

Influence Transformational Leadership Style and Motivation to

Work on the Job Satisfaction in Group SMEs Products from Casava

District Bantul

Emmy Nur Hariati, Istiana Rahatmawati, Karyono, Tino Syamsu Rizal

Universitas Pembangunan Nasional Veteran Yogyakarta

Keywords: UKM, Transformational Leadership Style, Work Motivation, and Job Satisfaction Employee.

Abstract: This study aims to analyze the influence of transformational leadership style and work motivation on

employee job satisfaction (the study of the managers of UKM in Bantul). The research method is a census

with a population of 157. Methods of data collection through questionnaires. The analysis used is descriptive

analysis and Multiple Linear Regression analysis using SPSS version 21. The variables in this study are a

transformational leadership style, work motivation, and employee job satisfaction. The results showed that:

(1). The Transformational Leadership Style and Work Motivation together had a significant positive effect on

employee job satisfaction in SMEs. (2). The Transformational Leadership Style partially has a significant

positive effect on employee job satisfaction in SMEs. (3). Work motivation partially has a significant positive

effect on employee job satisfaction in SMEs.

1 INTRODUCTION

The problem of SMEs has a very important role in the

speed of the community's economy. These SMEs are

also very helpful to the country or government in

terms of creating new jobs. SMEs also have a high

degree of flexibility when compared to businesses

with larger capacities. The success of a company in

achieving its goals is largely determined by the

human resource factors involved in its operational

activities. To be achieved following expectations,

companies must be able to increase job satisfaction.

According to Handoko (2014), job satisfaction is a

pleasant or unpleasant emotional state of employees

towards their work. Meanwhile, according to Malayu

SP Hasibuan (2007), employees who prefer to enjoy

their satisfaction at work will prioritize their work

more than payback even though remuneration is

important. High job satisfaction greatly affects

positive and dynamic working conditions so that it

can provide tangible benefits, not only for the

company but for the employees themselves. Besides,

one of the companies ' roles in increasing job

satisfaction is to pay attention to leadership and

motivation in the workplace of employees.

Leadership broadly includes the process of

influencing in setting organizational goals,

motivating followers' behavior to achieve goals,

influencing to improve the group and its culture

(Veithzal, 2004). An effective leader must be

responsive to change, able to analyze the strengths

and weaknesses of his human resources to maximize

organizational performance, and solve problems

appropriately. For that, the company needs a leader

who is reformist and able to be a motor of change

(transformation) of the company. Transformational

leadership is defined as leadership that includes

efforts to change the organization, which is believed

this style will lead to superior performance in the

organization when facing the demands of renewal and

change (Handoko, 2001). According to Yukl (2005),

with transformational leadership, subordinates have

trust, admiration, loyalty, and respect for leaders, and

they are motivated to do more than expected from

them. Motivation is a process that explains the

strength, direction, and perseverance of a person to

achieve organizational goals related to work

(Robbins, 2014). Mangkunegara (2011) states that

motivation is formed from the attitude of employees

in dealing with work situations in the company.

From the interviews, in the last few years, the

productivity of workers began to slow down.

Symptoms or responses that arise from the decline in

productivity lead to job satisfaction; namely, some

Hariati, E., Rahatmawati, I., Karyono, . and Rizal, T.

Inﬂuence Transformational Leadership Style and Motivation to Work on the Job Satisfaction in Group SMEs Products from Casava District Bantul.

DOI: 10.5220/0009963105430548

In Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management (ICBEEM 2019), pages 543-548

ISBN: 978-989-758-471-8

543



workers often arrive late, avoid their work

responsibilities, and compare the ratio of results with

their input to the ratio of results with the input of

others. Besides, in the processing process, that still

relies on sunlight, and its production is very

dependent on the season. Bad weather like rain also

results in stunted activities so that workers experience

a decrease in job satisfaction, which is marked by a

decrease in wages/payments received, and this

triggers the level of employee satisfaction in doing

work.

