Transformational leadership has been proven to significantly improve employee performance at PT Iradat Aman Globalindo, according to a study conducted by Rindita Agustina and Edison C. Sembiring from Sahid University. The research was published in the April 2026 edition of the Contemporary Journal of Applied Sciences (CJAS).
The study examined how transformational leadership, organizational culture, and work motivation influence employee performance at PT Iradat Aman Globalindo. Researchers focused on the gap between human resource management policies designed by the company and the realities experienced by employees in the workplace.
According to the study, many Indonesian companies continue to face difficulties in improving employee engagement and retaining high-performing workers. Around 70 percent of employees in Indonesia reportedly feel disconnected from their work, while only 25 percent believe they have equal opportunities for career development.
Researchers explained that PT Iradat Aman Globalindo also faces challenges related to employee dissatisfaction, generational differences, and high turnover rates. Differences in leadership styles between Baby Boomers, Generation X, Millennials, and Generation Z were found to create communication gaps and conflicting workplace expectations.
The study used a quantitative explanatory approach involving 150 employees who had worked at the company for at least one year. Researchers applied the Partial Least Square–Structural Equation Modeling (PLS-SEM) method to analyze the relationships between transformational leadership, organizational culture, work motivation, and employee performance.
The findings revealed several major results:
- Transformational leadership significantly improved employee performance with a statistical value of 2.274 and a p-value of 0.023.
- Work motivation also had a significant positive effect on employee performance with a statistical value of 2.288 and a p-value of 0.023.
- Organizational culture did not show a significant influence on employee performance.
- Transformational leadership had a stronger influence on work motivation compared to organizational culture.
- Work motivation did not function effectively as a mediating variable between leadership and employee performance.
Researchers found that employees performed better when leaders were able to inspire, motivate, and support personal development. Leadership characteristics such as clear communication, emotional engagement, intellectual stimulation, and individual attention were identified as important factors in building employee commitment and productivity.
The study also highlighted that transformational leaders encourage employees to think creatively, solve problems independently, and contribute more actively to organizational goals. Employees who felt appreciated and supported by their leaders tended to show higher levels of loyalty, motivation, and performance.
Meanwhile, organizational culture was found to have limited influence because company values and cultural practices were not yet fully integrated into daily operations. Researchers noted that inconsistent implementation of organizational values could weaken employee motivation and reduce the effectiveness of workplace culture.
The study also emphasized the importance of work motivation in improving employee productivity. Employees who received recognition, career development opportunities, and fair rewards were more motivated to contribute to organizational success.
According to Rindita Agustina and Edison C. Sembiring, companies should prioritize leadership development programs that strengthen communication skills, empathy, and employee support systems. The researchers also recommended improving reward systems, career pathways, and employee participation in decision-making processes to increase motivation and reduce turnover.
The findings are considered important for companies facing workforce challenges in increasingly competitive business environments. The study suggests that strong transformational leadership may play a more decisive role in employee performance than organizational culture alone.
Author Profiles
- Rindita Agustina - Sahid University, Jakarta.
- Edison C. Sembiring - Sahid University , Jakarta.
Research Source
Agustina, Rindita & Sembiring, Edison C. The Influence of Transformational Leadership, Organizational Culture on Employee Performance at PT. Iradat Aman Globalindo with Work Motivation as an Intervening Variable. Contemporary Journal of Applied Sciences (CJAS), Vol. 4 No. 5, April 2026, pp. 337–356.
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