ARTICLE Asia-Pacific Management

and Business Application

3 (1) 48 - 66
©UB 2014
The Influences of Transformational Leaderships on University of Brawijaya
Malang, Indonesia
Employees Performance (A Study of the Economics http://apmba.ub.ac.id
and Business Faculty Employee at University of
Muhammadiyah Malang)

Kamel Saleh Khalifa Elgelala*

Noermijatib

Higher Institute of Comprehensive Profession Libya; bFaculty of Economy and Business of

a

Brawijaya, Malang, Indonesia

Abstract
This study aims at investigating the effect of direct transformational leadership on employee
motivation, jobs satisfaction, and employee performance. Then investigating the effect of
direct employee satisfaction and motivation on employee job performance and employee’s
performance, and to know that job satisfaction gives direct influence on employee
performance. Than in this study also investigates the influence of indirect transformational
leadership on employee performance through employee motivation and job satisfaction.
The research was conducted all employees at FEB UMM. The technique of data collecting
used questionnaires with Likert scale, whereas the method of analysis used to answer the
purposes of this study was Partial Least Square (PLS). The finding of this study reveals that
transformational leadership gives positive and significant effect on employee motivation
and employees’ job satisfaction, but no significant effect found on employee performance.
The finding also shows that employee motivation gives positive and significant effect on
job satisfaction, but no significant effect on employee performance. Then, job satisfaction
also shows positive and significant effect on employee performance. Then, transformational
leadership has no significant effect on employee performance through employee motivation,
so that employee motivation cannot mediate the effect of transformational leadership on
employee performance. While transformational leadership has significant effect on employee
performance through job satisfaction, so job satisfaction expressed can mediate the effect of
transformational leadership on employee performance.

Keywords
Transformational Leadership, Employee Motivation, Jobs Satisfaction, Employee
Performance
Received: 5 June 2014; Accepted: 1 August 2014; Published Online: 30 August 2014

Corresponding author Email: elgelal71@yahoo.com

Asia-Pacific Management and Business Application, 3, 1 (2014): 48-66 ISSN : 2252-8997
The Influences of Transformational Leaderships on Employees... 49

Introduction way a leader in an organization leads and

manages employees and the employee’s
Business environment is changing
performance.
radically as a result of major societal forces.
Technological advances, globalization, Based on initial interviews with both leaders
deregulation, consumer awareness, and (managers) and followers (subordinates),
competition are not only leaching their toll researchers at the University of Michigan,
on organizational performances but also led by Rensis Liker identified that in
creating new behaviours and challenges. primary concern with the welfare of
Although many factors may influence the their subordinates, there are two basic
performance of an organization, there can forms of leader behaviour: job-centered
be little doubt that the quality of leadership and employee- centered. The first of
available will be one of the most critical which focuses on the effort in explaining
determinants of the ultimate success. subordinates work, work procedures, and
Transformational leadership plays a very subordinates performance. Whereas the
important role in enhancing employee job latter focuses on developing a cohesive
satisfaction, work motivation and work work group and ensuring that employees
performance. In recognition of this fact, are satisfied with their leaders. The two
tremendous efforts, with varying degrees styles of leader behaviour are presumed
of success, have been expanded to identify to be at the ends of a single continuum.
and develop the leadership requirements. Although this view suggests that leaders
Good transformational leadership may be extremely job-centered, extremely
accelerates performance of organizations. employee-centered, or somewhere in
This is crucial for the organizational between, Likert argues that employee-
performance. centered leader behaviour generally tends
to be more effective (Mwita, 2000).
Considering that, the employee
performance is an important Tasks are important for the day-to-
organizational building block and the day survival of the organization, while
potential high performance factors are developing people and teams are important
always available since every progress for the long-range performance of the
of depending collective effort involves organization. Great leaders are both tasks
all of the members of the organization. and people oriented while poor leaders
In fact, organizational performance is a become fixated on one or the other. It is
major multidimensional construct aimed extremely important to balance the ability
to achieve results and has a strong link to to get things done (tasks) by keeping the
strategic goals of an organization (Mwita, team together (people).
2000).
Many leadership theories have been
Consequently, an employee need to proposed in the last fifty years, and are
work more efficiently and effectively claimed to have influenced the overall
to increase the productivity and growth effectiveness of the organizations
of the organization. Many employees where they have been employed. In the
in the workplace today seek a better competitive world with technological
understanding in the mind of a leader in changes within the business environment,
an organization and are curious about the it is vital that organizations employ
special traits, behaviours and styles that leadership styles that enable organizations
the leader exhibits at the workplace. In to survive in a dynamic environment
this case there is a correlation between the (Bass, 1997).

