THESIS PROPOSAL

THE INFLUENCE OF TRANSFORMATIONAL LEADERSHIP

STYLE TOWARDS EMPLOYEE PERFORMANCE IN

CV.COPAGABANA PERFUMERY GRESIK

By:
NAME: TSANI BAYHAQI HAQIEQY
NIM: 10316041

INTERNATIONAL BUSINESS MANAGEMENT- INTERNATIONAL CLASS

SCHOOL OF MANAGEMENT AND BUSINESS
UNIVERSITAS CIPUTRA
SURABAYA
2019

i
 UNIVERSITAS CIPUTRA
FACULTY OF MANAGEMENT AND BUSINESS
INTERNATIONAL BUSINESS MANAGEMENT

THESIS DEFENSE APPROVAL

THE INFLUENCE OF TRANSFORMATIONAL LEADERSHIP STYLE

TOWARDS EMPLOYEE PERFORMANCE IN CV.COPAGABANA
PERFUMERY GRESIK

By:
NAME : Tsani Bayhaqi Haqieqy
NIM : 10316041
CONCENTRATION : Management
MAJOR : International Business Management- International
Class

Has been examine and approved to be submitted and maintained in the Proposal
Discussion.
Surabaya, September, 24th 2019
Approved by,

Wendra Hartono, S.T.,M.P.A.

ii
 TABLE OF CONTENTS

THESIS PROPOSAL ............................................................................................... i

THESIS DEFENSE APPROVAL........................................................................... ii

TABLE OF CONTENTS ....................................................................................... iii

LIST OF FIGURE ................................................................................................... v

LIST OF TABLE ................................................................................................... vi

LIST OF APPENDIXES ....................................................................................... vii

CHAPTER I ............................................................................................................ 1

INTRODUCTION .................................................................................................. 1

1.1 Background ................................................................................................... 1

1.2 Problem Statement ........................................................................................ 5

1.3 Research Objectives ...................................................................................... 5

1.4 Research Benefits .......................................................................................... 6

1.4.1 Theoretical Benefit .............................................................................. 6
1.4.2 Practical Benefit .................................................................................. 6

1.5 Research Scope ............................................................................................. 6

CHAPTER II LITERATURE REVIEW ................................................................. 7

2.1 Summary of Recent Studies .......................................................................... 7

2.2 Theoretical Foundation ................................................................................. 9

2.2.1 Transformational Leadership ................................................................. 9
2.2.2 Idealized Influence ............................................................................... 10
2.2.3 Inspirational Motivation ....................................................................... 10
2.2.4 Intellectual Stimulation ........................................................................ 11
2.2.5 Individualized Consideration ............................................................... 11
2.2.6 Employees Performance....................................................................... 12

2.3 Relationship between Variables .................................................................. 12

iii
 2.3.1 Relationship between Idealized Influence to performance .................. 12
2.3.2 Relationship between Inspirational Motivation to performance .......... 13
2.3.3 Relationship between Intellectual Stimulation to performance ........... 13
2.3.4 Relationship between Individual Consideration to performance ......... 14

2.4 Conceptual Framework ............................................................................... 15

2.5 Model of Analysis ....................................................................................... 16

2.6 Research Hypothesis ................................................................................... 16

CHAPTER III RESEARCH METHODS ............................................................ 17

3.1 Population and Sample................................................................................ 17

3.2 Data Collection Methods ............................................................................ 19

3.2.1 Types and Source of Data .................................................................... 19
3.2.2 Data Collection..................................................................................... 19

3.3 Operasional Definition and Variabel Measurement .................................... 20

3.3.1 Operational Definition ......................................................................... 20
3.3.2 Variable Measurement ......................................................................... 21

3.4 Validity and Reliability ............................................................................... 22

3.4.1 Validity................................................................................................. 22
3.4.2 Reliability ............................................................................................. 22
3.5 Data Analysis Method ............................................................................. 23
3.5.1 Multiple Regression Analysis .............................................................. 23
3.5.2 Research Test ....................................................................................... 23

REFERENCES...................................................................................................... 26

APPENDIX ........................................................................................................... 29

APPENDIX A ....................................................................................................... 30

PRE-SURVEY ...................................................................................................... 30

APPENDIX B ....................................................................................................... 33

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 LIST OF FIGURE

1.1 Total Global Consumption of Flavours & Fragrances

by Region, 2013-2018………………………………………………….. ……..1

1.2 The Rate of Growth Household Consumption Expenditure……………………2

1.3 comparison of period 1 and period 2 turnover………………………………….3

1.4 The Most Effective Leadership Styles in Copagabana ………………………...4

2.3 Conceptual Framework…………………………………………………….…15

2.2 Model of Analysis ……………………………………………………………16

v
 LIST OF TABLE
Table 3.1 Targeted Population Characteristics…………………………………...17

Table 3.2 Operational Definition…………………………………………............20

vi
 LIST OF APPENDIXES
Pre-Survey………………………………………………………………………A-1

Questionnaire…………………………………………………………………...B-1

vii
 CHAPTER I

INTRODUCTION

1.1 Background

Public Global consumption of fragrances every year has increased

continuously, the improvement can be seen from Table 1.1 which shows a graph of

the total global consumption of flavours & fragrances from 2013-2018. The average

fragrance growth rate in Asia from 2013 to 2018 was around 4.0%. It means that

the Global growth in fragrance consumption in Asia is above the world average.

Along with the recovery of the global economy, the growth of the fragrance market

in the world is expected to continue growing in the following year.

