 4, the observed F value is 72.523, and the significance value (Sig.) is 0.000. Since the
value of Sig. (0.000) is smaller than the significance level α (0.05), and the observed F value (72.523) is
quite high. In conclusion, the variables of transformational leadership and organizational culture
together have a significant effect on staff performance.
After completing the validity test, reliability test, and classical assumption test, the next step is to
conduct hypothesis testing to evaluate the relationship that has been formulated in the model, namely
assessing the impact of transformational leadership variables (X1) and organizational culture (X2) on
employee performance (Y). Hypothesis testing uses the T-statistic value, with the criterion that if the
significance value (sig.) is below 0.05, it indicates a significant effect. The results of hypothesis testing
are presented in Table 5, where overall, the influence between variables shows significance. The
significance value for the effect of transformational leadership (X1) on employee performance (Y) is
0.000, while for organizational culture (X2) on employee performance (Y) is 0.001. Therefore, it can be
concluded that the effect of transformational leadership and organizational culture on employee
performance is significant. This indicates a significant influence between the two variables because the
significance value is below 0.05.
To test multiple linear regression, a variety of statistical methods can be used, including multiple
regression analysis. The purpose of multiple linear regression is to determine whether the independent
variables (X1 and X2) have a significant influence on the dependent variable (Y), which is staff
performance. The resulting regression model is Y = -4.371 + 0.431(X1) + 0.346(X2). The regression
coefficient for X1 is 0.431, which means that every one unit increase in transformational leadership will
be followed by a 0.431 unit increase in staff performance. This indicates that transformational
leadership has a significant positive influence on staff performance. In addition, the regression
coefficient for X2 is 0.346, which means that every one unit increase in organizational culture will result
in an increase of 0.346 units in staff performance. This confirms that a strong and well-defined
organizational culture also has a significant positive impact on staff performance.
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Culture on Employee Performance
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4. CONCLUSION
Research shows that transformational leadership and organizational culture have a significant
impact on staff performance in higher education institutions. Transformational leadership, with its
ability to inspire, provide clear direction and motivate staff, directly affects staff performance. So does
a strong organizational culture, which creates a supportive work environment, is full of positive values,
and facilitates staff engagement. Together, these two factors contribute significantly to staff
performance in higher education. Suggestions for higher education institutions are to pay serious
attention to transformational leadership development and the establishment of a positive
organizational culture. Transformational leadership training and development for leaders as well as
efforts to build and maintain a supportive organizational culture will be valuable investments for the
long-term success and optimal performance of their staff.
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