ISSN : P 2720-9938 E 2721-5202�����

 
Transformational Leadership and Employee Engagement Analysis on Employee Performance Readiness to Change at Human Resources Development Agency

 

Ade Irni Rizka, Mahendro Sumardjo, Iwan Kresna Setiadi

Faculty of Economics and Business, University of Pembangunan Nasional Veteran, Jakarta, Indonesia

Email: [email protected], [email protected], [email protected]

 

ARTICLE INFO

ABSTRACT

Date received : 01 March 2022

Revision date : 07 March 2022

Date received : 17 March 2022

In government organizations, demands for quality improvement and the use of information technology in services are unavoidable due to the expansion of globalization. Through improving employee performance during dynamic environmental changes, organizations can make this happen. This study aims to determine and analyze employee performance by looking at the effects of transformational leadership, employee engagement, and employee readiness to change. The respondents of this study were 73 employees at Human Resource Development Agency (BPSDM) Law and Human rights who were selected by the purposive sampling method. The research method used is quantitative with data collection techniques through questionnaires�data analysis using Smart Partial Least Square (PLS) 3.0. The study results conclude that transformational leadership and employee engagement have a positive but not significant effect on employee performance. However, transformational leadership and employee engagement have a positive and significant effect on readiness to change. Readiness to change was found to have a positive and significant effect on employee performance and is a full mediator between the relationship between transformational leadership on employee performance and employee engagement on employee performance. Changes that occur both inside and outside the organization will not have an impact on employee performance if they have equipped themselves with the various competencies needed to carry out their work.

 

Keywords:

Transformational leadership; readiness for change; employee �engagement; employee performance


INTRODUCTION

Various aspects of human life cannot be separated from the consequences of the expansion of globalization. The rapid development of science is accompanied by the pace of information technology, especially in communication and transportation. The sector has increasingly narrowed the distance between countries and has also diluted the boundaries of space, time, and space. The effect of this phenomenon contributes to environmental changes that take place very dynamically and continuously. Moreover, individuals must learn a new set of skills related to the usage of ICT or digital technologies in a technology-rich society (Van Laar, Van Deursen, Van Dijk, & De Haan, 2020). In government sector organizations, the pressure for changes to be made is caused, among others, by the public's demands for service efficiency, improvements to the service facilities used, the use of technology, and information disclosure. So in 2008, the government launched Bureaucratic Reform as a sign of the start of changes in governance. As the basis for implementing this bureaucratic reform, Presidential Regulation No. 80 of 2011 was issued concerning the Grand Design of Indonesian Bureaucratic Reform 2010-2025. The Grand Design for Bureaucratic Reform in Indonesia states that bureaucratic reform has the vision to create a world-class government. In order to achieve this, the government must be professional, have integrity and be able to provide excellent service to the community. The target of initiating this reform is the transformation of the pattern of governance, especially regarding the management of the organization, its institutions, and its apparatus. There are 8 (eight) areas of Change in bureaucratic reform, namely (1) mental changes in the apparatus with the creation of positive work culture, (2) proper organizational arrangements for functions and sizes, (3) management in accordance with the principles of good governance, (4) arrangement of regulations that are more orderly and not overlapping, (5) management of human resources in the apparatus for improving the quality of government administration and services, (6) strengthening supervision, (7) strengthening performance accountability and (8) improving the quality of public services.

Through this bureaucratic reform, the change process is carried out systematically through several stages and continues to encourage the creation of clean government management, improvement of public services, increasing capability and accountability of bureaucratic services, and growing professionalism of apparatus resources. Therefore, bureaucratic reform is an attempt to transform an organization from its current state to the desired state in the context of bureaucratic reform.

Human resources (HR) is a crucial capital as one of the determinants of the success or failure of an organization. If you want organizational performance to be good, human resources are needed as an organizational driver who has good work behavior. Human resources should have the ability to continuously improve the quality of their performance. One form of this bureaucratic reform is the enactment of Law Number 5 of 2014 concerning state civil apparatus (Armenakis, Harris, & Mossholder, 1993).

Organizational performance can be called successful if it is supported by the performance shown by individuals in the organization that is also good. There are various factors behind the increase in performance, and if employees are able to control these factors, it can help employees get the title of working with good quality. Especially when faced with an environmental situation that is experiencing very dynamic changes at this time, the existing human resources must also prepare and equip themselves. Change is not an easy thing to do. Every employee in the organization will show various attitudes and reactions; there are those who are willing to accept but not a few who refuse. Employees accept changes because they have the readiness to adapt to changes that occur and have confidence that these changes will bring goodness and benefits to themselves in addition to the organization. If such conditions, the changes made by the organization can be successful. However, it is inevitable that there are also various factors behind employees being resistant or rejecting organizational transformation. This should be the main concern of the organization because if it is not handled properly, then the organization will have difficulty changing, and in the end, the organization will be crushed by the Change itself and will not be able to survive.

In maintaining the organization in the midst of a changing environment that has complexity and high competitiveness, a leader who is ready for it is needed. Modern leadership models such as transformational leadership show an important impact on organizational success. Transformational leadership has the ability to express the vision and mission clearly, is able to stimulate motivation, creativity, and innovation of employees, and provide broad opportunities for employees to increase their capacity. This leadership model can increase employee feelings to help the organization achieve its goals and be willing to voluntarily prioritize the interests of the organization.

On the other hand, employee engagement is also an element that also plays an important role in improving performance. Employees feel dread, cynicism, burnout, disengagement, and a lack of willingness are likely participate in the process of organizational change (Islam, Furuoka, & Idris, 2021). The emergence of the concept of employee engagement in organizational behavior has become an important issue studied in these two decades. In some books and studies, engagement is defined as 'attachment' or 'involvement.' Employee engagement is an employee's physical, psychological and emotional investment that affects their performance. Employees who have a sense of engagement or engagement with the organization will be a trigger factor for increasing employee performance. They will try to give their best contribution so that the results of their work can support the achievement of the expected goals.

The Ministry of Law and Human Rights is part of the government that carries out development in the field of Law and Human Rights and has the task of realizing laws that provide security, justice, and business certainty. The strategic role of the Ministry of Law and Human Rights in government is:

(1) law formation, (2) service and law enforcement, (3) promotion of human rights, and (4) management support. The Ministry of Law and Human Rights has carried out bureaucratic reform starting in 2010. Carrying out very diverse tasks and functions and having a strategic position in the legal field, it is supported by 62,657 apparatus resources who carry out tasks in 1,288 work units (LKIP Kemenkumham, 2020).

