The Roles of Transformational Leadership on Employee’s Job Satisfaction, Readiness for Change, and Organizational Commitment of Islamic Banking in Indonesia

Authors

  • Ayu Putri Aprileani Universitas Esa Unggul
  • Ferryal Abadi Universitas Esa Unggul

DOI:

https://doi.org/10.55927/ijba.v2i2.2228

Keywords:

Transformational Leadership, Job Satisfaction, Readiness for Change, Organizational Commitment, Work Performance

Abstract

This study aims to deeply analyze the effect of transformational leadership, job satisfaction, readiness for change, and organizational commitment on work performance in Islamic banks. In this study, 195 respondents were obtained from Islamic bank employees in Indonesia based on a purposive sampling method by distributing online questionnaires. The research was conducted using a quantitative approach and processed by the Structural Equation Modelling method using the Lisrel application. The results showed that transformational leadership positively affects job satisfaction, readiness for change, and organizational commitment. However, transformational leadership, job satisfaction, and organizational commitment do not affect work performance. On the other hand, the study proves that readiness for change can be an intervening mediator in the research. This finding is a managerial implication that contributes to improving the work performance of Islamic bank employees through a commitment to instilling organizational values and providing adequate space to encourage self-development to increase employee satisfaction, organizational commitment, and work performance.

Downloads

Download data is not yet available.

References

Abbasi, B. (2017). Transformational leadership and change readiness and a moderating role of perceived bureaucratic structure: An empirical investigation. Problems and Perspectives in Management, 15(1), 35–44. https://doi.org/10.21511/ppm.15(1).2017.03

Abelha, D. M., Carneiro, P. C. da C., & Cavazotte, F. de S. C. N. (2018). Transformational leadership and job satisfaction: Assessing the influence of organizational contextual factors and individual characteristics. Revista

Brasileira de Gestao de Negocios, 20(4), 516 532. https://doi.org/10.7819/rbgn.v0i0.3949

Al-Tahitah, A., Millar Abdul Muthaliff, M., Abdulrab, M., & Ahmed Al-Maamari, Q. (2018). Paper Review on the Relationship Between Transformational Leadership and Readiness for Change. International Journal of Energy Policy and Management, 3(1), 1 7. http://www.aascit.org/journal/ijepm

Aldag, R., & Reschke, W. (1997). Employee value added: Measuring Discretionary effort and its value to the Organization. Center for Organization Effectiveness, Inc, 608, 833–3332.

Alqudah, I. H. A., Carballo-Penela, A., & Ruzo-Sanmartín, E. (2022). High-performance human resource management practices and readiness for change: An integrative model including affective commitment, employees’ performance, and the moderating role of hierarchy culture. European Research on Management and Business Economics, 28(1), 100177. https://doi.org/10.1016/j.iedeen.2021.100177

Amalina, N. N., Armanu, & Christin Susilowati. (2022). Transformational leadership and organizational justice's effect on employee performance mediated by job satisfaction: A study of Blitar, Indonesia police. Research in Business & Social Science, 11(4), 95–105.

Amin, M. S. (2022). Organizational Commitment, Competence on Job Satisfaction and Lecturer Performance: Social Learning Theory Approach. Golden Ratio of Human Resource Management, 2(1), 40 56. https://doi.org/10.52970/grhrm.v2i1.156

Asbari, M., Hidayat, D., & Purwanto, A. (2021). Managing Employee Performance: From Leadership to Readiness for Change. International Journal of Social and Management Studies (IJOSMAS), 02(01). https://ijosmas.org/index.php/ijosmas/article/view/12/12

Astuti, E., & Khoirunnisa, R. M. (2020). Pengaruh Employee Engagement, Komitmen Organisasi, Dan Kepemimpinan Transformasional Terhadap Kesiapan Untuk Berubah (Readiness for Change) Pada Karyawan Universitas Ahmad Dahlan. Jurnal Fokus Manajemen Bisnis, 8(1), 47. https://doi.org/10.12928/fokus.v8i1.1581