Figure 1.1 Total Global Consumption of Flavours & Fragrances by Region, 2013-2018
Source: (IAL Consultants, http://www.leffingwell.com/top_10.htm)

In Indonesia, household consumption, which grew by an average of 5%,

has become the motor of economic growth throughout 2018 which reached 5.16%.

This strong growth is driven by household consumption, one of which is perfume.

The increase in people's purchasing power remains high reflected in the real

1
consumption growth of the community in the range of 5%. This shows that people's

purchasing power is well maintained. The graph can be seen on the Table 1.2 below:

5.16

5.09 5.08

5.02
5
4.98 4.98
4.96 4.95
4.94 4.94
4.91

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018

the rate of growth household consumption expenditure

Figure 1.2 The Rate of Growth Household Consumption Expenditure

Source: BPS (Badan Pusat Statistic)

Based on the development of the fragrance industry and the increasing of

household consumption, CV.CopaGabana perfumery took a good opportunity to

fulfill market needs for fragrances. CV.CopaGabana perfumery is a fragrances

company that provides various kind of world class perfumery such as Kenzo,

Bvlgari, Chanel, Dior and others. CV.CopaGabana has a vision to be a company

that can meet the primary needs of the Indonesian and foreign communities and can

drive the world economy. CV.CopaGabana’s business mission is to build loyal

relationships and create a comfortable atmosphere and satisfaction for consumers,

employees and suppliers.

To compete with the other perfume companies, CV.CopaGabana obliged to

have employees who can work effectively and efficiently in serving it’s customers.

2
According to Walumbwa & Hartnell (2011) Leadership style has a great effect on

employee job satisfaction and job performance. An employee with greater job

satisfaction and commitment has higher job performances.

For one year, CV.CopaGabana perfumery has undergone a CEO turnover

who is leading the business. Initially CV.CopaGabana Perfumery was run under the

leadership of Mr. Akhsanuddin, in the first period and Ms.Alief in the second

period. The leadership achievement in the first period was relatively high in terms

of sales. It can be seen on Table 1.3 below:

IDR2,000,000,000
IDR1,800,000,000
IDR1,600,000,000
IDR1,400,000,000
IDR1,200,000,000
IDR1,000,000,000
IDR800,000,000
IDR600,000,000
IDR400,000,000
IDR200,000,000
IDR0
Monthly income
October November December January February March

periode 1 turnover (2017-2018) periode 2 turnover (2018-2019)

Figure 1.3 comparison of period 1 and period 2 turnover

Source: internal company resources

According to Stewardson, Dew, Feig-Palmer, & Reeve (2013) The effects

of leadership styles on financial performance at the local level of an industrial

distributor found that a leader’s self-reported transformational leadership styles was

positively associated with sales and profit margin performance while followers’

ratings of a leader’s transactional leadership style was negatively associated with

sales performance.

3
 To find out what leadership style suits employees best, researcher made a

pre-survey and distributed it to CopaGabana perfumery employees in Gresik. The

result in Table 1.4 show that transformational leadership is the most suitable for the

company to imply.

18
16
Number of employees

14
12
10
8
6
4
2
0

leadership style

Figure 1.4 The Most Effective Leadership Styles in Copagabana

Source: pre-suvey, 2019

Gill, Fitzgerald, Bhutani, Mand, and Sharma (2010) state that

transformational leadership is a process of influencing employees’ commitment

toward companies’ vision and mission statements in order to achieve the

companies’ goals. The full range of leadership introduces four elements of

transformational leadership : Individualized Consideration, Intellectual

Stimulation, Inspirational Motivation and Idealized Influence (Bass , 2010). Based

on the factor explained, the researcher has been interested to examine the direct

influence of internal factors towards the employees satisfaction in copagabana

4
perfumery with the tittle of research “The Influence of Transformational Leadership

Style Towards Employee Performance in CV.Copagabana Perfumery Gresik”

1.2 Problem Statement

1. Does contributing individualized consideration in transformational

leadership influence employee performance of CV.CopaGabana perfumery

Gresik?

2. Does contributing intellectual stimulation in transformational leadership

influence employee performance of CV.CopaGabana perfumery Gresik?

3. Does contributing inspirational motivation in transformational leadership

influence employee performance of CV.CopaGabana perfumery Gresik?

4. Does contributing idealized influence in transformational leadership

influence employee performance of CV.CopaGabana perfumery Gresik?

1.3 Research Objectives

1. To find out whether contributing Individualized Consideration in

transformational leadership influence employee performance of

CV.CopaGabana perfumery Gresik.

2. To find out whether contributing Intellectual Stimulation in

transformational leadership influence employee performance of

CV.CopaGabana perfumery Gresik.

3. To find out whether contributing Inspirational Motivation in

transformational leadership influence employee performance of

CV.CopaGabana perfumery Gresik.

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 4. To find out whether contributing Idealized Influence in transformational

leadership influence employee performance of CV.CopaGabana perfumery

Gresik.

1.4 Research Benefits

1.4.1 Theoretical Benefit

This research is expected to be able to add insight and understanding of

effective leadership style. This research can also be a theoretical study in the field

of leadership style for distribution especially for business start-ups.

1.4.2 Practical Benefit

This research is expected to provide an understanding of CV. CopaGabana

Perfumery regarding effective leadership and able to create work morale and

support business development optimally. This research can also add insight to

researchers, readers, and companies in developing and solving company problems.

