Transactional Leadership Report

1058 Words 5 Pages
Research Background
Indonesia is a country with a high level of power distance, which means the people will be expecting control from the superiors and are being dependent on the hierarchy (Hofstede, 2010). Those dependency towards the superior or people with control suggest that leaders are very important to groups or organization in
Indonesia.
Leader itself was defined as:
One or more people who selects, equips, trains, and influences one or more follower(s) who have diverse gifts, abilities, and skills and focuses the follower(s) to the organization’s mission and objectives causing the follower(s) to willingly and enthusiastically expend spiritual, emotional and physical energy in a concerted coordinated effort to achieve the
organizational
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Unlike transactional leadership, transformational leadership are suggested by Bass et al.
(2003) to be adaptive and will work effectively in the changing environment (as cited in Kriger and Zhovtobryukh, 2016, p.89).
The concept of transformational and transactional leadership was first introduced by Burns on 1978 regarding to political leadership, and was being developed and elaborated by Bass on 1985. According to Burns (1978),
Universitas Kristen Petra transactional leadership will focus on the proper exchange of resources (as cited in
Judge and Piccolo, 2004), such as rewards and punishment system. While transformational leadership allows the “leaders and followers to raise one another to higher levels of morality and motivation” (as cited in Paraschiv, 2013). It was being elaborated into four dimension by Bass (1985), which are idealized influence, inspirational motivation, intellectual stimulation and individualized consideration.
Transformational leader will be better coping the turbulent environment as it allows the followers to explore and make mistake, also will solicit their ideas and utilize it for their decision-making. As suggested by Bass et al.
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To know if idealized influence, inspirational motivation, intellectual stimulation and individualized consideration of transformational leadership impact employee self-efficacy in restaurant and café industry of Surabaya,
Indonesia.
2. To know which one of the transformational leadership dimensions have strongest impact to the employee self-efficacy in restaurant and café industry of Surabaya, Indonesia.
Universitas Kristen Petra
1.4 Research Benefits
The result of this research might be beneficial for some parties, such as:
1. Restaurant and café owner
Restaurant and café owner will get the insights about the effect of implementing transformational leadership to the employee self-efficacy.
Besides, they can also evaluate their existing leadership type and choose whether or not to conform to the transformational leadership.
2. Academcians
Academicians that are doing the research regarding to the result and discussion of this research might use the information as their additional data.
3. The researcher
The researcher could learn more regarding to transformational leadership as well as the employee’s self efficacy. Researcher might also use the knowledge gained from this research to use it in the real business

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