Atmojo, M. (2012). The Influence of Transformational Leadership on Job Satisfaction, Organizational Commitment, and Employee Performance. International Research Journal of Business Studies, 5(2), 113–128. https://doi.org/10.21632/irjbs.5.2.113-128

AZIRI, B. (2011). JOB SATISFACTION: A LITERATURE REVIEW. MANAGEMENT RESEARCH AND PRACTICE, 3(4), 77 86. https://doi.org/10.1254/jjp.31.1037

Bagis, F., Dianti, L., Darmawan, A., & Dwi Vina Rahmawati. (2020). THE EFFECT OF JOB SATISFACTION, ORGANIZATIONAL CULTURE, AND WORK STRESS ON ORGANIZATIONAL COMMITMENT TO CIVIL SERVANTS AT THE REGIONAL SECRETARIAT OF PEMALANG REGENCY. International Journal of Economics, Business and Accounting Research, 4(3), 343–353.

Bagis, F., Pratama, B. C., & Kharismasyah, A. Y. (2019). Pengaruh Disiplin Kerja, Komitmen Organisasi Dan Kepuasan Kerja Terhadap Kinerja Karyawan Studi Kasus Institusi Pendidikan. Jurnal Inspirasi Bisnis Dan Manajemen, 3(1), 21.

Bahrami, M. A., Barati, O., Ghoroghchian, M. sadat, Montazer-alfaraj, R., & Ranjbar Ezzatabadi, M. (2016). Role of Organizational Climate in Organizational Commitment: The Case of Teaching Hospitals. Osong Public Health and Research Perspectives, 7(2), 96 100. https://doi.org/10.1016/j.phrp.2015.11.009

Banks, G. C., McCauley, K. D., Gardner, W. L., & Guler, C. E. (2016). A meta-analytic review of authentic and transformational leadership: A test for redundancy. Leadership Quarterly, 27(4), 634 652. https://doi.org/10.1016/j.leaqua.2016.02.006

Bass, B. M., Avolio, B. J., Jung, D. I., & Berson, Y. (2003). Predicting unit performance by assessing transformational and transactional leadership. Journal of Applied Psychology, 88(2), 207 218. https://doi.org/10.1037/0021-9010.88.2.207

Batool, B. F., Saliya, C. A., Perez, J. A., Tariq, S., Bhat, M. A., Sangmi, M., Shikuku, D. N., Nyaoke, I., Eyinda, M., Gichuru, S., Nyaga, L., Wambede, I., Bisaso, S. M., May, D., Gavin, B., Hayden, J., Adamis, D., McNicholas, F., Catibog, B. V. B., … Batool, B. F. (2013). An Empirical Study on Effect of Transformational Leadership On Organizational Commitment In The Banking Sector Of Pakistan. Economics Management Innovation, 8(2), 38–44. https://doi.org/10.1108/cdi.2003.13708bab.002

Busari, A. H., Khan, S. N., Abdullah, S. M., & Mughal, Y. H. (2020). Transformational leadership style, followership, and factors of employees’ reactions towards organizational change. Journal of Asia Business Studies, 14(2), 181–209. https://doi.org/10.1108/JABS-03-2018-0083

Cahyana, I. G. S., & Jati, I. K. (2017). Pengaruh Budaya Organisasi, Stres Kerja Dan Kepuasan Kerja Terhadap Kinerja Pegawai. E-Jurnal Akuntansi, 18(1), 1314–1342.