Asia-Pacific Management and Business Application, 3, 1 (2014): 48-66

50 Kamel Saleh Khalifa Elgelal et al.

This study believes that organizations that organization, it cannot be separated from
are over managed and under led inhibit the role of human resources caused by the
organization from growth and change. It is leadership. Human resources play a very
also important that behaviours of leaders important organization in the sphere of
in an organization always have a stronger human reason is one of the driving wheels
impact on the employee in several ways. of the entire activities of the organization.
However, employee’s values, attitudes, With the changes in the organizational
and leadership styles play a very important environment which is increasingly
role in enhancing employee performance, complex and competitive, especially in
and these can be carefully adjusted to FEB UMM, the organization is required to
produce a strong impact on employee be more responsive to survive, because for
performance. both planned and unplanned organizational
changes planned or the most important
This study aims to examine the traits aspect is the change in the individual.
of transformational leaderships in Changes in these individuals is not easy,
relationship to employee performance but it must go through the process. The
as well as to give an overview on the leader is regarded as a role model within
general performances of individuals in the organization, so it is better if the
an organization. Specifically, the study changes start from the top level (leader)
aims to investigating the effect of direct to the lowest level. For an organization,
employee satisfaction and motivation it requires a reformist leader who is able
on employee job performance and to become both the motor of change
employee’s performance, and to know (transformation) in the organizational and
if job satisfaction gives direct influence transactional leader who can guarantee his
on employee performance. Than in this employees physiological and safety needs
study also investigates the influence of by giving them appropriate compensation
indirect transformational leadership on as the form of his appreciation for his
employee performance through employee employees working performance.
motivation and job satisfaction
Based on the theory and empirical
Due to the basic objectives of research evidence, researchers use variables of
focusing on prevailing leadership styles transformational leadership, motivation,
and present employees performance, the and job satisfaction are expected to
outcome is expected to demonstrate and provide an explanation of the effect on
identify the problems of the wrong overall employee performance, which is expected
managerial responsibilities, as opposed to become effective accelerator for
to managerial, interactive knowledge for reaching the purpose, vision and mission
management arrangement at the Faculty of FEB UMM.
of Economics and Business University
of Muhammadiyah Malang, Indonesia
Review of Related Literature and
and to suggest ways to improve the
organizational productivity.
Conceptual Model

Education demands individual to work Literature

efficiently and effectively and to give Every organization leader inevery
good response in order to maintain quality organization performs certain roles/tasks
and to be successful in the competition. for the smooth running of the organization
In determining the success of an

Asia-Pacific Management and Business Application, 3, 1 (2014): 48-66

The Influences of Transformational Leaderships on Employees... 51

and improvement of organizational Transformational Leadership

performance. The manner the leader
Leadership is a concept that is originally
performs these roles and directs the
developed in folk psychology to explain
affairs of the organization is referred to
social influence on groups (Calder, 1977).
as his/her transformational leadership.
Many people believe that leadership
Transformational leadership therefore
is simply being the first, the biggest
is the way a leader leads. The tasks of
or the most powerful. Leadership in
a leader is to formulate the objectives,
organizations has different and more
establish structures, manage and motivate
meaningful definitions. Very simply put, a
personnel and provide leadership (Daresh,
leader is interpreted as someone who sets
2002). However, asserts that providing
direction in an effort and influences people
leadership is a very essential component
to follow that direction. Leadership is the
of a leader’s role. In the transformational
process by which a person exerts influence
leadership, leaders choose to perform
over people and inspires, motivates, and
the above mentioned roles and they will
directs their activities to help achieve
determine whether they will accomplish
groups or organizational goals. Therefore
the task at hand or they will make it as
leadership is the ability to influence a
long-term organizational goals. Further,
group towards the achievement of goals.
it will also be clear whether they will
be able to achieve and maintain positive Transformational leadership is a process
relationships with staff or not (Mazzarella in which the leaders take actions to try
and Smith 1989). to increase their associates’ awareness of
what is right and important, to raise their
The purpose of reviewing literature on
associates’ motivational maturity, and to
leadership is to have a better understanding
move their associates to go beyond the
of transformational leadership as a concept,
associates’ own self-interests for the good
to examine different transformational
of the group, the organization, or society.
leadership to see its effectiveness and to
Such leaders provide their associates
see how each style affects the relationship
with a sense of purpose that goes beyond
among the employees in the organization.
a simple exchange of rewards for effort
The interpretation of various leadership
provided. The transformational leaders
models suggests that no single leadership
are proactive in many different and unique
style is adequate to run an organization
ways. These leaders attempt to optimize
effectively. Rather, the combination of
development, not just performance.
styles is effective if used appropriately
Development encompasses the maturation
as situations demand. More importantly,
of ability, motivation, attitudes, and
high performance should be the aim of
values. Such leaders want to elevate
any organization in any country globally.
the maturity level of the needs of their
Even though there are other factors which
associates (from security needs to needs
influence leadership, the manager’s
for achievement and self-development).
behaviour is to some extent instrumental
They convince their associates to strive
in enhancing the goal and objectives of
for a higher level of achievement as well
the organization. In order to assess the
as higher levels of moral and ethical
effect of transformational leadership
standards. Through the development
and employee performance, which is the
of their associates, they optimize the
focus of this study, it is logical to examine
development of their organization as well.
various leadership styles.