The declaration of bureaucratic reform at the Ministry of Law and Human Rights was carried out in 2013. Various efforts have been made by the Ministry of Law and Human Rights for the successful implementation of this bureaucratic reform. One of the actions of this bureaucratic reform is the establishment of an Integrity Zone (ZI). For work units that are successful in building integrity and providing quality services, they will receive the titles of a Clean and Serving Bureaucratic Area (WBBM) and a Corruption-Free Area (WBK). As shown in the Kemenkumham 2020 Performance Report, there were 11 work units that won the WBBM predicate, and 72 work units won the WBK predicate. This achievement increased when compared to the previous year but was still too small compared to the number of existing work units.

 

Table 1

Comparison of WBBM and WBK in 2019 and 2020

Year

Number of Satker

�WBK

Number of WBBM Satker

2019

38

4

2020

72

11

Source: LKIP Kemenkumham 2020

This very large number of apparatus can be a strength as well as a weakness for the Ministry of Law and Human Rights. With this large number, the Ministry of Law and Human Rights can be more optimal in providing services in the field of law and human rights to the community. However, the obstacle faced with this large number of employees is that HR management does not work. Employees who have competence in accordance with their field of work will encourage optimal employee performance improvements. Meanwhile, in HR management at the Ministry of Law and Human, the problems or challenges, namely (1) In an effort to achieve the vision and mission in the legal field, HR management through a systemic approach has not been carried out. (2) There are still issues of authority and program planning between the management system and human resource development. (3) Organizational performance is not yet optimal due to problems related to integrity, professionalism, and employee career patterns (Citrawan, 2019).

In fulfilling its duties and functions in developing human resource competencies, BPSDM uses the training path (especially classical) more than the non-training path. With a large number of Kemenkumham apparatus and scattered placements, of course, this training path is not effective and efficient. The budget needed to carry out the training is quite large, especially the budget allocation to finance official travel, procurement of supporting facilities, and infrastructure to consumption. Due to the high cost of implementing this, the number of training carried out is reduced so that a small number of employees have the opportunity to participate in competency development. Government Regulation Number 17 of 2020 concerning Management of Civil Servants states that the competency development of each Employee is carried out at least 20 hours of lessons in one year. To be able to fulfill the rights of employees for competency development, it will be difficult if the conventional system is still carried out.

The idea of ​​a method for developing human resources using information technology has actually been carried out by the Head of BPSDM Kumham by organizing training on e-learning methods as regulated in the Regulation of the Minister of Law and Human Rights of the Republic of Indonesia Number 10 of 2017. Competency development through online training is more effective. They are mostly followed by employees who have just been appointed as civil servants due to their expertise in using technology-based devices. Meanwhile, for employees with long and senior tenures, online training is considered unattractive. The following is a table describing the achievement of outputs from classical training and e-learning training.

 


 

 

 

 

Table 2

The outcome of Competency Development 2020 BPSDM Law and Human Rights

 

 

Competency Development

No

Unit/ Satker

PJJ/ Klasikal

E-Learning

Education

Total

1

Technical and leadership training development center

827

35.582

 

36.359

2

Functional education and human rights development center

1.221

469

 

1.690

3

North Sulawesi training center

230

1.320

 

1.550

4

Central Java training center

303

811

 

 

5

Riau Islands training center

240

791

 

 

6

Penitentiary Polytechnic

 

 

1.001

1.001

7

Immigration Polytechnic

 

 

968

968

Source: LAKIP BPSDM Law and Human Rights Fiscal Year 2020

 


In the field of institutional arrangement, through the Regulation of the Minister of Law and Human Rights of the Republic of Indonesia Number 4 of 2018, BPSDM Law and Human Rights also initiated the establishment of Law and Human Rights Training Centers in three areas, namely the Riau Islands Law and Human Rights Training Center, Central Java Law and Human Rights Training Center and North Sulawesi Law and Human Rights Training. The presence of the Law and Human Rights Training Center, which is a technical implementing unit, is an effort to ensure efficiency and effectiveness in the implementation of HR development. The Law and Human Rights Education and Training Center is responsible for developing employee competencies in accordance with the assigned work area. It is hoped that the need for human resource development can be identified accurately, opportunities for wider and more open training implementation, and efficiency in terms of budget.

The next breakthrough that was initiated by the Head of BPSDM was to launch a Corporate University at the end of 2019. Kemenkumham Corporate University (Kumham Corpus) is a form of commitment to improving employee competence (knowledge, skills, and behavior) in line with the agency's strategic goals. Kumham Corpus is the management of the HR development strategy that focuses on achieving the strategic goals of the Ministry by managing employees in a learning organization environment and knowledge management to create superior characters (Muhammad, El Talla, Mazen, & Abu-Naser, 2020). The presence of Kumham Corpu is expected to provide wider opportunities for ASN Kemenkumham to participate in developments with various learning methods according to their needs. Kham Corpus is a learning strategy using the 70/20/10 model approach (Muhammad et al., 2020), where classical learning is only at composition ten while compositions 70 and 20 can be done through other activities in the workplace. Corporate universities in the public sector are a big part of the government's efforts to reform the bureaucracy and governance (Citrawan, 2019).

Some of the efforts mentioned above have not been able to run optimally so that they can improve the performance of BPSDM Kumham. It can be seen in the Government Agency Performance Report (LKIP) of BPSDM Kumham Year 2020 that there are program performance indicators that cannot be achieved.


 

Table 3

Performance Achievements of BPSDM Law and Human Rights for Fiscal Year 2020

No

Program Goals

Performance Indicator

Target

Realization

Achievements

1

Improving HR competencies in the field of law and human rights

1. Percentage of competency assessment results followed up by users

75%

81%

108%

 

 

2.�� Percentage of ASN Kemenkumham who get competency development

85%

70%

82%

 

 

3. Percentage of training alumni who have carried out tasks in accordance with field competencies his job

85%

96%

113%

2

Fulfillment of human resources of the Ministry of Law and Human Rights who have competence in the field of Corrections and Immigration

Percentage of graduation from Immigration Polytechnic and Correctional Science Polytechnic placed in accordance with the competence of the position

95%

100%

105%

Source: LAKIP BPSDM Law and Human Rights Fiscal Year 2020

 


The data above shows that in the first program target, one of the indicators for achieving the target could not be met. Indicators, The percentage of ASN Kemenkumham who get competency development is targeted at 85% or a total of 53,335 employees. However, the actual achievement can only be 70% or a total of 43,713 employees. This is allegedly a result of the Corona Virus 19 (Covid-19) pandemic experienced by all countries. This condition causes the need for adjustment of learning methods that initially focused on classical learning to distance learning.