Cartwright, S., Tytherleigh, M., & Robertson, S. (2007). Are mergers always stressful? Some evidence from the higher education sector. European Journal of Work and Organizational Psychology, 16(4), 456–478. https://doi.org/10.1080/13594320701606391

Cecilia Cortina. (2015). The Role of Organizational Culture in Mergers and Acquisitions Management Consultant at Amg Consulting. https://www.linkedin.com/pulse/role-organizational-culture-mergers-acquisitions-cecilia-cortina

Chen, C.-F. (2006). Job satisfaction, organizational commitment, and flight attendants’ turnover intentions: A note. Journal of Air Transport Management, 12(5), 274 276. https://doi.org/10.1016/j.jairtraman.2006.05.001

Cummings, G. G., Tate, K., Lee, S., Wong, C. A., Paananen, T., Micaroni, S. P. M., & Chatterjee, G. E. (2018). Leadership styles and outcome patterns for the nursing workforce and work environment: A systematic review. International Journal of Nursing Studies, 85(March), 19–60. https://doi.org/10.1016/j.ijnurstu.2018.04.016

Danish, R. Q., Aslam, N., Cheema, A. S., & Hassan, U. (2014). the Impact of Transformational Leadership and Employee Commitment on Organizational Citizenship. Sci.Int. (Lahore), 26(5), 2451–2455.

Dlamini, N. N. N., Garg, A. K., & Muchie, M. (2017). The impact of transformational leadership style on organizational commitment in the hospitality industry. African Journal of Hospitality, Tourism and Leisure, 6(3), 1–21.

Eliyana, A., Ma'arif, S., & Muzakki. (2019). Job satisfaction and organizational commitment affect transformational leadership toward employee performance. European Research on Management and Business Economics, 25(3), 144–150. https://doi.org/10.1016/j.iedeen.2019.05.001

Elkordy, M. (2013). Transformational Leadership and Organizational Culture as Predictors of Employees Attitudinal Outcomes © Society for Business and Management Dynamics © Society for Business and Management Dynamics. Business Management Dynamics, 3(5), 15–26.

Hafiz, A. (2017). Relationship between Organizational Commitment and Employee’s Performance Evidence from Banking Sector of Lahore. Journal of Business and Management Review, 7(2), 2 7. https://doi.org/10.4172/2223-5833.1000304

Hair, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106–121. https://doi.org/10.1108/EBR-10-2013-0128

Hendri, M. I. (2019). The mediation effect of job satisfaction and organizational commitment on the organizational learning effect of employee performance. International Journal of Productivity and Performance Management, 68(7), 1208–1234. https://doi.org/10.1108/IJPPM-05-2018-0174

Henricks, M. D., Young, M., & Kehoe, E. J. (2020). Attitudes toward Change and Transformational Leadership: A Longitudinal Study. Journal of Change Management,20(3),202 219. https://doi.org/10.1080/14697017.2020.1758529

Herold, D. M., Fedor, D. B., Caldwell, S., & Liu, Y. (2008). The Effects of Transformational and Change Leadership on Employees’ Commitment to a Change: A Multilevel Study. Journal of Applied Psychology, 93(2), 346–357. https://doi.org/10.1037/0021-9010.93.2.346

Holopainen, L., & Suslova, A. (2019). Job Satisfaction and Employee Motivation: Case Generation Z. KAMK University of Applied Science, 1–54. https://www.theseus.fi/bitstream/handle/10024/174349/Holopainen_Suslova.pdf?sequence=2&isAllowed=y

Holt, D. T., Armenakis, A. A., Feild, H. S., & Harris, S. G. (2007). Readiness for organizational change: The systematic development of a scale. Journal of Applied Behavioral Science, 43(2), 232 255. https://doi.org/10.1177/0021886306295295

Huang, D., Chen, S., Zhang, G., & Ye, J. (2018). Organizational forgetting, absorptive capacity, and innovation performance. Management Decision, 56(1), 87–104. https://doi.org/10.1108/md-03-2017-0200

Hutagalung, D., Asbari, M., Fayzhall, M., Ariyanto, E., Agistiawati, E., Sudiyono, R. N., Waruwu, H., Goestjahjanti, F. S., Winanti, & Yuwono, T. (2020). Peran Religiusitas, Kepemimpinan Transformasional, Kepuasan Kerja dan Mediasi Organizational Citizenship Behavior terhadap Kinerja Guru. EduPsyCouns: Journal of Education, Psychology and Counseling, 2(1), 311–326. https://ummaspul.e-journal.id/Edupsycouns/article/view/483