Asia-Pacific Management and Business Application, 3, 1 (2014): 48-66

52 Kamel Saleh Khalifa Elgelal et al.

High performing associates build high H3: There is an influence of the

performing organizations (Burns, 1978). transformational leadership to the
job satisfaction of employees at the
Transformational leadership involves FEB UMM.
the way or techniques someone uses
in running a leadership. Motivation
Employee Motivation
is encouraged to raise one’s sense to
work. To motivate employees, a leader The motivation is the change in energy in
should know the motives and the desired a person that is marked by the emergence
employee motivation. Working people of “feeling” and preceded by a response to
have goals to meet the needs of both the any destination. Duncan was a master of
needs and realization of the unconscious administration, in his book ”Organization
needs, material or non-material, physical Behaviour”, suggests that in the concept
or spiritual needs. of management, motivation means any
ventures that affects a person’s behaviour
Khurram Zafar Awan, Ibn-E-Waleed to be realized in order to improve his
Qureshi and Sadiya Arif (2012) show ability to his full potential to achieve the
leadership has positive and significant objectives of the organization. Motivation
effect on employee performance. Than refers to a process affecting the choices
the research of M.L. Voon, M.C. Lo, of the individual against the various
K.S. Ngui, N.B. Ayub (2011), Veronica forms of the desired activity (Vroom,
Celattia Tandoh(2011), Abdikarin Sheikh 1988). According to some opinions it is
Abdulahi Ali, Hussein Osman Elmi, and concluded that the driving motivation is
Ali Ibrahim Mohamed (2013), show for the deeds of a person or a motive and
transformational leadership has positive why someone does something. Motivation
and significant effect on employee is also concerned on why someone does
performance. They study also indicated so and what is that purpose to do so.
that there was a statistically significant
moderate positive relationship between High motivation in employees is the capital
transformational leadership and employee for an enterprise to be able to realize a
performance. The result of Voon (2011), higher job satisfaction which is certainly
show transformational which were the hope to be achieved by the company.
found to have direct relationships with The company can choose how to motivate
employees’ job satisfaction. employees properly and in accordance
with the situation and condition of the
Based on theory and previous findings, a company.
hypothesis can be structured as follows:
Employee is the principals who are able
H1: There is an influence of to achieve the goal. To develop positive
transformational leadership to the behaviours in leading the company, an
employee motivation at the FEB employee should accomplish company’s
UMM. objective and thus it will create good
H2: There is an influence of motivation for both internal and external
transformational leadership to the motivation. Motivation is encouragement,
employee performance at the FEB effort and desire existing in a person
UMM. who will lead behaviour to do duty or a
good job, while satisfaction is attitudes

Asia-Pacific Management and Business Application, 3, 1 (2014): 48-66

The Influences of Transformational Leaderships on Employees... 53

that indicate the presence of conformity Behaviour that is motivated by extrinsic

between hope and the results obtained. not behaviour inherent in the individual,
so it needs to get a boost from the outside.
Motivation is a passion in the person Behaviour that is motivated by extrinsic is
who causes the person does the action. A not a behaviour inherent in the individual
person often performs actions to achieve so it needs to get encouragement from the
the purpose of a thing. The motivation outside. The main reason people behave is
questions how to encourage work to they feel valued by others who are close
subordinate so that they want to work hard to him. Intrinsic factors include security
to give you all the skills and capabilities status, relationship with a colleague,
to realize the objectives of the company. working conditions, relationships with
The motivation of someone starts from the supervisors, and administrative wisdom
needs, wishes and encouragement to act of the company.
in order to achieve the needs or purpose.
This indicates how powerful the impetus, Job satisfaction is something given to
effort, intensity, and her willingness to employees with the vacation and matter
make sacrifices for the sake of achievement considered which can relieve the boredom
of business objectives. In this case the work in progress. For the benefit of this
stronger impetus or motivation, the higher research there are two motivation factors,
is the performance. intrinsic motivation factors at work, as the
womb work (job content) encouragement
Yasemin Oraman (2011), Elisabeth A. of an individual feel when the individual
Sorentino (1992), said in their research does the job, covering achievement,
that employee motivation has positively confessions, responsibility, growth and
and significantly related in increasing job development of this work alone. And
satisfaction. Than the result of research the extrinsic motivation relates to the
of Ayub (2011), Salleh (2011), Elisabeth environment from outside the work
A. Sorentino (1992), motivation and job covering working salary condition,
performance is positively related. The relations with fellow workers and
motivation has positive effect on employee supervisor, and wisdom organization.
performance.
Employee job satisfaction due to the
Based on theory and previous findings, a employee’s performance will increase as
hypothesis can be structured as follows: employees feel cared for by company so
H4: There is an influence of there’s influence among the employees
employee motivation on with the company i.e., employees will
employee job satisfaction at the get job satisfaction and the company will
FEB UMM. get high performance from its officers.
This is in accordance with the opinion
H5: There is an influence of employee of the Robbins (2001) stating that “Job
motivation on employees’ performance is the level of efficiency
performance at the FEB UMM. and effectiveness as well as innovations
in the achievement of the objectives by
Job Satisfaction the management and the divisions that
Job satisfaction is a concept about the exist in the organization. Performance
activities carried out to achieve the is said to be good and successful if the
results that come from outside yourself. desired goals can be achieved with good

Asia-Pacific Management and Business Application, 3, 1 (2014): 48-66

54 Kamel Saleh Khalifa Elgelal et al.

performance, which is also viewed as a Based on theory and previous findings, a

function of the interaction between ability, hypothesis can be structured as follows:
motivation, and opportunity, so that the
person’s performance is affected by job H6: There is an influence of employee job
satisfaction”. satisfaction on employee performance at
the Faculty of Economics and Business of
Robbins (2001) and Hussin (2011) showed University of Muhammadiyah Malang.
there is a positive relationship between
job satisfaction on the job performance. Based on the explanation above, this study
Job satisfaction can increasing employee is regarded as important to conduct. The
performance within the organization. concept of this study can be seen in the
Figure 1.