Work motivation related to actualization needs,

namely, the need to show one's ability, expertise, and

potential, is still lacking in attention. Can be seen lack

of innovations in the manufacture of raw materials

that should be processed more diverse

In the running, an organization can not be

separated from the figure of a leader. The ideal leader

is a leader who not only gives orders and direction but

is shown in action and can be a role model for the

member. Leadership related to Intelectual

Stimulation Refers to the way leaders to strive to

create a climate that is conducive to the development

of innovation and creativity of every employee is still

not optimal. The leader in this UKM does not

encourage its members to come up with new ideas

and creative solutions to the problems they face. This

can lead to less than optimal job satisfaction.

2 LITERATURE REVIEW

2.1 Transformational Leadership

Leadership in principle motivates subordinates to do

better than what can be done; in other words, it can

increase subordinates' confidence or self-confidence

that will affect performance improvement.

According to Suharto (2006), transformational

leadership is defined as the relationship between

leaders and subordinates who are very close, giving

rise to very other closeness, and subordinates feel

respect and trust in their leaders and are motivated to

work more than they are.

Transformational leadership involves developing

closer relationships between leaders and

subordinates. With transformational leadership,

leaders help subordinates to see interests that are

more important than their interests for the mission

and vision of the organization or group. By

developing the confidence, effectiveness of work, and

self-esteem of subordinates, it is expected that leaders

have a strong influence on the level of identification,

motivation, and achievement of followers' goals.

The transformational leadership style in this study

uses benchmarks from the indicators of Bass and

Avolio (1994), four indicators as follows:

a. Charisma (Idealized Influence)

This refers to leaders who provide examples

and tend to act as role models, positive

behavior, attitudes, achievements, and

commitment to its members.

b. Inspirational Motivation

Relating to the role of leaders who constantly

motivate their members by communicating

high expectations and clear work challenges.

c. Intellectual Stimulation

This refers to the way leaders try to create a

climate that is conducive to the development of

innovation and creativity. Leaders encourage

their members to come up with new ideas and

creative solutions to the problems they face.

d. Individualized Consideration

This refers to the way leaders give special

attention to the needs of each member to excel

and develop by acting as a coach or mentor for

their members.

2.2 Work Motivation

Work motivation in this study uses the benchmarks of

the Abraham Maslow indicator with the following

indicators:

a. Physiological Needs (Physiological)

Needs Physiological needs are the most basic

hierarchy of human needs that are needed to be able

to live, such as eating, drinking, housing, oxygen,

sleep, and so on.

b. Needs of Security(Safety-need)

When the physiological needs relatively satisfied, it

appears the second requirement, namely the need for

security. The need for security includes security for

protection from workplace accidents, guarantees for

the continuity of work, and guarantees for old age

when they are no longer working.

c. Social needs (Social-need)

If the physiological needs and a sense of security have

been satisfied at a minimum, then there will be social

needs, namely the need for friendship, affiliation, and

funds for closer interaction with others. The

organization will be related to the need for a compact

working group, good supervision, joint recreation,

and so on.

d. Choice needs (Esteem-need)

These needs include the desire needs to be respected,

valued over individual achievement, recognition of a

person's capabilities and expertise as well as the

effectiveness of one's work.

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e. Self-actualization needs

Self-actualization is Maslow's hierarchy of needs of

the highest. Self-actualization is related to the process

of developing the true potential of a person. The need

to show one's abilities, expertise, and potential. The

need for self-actualization tends to increase in

potential because people actualize their behavior.

Someone who is dominated by the need for self-

actualization likes tasks that challenge his abilities

and expertise.

2.3 Job Satisfaction

2.3.1 Understanding Satisfaction

According to Sutrisno (2010), satisfaction is an

employee's attitude towards work related to work

situations, cooperation between employees, rewards

received at work, and matters relating to physical and

psychological. Job satisfaction refers to an

individual's general attitude towards his job.

Someone with a high level of job satisfaction shows

a positive attitude towards work, someone who is

dissatisfied with his job shows a negative attitude

towards the job (Robbins, 2007). According to

Handoko (2014), job satisfaction is a pleasant or

unpleasant emotional state with which employees

view their work.