1.5 Research Scope

The scope of this study is employees of copagabana perfumery in Gresik,

Indonesia. Only employees who have experienced in both leadership in copagabana

investigated in this study. The study is conducted on a questionnaire survey. The

retrieving time was collected through time and motion study to calculate the

retrieving efficiency.

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 CHAPTER II

LITERATURE REVIEW

2.1 Summary of Recent Studies

Research about The Influence of Transformational Leadership Style

towards employees Performance conducted by Lorena Para-González, Daniel

Jiménez-Jiménez and Angel Rafael Martínez-Lorente (2017) with the tittle of

research “Exploring the mediating effects between transformational leadership and

organizational performance”. The purpose of this research is to study the possible

mediating mechanism (human resource management (HRM), learning and

innovation) that could exist in the relationship between transformational leadership

and organizational performance. This research explores the relationship using

partial least square with data from 200 Spanish industrial companies. The results

revealed that the adoption of transformational leadership styles improves

performance when specific systems of HRM practices, learning and innovation are

developed in an organization.

Another research conducted by Jiang, W., Zhao, X., & Ni, J. (2017) with

the tittle of research “The Impact of Transformational Leadership on Employee

Sustainable Performance: The Mediating Role of Organizational Citizenship

Behavior”. This research aims to find the degree of the influence of

transformational leadership on employee sustainable performance, as well as the

mediating role of organizational citizenship behavior. A total of 389 questionnaires

were collected from contractors and analyzed via structural equation modeling. The

7
findings reveal that employee sustainable performance is positively influenced by

transformational leadership.

Research conducted by Muterera, J., Hemsworth, D., Baregheh, A., &

Garcia-Rivera, B. R. (2016) with the tittle of research “The Leader–Follower Dyad:

The Link Between Leader and Follower Perceptions of Transformational

Leadership and Its Impact on Job Satisfaction and Organizational Performance”.

This study seeks to establish and test the relationships between both leaders’ and

followers’ perceptions of leaders’ transformational leadership behavior and its

relationship with job satisfaction and organizational performance. Structural

equation modelling based on a sample of 372 leader–follower matched responses

identified how transformational leadership has a significant, positive relationship

with employee job satisfaction and organizational performance.

Previous research conducted by Adil Mohamed Zahran Al Kindy, Ishak

Mad Shah & Ahmad Jusoh (2016) with the tittle of research “The Impact of

Transformational Leadership Behaviors on Work Performance of Omani Civil

Service Agencies”. This study is investigating the behavior of the Omani Civil

Service Agencies' (OCSA) middle managers Transformational Leadership

behaviors in enhancing task and contextual behavior work performance. A review

of the literature revealed that there is a positive relationship between

transformational leadership behaviors and work performance behaviors. However,

there is limited number of studies investigating this relationship in Oman generally

and specifically in the public sector. The results are expected to show that the

8
transformational leadership behaviors have a positive relationship with task and

contextual work performance behaviors of OCSA.

Research conducted by Purit Pongpearchan (2016) with the tittle of research

“Effect of Transformational Leadership and High Performance Work System on

Job Motivation and Task Performance: Empirical Evidence from Business Schools

of Thailand Universities”. This study investigates the effect of transformational

leadership and high performance work system on job motivation and task

performance at the business schools of Thai universities. The sample was 896

lecturers from business schools at government universities in Thailand and the

statistics used were tested by ordinary least squares regression. Furthermore,

response bias, validity, and reliability were examined by the researcher. These

results reveal that transformational leadership and high performance work system

have a significant positive effect on job motivation.

2.2 Theoretical Foundation

2.2.1 Transformational Leadership

Transformational leadership refers to the leaders who inspire followers to

work toward common goals, define an attractive vision and goals, challenge

employees to achieve them, build trust and confidence, and motivate employees

to think and solve problems in new ways (Ra'ed (Moh'd Taisir) Masa'deh et al.,

2018). The transformational leader fosters a team spirit that glues members

together to achieve a common goal and encourages them to assist each other

(Ojha et al., 2018). In this way, the transformational manager promotes

9
 collaboration and does not create a competitive working environment.

Transformational leadership is comprised of the Four I’s‖ including: idealized

influence, inspirational motivation, intellectual simulation, and individualized

consideration (Ra'ed (Moh'd Taisir) Masa'deh et al., 2018).

2.2.2 Idealized Influence

Idealized influence is defined in terms of a leader’s ability to encourage

employees to believe in their abilities to achieve defined goals, act as a role

model, focus on ethics, show pride and build respect and mutual trust (Ra'ed

(Moh'd Taisir) Masa'deh et al., 2018). The charismatic actions of a leader cause

the followers to develop a sense of mission and transcend their self-interest for

the sake of the organization (Jonathan Muterera, et al.,2018). This refers to how

manager acts in ways that build others' respect for him (Ra'ed (Moh'd Taisir)

Masa'deh et al., 2018).

2.2.3 Inspirational Motivation

Inspirational motivation can be defined as the process of defining an

appealing and attractive vision, challenging employees to achieve them, and

encourage them to do more than expect (Ra'ed (Moh'd Taisir) Masa'deh et al.,

2018). It refers to the leader whose ability is to use symbols, images, emotional

appeals, and effective communication to energize, motivate, inspire, and create

enthusiasm (Jonathan Muterera, David Hemsworth, Anahita Baregheh & Blanca

Rosa Garcia-Rivera, 2018). This refers to how managers talks optimistically about

the future (Ra'ed (Moh'd Taisir) Masa'deh, et al., (2018).