Figure 1. The Concept of Study

Methodology is the description and analysis of the

inferential statistical Partial Least Square
The research design of this study is
(PLS).
using explanatory research. Primary data
collection was carried outwit distributing
the questionnaire, than interviewing the Result and Analysıs
respondent. This study will be conducted Hypothesis testing and direct path
all employee of FEB UMM. This study coefficients between transformational
uses data measurement Likert scale; scale leadership, employee motivation, and
ranges used are the numbers 1 through job motivation on employee performance
5. Figure 1 indicates “strongly disagree/ in FEB UMM can be seen from the path
good”, the number 2 indicates “disagree/ diagram of the estimation results of
good”, the number 3 shows the “neutral”, analysis of Partial Least Square (PLS).
the number 4 shows the “agree / good”, Exogenous variables has a significant
and the number 5 indicates “strongly effect on endogenous variable if the value
agree/good”. (Cooper &Emory, 1995). of t-statistics greater than 1.96 (alpha (α)
Data analysis methods used in this study = 5%); s (significant); ns (non significant).

Asia-Pacific Management and Business Application, 3, 1 (2014): 48-66

The Influences of Transformational Leaderships on Employees... 55

Figure 2. Diagram of Direct Path and Hypothesis Testing

First hypothesis stated the influence of statistics value > 1.96). This means that
transformational leaderships on employee the transformational leaderships directly
motivation, values obtained from path give no significant effect on employees’
coefficient between transformational performance.
leaderships on employee motivation is
0.645. This means that transformational Third hypothesis stated the influence of
leadership has a positive effect on transformational leaderships on the job
employee motivation. It means that satisfaction. The value obtained path
stronger transformational leaderships tend coefficient between transformational
to improve employee motivation. Then leaderships towards job satisfaction is
values obtained from t statistics between 0.354. This means that transformational
transformational leaderships on employee leadership has a positive effect on
motivation is 13.622 (t statistics value > job satisfaction, in which stronger
1.96). This means that the transformational transformational leaderships tend to
leaderships directly give positive and improve job satisfaction. Then the
significant effect on employee motivation. value obtained t statistics between
transformational leaderships towards job
Second hypothesis which states satisfaction is 5.535 (t statistics value >
influence the behaviour of the employees 1.96). This means that the transformational
performance leadership describes that leaderships directly give significant effect
values obtained from path coefficient on job satisfaction.
between transformational leaderships
of the employees performance is 0.044. Fourth Hypothesis indicates the effect of
This means that transformational motivation on employee job satisfaction.
leadership has a positive effect on the The value obtain path coefficient between
employees’ performance, in which employee motivation towards job
stronger transformational leaderships satisfaction is 0.651. This means that the
tend to improve employees performance. employee motivation has a significant
Then values obtained from t statistics positive effect on job satisfaction in which
between transformational leaderships of increased employee motivation then tends
the employees performance is 0.566 (t to improve job satisfaction. Then the

Asia-Pacific Management and Business Application, 3, 1 (2014): 48-66

56 Kamel Saleh Khalifa Elgelal et al.

value obtain t statistics between employee motivation is 0.084. It is stated that the
motivation towards job satisfaction transformational leadership has a positive
is 10.743 (t statistics value > 1.96). effect on the employees’ performance
This means that employee motivation through employee motivation. This means
give directly significant effect on job that the stronger the transformational
satisfaction. leaderships, it tends to improve employee
motivation and thus increase employees
Fifth hypothesis states influence on performance. Then the value of t statistics
employee motivation to employees relationship between transformational
performance. The value of path coefficient leadership towards employees’
between employees motivation to performance through employee
employees’ performance is 0.131. This motivation is 1.002 (t statistics value >
means that employee motivation has 1.96). This suggests that transformational
a positive effect on the employees’ leadership does not significantly
performance, which increased employee influence the employee performance
motivation, then it tends to improve through employee motivation. Therefore,
employees performance. Then the employee motivation can be declared null
value of t statistics between employee and transformational leaderships mediate
motivation to employees performance the effect on employee performance.
is 1.013 (t statistics value > 1.96). This
means that employee motivation directly Eighth hypothesis states influence
gives no significant effect on employees’ transformational leadership towards
performance. employees’ performance through job
satisfaction. The value of path coefficient
Sixth hypothesis states the effect of job relationship between transformational
satisfaction to employees’ performance. leadership towards employees’
The value of path coefficient between performance through job satisfaction is
job satisfaction of the employees’ 0.245. It is stated that the transformational
performance is 0.693. This means that job leaderships give positive and significant
satisfaction has a positive effect on the effect on employees’ performance through
employee performance, which increased job satisfaction. This means that stronger
job satisfaction then tend to improve the transformational leaderships that tend
employees performance. Then the value to improve job satisfaction which leads to
of t statistics between job satisfaction of the increase of employees performance.
the employees performance is 3.913 (t Then the value of t statistics relationship
statistics value > 1.96). This means that between transformational leadership
job satisfaction is directly significant towards employees’ performance through
effect on employees’ performance. job satisfaction is 3.161 (t statistics
Seventh hypothesis states influence value > 1.96). This suggests that the
transformational leadership towards transformational leaderships significant
employees’ performance through effect on employees performance through
employee motivation. The value of job satisfaction. Therefore, job satisfaction
path coefficient relationship between expressed may mediate the effect of
transformational leadership towards transformational leaderships on employee
employees’performance through employee performance.

