The Relationship between Transformational Leadership and Employee Performance at a Manufacturing Company in South Sumatra

Abstract

This study aims to determine the relationship between transformational leadership and employee performance among employees at manufacturing companies in South Sumatra. Transformational leadership was studied as an independent variable, encompassing four dimensions: idealised influence, inspirational motivation, intellectual stimulation, and individualised consideration. Employee performance is studied as a dependent variable, with a focus solely on task performance in this study. The data was acquired from a sample of 140 employee respondents at a South Sumatra manufacturing company through a questionnaire consisting of three main sections (Parts A, B, and C), which included a combined total of 30 items and closed-ended questions. Google Forms was used to collect the data, and version 29 of the Statistical Package for Social Science (SPSS) was used for data analysis. Descriptive analysis was conducted to calculate the mean score level, and Spearman’s correlation analysis (r) was used to examine the relationship between transformational leadership dimensions and employee performance. Results indicated that employees in the manufacturing company in South Sumatra demonstrated a moderate level of transformational leadership style, which was associated with improved employee performance. The findings revealed a significant and positive relationship between transformational leadership and employee performance. Based on the results, it is evident that several aspects of this transformational leadership can be beneficial to all parties involved, including employers, employees, and future researchers.