In 2020, the entire country was shocked by a pandemic caused by the outbreak of Covid-19. The risks posed by this epidemic have had a tremendous impact on changing the order of life. The order in the administration of government is also inevitable due to the pandemic. In the bureaucratic aspect, the government issues policies to immediately adapt and respond to changes that occur so that they can still facilitate sustainable welfare and economic development in various existing conditions. The context of the government must be dynamic, which is a necessity in facing the challenges and obstacles in this pandemic situation. Optimal use of technology in assisting the implementation of the duties of the apparatus, of course, requires a lot of preparation and ability. Adaptation and creativity are needed in today's era. The creation of a new design to continue to carry out activities as usual while still complying with health protocols needs to be prepared by management thus state civil servants can still show high performance.

The writer state leadership of the BPSDM Kumham has responded to environmental changes caused by the rapid development of information technology with several online pieces of training and the selection of Kumham Corpus learning strategies. This effort is in order to accelerate and expand the opportunities for all Kemenkumham employees to participate in HR development. However, there is very little interest from employees to take part in this training, as can be seen from the number of employees who have passed the training. So that the focus of online training is then shifted to only targeting new employees. Meanwhile, the implementation of the Kumham Corpus has not yet started. Competency development activities until the 2021 fiscal year are still using training methods even though they are carried out remotely due to the Covid-19 pandemic.

As a unit that carries out competency development, the opportunity for BPSDM Kumham employees themselves to add skills and expertise is also very lacking. This is because the special budget allocation for employees who want to participate in competency development in other agencies is still lacking. Ironically, many of the BPSDM Kumham employees who have worked for several years have never been called upon to participate in the competency development organized by BPSDM Kumham other than pre-service training for appointment as civil servants. However, the results of the competency assessment held in 2020 by the BPSDM Competency Assessment Center for employees at various levels of office, it was found that BPSDM employees, in general, have high competence and confidence when completing work. This competency assessment is carried out to measure the potential and competence of employees from a managerial and socio-cultural perspective. And the results of the managerial competence assessment of BPSDM employees, one of which is related to the ability to manage Change and cooperation, also show optimal results. In addition, when viewed from the Performance Assessment of Civil Servants, which is carried out every year, the majority of employees get good grades from their superiors.

In terms of employee attachment to the organization, the sense of engagement owned by BPSDM Kumham employees is also felt to be lacking. This can be seen from the lack of enthusiasm of employees in participating in the activities held; attendance is only to fulfill attendance. Likewise, in carrying out work, in general, employees only carry out routine tasks or those requested by their superiors. The problem of the lack of employee participation is also one of the causes of the failure of BPSDM Kumham in winning the WBK title for the last three years, even though various preparations have been made and every requirement has been followed. According to the informant, the process of achieving the WBK/WBMM predicate did not get the full attention and support of all employees. The feasibility assessment process carried out by external parties should require the full support of all employees, commitment, and consistency because the assessment is carried out in various aspects of the organization's management.

To analyze the performance problems of the Legal and Human Rights BPSDM in achieving its program targets in the development of the srate civil servants of the Ministry of Law and Human Rights, the author is interested in knowing the factors from the leadership side of officials, employee engagement, and readiness of the Law and Human Rights BPSDM employees in dealing with changes that occur.

Several previous research literature reveals that there are many factors that influence employee performance improvement, namely transformational leadership, employee engagement, and employee readiness to change. As research conducted by (Victoria & Rahardja, 2018) entitled Analysis of the Effect of Transformational Leadership Style, Work Motivation and Employee Engagement on Employee Performance finds that transformational leadership has a positive and significant effect on employee performance. The better the implementation of transformational leadership that is received and felt, the effect on increasing employee performance. Research by (Buil, Mart�nez, & Matute, 2019) with the title Transformational Leadership and Employee Engagement: The Role of Identification, Engagement, and Proactive Personality also revealed the same results. However, in the field, different results were found in other studies. As research conducted by (Eliyana & Ma�arif, 2019) with the title Job Satisfaction and Organizational Commitment Effect in the Transformational Leadership Towards Employee Performance and (Siswatiningsih, Raharjo, & Prasetya, 2018) with the title The Influence of Transformational and Transactional Leadership on Organizational Culture, Work Motivation, Commitment Organizational and Employee Performance. Both studies show that transformational leadership does not necessarily improve performance or in other words, this study shows a positive but not significant effect of transformational leadership on employee performance.

Another factor that affects employee performance is employee engagement. Research conducted by (Ismail, Iqbal, & Nasr, 2019) entitled Employee Engagement and Job Performance in Lebanon: The Mediating Role of Creativity and (Ali, Sabir, & Mehreen, 2019) with the title Predicting Engagement and Performance Through Firm's Internal Factors found that employee engagement has an impact on which is positive and significant to performance. The creation of employee engagement which is determined by various factors, leads to an increase in performance. If the level of employee engagement imprinted on employees is high, it will encourage increased performance.

In organizational transformation planning, the leader is the source of change readiness. Meanwhile, employees are important objects that need to be prepared. It takes leadership that is able to convey the purpose of the Change and who is able to motivate employees to want to be involved in the change (Abbasi, 2017), in his research entitled Transformational Leadership and Change Readiness and A Moderating Role of Perceived Bureaucratic Structure: An Empirical Investigation, found that transformational leadership has a positive and significant impact on the readiness to change in government employees. However, in other studies, different results were found that transformational leadership has an effect on readiness to change, but it is not as significant as the research findings conducted by (Susyanto, 2019) with the title The Effect of Leadership, Employee Engagement and Job Satisfaction on Readiness to Change in Facing Organizational Change. Employee involvement significantly affects readiness to change, as shown by the findings of research conducted by (Matthysen & Harris, 2018) with the title The Relationship between Readiness to Change and Work Engagement: A Case study in an Accounting Firm Undergoing Change. Employees with a high sense of engagement will positively accept the change process and agree to carry out job demands more effectively. This is contrary to the results of research by (Darmanto et al., 2020) entitled The Effect of Employee Engagement, Organizational Commitment and Transformational Leadership on Readiness to Change in Ahmad Dahlan University Employees who say that transformational leadership and employee engagement have no correlation with employee readiness to change.