Ibrahim, Setyadi, D., Rahcmad Budi Suharto, & Zainurossalamia, S. (2020). The Important Role of Employee Satisfaction to Support Employee Performance through Quitting Intention. Productivity Management, 25(January), 682 697.

https://www.researchgate.net/profile/Rahcmad_Suharto/publication/347137842_The_Important_Role_of_Employee_Satisfaction_to_Support_Employee_Performance_through_Quitting_Intention/links/5fd8498292851c13fe893157/The-Important-Role-of-Employee-Satisfaction-to

Indarti, S., Solimun, S., Fernandes, A. A. R., & Hakim, W. (2017). The Effect of OCB In Relationship Between Personality, Organizational Commitment and Job Satisfaction To Performance. Journal of Management Development, 36(10), 1283–1293.

Jiang, W., Zhao, X., & 1, J. N. (2017). The Impact of Transformational Leadership on Employee Sustainable Performance: The Mediating Role of Organizational Citizenship Behavior. Sustainability, 9(1), 1567. https://doi.org/10.3390/su9091567

Judge, T. A., & Piccolo, R. F. (2004). Transformational and transactional leadership: A meta-analytic test of their relative validity. Journal of Applied Psychology, 89(5), 755–768. https://doi.org/10.1037/0021-9010.89.5.755

Jumiran, Novitasari, D., Nugroho, Y. A., Sutardi, D., Sasono, I., & Asbari, M. (2020). Pengaruh Dimensi Kepemimpinan Transformasional terhadap Kepuasan Kerja dan Komitmen Organisasional: Studi Kasus pada Dosen Perguruan Tinggi Swasta. EduPsyCouns: Journal of Education, Psychology and Counseling, 2(1), 600–621. https://ummaspul.e-journal.id/Edupsycouns/article/view/555

Kamar, K., Novitasari, D., Asbari, M., Winanti, W., & Goestjahjanti, F. S. (2020). Enhancing Employee Performance During the Covid-19 Pandemic: the Role of Readiness for Change Mentality. Jurnal Dinamika Manajemen, 11(2), 154–166. https://doi.org/10.15294/jdm.v11i2.25279

Katsaros, K. K., Tsirikas, A. N., & Kosta, G. C. (2020). The impact of leadership on firm financial performance: the mediating role of employees’ readiness to change. Leadership and Organization Development Journal, 41(3), 333–347. https://doi.org/10.1108/LODJ-02-2019-0088

Kishen, Syah, T. Y. R., & Anindita, R. (2020). The Transformational Leadership Effect on Job Satisfaction and Job Performance. Journal of Multidisciplinary Academic, 4(1). https://www.kemalapublisher.com/index.php/JoMA/article/view/429

Koopmans, L., Bernaards, C., Hildebrandt, V., Van Buuren, S., Van Der Beek, A. J., & de Vet, H. C. w. (2012). Development of an individual work performance questionnaire. International Journal of Productivity and Performance Management, 62(1), 6 28. https://doi.org/10.1108/17410401311285273

Lai, F. Y., Tang, H. C., Lu, S. C., Lee, Y. C., & Lin, C. C. (2020). Transformational Leadership and Job Performance: The Mediating Role of Work Engagement. SAGE Open, 10(1). https://doi.org/10.1177/2158244019899085

Loan, L. T. M. (2020). The influence of organizational commitment on employees’ job performance: The mediating role of job satisfaction. Management Science Letters, 10(14), 3307 3312. https://doi.org/10.5267/j.msl.2020.6.007

Luo, Z., Marnburg, E., & Law, R. (2017). Linking leadership and justice to organizational commitment. International Journal of Contemporary Hospitality Management, 29(4), 1167–1184.

M Khyzer Bin Dost, & Tariq, S. (2012). Employee Commitment and Their Performance Are Inter-Related : a Behavioral Study From Pakistan. Arabian Journal of Business and Management Review, 1(7), 125–139.