Of the several definitions of job satisfaction

above, it can be said that job satisfaction is the

attitudes and feelings felt by each related to the

activities carried out with the results obtained, either

in the form of material or non-material.

Job satisfaction in this study uses the benchmarks

of indicators Smith, Kendall, and Hulin (in Luthans,

2006) with the following indicators:

a. Work itself (work itself); each job requires a

certain skill by their respective fields. Difficult

weather or not a job and someone's feeling that

their expertise is needed in doing the job, will

increase or reduce job satisfaction.

b. Supervisor (supervisor), a good boss means

willing to respect the work of his subordinates.

For subordinates, the boss can be considered a

father/mother/ friend figure and, at the same time,

his boss.

c. Workers (workers), is a factor related to the

relationship between employees and their

superiors and with other employees, both the same

or different types of work.

d. Promotion (promotion) is a factor related to the

presence or absence of opportunities to gain

career advancement during work.

e. Salary/wages (pay), is a factor fulfilling the needs

of the life of employees who are considered

appropriate or not.

3 RESEARCH METHOD

In this research, the object of research is SMEs in

Bantul Regency, Special Region of Yogyakarta. The

population for this research is 157 SMEs. The method

in this study is to use the method Census. The type of

data used in this study is primary data. Data collection

is done by distributing questionnaires.

Variables in this study are:

1. (Independent) Independent

variables in this study consisted of:

a. Transformational Leadership Style (X

)

b. Work Motivation (X

)

2. The variable (dependent) dependent

The variable in this study consists of:

a. Job satisfaction (Y)

b. Transformational Leadership Style (X

)

Transformational Leadership is defined as the

relationship between leaders and subordinates who

are very close to cause emotion and closeness that is

close very different, and subordinates feel respect and

trust in their leaders and are motivated to work more

than they are. According to Bass and Avolio (1994),

indicators of the Transformational Leadership Style

are: Idealized Influence (X

1.1

), Inspirational

motivation (X

1.2

), Intellectual Stimulation (X

1.3

Individualized Consideration (X

1.4

)

c. Work Motivation(X

)

Indicators of work motivation in this study take from

Abraham Maslow which consists of Physiological-

need (X

2.1

), Safety-need (X

2.2

), Social-need (X

2.3

Esteem-need (X

2.4

), Self-actualization need (X

2.5

)

3. Dependent Variable

Job satisfaction indicators of Smith, Kendall, and

Hulin (in Luthans, 2006) as follows: work itself,

supervision, Workers, pay.

4 RESULTS AND DISCUSSION

4.1 Description of Respondents

Primary data that has been successfully collected by

researchers is analyzed to determine the

characteristics of respondents, including gender,

Inﬂuence Transformational Leadership Style and Motivation to Work on the Job Satisfaction in Group SMEs Products from Casava District

Bantul

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respondent's age, education, and years of service.

Descriptive analysis is shown in Table 4.1:

Table 4.1: Respondent Characteristics

Characteristics Category Percentage

Gender

Male

Female

45.6

54.4

Total 100.0

Age

19- 28 years

29 - 37 years

38 - 46 years

47 - 55

56 – 65

1.8

22.8

29.8

43.9

Total 100.0

Education

Elementary

Junior

SchoolHigh

School

35.1

29.8

Total 100.0

4.2 Test of Instruments

The results of the validity test show that all questions

on these three variables are validly used as research

instruments. In testing this reliability, by looking at

Cronbach Alpha. A research instrument is declared

reliable if the value Cronbach Alpha> 0.70 (Ghozali,

2013).

Table 4.2 Test Reliability

Variables

Cronbach

's Alpha

Description

Transformational

Leadership

Style(X1)

0.908 Reliable

Motivation(X2)

0.927 Reliable

Job Satisfaction (y)

0.797 Reliable

Reliability test results showed that all the variables

have an Alpha coefficient of more than 0, 70. Thus, it

can be concluded that all items of the research

variables are reliable.