10
2.2.4 Intellectual Stimulation

Intellectual stimulation explains the degree in which the leaders stimulate

their followers‟ endeavors to be innovative, creative and consider old

organizational problems with a new perspective. It also enables leaders to create a

culture of active thinking and thus encouraging innovation. They reframe problems

to find new solutions (Jain & Duggal, 2015 as cited by Salome W. Gitoho, Maina

Muchara, Joseph K. Ngugi (2016). Intellectually stimulating leaders do not criticize

followers when they differ from their ideas; rather, they stimulate followers to think

in new ways and try new approaches (Jonathan Muterera, David Hemsworth,

Anahita Baregheh & Blanca Rosa Garcia-Rivera, 2018). This refers to how

managers seek divergent perspectives when solving problems (Salome W. Gitoho,

Maina Muchara, Joseph K. Ngugi 2016).

2.2.5 Individualized Consideration

Individualized consideration explain the level at which leaders stimulate

their followers' efforts to be innovative, creative and consider the problems of old

organizations with new perspectives. It also allows leaders to create a culture of

active thinking and thus encourage innovation. They reframe problems to find new

solutions (Jain & Duggal, 2015 as cited by Salome W. Gitoho, et al., 2016). Leaders

should pay attention to the requirements of his employees and assist their personal

development and satisfaction (Beh & Shafique, 2016 as cited by Fayçal

Boukamcha, 2019). This refers to how manager helps employees to strengthen their

abilities (Salome W. Gitoho, Maina Muchara, Joseph K. Ngugi, 2016).

11
2.2.6 Employees Performance

Employee performance is a result achieved by an employee in executing the

tasks assigned to him/ her based on his/her skills, experience, time and sincerity

(Hasibuan, 2005 as cited by Fransisca Andreani & Abelio Petrik 2016). In addition,

Mangkunegara (2005) as cited by Fransisca Andreani & Abelio Petrik (2016),

stated that employee performance is the result of qualitative and quantitative work

accomplished by an employee in carrying out his/her duties in accordance with the

responsibilities given to him/ her. This refers to how employees try to perform and

complete the jobs assigned well.

2.3 Relationship between Variables

2.3.1 Relationship between Idealized Influence to performance

Idealized influence is one of the four components of transformational

leadership identified as an independent variable for this investigation. Scholars

examining this process assert that idealized influence refers to the idea that

followers will trust and respect leaders to provide support and resources (Chu &

Lai, 2011). As a result of this belief, employees will be willing to accept the

directives provided by the leader, regardless of their complexity or difficulty (Chu

& Lai, 2011 as cited by Tareq Ghaleb Abu Orabi 2016). In particular, idealized

influence may have implications for employee commitment and satisfaction to

facilitate engagement and motivation while on the job (Chen, 2004).

12
2.3.2 Relationship between Inspirational Motivation to performance

Inspirational motivation is another component of transformational

leadership that is examined in this investigation as an independent variable.

Inspirational motivation is extensively reviewed by Doody and Doody (2012) as

cited by Tareq Ghaleb Abu Orabi (2016) who argue that the process involves

encouraging followers to align personal goals with the goals of the organization.

Through this process, Doody and Doody argue that the objectives of the

organization are simultaneously achieved, with the outcomes having implications

for both the employee and the organization.

2.3.3 Relationship between Intellectual Stimulation to performance

Intellectual stimulation represents an important component of

transformational leadership and is also included as an independent variable for

evaluation. A review of this variable suggests that intellectual stimulation facilitates

follower empowerment through communication and encouragement to identify

problems and solutions (Smothers et al., 2016). The role of intellectual stimulation

on organizational performance has been evaluated more extensively in the literature

as an independent variable shaping outcomes for employees in the organization. In

particular, Anjali and Anand (2015) assert that intellectual simulation leads to the

development of employee commitment to the organization. This, in turn, has

implications for the ability of the organization to achieve goals based on the

dedication and hard work of employees (Anjali & Anand, 2015).

13
2.3.4 Relationship between Individual Consideration to performance

The final independent variable selected for review in this investigation is

individual consideration. Zacher, Pearce, Rooney, and McKenna (2014) consider

the scope if individual consideration noting that the process involves the

willingness and ability of the leader to provide nurturing support for each follower.

In terms of the implication of individual consideration for organizational

performance, Snell, Stanley, Zhang, and Almaz (2013) argue that this process can

positively influence employee job satisfaction, leading to higher levels of

engagement and motivation within the organization.

14
2.4 Conceptual Framework
Background
Public Global consumption of fragrances every year has increased continuously. The average
fragrance growth rate in Asia from 2013 to 2018 was around 4.0%. CV.CopaGabana perfumery
took a good opportunity to fulfill market needs for fragrances. Unfortunately, For one year,
CV.CopaGabana perfumery has undergone a CEO turnover who is leading the business. Based
on the pre-survey by 30 CopaGabana employees, the most suitable leadership style for the
company to imply is transformational leadership.

Problem Statement
1. Does Idealized Influence has significant effect to Employee Performance?
2. Does Inspirational Motivation has significant effect to Employee Performance?
3. Does Intellectual Stimulation has significant effect to Employee Performance?
4. Does Individualized Consideration has significant effect to Employee Performance?