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The Influences of Transformational Leaderships on Employees... 57

Discussion However, some other studies (e.g. Pfeffer

1977; Meindl, Ehrlich & Dukerich 1985)
The results of the analysis concluded
suggest that role of leadership is not so
that the transformational leadership
important in achieving the organizational
have a significant positive effect on
performance. Employee perceptions of
employee motivation, in which stronger
transformational leadership tend to be
transformational leaderships tends to
good, but there were some respondents
improve employee motivation. The
who perform good working performance
hypothesis formulated in this study
so that they become employees feel to the
shows that the results are consistent
trainers in the companies.
with previous studies proposed by
Khurram Zafar Awan, Ibn-E-Waleed The consideration variable makes
Qureshi and Sadiya Arif (2012); Amin employees sometimes feel that there is
Wahyudi and Jarot Suryono’s (2006). discrimination that leaders can’t consider
Several studies have also examined the their ability of employees to get the job
relationship between the two factors and done, probably during this leadership
concurred that leadership has significant subjectively choose the delegates for its
impacts on job satisfaction and employee employees. Then the act of the reward
motivation (Lok & Crawford, 1999, given to the deserved employees. The
2001; William & Hazer, 1986; Mosadegh honour consideration should also be taken
Rad & Yarmohammadian, 2006). High into account as the leader needs to show
job satisfaction enhances employees’ honourable behaviour to the employees so
psychological and physical well being they will not lack of respect for their leader.
(Ilardi, Leone, Kansser, & Ryan, 1983) However, the employee performance
and positively affects motivation (Vroom, tends to be good, although there might
1964; Porac, Ferris, &Fedor, 1983). be dissatisfaction found. Moreover,
there are more male employees than the
The results of the analysis concludes
females’ ones. The ages of the employees
that the transformational leaderships
are relatively young so that those who
has no significant positive effect on the
work less than a year might not feel that
employees performance, in which the
transformational have not been able to
stronger transformational leaderships that
improve their performance. They feel
tend to improve employees performance.
the lack of intellectual stimulation. The
The hypothesis formulated in this study
leader needs to fully understand the needs
shows that the results are consistent with
of employees by giving them support,
previous studies as proposed by Abdikarin
awards, recognition for employees who
Sheikh Abdulahi Ali, Hussein Osman
are active and perform better achievement.
Elmi, and Ali Ibrahim Mohamed (2013).
A leader who often does not involve
The findings of prior studies about the role
the employees to bring / carry out the
of leadership in increasing organizational
mission of the organization sometimes
performance are mixed. Some studies
meet the reality that the employee might
(e.g.Finkelstein&Hambrick, 1996; Katz &
feeless enthusiastic in the work resulting
Kahn, 1978; Peterson, Smith, Martorana,
in employee less performance. This
& Owens 2003) suggest that the role of
causes no significant transformational
transformational leadership is critically
leadership on employee performance.
important for an organization to achieve
Employees are the most important asset in
a high level of employee performance.
the organizations. To be more effective in

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58 Kamel Saleh Khalifa Elgelal et al.

all situations, leaders need to learn more the function of employee satisfaction,
about human behaviour, and how their commitment and productivity. This is
attitudes and behaviour impact employee what the results of the study show that the
performance. Leaders at all levels through university did not neglect this aspect and
their actions and attitudes can create the the results were satisfactory through the
environment which induces motivation in study sample.
employees.
The results of the analysis conclude that
The results of the analysis concludes the employee motivation has a significant
that the transformational leadership positive effect on job satisfaction in which
has a significant positive effect on increased employee motivation tends to
job satisfaction, in which stronger improve job satisfaction. The hypothesis
transformational leaderships that tend to formulated in this study shows that the
improve job satisfaction. The hypothesis results are consistent with previous
formulated in this study shows that the studies proposed by Yasemin Oraman
results are consistent with previous studies (2011); Jenster (2009); Patel and Cardon
as proposed by Voon (2011). According (2010); Lise m. Saari and Timothy
to Mosadegh Rad and Yarmohammadian A.Judge (2004). Beside that, Lise m.
(2006), employee job satisfaction refers Saari and Timothy A. Judge (2004) also
to the attitude of employees towards their conducted the research to discover the
jobs and the organization which employs effects of employee attitudes and job
them. The researchers pointed out that satisfaction on organizational measures,
job satisfaction is influenced by many such as customer satisfaction and
organizational contextual factors, ranging financial measures. Greater insights on the
from salaries, job autonomy, job security, relationship between employee attitudes
workplace flexibility, to leadership. In and business performance will assist HR
particular, leaders within organizations professionals as they strive to enhance the
can adopt appropriate leadership styles essential people side of the business in a
to affect employee job satisfaction, highly competitive, global arena. Garrido
commitment and productivity. Previous et al. (2005) conducted the research to
studies have examined the relationship discover the factors that determine the job
between employee job satisfaction and satisfaction of sales managers. The effect
transformational leadership in various of HRM practices is analyzed by using the
settings such as healthcare, military, model which was already employed by an
education and business organizations empirical study on Spanish educational
(Cook, Wall, Hepworth, & Warr, 1989; firms. The study concludes that human
Bass, 1990; Chen &Silverthorne, 2005). resource management practices based on
These studies generally indicate that compensation type, compensation level
employee job satisfaction in the public and job design in terms of autonomy and
sector is just as important as it is in the resources are the essential determinants of
private sector. There are many factors sales managers’ job satisfaction. Patel and
influencing the employee which range Cardon (2010) also suggested that having
from salaries and independence of a group culture is a key factor in the extent
work, job security, and flexibility in the to which transformational leadership is
workplace, and leadership. In particular, adopted, as well as how effective adopting
the leaders of the organizations can adopt HRM practices are for increasing
appropriate leadership styles to affect labour productivity and job satisfaction.