Katsaros, Tsirikas, and Kosta (2020), in their research entitled "The Impact of Leadership on Firm Financial Performance: The Mediating Role of Employees' Readiness to Change," found that leadership style is very important in influencing employee readiness to change and confirms that leadership has a relationship with performance through a mediator, namely readiness to change. The role of readiness to change as a full mediator is also found from the research findings compiled by Yuwono et al. (2020) and (Asbari, Novitasari, Gazali, Silitonga, & Pebrina, 2020). To improve employee performance in the organizational transformation process, in addition to employee readiness to change, a change-oriented leadership style is also very necessary. The following is a summary of some of the studies that yielded different findings:


 

 

Table 4

Research Gap

No

Research Name and Research Title

Research result

1

Analysis of the Effect of Transformational Leadership Style, Work Motivation and Employee Engagement on Performance (Victoria & Rahardja, 2018).

There is a positive and significant effect of transformational leadership on employee performance, as well as employee engagement has a positive and significant effect on performance employee.

2

Transformational Leadership and Employee Engagement: The Role of Identification, Engagement and Proactive Personality (Buil et al., 2019).

There is a positive and significant influence of transformational leadership on employee performance.

3

Job Satisfaction and Organizational Commitment Effect in the Transformational Leadership Towards Employee Performance (Eliyana & Ma�arif, 2019).

Transformational leadership has a negative effect on employee performance.

4

Effect of Transformational and Transactional Leadership on Organizational Culture, Motivation

Work, Organizational Commitment and Employee Performance (Siswatiningsih et al., 2018).

Transformational leadership has a positive but not significant effect on employee performance.

5

Employee Engagement and Job Performance in Lebanon : The Mediating Role of Creativity (Ismail et al., 2019).

There is a positive and significant impact of employee engagement on performance.

6

Predicting Engagement and Performance Through Firm�s Internal Factors (Ali et al., 2019).

There is a positive and significant impact of employee engagement on performance.

7

Transformational Leadership and ������������Change Readiness and A Moderating Role of Perceived Bureaucratic Structure: An Empirical Investigation (Abbasi, 2017).

There is a positive and significant impact of transformational leadership on change readiness.

8

Influence of Leadership, Employee Engagement and Job Satisfaction on Readiness to Change in the Face of Organizational Change (Susanto, 2019).

Transformational leadership has a positive but not significant impact on change readiness.

9

The Relationship between Readiness to Change and Work Engagement: A case study in an accounting firm undergoing Change (Matthysen & Harris, 2018).

There is a positive and significant impact from Employee engagement on readiness to change.

10

Effect of Employee Engagement, Organizational Commitment and Transformational Leadership on Readiness to Change in University Employees Ahmad Dahlan (Darmanto et al., 2020).

Transformational leadership and employee engagement have no correlation with employee readiness to change.


From several research gaps found in several previous studies, it can be concluded that it is understood that there are various forms of the influence of transformational leadership variables, employee engagement, on employee performance through readiness to change. As an employee at BPSDM Kumham, the author is very interested in seeing how the relationship between these variables is related to the problems experienced by BPSDM Kumham. BPSDM Kumham, as part of a government organization, is still trying to achieve the program targets that have been set for the realization of the strategic goals of the Ministry of Law and Human Rights and ultimately contribute to the success of the vision and mission of the President of the Republic of Indonesia.

The purpose of this research is to analyze the data obtained from respondents to test and prove the direct influence of transformational leadership and employee engagement on employee performance as well as the indirect influence through readiness to change as a mediator. Then the benefits of this research are if it can contribute to the field of HR management, especially regarding the influence of transformational leadership employee engagement on employee performance through readiness to change.

 

 

 

 

METHOD

This research uses quantitative research methods (Sugiyono, 2019). In this study, the population used were employees of the BPSDM Law and Human Rights Ministry of Law and Human Rights, amounting to 266 people. The researcher determined that the sample for this study was supervisory officers and implementing employees who had had a minimum of 1 year of service, and it was found that the sample for this study was 73 respondents. In this study, the data collection technique is in the form of digital data or numeric data that can be estimated quantitatively from quantitative. The data analysis technique was carried out by (1) classifying the data according to the variables and types of respondents, (2) compiling a list of data based on the variables of all respondents, (3) then presenting it from each observed variable, (4) calculating to answer formulation of the problem, and (5) make an assessment to prove the hypothesis that has been put forward.

RESULTS AND DISCUSSION

In this study, the variables analyzed consisted of transformational leadership, employee engagement, readiness to change, and employee performance. The answer with the lowest score for each statement is the minimum value from the descriptive statistical table. And the results of descriptive statistics from research variables as shown in table 5 below this:



Table 5

Descriptive Statistics of Employee Performance Variables

Dimension

Code

Standard

Deviation

Mean

Information

Job Quantity

KP1

0.726

4.219

Very High

KP2

0.709

4.178

High

Quality of Work

KP3

0.612

4.192

High

KP4

0.672

4.014

High

Work knowledge

KP5

0.648

4.178

High

KP6

0.711

4.041

High

Creativity

KP7

0.849

3.932

High

KP8

0.709

4.178

High

Cooperation

KP9

0.580

4.274

Very High

KP10

0.676

4.192

High

Reliability/ Accountability

KP11

0.770

3.808

High

KP12

0.536

4.288

Very High

Inisiatif

KP13

0.602

4.219

Very High

KP14

0.855

3.699

High

Personal qualities

KP15

0.519

4.411

Very High

KP16

0.715

4.151

High

Overall Average

4,123

High

Source: processed data, 2021



As shown in the table 5, the 16 dimensions of employee performance variables, all indicators of each measured dimension have values ​​in the high and very high categories. The mean value of the indicator in the very high category is the personal quality indicator (KP15), with the respondent's statement upholding honesty in carrying out work. From the score of these indicators, it shows that the BPSDM Kumham employees who are respondents have honesty in their work. The smallest mean value is obtained on the reliability/responsibility indicator (KP11) with a statement that the Employee is present on time. Through this score, it is known that respondents are still not disciplined in entering the office on time. Due to the Covid-19 pandemic, where attendance is made through an application, employees come to the office more than the set time. Meanwhile, when viewed from the average value of the employee performance variable of 4.123, it is in the high category, which means that the BPSDM Kumham employees gave a positive response to the statement regarding the employee performance variable.