Recent Studies Theoretical Foundation

1. Research conducted by Lorena Para-González,
Daniel Jiménez-Jiménez and Angel Rafael
Martínez-Lorente (2017) with the tittle of
research “Exploring the mediating effects
between transformational leadership and
organizational performance”.
2. Research conducted by Jiang, W., Zhao, X., &
Ni, J. (2017) with the tittle of research “The
Impact of Transformational Leadership on
Employee Sustainable Performance: The
Mediating Role of Organizational Citizenship
Behavior”.
3. Research conducted by Muterera, J., Hemsworth,
D., Baregheh, A., & Garcia-Rivera, B. R. (2016)
with the tittle of research “The Leader–Follower
Dyad: The Link Between Leader and Follower
Perceptions of Transformational Leadership and
Its Impact on Job Satisfaction and Organizational
Performance”.
4. Research conducted by Adil Mohamed Zahran
Al Kindy, Ishak Mad Shah & Ahmad Jusoh
(2016) with the tittle of research “The Impact of
Transformational Leadership Behaviors on Work
Performance of Omani Civil Service Agencies”.
5. Research conducted by Purit Pongpearchan
(2016) with the tittle of research “Effect of
Transformational Leadership and High
Performance Work System on Job Motivation
and Task Performance: Empirical Evidence from
Business Schools of Thailand Universities”.
1. Transformational leadership refers to the
leaders who inspire followers to work toward
common goals, define an attractive vision and
goals, challenge employees to achieve them,
build trust and confidence, and motivate
employees to think and solve problems in new
ways (Ra'ed (Moh'd Taisir) Masa'deh et al.,
2018).
2. Idealized influence is defined in terms of a leader’s
ability to encourage employees to believe in their
abilities to achieve defined goals, act as a role
model, focus on ethics, show pride and build respect
and mutual trust. Ra'ed (Moh'd Taisir) Masa'deh et
al., (2018)
3. Inspirational motivation is defined as the process of
defining an appealing and attractive vision,
challenging employees to achieve them, and
encourage them to do more than expect. Ra'ed
(Moh'd Taisir) Masa'deh et al., (2018)
4. Intellectual stimulation explains the degree in which
the leaders stimulate their followers‟ endeavors to
be innovative, creative and consider old
organizational problems with a new perspective
(Jain & Duggal, 2015 as cited by Salome W. Gitoho,
Maina Muchara, Joseph K. Ngugi (2016)
5. Individualized consideration refers to the leader's
capability to treat each follower individually by
giving them personal attention (Jain & Duggal, 2015
as cited by Salome W. Gitoho, et al., 2016)

Hypothesis

Data Analysis and Discussion

Conclusion

Figure 2.1 Conceptual Framework

Source: Processed data, 2019

15
2.5 Model of Analysis
Based on the formulation of the problem, research hypothesis and some

previous research, then the model of analysis in this study is illustrated as below:

Idealized Influence (X1) 𝐻 1

Inspirational Motivation 𝐻2
(X2)
Employee Performance (Y)
𝐻3
Intellectual Stimulation
(X3)
𝐻4
Individualized
Consideration (X4)

Figure 2.2 Model of Analysis

Source: Processed data, 2019

2.6 Research Hypothesis

H1: Idealized Influence significantly affects Employee Performance.

H2: Inspirational Motivation significantly affects Employee Performance.

H3: Intellectual Stimulation significantly affects Employee Performance.

H4: Individualized Consideration significantly affects Employee Performance.

16
 CHAPTER III

RESEARCH METHODS

3.1 Population and Sample

Population is the collection of individuals or objects known to have similar

characteristics (Cooper & Schindler, 2014:338). The population of this study

includes all of 50 employees of CopaGabana perfumery, Gresik. Judgement

sampling is used in this research. The criteria of the targeted population are:

Targeted Population Characteristics

1. Employees who have been working for at

least 2 years in order to be able to

differentiate the leadership styles in the

previous years and provide the necessary

data.

CopaGabana Employee’s in Gresik 2. Employees’ was in the leadership of both

parties.

3. Employees can be honest, fair and open

minded.

4. Employees working in CopaGabana

Perfumery in Gresik city.

Table 3.1 Targeted Population Characteristics

Source: Processed Data, 2019

Sample is some of the elements in population (Cooper & Schindler,

2014:338). In generally, sampling techniques can be devided into two types:

probability or random sampling and non-probability or non-random sampling

(Avolio, B.J. in Jiang, W., Zhao, X., & Ni, J., 2017).

17
 In probability sampling the probability of each case being selected from the

target population is known as equal for all cases (Saunders, Lewis, & Thornhill,

2016:276). Probability sampling provide estimates of precision and offer the

opportunity to generalize the findings to the population of interest from the sample

population (Cooper & Schindler, 2014:343).

The sampling techniques used is probability sampling which is simple

random sampling. In simple random sampling, each item or person in the

population has the same chance of being selected (Cooper & Schindler, 2014:349).

The number of samples determined by using Slovin technique with 5% error margin

which will result on 44 samples, with the following calculation (Padua & Santos,

1998:35):

𝑁
𝑛=
1 + 𝑁𝑒 2

Where N= population size and e= error tolerance.

50
𝑛=
1 + 50(0.05)2

50
𝑛=
1.125

𝑛 = 44.44 (𝑟𝑜𝑢𝑛𝑑𝑒𝑑 𝑡𝑜 44)

18
3.2 Data Collection Methods

3.2.1 Types and Source of Data

This study use quantitative research to explain the relationship among

variables. it is to identify the concepts that become the goals of the research

(Malhorta, in fransisca & abelio, 2016).

This study use primary data. Primary data is a data gathered by a researcher

from first-hand sources, using methods like surveys, interviews, or experiments

(Hox & Boeije, 2005). In this research, researcher obtains the primary data by

handing out the questionnaires to copagabana employees’ in Gresik.