4.3 Data Analysis Techniques

1) Descriptive Analysis Descriptive

the analysis is used to explain data obtained through

the systematic description in the form of words,

sentences, schematics, and pictures.

2) Quantitative Analysis

In this study, the quantitative analysis tool used is the

Multiple Linear Regression Analysis.

4.4 Significance Test (Test F)

Together hypothesis testing is carried out with the F

test. This test is used to test the first hypothesis. To

test this hypothesis use F statistic (α = 5%) in the

decision-making criteria as follows:

1) When sig F ≥ 0.05, then Ho is accepted, and H

rejected today means there is no significant

positive effect jointly transformational

leadership style, motivation on job satisfaction.

2) If sig F ≤ 0.05, then Ho is rejected and H

accepted today means that there is a significant

positive influence jointly transformational

leadership style, motivation on job satisfaction.

4.5 Partial Test (t-test)

Partially, hypothesis testing is done by t-test. This

test is used to test the second hypothesis. According

to Ghozali (2012), the statistical test of t shows how

far the influence of one explanatory/independent

variable individually in explaining the dependent

variable. The t-test is done by comparing the

significance of

arithmetic

with t

table

using the standard

provisions of testing 5% or 0.05 then. If the

significance value ≥ 0.05, then H

o is

accepted, and H

rejected, which means there is no partial effect

between transformational leadership style variables

and motivation for job satisfaction. If the significance

value <0.05, then H

rejected and H

accepted, which

means there is a partial effect between the variables

of transformational leadership style and motivation to

job satisfaction.

4.6 Discussion

1) The effect of Transformational Leadership

Style and Work Motivation on Employee

Satisfaction in SMEs

The results of the Multiple Regression analysis

show that there is a significant influence of

transformational leadership style and motivation on

job satisfaction by 60.3%. While the remaining

29.7% is influenced by other factors or variables not

examined in this study, namely compensation, work

environment, work discipline, and others in SMEs.

To achieve job satisfaction, transformational

leadership styles and work motivation are needed for

employees. With the transformational leadership

style, employees will feel trust, admire, loyal, and

respect leaders, and have high commitment and

motivation for achievement. Motivation is directed

towards achieving the objectives of SMEs. Only with

clarity of purpose can all employees involved in the

ICBEEM 2019 - International Conference on Business, Economy, Entrepreneurship and Management

546

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organization easily understand and implement it. If

the fulfillment of employee needs has been met will

be able to create job satisfaction. The results of this

study are in line with previous studies conducted by

Simanjuntak (2017), which states that

transformational leadership variables and work

motivation have a positive effect on employee job

satisfaction.

2) The Effect of Transformational Leadership

Style on Employee Satisfaction in SMEs

The results of multiple regression analysis

showed that there was a significant influence of

transformational leadership on job satisfaction of

36.0%. Thus, the application of a good

transformational leadership style in SMEs will be

able to increase employee job satisfaction. The results

of this study are in line with previous research

conducted by YennyAnggraeni and T. Elisabeth

CintyaSantosa (2013), which states that there is a

positive and significant influence of transformational

leadership style on job satisfaction.

3) The Effect of Work Motivation on Employee

Satisfaction in SMEs

The results of multiple regression analysis

showed that there was a significant influence of work

motivation on job satisfaction of 34.6%. Thus, if the

higher motivation that encourages employees to work

will further increase job satisfaction. The results of

this study are in line with previous research

conducted by TitinHidayatiMaghfiroh (2014), which

states that there is a positive and significant influence

of work motivation on job satisfaction.

5 CONCLUSIONS

a. Transformational Leadership Style and Work

Motivation together have a significant positive

effect on employee job satisfaction in SMEs.

b. Transformational Leadership Style partially

has a significant positive effect on employee

job satisfaction in SMEs.

c. Work motivation partially has a significant

positive effect on employee job satisfaction in

SMEs.

6 RECOMMENDATIONS

It is recommended to SMEs to further increase work

motivation through fulfilling self-actualization needs.

SMEs are expected to be able to maintain

transformational leadership that can motivate and

increases creativity and innovation.

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