 


 

Table 6

Descriptive Statistics of Transformational Leadership Variables

Dimension

Code

Standard

Deviation

Mean

Dimension

Ideal Influence

KT1

0.829

3.479

High

KT2

0.809

3.575

High

Inspirational Motivation

KT3

0.774

3.685

High

KT4

0.852

3.630

High

Intellectual Stimulation

KT5

0.722

3.836

High

KT6

0.782

3.932

High

Individual Considerations

KT7

0.880

3.726

High

KT8

0.833

3.822

High

Overall Average

3.711

High

Source: processed data, 2021

 


Then, if seen from table 6, respondents' answers to all indicators on the transformational leadership variable consisting of 4 dimensions, namely ideal influence, inspirational motivation, intellectual stimulation, and individual considerations, as shown in Table 17, have a mean value with a high category. The highest mean value is obtained from the intellectual stimulation dimension (KT6), which is 3.932, with the statement that superiors motivate their subordinates to be better at carrying out their work. And the lowest mean value was found in the ideal influence dimension (KT2) of 3.575 with the statement that superiors are able to make their subordinates proud. However, the average value of all indicators obtained is 3,711, which is in the high category. This shows that the statements on the transformational leadership variable get a positive response from BPSDM Kumham employees.

 

 

 


 

Table 7

Employee Engagement Variable Descriptive Statistics

Dimensi

Kode

Standard deviation

Mean

Keterangan

 

Semangat

EE1

0.749

4.014

High

EE2

0.555

4.274

Very High

EE3

0.632

4.110

High

 

Dedicate

EE4

0.748

3.959

High

EE5

0.702

4.000

High

EE6

0.763

3.781

High

 

Penyerapan

EE7

0.618

4.123

High

EE8

0.740

4.027

High

EE9

0.803

4.110

High

Nilai Rata-rata keseluruhan

4.044

High


Sumber: data viola, 2021

 


Then respondents' answers regarding the dimensions used to measure employee engagement variables which include three aspects, namely enthusiasm, dedication, and absorption, it can be seen that the average value of all indicators in the high category is 4.044. This value indicates that the statements on the employee engagement variable get a positive response from the respondents. The indicator value in the very high category is found in the spirit indicator (EE2) of 4.274, with the statement of the respondent having high enthusiasm to provide the best work results. Meanwhile, the lowest mean value is seen in the dedication indicator (EE6) of 3,781, with a statement that work can be an inspiration for employees.

 


 

Table 8

Descriptive Statistics of Readiness to Change Variable

Dimension

Code

Standard

Deviation

Mean

Information

Appropriateness

KB1

0.715

4.151

High

KB2

0.739

4.205

Very High

 

KB3

0.844

4.000

High

 

KB4

0.696

4.151

High

Change Efficacy

KB5

0.774

4.055

High

 

KB6

0.826

3.945

High

Management Support

KB7

0.875

3.877

High

KB8

0.748

3.959

High

 

KB9

1.031

3.589

High

Personal Benefits

KB10

0.414

4.219

Very High

KB11

0.661

3.877

High

 

KB12

0.910

3.658

High

Overall Average

3.974

High

���������� Source: processed data, 2021

 


Respondents' answers to the dimensions used to measure the readiness to change a variable, it is known that the average value of the overall indicators is 3.974 in the high category. This shows that the statements regarding employee readiness to change received a positive response from BPSDM Kumham employees. Table 19 also shows that the highest mean value is found in the personnel benefit indicator (KB10) with a statement regarding the changes made will increase the knowledge and skills of employees. And the lowest mean value is seen in the management support indicator (KB9) of 3,589 with a statement that the organization provides training to employees so that they are ready to face the changes made.

 

DISCUSSION

1.  The Effect of Transformational Leadership on Employee Performance

Through the results of the analysis of this study, it is known that there is a positive influence between transformational leadership and employee performance, but the effect is not significant. The presence of a leader with a transformational leadership style does not necessarily encourage an increase in employee performance. There are many other factors not examined in this study that have a greater influence on improving employee performance. Several indicators have been designed using four dimensions of transformational leadership, namely ideal influence, inspirational motivation, intellectual stimulation, and individual considerations.

When viewed from the respondents' answers to statements related to indicators of transformational leadership at BPSDM Kumham, this type of leadership practice actually already exists. The leadership at BPSDM Kumham has shown sensitivity to changes in the world environment due to the pace of globalization and the development of information technology. The challenges faced by BPSDM Kumham in carrying out its duties to create Human Rights of the Ministry of Law and Human Rights who have competence in accordance with the field of duty and increase their performance are difficult if HR development management is still carried out with classical training methods. Electronic-based training (e-learning) and Kumham Corpu are a form of transformation carried out to achieve the program targets that have been set and fulfill the performance agreement between the Head of BPSDM Kumham and the Minister of Law and Human Rights. However, over time this e-learning training did not show optimal results. Many of the Ministry of Law and Human Rights employees were not interested in participating in it. Because employees who take part in e-learning training from their respective workplaces are always given daily work by their superiors, they don't focus on learning. Then this e-learning is intended for basic training materials where the participants are new employees, which are indeed many in number. However, those who need competency development are all employees, so an e-learning training formula is needed that allows the learning process to be carried out, including practice or simulation.

Since its launch in November 2019, Kumham Corpus has not yet seen its implementation. According to the head of this strategy, it is very helpful for the task of BPSDM Kumham in meeting the development needs of HR Kumham. This learning process can improve employee performance to meet the indicators for achieving the program objectives of each work unit. The learning methods offered also vary according to the needs of each Employee, such as independent learning, a community of practice, coaching, mentoring, and so on. Another idea brought up by the leadership of BPSDM is to create a study house application, where through this application, employees will have more opportunities to participate in self-development that is tailored to their needs as a result of previous competency assessments. This application can be accessed via smartphones and computers.

