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The effect of transformational leadership on employee performance mediated by readiness to change & work motivation: A survey of PT. Karsa Utama Lestari employees

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  • Ahmad Rizky Hariadi

    (Universitas Islam Indonesia, Yogyakarta, Indonesia)

  • Muafi Muafi

    (Universitas Islam Indonesia, Yogyakarta, Indonesia)

Abstract

The purpose of this study is to examine and analyze (1) the effect of transformational leadership on readiness to change, (2) the effect of transformational leadership on employee motivation, (3) the effect of readiness to change on employee performance, (4) the effect of employee motivation on employee performance, (5) the effect of transformational leadership on performance mediated by a readiness to change and (6) the effect of transformational leadership on employee performance mediated by employee motivation. The technique in this study uses a survey with 80 employees of PT. Lestari Main Karsa as a sample. The statistical method uses Partial Least Square (PLS). This study examines several hypotheses which include transformational leadership, readiness to change, employee motivation, and employee performance. The results of this study indicate that transformational leadership positively affects employee readiness to change. Transformational leadership also has a positive effect on employee motivation. The other hypotheses are that readiness to change has a positive effect on employee performance, and work motivation also has a positive effect. The mediating role of readiness to change and work motivation also has a positive effect on the relationship of transformational leadership to employee performance. Transformational leadership, readiness to change, and work motivation have a positive effect on performance. This study can be used as a guide for the company in improving employee performance. Key Words:Transformational leadership, readiness to change, work motivation, employee performance

Suggested Citation

  • Ahmad Rizky Hariadi & Muafi Muafi, 2022. "The effect of transformational leadership on employee performance mediated by readiness to change & work motivation: A survey of PT. Karsa Utama Lestari employees," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(6), pages 252-263, September.
    • Handle: RePEc:rbs:ijbrss:v:11:y:2022:i:6:p:252-263
    DOI: 10.20525/ijrbs.v11i6.1945
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    References listed on IDEAS

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    1. repec:eme:ijlma0:ijlma-03-2017-0026 is not listed on IDEAS
    2. Jayne E. Costello & Vishal Arghode, 2019. "Exploring member readiness for change in manufacturing industries using phenomenology," Management Research Review, Emerald Group Publishing Limited, vol. 43(7), pages 847-861, November.
    3. Muhammad Irfani Hendri, 2019. "The mediation effect of job satisfaction and organizational commitment on the organizational learning effect of the employee performance," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 68(7), pages 1208-1234, June.
    4. Memoona Zareen & Kiran Razzaq & Bahaudin Mujtaba, 2015. "Impact of Transactional, Transformational and Laissez-Faire Leadership Styles on Motivation: A Quantitative Study of Banking Employees in Pakistan," Public Organization Review, Springer, vol. 15(4), pages 531-549, December.
    5. Jayne E. Costello & Vishal Arghode, 2019. "Exploring member readiness for change in manufacturing industries using phenomenology," Management Research Review, Emerald Group Publishing Limited, vol. 43(7), pages 847-861, November.
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