3.2.2 Data Collection

Data are analyzed using partial least square (PLS) as it only needs small

data around 30 to 100 (Hair, Black, Babin, & Anderson, 2010). According to

Ghozali (2008), PLS is the most suitable analysis used for small data.

19
3.3 Operasional Definition and Variabel Measurement

3.3.1 Operational Definition

Table 3.1 Variabels and Indicators

VARIABLES Operational INDICATORS
Definition
Variable X1 Idealized influence is defined Ra'ed (Moh'd Taisir) Masa'deh et
Idealized in terms of a leader’s ability to al., (2018)
influence encourage employees to
believe in their abilities to 1. Manager instills pride in others
achieve defined goals, act as a for being associated with him.
role model, focus on ethics, 2. Manager goes beyond self-
show pride and build respect interest for the good of the group.
and mutual trust. Ra'ed (Moh'd 3. Manager acts in ways that build
Taisir) Masa'deh et al., (2018) others' respect for him.
4. Manager talks about the most
important values and beliefs.
5. Manager considers the moral
and ethical consequences of
decisions.
6. Manager emphasizes the
importance of having a
collective sense of mission.
Variable X2 Inspirational motivation can be Ra'ed (Moh'd Taisir) Masa'deh et
Inspirational defined as the process of al., (2018)
motivation defining an appealing and
attractive vision, challenging 1. Manager articulates a
employees to achieve them, compelling vision of the future.
and encourage them to do more 2. Manager talks enthusiastically
than expect. Ra'ed (Moh'd about what needs to be
Taisir) Masa'deh et al., (2018) accomplished.
3. Manager expresses confidence
that goals will be achieved.
Variable X3 Intellectual stimulation Salome W. Gitoho, Maina Muchara,
Intellectual explains the degree in which Joseph K. Ngugi (2016)
stimulation the leaders stimulate their
followers‟ endeavors to be 1. Managers seek divergent
innovative, creative and perspectives when solving
consider old organizational problems
problems with a new 2. Managers suggest new ways of
perspective. It also enables looking at how to achieve the
leaders to create a culture of corporate and department
active thinking and thus objectives / goals
encouraging innovation. They
reframe problems to find new
solutions (Jain & Duggal, 2015

20
 as cited by Salome W. Gitoho, 3. Managers allow our opinions
Maina Muchara, Joseph K. when seeking solutions to
Ngugi (2016) situations

Variable X4 Individualized consideration Salome W. Gitoho, Maina Muchara,

Joseph K. Ngugi (2016)
Individualized refers to the leader's capability
consideration to treat each follower
individually by giving them 1. Managers here help us develop
personal attention. Such our strength
leaders are compassionate, 2. Managers here are available for
responsive and appreciative to coaching and mentoring
the employees' needs and they 3. Managers focus on us and
celebrate individual supports us according to our
achievements (Jain & Duggal, needs.
2015 as cited by Salome W.
Gitoho, et al., 2016)
Variable Y Employee performance is a Fransisca Andreani and Abelio
Employee result achieved by an Petrik (2016)
performance employee in executing the
tasks assigned to him/ her 1. Employees can contribute some
based on his/her skills, ideas sincerely
experience, time and 2. Employees can complete their
sincerity (Hasibuan, 2005 as job perfectly
cited by Fransisca Andreani 3. Employees can complete the
& Abelio Petrik 2016). required quantity of work.

Table 3.1 Operational Definition

Source: Processed Data, 2019

3.3.2 Variable Measurement

The questionnaire was made in the form of a Likert Scale. Likert scale is a

non-comparative scaling technique that is unidimensional (only measure a single

trait) in nature (Bertram, 2007). Respondents are asked to indicate their level of

agreement with a given statement by way of an ordinal scale. In this research, using

likert scale, researcher will obtain CopaGabana’s employees of agreement whether

Idealized Influence, Inspirational Motivation, Intellectual Stimulation,

Individualized Consideration, significally affect Employee Performance in

CopaGabana’s perfumery. The Likert Scale are graded from strongly disagree (1),

disagree (2), neutral (3), agree (4), and strongly agree (5).

21
3.4 Validity and Reliability

3.4.1 Validity

Validity shows that it measures the goodness and suitability of the

instruments used in measuring research variables. (Blumberg et al., 2014; Sekaran

and Bougie, 2016). Researcher use Pearson correlation analysis to analyze the

instrument validity by correlating the score of each indicators with the total of

indicators. If the significant value of the Pearson Correlation is < 0.0 the indicators

on the questionnaires are valid (Priyatno, 2014:51)

3.4.2 Reliability

Reliability define whether the measurement tool proves on the steadiness

and the constancy of the measured concepts, it is also considered as the instrument

mirror that reflects its precision and thoroughness (Blumberg et al., 2014; Sekaran

and Bougie, 2016). The method used by researcher to analyze the reliability of this

research is Cronbach Alpha. The reliability is acceptable when the alpha reach

larger or equal to 0.7 (Wong, 2013; Bagozzi and Yi, 1988)

22
3.5 Data Analysis Method

3.5.1 Multiple Regression Analysis

According to Knapp (2017), multiple linear regression analysis define the

impact or linear relationship between two or more independent variable with one

dependent variable. The equation of the multiple linear regression is as follow:

𝑌 = 𝛽0 + 𝛽1 𝑋1 + 𝛽2 𝑋2 + 𝛽3 𝑋3 + 𝛽4 𝑋4 + 𝛽𝑝 𝑋𝑝

Information:

Y : Employee performance in CopaGabana perfumery

𝛽0 : The value of Y when all of the independent variables (X1 through

Xp) are equal to zero

β1 , β2 , β3 , β4 : Regression coefficient

X1 : Idealized influence

X2 : Inspirational motivation

X3 : Intellectual stimulation

X4 : Individualized consideration

3.5.2 Research Test

3.5.2.1 Simultant Significance Test (F Statistics test)

The Simultant Signifance Test or F Statistic Test is define whether the

independent variables have a significance effect simultaneously towards the

dependent variable. When the F value ≤ 0.05, it implicates that the independent

variables have significant effect simultaneously towards the dependent variable

(Cooper & Schindler, 2014).