From the various efforts initiated by the leadership of BSPDM, the mission to carry out a transformation in the work system of BPSDM Kumham does not seem to have been conveyed clearly to all employees as executors of the duties of BPSDM. And if seen in practice, the form of the policy that was initiated has not been included in the activity plan for the following year. So the leader's own commitment to carry out what has been set is lacking. BPSDM employees who are dominated by young people aged 40 years and under have good competence. This is evident from the results of the managerial and socio-cultural competency assessments where the optimal level of competence is obtained. In terms of the ability to adapt to organizational transformation, in general, BPSDM employees do not have an impact on their performance. With information technology-based applications in the execution of work, work will be easier and faster to carry out. In addition, the willingness to learn new things is still high. For this reason, it is necessary to have opportunities for employees to complete work in their own way so that their creativity remains honed. These characteristics are what can maintain the performance of BPSDM employees, even though the practice of transformational leadership has not been fully implemented.

The findings of previous research conducted by (Siswatiningsih et al., 2018) on 130 employees of the Muhammadiyah General Hospital Ahmad Dahlan also concluded that increased transformational leadership would not necessarily improve employee performance. In other words, transformational leadership had no significant effect on employee performance. It is also in accordance with the findings of a study in one of the shoe industries by Yuwono et al. (2020) that the age of mature employees is above 30 years, and a working period of more than five years no longer requires the practice of transformational leadership because they are more independent in their work. Likewise, Yuwono et al. (2020) in their research found that because the transformation process as the main indicator of the transformational leadership variable only lasted a short time, the performance of employees in the industry had no effect. Transformational leadership has no effect on performance with a beta coefficient of -0.0217 and at-count of 0.1399. The performance of mid-level managers at PT Pelabuhan Indonesia III is not affected by this transformational leadership style (Eliyana & Ma�arif, 2019). Meanwhile, several previous studies actually found different results. According to (Victoria & Rahardja, 2018) and (Buil et al., 2019), the presence of transformational leaders in an organization has a strong influence on improving employee performance. Transformational leadership style is a leadership style that is able to encourage followers to show in-role and extra-role behavior at work. In addition, there is the attention given to their subordinates by helping them to be more creative and innovative in their work. The difference in the findings of this study is reasonable because the research was carried out in various types of organizations, but what was observed was human behavior.

2.  The Effect of Transformational Leadership on Readiness for Change

From the test results, it is known that the effect of transformational leadership on readiness to change is positive and significant. The role of a leader is very important in preparing all employees to face the changes that will be made. This is considering that the response shown by each Employee is not necessarily willing to voluntarily accept the Change. Several approaches must be taken by a leader, starting from communicating the purpose of the Change, setting an example, motivating, and providing support by helping employees. Thus employees will better understand the purpose of making changes and know how to deal with these changes.

The idea of ​​the leadership of BPSDM in transforming HR development policies within the Ministry of Law and Human Rights by adopting the use of information technology can be said to be good. The next thing that must be the focus of leadership is how to prepare employees to accept the Change and be able to adapt. In order for employees to be able to adapt, of course, sufficient preparation is needed and in accordance with the role that will be carried out. Leaders equip employees with various skills and expertise so that they can support the implementation of new tasks assigned to them. Likewise, the provision of adequate work facilities and infrastructure will make it easier for employees to work. Regarding the management of this Change, the results of the competency assessment conducted in 2020, it was found that BPSDM employees actually have the ability to manage Change optimally. This could be due to the demographics of the employees, the majority of whom are young people with an age range of 20 to 40 years who have the character of being easy to adapt to many things, one of which is technology. They are not surprised and clumsy about the emergence of new technologies. They are interested in anything that can make work faster and easier. High self-confidence that is able to work well and produce the best performance.

If you look at the character of employees like this, leaders need to open up wide opportunities for employees to develop themselves. However, in reality, there are still many employees who have not attended training related to their field of work. Meanwhile, the budget allocation that can be used by employees to take part in external training at BPSDM is still very limited. The limited budget is mostly used by functional positions such as widyaiswara and also medical personnel (doctors and nurses) in an effort to increase credit numbers. The readiness of employees to change is not only because they are young people who really like challenges and are easy to adapt to the environment, but also requires leadership intervention.

From the indicators of transformational leadership, intellectual stimulation obtained the highest respondent's answer score of 3.932 with the statement that employees get the opportunity to do their jobs in their own way. BPSDM Kumham employees like the use of technology in completing their work because it provides time and cost-efficiency. Likewise, the leadership of BPSDM always tries to keep up with the times in carrying out program activities in order to achieve the target performance indicators. The implementation of competency development for all employees of the Ministry of Law and Human Rights, who are very numerous and scattered in various regions, has adopted a technology approach and various other policies. This policy can be welcomed by BPSDM Kumham employees who are dominated by the generation who master the use of technology and like everything that is practical and easy. They agree that changes made by the organization are considered feasible and must be fully supported. This time and cost efficiency are very important considering the number of employees of the Ministry of Law and Human Rights is 62,657 people and must accommodate the development needs of each Employee equally. Thus the Change in the method of carrying out the duties and functions of BPSDM Kumham, according to the respondents, employees of BPSDM are considered to provide efficiency for the organization, and they are ready to accept and deal with these changes. This is in accordance with the indicator of readiness to change, namely eligibility, with the highest respondent's answer score of 4.205.

The findings of this study are in line with previous research conducted by (Abbasi, 2017), where the object of his research was 600 government employees in Rasht, Iran, who revealed that a leader must provide support and attention to employees in dealing with changes planned by the organization. To achieve the expected performance, it is also important for the leadership to conduct regular evaluations and provide appropriate incentives. Attention to the needs of employee personnel must also be carried out as an effort for employees to maintain their good performance. Other research also concludes that transformational leaders are able to become role models and provide examples to subordinates so that their subordinates become better at preparing for change (Indriastuti & Fachrunnisa, 2021). This is different from the research conducted by Susyanto (2019), which found that transformational leadership did not significantly affect the readiness to change employees. Policies regarding changes initiated by top management (CEO, BOD, and their staff) were not conveyed properly to the lower levels. Information related to policies was very limited and only through labor unions so that employees could not prepare themselves to face these changes.

3.  The Influence of Employee Engagement on Employee Performance

Tests in this study showed a positive but not significant effect between employee engagement on employee performance. Employees who have a high attachment to the organization will not necessarily directly motivate them to improve their performance. Indeed, many experts and researchers say that the key to the success of an organization is the performance of its employees, and one aspect that supports employee performance is maintained or increased is a strong employee commitment to the organization, the goals to be achieved by the organization and the values ​​adopted by the organization. This commitment is evidenced by enthusiasm in completing work on time and with quality, a sense of pride in the organization, and a willingness to give something more for the organization.