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The Influences of Transformational Leaderships on Employees... 59

Furthermore, Gogoi (2005) found that work, then the employee also takes the
the importance of work spiritually is opportunity to exchange thoughts with
consistently growing as the spiritual cause colleagues, the opportunity to discuss
leads to strategic benefits to the business problems, communicate in completing a
unit and due to the significant contribution task or work with leaders who have been
of team work spiritually. Through the employees feel not get it. This causes
study and answer their questions clear no significant employee motivation on
that the university study sample trace in employee performance.
the style of motivation and job satisfaction
through promotions - intrinsic motivation The results of the analysis concludes
and job satisfaction and this effect a that the job satisfaction has positive
positive impact in the performance of and significant effect on the employee
work allowing the university of strong performance, which increased job
competition in performance and enable satisfaction then tend to improve
it to open new relations for the university employees performance. The hypothesis
at Inside and outside using the ability of formulated in this study shows that the
employees. results are consistent with previous studies
as proposed by Hussin (2011). On the
The results of the analysis conclude other hands, Job dissatisfaction prompts
that the employee motivation has turnover cognitions and the desire to
no significant positive effect on the escape the job environment (Hulin, 1991;
employees’ performance, which increased Mobley, 1977; Porter & Steers, 1973).
employee motivation, then tend to However, commitment to company
improve employees performance. The values and goals can reduce thoughts of
hypothesis formulated in this study shows withdrawal (Mowday, Porter, & Steers,
that the results are consistent with previous 1982). Commitment scholars also contend
studies as proposed by Ayub (2011); that commitment should predict turnover
Salleh (2011). Employee motivation more accurately than job satisfaction
tends to be quite good, though there are because resignation implies rejection of
few who declare good. This is due to the the company, rather than the job (Hom &
employees’ lack of motivation so that Hulin, 1981). Considering these theoretical
its performance is not good. During this rationales, contemporary turnover models
time, employees feel that the salary they include both satisfaction and commitment
get is less feasible to meet the needs of the as affective states in initiating the turnover
economy and the health of their families. process. Indeed, recent models of turnover
Then at FEB UMM also no employee recognize the independent effects of
safety program. Then employees feel less job satisfaction and organizational
motivated because there is no award for commitment on turnover intentions (Hom
employee performance, and also a rare & Griffeth, 1991).Many researchers
opportunity for employees to develop a have examined the effects of employee
career. However, the performance of the attitudes on withdrawal behaviours such
employees tend to be quite good, although as absenteeism, turnover intentions,
there are not satisfactory. Employees and turnover. Consistent evidence has
of FEB UMM many unmarried and been found linking job dissatisfaction
have experience of less than one year. to turnover (e.g. Hulin, Roznowski, &
Therefore, employees need basic needs Hachiya, 1985) and a number of reviews
such as salaries according to their found consistent negative relationships