Mathews, C., & Khan, I. K. (2016). Impact of Work Environment on Performance of Employees in Manufacturing Sector in India: Literature Review. International Journal of Science and Research (IJSR), 5(4), 852–855. www.ijsr.net

Metab Raja Aljohani. (2016). Change Management. INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH, 5(5.), 319–323.

Monday, R. T., Steers, R. M., & Porter, L. W. (1979). The Measurement of Organizational Commitment. Journal of Vocational Behavior, 14(1), 224–247. https://doi.org/10.1016/0041-008X(75)90174-X

Muchran, M. (2017). The Influence of Transformational Leadership Style on Performance of Islamic Bank Bank with Work Motivation as a Mediating Variable. Review of European Studies,9(2), 262. https://doi.org/10.5539/res.v9n2p262

Nath Gangai, K., & Agrawal, R. (2015). Job satisfaction and organizational commitment: Is it important for employee performance? International Journal of Management and Business Research, 5(4), 269–278.

Nguyen Thi Bich Thuy, & Phan Dang Ngoc Yen Van. (2020). Employee Commitment to Organizational Change with the Role of Job Satisfaction and Transformational Leadership. Technium Social Sciences Journal, 2(January), pp. 1–17. https://doi.org/10.47577/tssj.v2i1.51

Novitasari, D. (2021). Readiness for Change : The Secret to Managing Employee Performance. International Journal of Social and Management Studies (IJOSMAS), 02(02), 122–134.

Novitasari, D., Goestjahjanti, F. S., & Asbari, M. (2020). The Role of Readiness to Change between Transformational Leadership and Performance: Evidence from a Hospital during Covid-19 Pandemic. APMBA (Asia Pacific Management and Business Application), 9(1), 37 56. https://doi.org/10.21776/ub.apmba.2020.009.01.4

Pawirosumarto, S., Sarjana, P. K., & Gunawan, R. (2017). The effect of work environment, leadership style, and organizational culture towards job satisfaction and its implication towards employee performance in Parador Hotels and Resorts, Indonesia. International Journal of Law and Management, 59(6), 1337–1358. https://doi.org/10.1108/IJLMA-10-2016-0085

Prabowo, T. S., Noermijati, & Irawanto, D. W. (2018). THE INFLUENCE OF TRANSFORMATIONAL LEADERSHIP AND WORK MOTIVATION ON EMPLOYEE PERFORMANCE MEDIATED BY JOB SATISFACTION. Journal of Applied Management (JAM), 16(1), 171–178.

Puspitawat, N. M. D., & Atmaja, N. P. C. D. (2021). How Job Stress Affects Job Satisfaction and Employee Performance in Four-Star Hotels. International Journal of Applied Business and International Management, 6(2), 25–32. https://doi.org/10.32535/ijabim.v6i2.1168

Renyut, B., Modding, H. B., Bima, J., & Sukmawati, S. (2017). The effect of organizational commitment and competence on Job satisfaction and employee performance in Maluku Governor's Office. 19(11), 18–29. https://doi.org/10.31227/osf.io/hnwdt

Rosidah, F. (2021). Pengaruh Kepuasan Kerja Dan Gaya Kepemimpinan Transformasional Terhadap Performa Kerja.

Sakban, Nurmal, I., & Rifanto bin Ridwan. (2019). Manajemen Sumber Daya Manusia. Journal Of Administration And Educational Management (Alignment), 2(1), 93–104.

Santos, A. S., Neto, M. T. R., & Verwaal, E. (2018). “Does cultural capital matter for individual job performance? A large-scale survey of the impact of cultural, social and psychological capital on individual performance in Brazil.”

Sattigeri, R. C. (2016). Employee Retention and Commitment. International Journal of Engineering Technology, Management, and Applied Sciences, 4(4), 77–81.

