The Impacts of Transformational Leadership Style, Organizational Environment and Organizational Culture on Employees’ Performance: A Study at STKIP Muhammadiyah Sorong - West Papua Province of Indonesia

Abstract

Using an explanatory method, this quantitative research was aimed to test and explain the impacts of transformational leadership style, organizational environment and organizational culture on employees’ performance at STKIP Muhammadiyah Sorong, West Papua Province of Indonesia. Among variables of the data taken from 140 respondents, the statistical analysis for hypotheses testing was used by applying Structural Equation Modelling (SEM). The results show that five out of six hypotheses of the direct impacts among variables in accordance with the problems and objectives of the study had significant impacts and one did not have significant impacts. The impact of transformational leadership style on employees’ performance had a positive insignificant impact with P = 0.812 > 0.05 and coefficient value of 0.027 which showed that transformational leadership style did not affect the value of employees’ performance. This research also found that the variable of transformational leadership style did not have significant impact on employees’ performance since transformational leadership style did not guarantee improvement of employees’ performance. Based on the fact analyzed, employees’ performance would improve more due to the impacts of environmental motivation in organizational environment and organizational culture that create tranquility and comfort for employees at work.

Keywords:       transformational leadership style, organizational environment, organizational culture, employees’ performance