Asia-Pacific Management and Business Application, 3, 1 (2014): 48-66

60 Kamel Saleh Khalifa Elgelal et al.

between organizational commitment style of leadership is associated with

and both intention to leave and actual the negative aspects of transformational
turnover (Allen & Meyer, 1996; Mathieu leadership. While there are positive
& Zajac, 1990; Tett & Meyer, 1993).By aspects of the transactional theory, it
answering the questions, it shows that has shown to have inherent weaknesses.
job satisfaction in the study sample from Additionally, the theory maybe deficient
university has the effect of increasing in the long-term in that it does not readily
the performance of employee. It seems avail itself to allow for changes which are
that the employees follow the university increasingly important in today’s climate.
style by practicing democratic leadership Densten (1999) asserts that to meet
that enables employees to create more the demands of modern organizations,
creativity and innovation and glittering especially criminal justice agencies,
in their work and the study also found the managers must implement more
that lack of the boredom at the workplace humanistic style and apply principle-
will lead employees to be which can based styles of leadership. To respond to
stimulate to increase production capacity these demands, the researcher believes
in performance. that there is a need for the law enforcement
managers to apply transformational
The results of the analysis concludes leadership to their agencies. The
that the transformational leadership traditional style of management resting
has no significant positive effect on upon strict managerial rules needs to be
the employees’ performance through transformed by a new process based on
employee motivation. This means that diverse skills, interests, and attitudes.
stronger transformational leaderships tend This form of transformational leadership
to improve employee motivation and thus can be a valuable tool to help reforming
the increase in employees performance. management within police agencies.
Therefore, employee motivation can With a better understanding of the needs
be declared null and transformational and aspirations of police employees,
leaderships mediate the effect on employee transformational leadership can turn
performance. The hypothesis formulated traditional police managers into effective
in this study shows that the results are and valuable leaders. Such a change
not consistent with previous studies as can make chief of police to be more
proposed by Khurram Zafar Awan, Ibn-E- competent and uses better approach too
Waleed Qureshi and SadiyaArif (2012). It handle complex problems in rapidly
was also noted that despite the wide use of changing growing society. As a result of
the Situational Leadership Model (SLM) global technological and social alteration,
by Hersey and Blanchard (1977), most specific transformational leadership
studies have been critical to the theory. In becomes necessary for both private
fact, some studies have shown a lower job and public agencies, particularly for
performance by followers of the leaders those in paramilitary structures, such
utilizing the SLM. Bass, Avolio, Jung and as police agencies, because interactions
Berson (2003) reported previous research between supervisors and subordinates are
has shown transactional contingent reward more crucial than ever (Ozmen, 2009).
style of leadership to be positively related Bono and Judge (2003) concluded that
to followers’ commitment, satisfaction, transformational leaders could influence
and performance. In contrast, the how followers perceive their work activities
transactional management-by-exception

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The Influences of Transformational Leaderships on Employees... 61

and that these perceptions resulted in an positively affects empowerment,

increase in the followers’ job satisfaction, organizational commitment, and job
commitment, and performance. Whether satisfaction. Job satisfaction will be
called active, street sergeants, etc., strong achieved when there is suitability between
indications are that transformational expectations and reality in work places.
leaders affect their subordinates’ behaviour Some of the indicators making employees
and effectiveness more (Johnson, 2006). feel unsatisfied with their job are (1)
The Transformational leadership is a thought that their job is boring, (2)
very important in the work environment unsuitable payment, and (3) unsupportive
because of its important role in motivating colleagues. In contrast to result of the
employees. That is what should be research, Engel (2008) concedes none of
followed by the university in which the the four supervisory styles indentified in
leader plays a role as a mediator in the her research should be considered as the
work by raising the pressures of work and ideal standard for leadership to increase
ease the problem faced by the employee employee performance. It should be noted
by facilitating their mission to accomplish the three of Engel’s styles identified in
the simplest and easiest way of solution. her research are transactional and one is
This kind of environment will lead to transformational. There are pros and cons
good working environment which later associated with each style. The appropriate
makes the employee love their job. The style of leadership for departments
leadership at the university seem to follow would differ depending on the agency’s
a policy of democratic style of them to organizational goals (Engel, 2001).
complete the tasks, but it has neglected This assessment is supported by Conger
the role of mediator in this aspect than (2004) who argued that transformational
negative impact on the outcome of leadership is a principally normative
the study. The results of the analysis model, which takes a single approach to
concluded that the transformational prate leadership across levels but it does not
leaderships have positive and significant consider the situational contingencies (as
effect on employees’ performance through cited by Chan, 2005). The study by Bass,
job satisfaction. This means that stronger Avolio, Jung, and Berson (2003) of 72 U
transformational leaderships tend to .S. on Army platoon’ performance in near-
improve job satisfaction which leads to combat conditions illustrated the platoon
the increase in employee performance. leaders’ transformational and transactional
Therefore, job satisfaction expressed may leadership which had positive and direct
mediate the effect of transformational relationships with platoon performance.
leaderships on employee performance. The Transformational leadership at work
Supporting this result Howell and is important for employees’ performance
Avolio, (1993); Politis, (2002) stated that while good work environment can be
transformational leadership can increase assessed by employees’ satisfaction
employees’ performance through Job shown in the work place. The information
Satisfaction. Transformational leadership provided by sample of this research in
affects employees’ satisfaction and University of Muhammadiyah Malang
organizational commitment (Hatter and clearly shows satisfaction and measure
Bass, 1990; Koh, Steers and Terborg, 1995; the level of performance of the employee,
Barling et al., 1996). A study by Dladha > In addition, it was also found the degree
(2011) found that leaders’ behaviour of job satisfaction among employees and