23
3.5.2.2 Parsial Significance Test (t Statistics test)

The Partial Significance test or t Statistic Test is define whether the

independent variable partially affect the dependent variable. When the t value ≤

0.05, it implicates that the independent variable partially affect the dependent

variable significantly. If the value is greater that 0.05, this suggests that there is no

satistically significant difference between the variance of one group and that of the

other group (Knapp, 2017).

3.5.2.3 Coefficient of Correlation (R) and Coefficient of Determination (R2)

The Coefficient of Correlation (R) is the level of relationship between

independent variable with the dependend variable. The range of R vary between 0

to 1. When the R value is close to 1, it implicates that the correlation is stronger

(Cooper & Schindler, 2014).

The Coefficient of Correlation (R2) is used to measure how much the

independent variable can explain the dependent variable. Small R2 value implicate

that there is not a lot to be explained from the independent variable towards the

dependent variable (Cooper & Schindler, 2014).

3.5.2.4 Classical Assumption Test

a. Multicolinearity test

Multicolinearity test define the correlation between the independent

variable in the regression model. If the value of VIF <10, it implicates that there

is no multicolinearity (Daoud, 2017)

24
b. Normality test

Normality test used to examine whether the residual value from regression

distributed normally or not. Kolmogorov-Smirnov can be used to conducts The

normality test. When the sig value ≥0.05, it implicates that the data has normal

distribution (Das & Imon, 2016)

c. Heteroskedasticity test

Heteroskedasticity test define whether the variance of the residual differs

from one observation to another observation. Glejser test can be used to

conducted The heteroskedasticity test. When the sig value >0.05, it implicates

that the residual variance has no heteroskedasticity (Wiedermann., et al 2017)

d. Linearity test (optional)

Linearity test define whether two variable have a linear relationship or not.

Two variable have a linear relationship if the significancy value is less than 0.05

(Cooper & Schindler, 2014).

25
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28
APPENDIX

29
 APPENDIX A
PRE-SURVEY
Identitas Responden

Nama :
Umur :
Jenis kelamin :
Lama bekerja :
Peran/Jabatan di CopaGabana :

Petunjuk pengisian:
1. Bacalah sejumlah pertanyaan di bawah ini dengan teliti
2. Pilih salah satu gaya kepemimpinan yang bisa mempengaruhi kinerja anda
menjadi lebih baik.
No Pernyataan
1. Pemimpin sangat dominan dalam setiap
pengambilan keputusan dan setiap kebijakan,
peraturan, prosedur diambil dari idenya sendiri.
(Autocratic)

2. Pemimpin memberikan kebebasan secara mutlak

kepada para anggota untuk melakukan tujuan dan
cara mereka masing-masing. (Laissez-faire)

3. Pemimpin akan memberikan reward ketika para

anggota berhasil melaksanakan tugas yang telah
diselesaikan sesuai kesepakatan. (Transaksional)
4. Pemimpin cenderung memiliki semangat yang
positif sehingga para anggota lebih energik.
Pemimpin memperhatikan dan terlibat dalam
proses, mereka juga difokuskan untuk membantu
setiap anggota untuk dapat berhasil.
(Transformational)

5. Pemimpin lebih mengutamakan kebutuhan,

kepentingan dan aspirasi dari para anggota
daripada kepentingan pribadinya. (Servant)
6. Para pengikut cenderung mengikuti pemimpin
karismatik karena kagum dan secara emosional

30
 percaya dan ingin berkontribusi bersama dengan
pemimpin ( Karismatik)
7. Pemimpin menyesuaikan perkembangan para
anggota yakni sejauh mana kesiapan dari para
anggota melaksanakan setiap tugas. (Situasional)

Result

18
16
14
12
10
8
6
4
2
0

leadership style

Respondent Data
Length Role /
Name Age Gender Answer
of work Position
Sotion adi wijaya 43 M 7 years Employees Transformational
Arifin Zainal 20 M 2 years Employees Transformational
Nanang 43 M 3years Employees Transactional
Anam 24 M 2years Employees Transformational
Fauzan 21 M 2years Employees Transformational
Dimas 21 M 2years Employee Transformational
Satria 21 M 2years Employee Servant
Riyan 27 M 3years Employee Laissez-faire
Sutris 23 M 2years Employee Transformational
Vita 19 F 2years Employee Transformational
Riyan 24 M 2years Employee Transformational
Bowo 28 M 5years Employee Laissez-faire
Ardiansyah 19 M 2years Employee Laissez-faire
Rizal 24 M 2years Employee Transformational
Dedik 30 M 3years Employee Laissez-faire