The engaged condition owned by BPSDM Kumham employees, when viewed from the respondents' answers to each employee engagement indicator, is in the high category. Moreover, the spirit indicator got the highest score of 4.274. This is in accordance with the age of the majority and the working period of the BPSDM Kumham employees who are respondents in this study, the enthusiasm they show in their work because they want to show their capabilities and compete with each other to show their abilities. There is a sense of enthusiasm for challenges in work and the changes that are made because that is one of the characteristics of young people. In addition, the next reason that motivates employees to work that cannot be denied is to fulfill performance allowances and get overtime. To obtain performance allowances, employees must input all their activities at work and the output produced in the daily journal in the personnel system application (MPEG). This journal will then be assessed by the direct supervisor, the highest value is 2, and the lowest value is 0 if the superior feel that the activities carried out by his subordinates on that day are not appropriate. From this journal assessment, it will be known the number of performance allowances that will be received by employees. Thus the enthusiasm and dedication shown by employees is not necessarily a reflection of a sense of being engaged in the organization. There are other driving factors that are indeed more profitable for employees. And, of course, the impact on performance improvement is also not optimal. If something happens, such as late receiving salaries and allowances or even the absence of overtime allocation, employees will be lazy to work. Then, if it is observed that the results of the calculation of the respondent's answer index related to employee engagement from the dedication dimension with the statement that works inspire employees, the lowest score is 3.781. This may be because the tasks or jobs under their authority have not been able to demonstrate their capabilities which could be higher. The tasks given are routine tasks that are almost the same every day, so they feel less challenged.

Contrasting results were found from previous research conducted by (Victoria & Rahardja, 2018) on 282 non-medical employees of RSUD KRMT Wongsonegoro, who found that t count 2.767 > t table 1.9939, which means that there is a positive and significant relationship between employee engagement and employee performance. In line with the research of Ali et al. (2019) and Ismail et al. (2019) where the higher the sense of engaged employees in their organization, the higher the Employee's performance will be. Previous research used more samples and was carried out in private companies so that it could have the character of employee behavior with the current research.

4.  Effect of Employee Engagement on Readiness to Change

Tests on the correlation between employee engagement and readiness to change resulted in a positive and significant effect between the two. Employees who already have an attachment to work and the organization tend to be willing to make extra efforts for mutual success. This is in line with research conducted by (Matthysen & Harris, 2018), where their research respondents have a high sense of engagement because they are very excited to work, have an attachment to work, and are able to face various job demands. However, changes that occur in the organization require various adjustments such as restructuring, demands for longer working hours, greater responsibilities. Contrary to the findings of research conducted by (Darmanto et al., 2020) concluded that Ahmad Dahlan University employees as research respondents with a tenure of more than ten years have a great responsibility for their work and a strong commitment to persist in their work. In addition, the sacrifices given to work in the form of energy and thoughts are considered a natural thing to do.

Many BPSDM employees in the productive age range of 20 to 40 years are very enthusiastic about trying to give the best results at work. This is in accordance with the highest response score of 4.274 obtained by the dimension of employee engagement, namely enthusiasm. The enthusiasm shown is one indicator of the Employee's sense of belonging to the organization. With that spirit, employees will be motivated to prepare themselves for changes that occur by equipping themselves with new knowledge and skills. Changes made by the organization, of course, have taken into account the efficiency of all organizational resources. Including work operations that can be simpler and easier than before, and this will certainly be liked by employees. Like the character possessed by young employees who really like everything with instant results, current technological developments have a very significant impact on work efficiency. Many types of work are done more easily and quickly by using information technology. In addition, young employees are also very easy to adapt to the environment, so changes that occur are considered a challenge that must be conquered. Their desire to always be updated with the latest technology is also one of the factors that support them to be better prepared to face various changes. The sense of engaged employees from young people really needs to be considered by the organization. Providing opportunities for employees to show their abilities, to be involved in the decision-making process, and to be rewarded if they are able to show achievements are some ways to increase employees' sense of belonging to the organization and will make them willing to prepare for a better and more profitable condition.

5.  Effect of Readiness to Change on Employee Performance

In this study, readiness to change shows a positive and significant effect on employee performance. Employees who have equipped themselves with various skills and expertise will be better prepared to face the demands of new tasks due to the changes that occur. This readiness will maintain their performance or maybe even improve it further. As the results of research conducted by (Yuwono et al., 2020), and (Katsaros et al., 2020) that the belief and spirit of readiness to change in employees are able to maintain their good performance.

Based on the calculation of the respondent's answer index, it was found that the dimension of readiness to change had the highest score of 4.274 derived from feasibility with the statement that Change will bring the organization to be more efficient in managing its resources. At BPSDM Kumham, the transition from the conventional training method, namely classical, to e-learning training or distance training, was greatly impacted. The number of employees participating in the training increases and can be held simultaneously. Costs arising from the implementation of classical training such as official travel costs for participants and teachers are no longer needed, as well as the limited capacity of class facilities and dormitories, which are no longer a problem. Thus, the opportunity for Kemenkumham employees to get the opportunity to take part in the training will increase. The task of BPSDM Kumham in developing employee competencies will be more easily realized, and the performance targets that have been set can also be met. In this way, organizational performance will also increase. The transformation carried out by BPSDM Kumham in an effort to accelerate the achievement of program targets must also be followed by various efforts to prepare its employees. Preparation in terms of supporting facilities and work infrastructure is also needed, especially since remote training is being held where internet data quotas are provided for each Employee and laptop device so that they can still work optimally. Preparation in order to increase knowledge and expertise, especially related to the use of information technology, is also important. With organizational support for employee readiness, it will certainly increase employee confidence that this Change is indeed worthy of being carried out and supported. Coupled with the direction and guidance as a form of attention given by the leadership will really help them through these changes. Employees' self-confidence to keep up with the changes made will grow, and they will try to show maximum effort to achieve good performance so that it can also encourage good organizational performance.