Asia-Pacific Management and Business Application, 3, 1 (2014): 48-66

62 Kamel Saleh Khalifa Elgelal et al.

this may be the method adopted in the effect on employees performance through
administrative leadership by spreading job satisfaction and this result is consistent
the spirit of cooperation between the with the research conducted by Howell
employees and administrative leadership and Avolio (1993) and Politis (2002).
at the university.
Practical Implications
Research Implication The findings in this study also has
its practical implications stating that
Theoretical Implications
transformational leadership, motivation,
The theoretical implications of the findings job satisfaction and employee performance
in this study imply that transformational are at a good level. Transformational
leadership has a significant positive leadership is able to affect the
effect on employee motivation. It is in performance of an employee either
accordance with previous findings that directly or indirectly through motivation
have been made by Khurram Zafar Awan, and job satisfaction. This means that
Ibn-E-WaleedArif Qureshi and Sadiya improving employee performance will be
(2012). Other theoretical implications effective if the leadership of implementing
also confirm the findings of previous transformational leadership includes
studies performed by Ali (2013) stating the activity of developing new ideas to
that transformational leaderships has no facilitate the completion of work for
significant positive effect on the employees employees. The leader should consider the
performance. Later in this study, it has also ability of employees to get the job done,
found that transformational leadership encourage employees to be able to complete
has a significant positive effect on job problems carefully, act creatively, get the
satisfaction, as proposed by Voon (2011) achievement, and become the trainers
and Mosadegh Rad and Yarmohammadian for employees, involves employees to
(2006). Furthermore, employee motivation integrate / implement the organization’s
has positive but no significant effect on mission, honoured by the employee,
the employees’performance. This finding and trust by employees. Employee
was consistent with the findings of Job performance is not only done by increasing
(2011) and Ayobami (2001). On the other transformational leadership, but also
hand, this study resulted in the finding through increasing motivation, such as
that employee motivation has a significant the provision of appropriate salaries and
positive effect on job satisfaction, as in benefits, health insurance for the family
research Yasemin Oraman (2011) and and security guarantee. A leader should
Jenster (2009). Further, the job satisfaction also give support to his co-workers in the
has a positive and significant effect on forms of appreciation, reward, and self
the employee performance, as noted by actualization. Increased job satisfaction
Hussin (2011). Then transformational is also very important to improve the
leadership has a positive effect but no performance of employees. Leaders who
significant on the employees performance apply transformational leadership is
through employee motivation, as noted by further supported by the presence of the
Khurram Zafar Awan, Ibn-E-WaleedArif job satisfaction of employees, payments
Qureshi and Sadiya (2012). In addition, (salaries and benefits), and promotion
this study has found that transformational satisfaction in terms of promotion
leaderships give positive and significant satisfaction with leadership performance,

Asia-Pacific Management and Business Application, 3, 1 (2014): 48-66

The Influences of Transformational Leaderships on Employees... 63

and satisfaction with co-workers, will variables into variables that mediate the
automatically improve their performance. influence of leadership, motivation, and
satisfaction with the performance of the
Thus, the results of this study can provide employee.
practical implication that in order to
improve employee performance evaluation
Conclusion
and implementation of the necessary
transformational leadership, increasing ‘Intellectual Stimulation’ is the dominant
employee motivation and increasing job indicator measuring transformational
satisfaction are very important. Thus, if leadership. Leaders, who encourage
it is carried on, it will improve employee employees, should be able to complete
performance of staff at FEB UMM. problems carefully, and then encourage
employees to act creatively. In addition,
Research Limitation leaders should also be able to develop
new ideas to facilitate the completion of
This study does not focus on permanent work for employees and give rewards to
employees at FEB UMM, or include the employees who have completed the
internal. Internal staff should not have to job. In other words, leaders should be able
be included in this study because it will to give positive and significant impact on
cause the results of this study to have high employee performance.
diversity.
‘Intellectual Stimulation’ is the dominant
This study has too many questions that indicator measuring transformational
are similar in measuring variables of leadership. Leaders should be able
transformational leadership, motivation, to encourage employees to be able to
job satisfaction, and employee complete problems carefully, and then
performance. Therefore, there is a bias for encourage employees to act creatively.
respondents in answering the questions in In addition, leaders should also be able
the questionnaire. Thus, respondents are to develop new ideas to facilitate the
not serious in answering question. completion of work for employees and
In this study, it is found out that give rewards to the employees who have
transformational leadership and motivation completed the job. Thus, leaders are able
influence only employee performance. to make a positive impact and thus it is
There are several variables which affect concluded that transformational leadership
the performance of the employee. They are significantly affects employee motivation.
work engagement, emotional intelligence, ‘Intellectual Stimulation’ is the dominant
psychological well-being, organizational indicator measuring transformational
culture, organizational commitment, leadership. Leaders should be able
entrepreneurial orientation, and so on. to encourage employees to be able to
Therefore, to optimize the performance of complete problems carefully, and then
employees at FEB UMM, these variables encourage employees to act creatively.
can also be used. In addition, leaders should also be able
The study was limited to the influence of to develop new ideas to facilitate the
leadership, motivation, and satisfaction completion of work for employees and
on employees’ performance. Therefore, give rewards to the employees who have
this study could be further developed completed the job. Thus, leaders are
with the involvement of employee loyalty able to make a positive impact and thus

Asia-Pacific Management and Business Application, 3, 1 (2014): 48-66

64 Kamel Saleh Khalifa Elgelal et al.

it is concluded that transformational Noermijati is a Senior Lecturer in

leadership significantly affects employee Management Department Faculty of
jobs satisfaction. Economics and Business, University
of Brawijaya, Indonesia. Her research
‘Egoism need’ serves as the most dominant
interests are Human Resource Management
indicator to measure employee motivation.
(HRM), Flexibility Management, Strategic
Employees will be motivated when they
Management, Marketing Management.
get recognition from the job place. They
will work optimally to get an appreciation
for the achievements they have achieved
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