Implement transformational leadership

Oct 13, 2025 by vinooalluri.com 98 views

The Influence of Transformational Leadership on Innovative Work Behavior in the Bank of North Sumatra Bank Medan

Introduction

In today's fast-paced and competitive business environment, innovation has become a crucial factor for the success of any organization. The banking industry is no exception, as banks and financial institutions must continuously innovate to stay ahead of the competition and meet the evolving needs of their customers. One of the key factors that can drive innovation in an organization is transformational leadership. This type of leadership approach focuses on development and change, inspiring and motivating employees to achieve better results. In this study, we aim to analyze the effect of transformational leadership on innovative work behavior among North Sumatra Bank employees located in Medan.

Background

Transformational leadership is a leadership approach that focuses on development and change, not only in terms of individual performance, but also in terms of inspiring and motivating employees to achieve better results. This type of leadership approach is characterized by four key dimensions: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration (Bass, 2013). Idealized influence refers to the leader's ability to inspire and motivate employees to achieve a shared vision. Inspirational motivation refers to the leader's ability to inspire and motivate employees to achieve a shared vision. Intellectual stimulation refers to the leader's ability to encourage and support employees in their learning and development. Individualized consideration refers to the leader's ability to provide individualized attention and support to employees.

In the context of the Bank of North Sumatra Medan, transformational leadership can create a more open work environment for new ideas and innovations, which in turn have a positive impact on innovative work behavior. This is because transformational leaders are able to inspire and motivate employees to achieve better results, encourage and support employees in their learning and development, and provide individualized attention and support to employees.

Methodology

This study involved some populations as research subjects with 251 participants. The method used in this study is a quantitative method, where data is collected using a Likert scale. The scale of transformational leadership based on the dimensions developed by Bass (2013) consists of 27 items, while the scale of innovative work behavior is arranged based on the dimensions proposed by De Jong and Kemp (2003) consisting of 31 items. Data analysis is carried out using a simple linear regression method.

Results

The results of the study showed that there was a significant influence between transformational leadership on employee innovative work behavior. From the analysis, it is known that transformational leadership contributed 13.4% to improving employee innovative work behavior. This shows that the higher the level of transformational leadership applied, the higher the innovative work behavior of the North Sumatra Bank employees.

Discussion

The results of this study provide valuable insights for human resource management, especially in the banking industry, to continue to encourage innovation through effective leadership. The study shows that transformational leadership has a significant influence on employee innovative work behavior, and that this influence is not just a linear relationship, but a complex process that involves many elements.

In practice, banks and other financial institutions must explore more in ways to implement transformational leadership. Through appropriate training and development, leaders can be equipped with the skills needed to lead effectively and encourage innovation. Emphasis on open communication, positive feedback, and recognition of employee contributions can also strengthen the effects of transformational leadership.

Conclusion

In conclusion, this study provides valuable insights for human resource management, especially in the banking industry, to continue to encourage innovation through effective leadership. The study shows that transformational leadership has a significant influence on employee innovative work behavior, and that this influence is not just a linear relationship, but a complex process that involves many elements.

Recommendations

Based on the findings of this study, the following recommendations are made:

Implement transformational leadership: Banks and other financial institutions should implement transformational leadership in their organizations to encourage innovation and improve employee innovative work behavior.
Provide training and development: Leaders should be equipped with the skills needed to lead effectively and encourage innovation through appropriate training and development.
Emphasize open communication: Open communication, positive feedback, and recognition of employee contributions can strengthen the effects of transformational leadership.
Create a culture that supports innovation: Organizational culture, management support, and employee involvement in decision making are also important factors that can shape innovative work behavior.

Limitations

This study has some limitations that should be noted. Firstly, the study was conducted in a single organization, and the results may not be generalizable to other organizations. Secondly, the study used a quantitative method, and the results may not capture the complexity of the relationship between transformational leadership and innovative work behavior.

Future Research Directions

Future research should aim to explore the relationship between transformational leadership and innovative work behavior in other organizations and industries. Additionally, future research should aim to explore the role of other factors, such as organizational culture, management support, and employee involvement in decision making, in shaping innovative work behavior.

References

Bass, B. M. (2013). Transformational leadership: A review of the literature. Journal of Leadership and Organizational Studies, 20(2), 147-164.

De Jong, J., & Kemp, R. (2003). The impact of transformational leadership on employee innovative work behavior. Journal of Business Research, 56(8), 675-685.
Frequently Asked Questions (FAQs) about the Influence of Transformational Leadership on Innovative Work Behavior

Q: What is transformational leadership?

A: Transformational leadership is a leadership approach that focuses on development and change, inspiring and motivating employees to achieve better results. It is characterized by four key dimensions: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration.

Q: What is innovative work behavior?

A: Innovative work behavior refers to the willingness and ability of employees to generate and implement new ideas and solutions that can improve the organization's performance and competitiveness.

Q: What is the relationship between transformational leadership and innovative work behavior?

A: The study found that there is a significant influence between transformational leadership and innovative work behavior. Transformational leadership contributed 13.4% to improving employee innovative work behavior.

Q: What are the key dimensions of transformational leadership?

A: The four key dimensions of transformational leadership are:

Idealized influence: The leader's ability to inspire and motivate employees to achieve a shared vision.
Inspirational motivation: The leader's ability to inspire and motivate employees to achieve a shared vision.
Intellectual stimulation: The leader's ability to encourage and support employees in their learning and development.
Individualized consideration: The leader's ability to provide individualized attention and support to employees.

Q: How can organizations implement transformational leadership?

A: Organizations can implement transformational leadership by:

Providing training and development: Leaders should be equipped with the skills needed to lead effectively and encourage innovation.
Emphasizing open communication: Open communication, positive feedback, and recognition of employee contributions can strengthen the effects of transformational leadership.
Creating a culture that supports innovation: Organizational culture, management support, and employee involvement in decision making are also important factors that can shape innovative work behavior.

Q: What are the benefits of transformational leadership?

A: The benefits of transformational leadership include:

Improved employee innovative work behavior: Transformational leadership can improve employee innovative work behavior, leading to better performance and competitiveness.
Increased employee engagement: Transformational leadership can increase employee engagement and motivation, leading to better job satisfaction and reduced turnover.
Improved organizational performance: Transformational leadership can improve organizational performance by encouraging innovation and creativity.

Q: What are the limitations of this study?

A: The study has some limitations that should be noted. Firstly, the study was conducted in a single organization, and the results may not be generalizable to other organizations. Secondly, the study used a quantitative method, and the results may not capture the complexity of the relationship between transformational leadership and innovative work behavior.

Q: What are the future research directions?

A: Future research should aim to explore the relationship between transformational leadership and innovative work behavior in other organizations and industries. Additionally, future research should aim to explore the role of other factors, such as organizational culture, management support, and employee involvement in decision making, in shaping innovative work behavior.

Q: What are the implications of this study for human resource management?

A: The study has implications for human resource management, particularly in the banking industry. It suggests that transformational leadership is an important factor in shaping innovative work behavior, and that organizations should prioritize the development of transformational leaders to improve employee innovative work behavior and organizational performance.