 

6.  The Effect of Transformational Leadership on Employee Performance Through Readiness to Change

Data processing of this study found that readiness to change is a mediator for the relationship between transformational leadership and employee performance. The mediating variable participates in influencing the relationship between the two. When compared with the results of research that examines the close relationship of transformational leadership to employee performance directly, it is found that the results are not significant. The existence of a transformational leader with a fast character in responding to changes that occur in the environment and seeing the need for adjustments to be made within the organization, being able to transform these changes to their subordinates by communicating about the purpose of the Change and the ability to support and motivate their subordinates does not necessarily make employees motivated. To improve its performance. Many other factors are considered by employees to continue to show good performance. In the midst of environmental changes as a result of the rapid development of information technology recently, the readiness of employees to face Change is a major concern. The role of transformational leaders, starting from conveying the goals of Change, providing support, and paying attention to subordinates, will lead to positive attitudes of subordinates about the Change. The availability of opportunities for employees to equip themselves with various skills and expertise will also facilitate the process of accepting Change. Employees' worries about changes that are not necessarily successful and bring benefits will be removed. Leaders do not only focus on Change but also have to know how to empower existing employees. Employees who understand the purpose of Change, are fully supported by the leadership, will be easier to accept changes and make preparations. The more prepared employees are in dealing with Change, the easier it will be for them to carry out the tasks and new jobs given to them. Thus the resulting performance will also increase.

From the results of this study, it was found that transformational leadership had no significant effect on improving the performance of BPSDM Kumham employees. When the variable of readiness to change is added, the influence of transformational leadership on employee performance becomes stronger or more significant. The demographics of BPSDM Kumham employees who tend to be ready to adapt to changes and like the use of information technology in doing their work are able to help leaders improve employee performance and organizational performance. So it can be said that the variable of readiness to change acts as a full mediator. The results of this study support the findings of previous research conducted by (Yuwono et al., 2020), and (Katsaros et al., 2020). Although this previous research was conducted on private organizations, while this research was on public organizations, it can be seen that the observed human behavior showed the same results.

7.  The Influence of Employee Engagement on Employee Performance Through Readiness to Change

Tests on the effect of the mediating variable on readiness to change between the relationship between employee engagement and employee performance showed positive and significant results. The role of the readiness to change variable as mediation was found to strengthen the correlation of the two variables, which, if calculated, the direct correlation did not show significant results. The high sense of attachment of employees to the organization will not automatically make them work hard and earnestly by mobilizing all their abilities to create work performance. Employees showing good performance is something that should be done at least for their own benefit, not because they are driven by a sense of the organization. With the intervention of the readiness to change variable because they believe that the Change will bring efficiency to the organization, employees will be encouraged to prepare themselves with various skills and expertise so that they can still show good performance or even improve.

BPSDM with a composition of strata 1 (S1/D4) educated employees, has a working period of fewer than five years and is dominated by millennials (aged 20 to 40 years) who are very enthusiastic about the current advances in information technology. The desire to learn new things such as new skills and expertise is still passionate. Changes that occur mostly due to the development of information technology are able to attract their attention and try to follow and master it. This is an opportunity for leaders to empower and encourage them to want to use this technology to create creativity at work so that work is done more easily and quickly so that the work results are also good. Even though employees feel less engaged in the organization, the character of employees who come from young people who really like new things that are challenging to know is not difficult for them to accept Change.

 

CONCLUSION

In accordance with the results of data testing and discussion presented in the previous chapter, which was conducted using Partial Least Square (PLS) software regarding the effect of transformational leadership and employee engagement on employee performance through readiness to change.

Transformational leadership shows a positive but not significant effect on employee performance. This means that to improve employee performance, the presence of a transformational leader is not the main factor. There are other factors, both internal and external, that can encourage performance improvement. At BPSDM, it is very important to have a transformational leader who is adaptive to environmental changes. The goals or ideals of the organization must be conveyed clearly and precisely to all subordinates so that their subordinates will better understand the form of roles and tasks they will perform. Likewise, providing motivation and support to subordinates will also increase their confidence in their leaders. And what is no less important is that the leader must first show his commitment to be better so that his subordinates will get an example or role model that deserves to be imitated and will foster a sense of pride in the figure of his leader. Thus, subordinates will be triggered to work better for the success of achieving organizational goals.

Transformational leadership has a positive and significant influence on readiness to change. Changes made in an organization, whether large or small, will certainly have an impact on all employees. So we need a leader who wants to be involved in preparing his employees to face these changes. Being a leader who is able to be an example, motivate and support and have confidence in subordinates to complete their duties will encourage employees to prepare themselves by increasing their capabilities for the success of implementing changes.

Employee engagement has a positive but not significant effect on employee performance. This means that an increase in employee engagement does not give meaning to an increase in employee performance. Employees' willingness to show good performance can be driven by various factors. This factor can come from yourself or from outside yourself. Although the Employee's sense of being engaged in the organization is high, it does not necessarily encourage him to improve his performance.

Employee engagement shows a positive and significant effect on readiness to change. Employees will try to prepare themselves to be able to follow the changes made because of the sense of engagement that arises in their organization. This bond fosters enthusiasm to participate in following changes made by the organization. Various forms of readiness are carried out, such as adding expertise and skills so that they are able to complete the demands of new, more challenging tasks and jobs. There is a belief that the changes made are an effort to survive and be able to compete with competitors. In addition, the Change will provide an opportunity for employees to learn new things that did not exist before and believe that this change will make their work easier.

Readiness to change has a positive and significant impact on employee performance. This shows that the more prepared employees are to face organizational change, the easier it is to maintain the good performance or even increase. This employee readiness is due to the belief that efficiency can be achieved if the organization makes some changes. Especially changes that involve the use of information technology which currently provides a lot of convenience and comfort in carrying out various life activities.

Transformational leadership has a positive and significant influence on employee performance through readiness to change as a mediation. This shows that readiness to change is a mediation that fully strengthens the relationship between transformational leadership and employee performance, which initially, the correlation between the two was not significant. Leaders who give freedom to their subordinates to be creative in carrying out their duties and work and subordinates' perception of organizational change will bring efficiency to the organization will contribute to their desire to improve their performance.

Employee engagement has a positive and significant impact on employee performance through readiness to change as a mediation. Initially, the correlation between the two variables was not significant, but after adding a mediating variable, the correlation between the two variables became significant. Thus, it can be concluded that the readiness to change variable here acts as a full mediation. The sense of engagement which is shown by the enthusiasm of employees to provide the best results to the organization and coupled with the emergence of the belief that efficiency can be achieved by the existence of several changes in the organization, will be a lever for improving their performance.

 

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Copyright holder :

Ade Irani Rizka, Mahendro Sumardjo, Iwan Kresna Setiadi (2022)

 

First publication right :

Journal of Social Science

 

This article is licensed under:

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