31
Soni 27 M 2years Employee Transactional
Vika 19 F 2years Employee Transactional
Bu jah 43 F 5years Employee Autocratic
Ida 23 F 2years Employee Autocratic
Sinyo 53 M 5years Employee Autocratic
Jarwo 34 M 2,5years Employee Transformational
Maya 48 F 5years Employee Transformational
Yusuf Affandi 21 M 2years Employee Laissez-faire
Ahmad fathar R 24 M 2years Employee Laissez-faire
Pak Ing 53 M 3years Employee Situational
Pak To 50 M 3years Employee Situational
Dedik 24 M 2years Employee Charismatic
Setyo 20 M 2years Employee Charismatic
Reno 24 M 2years Employee Servant
Ria 28 F 2years Employee Transformational
Zainul wahid 20 M 2years Employee Transformational
Nasrullah 24 M 3years Employee Transactional
Rahmad mar’i 38 M 2years Employee Transformational
Erwan agung 40 M 2years Employee Servant
Rizqullah 30 M 2years Employee Transactional
Rizal dwi 26 M 3years Employee Transactional
Andreas 29 M 2years Employee Transformational
Dinda setyo 30 F 2years Employee Transactional
Desinta 27 F 4years Employee Charismatic
Abi yusaf 24 M 5years Employee Servant
Faruk 24 M 3years Employee Charismatic
Adji 26 M 2years Employee Transactional
Ayu girin 28 F 5yeras Employee Transformational
Satria 30 M 5years Employee Transformational
Aldo 35 M 3years Employee Transactional
Sutrisno 42 M 2years Employee Transactional
Retno 24 M 3years Employee Servant
Rodlian 24 M 3years Employee Charismatic
Ratna 19 F 5years Employee Transactional
Akhsan 21 M 2years Employee Transactional

32
 APPENDIX B

QUESTIONNAIRE

Nama & Nomor HP Responden: ______________________/_______________

Kepada Responden yang Terhormat,

Dalam rangka penyelesaian penelitian yang saya lakukan, saya ingin

melakukan analisa terhadap gaya kepemimpinan transformational leadership yang

cocok di implikasikan dalam lingkup perusahaan. Guna mendukung penelitian ini,

maka saya memohon kesediaannya dalam meluangkan waktu untuk mengisi

kuesioner ini dengan jujur, tanpa ada paksaan, atau rekayasa. Kerahasiaan data

Anda akan terjamin.

Setiap jawaban yang Anda berikan merupakan sumbangan yang tidak

ternilai dalam penelitian ini. Atas kesediaanya meluangkan waktu, saya

mengucapkan banyak terimakasih.

Hormat Saya,

Tsani Bayhaqi Haqieqy

33
 Data Responden

1. Jenis Kelamin :
a. Pria
b. Wanita
2. Usia :
a. 17 tahun atau kurang
b. 18 - 26 tahun
c. 27 - 35 tahun
d. 36 tahun atau lebih
3. Jabatan di CopaGabana :
4. Lama bekerja :
5. Apakah anda berada dalam masa kedua pimpinan?
a. Ya
b. Tidak

34
 Variabel Penelitian

Mohon jawablah masing-masing pernyataan dibawah ini sesuai dengan

penilaian Anda dengan cara (√) pada salah satu kolom jawaban yang tersedia.
Keterangan:
STS : Sangat Tidak Setuju S : Setuju
TS : Tidak Setuju SA : Sangat Setuju
C : Cukup SE : Social Enterprise
Idealized Influence (II)
No. Keterangan STS TS C S SS
1. Saya merasa dibanggakan oleh manager saya
karna keterkaitan saya dengannya.
Saya berharap manajer saya melampaui
2. kepentingan pribadinya demi kebaikan
perusahaan.
Saya berharap manajer bertindak dengan cara
3. yang membangun rasa hormat orang lain
kepadanya.
4. Saya berharap manajer berbicara tentang nilai
dan keyakinan yang paling penting.
Saya berharap manajer mempertimbangkan
5. konsekuensi moral dan etika ketika mengambil
keputusan.
6. Saya berharap manajer menekankan pentingnya
memiliki rasa misi bersama.
Inspirational Motivation (IM)
No. Keterangan STS TS C S SS
Saya berharap manajer optimis tentang masa
1. depan dan menyebarkannya kepada karyawan
yang bekerja dengan mereka.
Saya berharap manajer berbicara dengan
2. antusias tentang target perusahaan dan
bagaimana cara mencapainya.
3. Saya berharap manajer merasa percaya diri
bahwa tujuan akan tercapai.
Intellectual Stimulation (IS)
No. Keterangan STS TS C S SS
1. Saya berharap manajer mencari perspektif yang
berbeda ketika menyelesaikan masalah.
Saya berharap manajer menyarankan cara baru
2. dalam melihat bagaimana mencapai tujuan dan
mencapai sasaran perusahaan.
Saya berharap manajer menerima pendapat
3. karyawan saat mencari solusi untuk sebuah
masalah.
Individualized Consideration (IC)
No. Keterangan STS TS C S SS
Saya berharap manager membantu karyawan
1.
untuk mengembangkan kelebihannya.

35
 Saya berharap manajer bersedia untuk melatih
2.
dan membimbing karyawan.
Saya berharap manajer fokus pada karyawan dan
3 mendukung mereka sesuai dengan
kebutuhannya.
Employee Performance (EP)
No. Keterangan STS TS C S SS
1. Saya dapat menyumbangkan beberapa ide
dengan tulus.
2. Saya dapat menyelesaikan pekerjaannya dengan
sempurna.
3 Saya dapat menyelesaikan jumlah pekerjaan
yang diminta.

36