Sanjaya, V., & Anindita, R. (2020). the Role of Transformational Leadership and Organizational Culture Towards Organizational Commitment Through Job Satisfaction Among Mining Industry Employees. Jurnal Aplikasi Manajemen,18(4),767 782.https://doi.org/10.21776//ub.jam.2020.018.04.15

Shamir, B., Zakay, E., Breinin, E., & Popper, M. (1998). Correlates of charismatic leader behavior in military units: Subordinates’ attitudes, unit characteristics, and superiors’ appraisals of leader performance. Academy of Management Journal, 41(4), 387–409. https://doi.org/10.2307/257080

Soomro, B. A., & Shah, N. (2019). Determining the impact of entrepreneurial orientation and organizational culture on job satisfaction, commitment, and employee performance. South Asian Journal of Business Studies, 8(3), 266–282. https://doi.org/10.1108/SAJBS-12-2018-0142

Stephen P. Robbins, & Judge, T. A. (2013). Organizational Behavior (P. Education (ed.); 15th ed.). Prentice Hall.

Subakti, A. G. (2013). Pengaruh Motivasi, Kepuasan, dan Sikap Kerja terhadap Kinerja Karyawan di Café X Bogor. Binus Business Review, 4(2), 596–606. https://doi.org/10.21512/bbr.v4i2.1374

Suprapti, Asbari, M., Cahyono, Y., & Mufid, A. (2020). Leadership Style, Organizational Culture and Innovative Behavior on Public Health Center Performance During Pandemic Covid-19. Journal of Industrial Engineering & Management Research, 1(2). https://doi.org/https://doi.org/10.7777/jiemar.v1i2

Supriyanto, A., Burhanuddin, B., & Cecilia Cortina. (2017). New Culture Integration Process of Successful Educational Organizations in Merger. 128(Icet), pp. 151–155. https://doi.org/10.2991/icet-17.2017.25

Susyanto, H. (2019). Pengaruh Kepemimpinan, Keterlibatan Karyawan Dan Kepuasan Kerja Terhadap Kesiapan Untuk Berubah Dalam Menghadapi Perubahan Organisasi. Jurnal Ekonomi, Bisnis, Dan Akuntansi, 21(1). https://doi.org/10.32424/jeba.v21i1.1287

Syamsudin, N. (2016). The Effect of Commitments and Organization Transformational Leadership on Teacher Organizational Citizenship Behaviour. Sinergi : Jurnal Ilmiah Ilmu Manajemen, 6(2), 14–26. https://doi.org/10.25139/sng.v6i2.79

Virgianty, N. H., & Budiani, M. S. (2021). Untuk Berubah Pada Karyawan Kantor Telkom Regional VI Kalimantan. Character : Jurnal Peneltian Psikologi, 8(4), 1–15.

Wahyuni, S., Musa, N., & Tandiayuk, S. (2022). Readiness for Change : The Influence of MIL on Hospital Workers During Pandemic. 639(Icphs, 2021), 115–119.

Waqas, A., Akram, U., Shahzad, F., & Amir, M. (2018). Impact of Transformation Leadership on Affective Employee's s Commitment. European Online Journal of Natural and Social Sciences, 7(1), 48–57.

Xu, C., Hartini, S., & Marpaung, W. (2018). Readiness For Change Ditinjau Dari Kepemimpinan Transformasional Pada Karyawan/I PT. Mam Medan. Jurnal Psikologi, 14(2), 154. https://doi.org/10.24014/jp.v14i2.6405

Yanthy, E., Purwanto, A., Pramono, R., Cahyono, Y., Asbari, & Masduki. (2020). Pengaruh Gaya Kepemimpinan Transformasional dan Tranksaksional Terhadap Kinerja Sistem Jaminan Halal HAS 23000. BISNIS : Jurnal Bisnis Dan Manajemen Islam, 8(1), 131 153. https://doi.org/10.21043/bisnis.v8i1.7045

Downloads

Published

2022-12-17

How to Cite

Aprileani, A. P. ., & Abadi, F. . (2022). The Roles of Transformational Leadership on Employee’s Job Satisfaction, Readiness for Change, and Organizational Commitment of Islamic Banking in Indonesia. Indonesian Journal of Business Analytics, 2(2), 213–230. https://doi.org/10.55927/ijba.v2i2.2228