Servant Leadership in Indonesia Asian Games 2018 Organizing

Committee: Its Impact on Organizational Learning and Performance

Delly Mawarni Gumay

, Nayunda Andhika Sari

Universitas Indonesia, Jl. Margonda Raya, Pondok Cina, Beji, 16424, Depok, Indonesia

Keyword: Servant leadership, Asian Games, organizational learning, performance, Indonesia

Abstract: Asian Games 2018 has become the biggest sport event Indonesia ever hosted in years. Indonesia Asian

Games 2018 Organizing Committee (INASGOC) as the organizer Asian Games 2018 was fully responsible

and plays a key role in the success of this event. Therefore, the emergence of an effective leader is

important to ensure its performance and servant leadership is found to have strong impact on organization

learning and performance. This study aims to examine the influence of servant leadership on organizational

performance with organizational learning as the mediator in INASGOC. Data were collected by using

survey method with questionnaire distributed to 150 INASGOC employees working for the core functions.

The hypothesis was tested using multiple regressions. The result shows that Servant Leadership has a

positive impact on Organizational performance, which is fully mediated by organizational learning. This

study proves that organizational learning among INASGOC employees has a significant role to successfully

held Asian Games 2018 event.

1 INTRODUCTION

Sport organization is a social entity involved in

sports industry, goal oriented with structured activity

system and can be identified relatively (Marcu and

Buhas, 2014). One example of sports organization

that is garnering a lot of attention in Indonesia is

INASGOC which stands for Indonesia Asian Games

2018 Organizing Committee as the organizing

committee of the 2018 Asian Games. INASGOC is

fully responsible for organization performance and

the success of 2018 Asian Games event which will

we commencing in August. In order to achieve the

success of the 2018 Asian Games organization,

INASGOC needs the right leadership style to

accomplish the great responsibility given.

Servant leadership is an interesting leadership

concept to be studied for its impact (Lantu,

Pesiwarissa and Rumahorbo, 2007) and most of

leadership theories always revolve around power

and position (Zaluchu, 2011). However, that is not

the case with servant leadership which emphasizes

heavily on the ability of a leader to serve employees

in companies or organizations. In the context of

Asian games organization, servant leadership style is

a relevant leadership due to the short term and

temporary nature of INASGOC with team oriented

culture that demands positive relationship between

superiors and subordinates. Leadership style is also

considered very important in achieving

organizational goals, learning, and organizational

performance (Barling, Weber and Kelloway, 1996).

This is shown by a study conducted by Choudary,

Akhtar & Zaheer (2013) stating that servant

leadership has a positive influence on organizational

performance.

This study is interesting and noticeably distinct

from previous study by Choudary, Akhtar and

Zaheer (2013) because this study is conducted on

non-profit and sport organization, thus it is expected

to contribute fruitfully. This research is conducted in

the context of sporting events at the Indonesia Asian

Games 2018 Organizing Committee. This research is

also carried out by organizational performance

variables using indicators on Invitation Tournament

Test Event Asian Games 2018 which was held in

February 2018. Therefore, this study will analyze the

impact of servant leadership with organizational

performance on INASGOC as organizing committee

of 2018 Asian Games. This study also uses the

organizational learning variable as a mediating

variable and is carried out by survey method by

distributing questionnaires to INASGOC employees

Gumay, D. and Sari, N.

Servant Leadership in Indonesia Asian Games 2018 Organizing Committee: Its Impact on Organizational Learning and Performance.

DOI: 10.5220/0009999700002917

In Proceedings of the 3rd International Conference on Social Sciences, Laws, Arts and Humanities (BINUS-JIC 2018), pages 45-49

ISBN: 978-989-758-515-9

and conducting interviews with several leaders at

INASGOC.

2 LITERATURE REVIEW

Previous studies related to servant leadership,

organizational learning, and organizational

performance are used in this study.

2.1 Servant Leadership

Servant leadership focuses on others rather than

themselves and on the understanding of the role of

leaders as a servant (Greenleaf, 1977). The main

purpose of servant leadership is to serve and meet

the needs of others, which optimally must be the

primary motivation for leadership (Russell and

Stone, 2002). Servant leadership develops people,

helps them to strive and thrive (McMinn, 2001).

Servant leadership is a relationship process that

generates feedback between leaders and employees

where the leader appears as a person who serves the

needs of their employees and in turn, it makes the

person acknowledged and accepted as the leader

(Poli, 2011). There are eight leadership indicators

that use the theory of Barbuto and Wheeler (Lantu,

Pesiwarissa and Rumahorbo, 2007), which include

altruistic calling, emotional healing, wisdom,

persuasive mapping, organizational stewardship,

humility, vision, service. Taylor et al (Taylor, Pearse

and Louw, 2013) explained that initially servant

leadership is a different leadership paradigm.

Leadership at that time was dominated by the leader

centered paradigm focus that used command and

control approaches. Servant leadership brings

changes that leaders need to serve rather than be

served.

2.2 Organizational Learning

According to Robbins (2006), organizational

learning is a continuous performance development

process to face individual challenges in

organizations. It is believed that organizational

learning process can help ease the challenges of

individual work. Moreover, individual learning

process occurs when organization member goes

through understanding process of new concept

(know why), resulting in the improvement of skills

and experience to actualize the concept (know how),

thereby changing and improving organizational

value (Senge, 2006).

Studies identifiedthat the characteristics of

organizational learning are the development of a

systematic approach to problem solving to find out

what work can and cannot be done, the development

of the ability to think of things beyond

circumstances, the development of personal abilities,

the dissemination of knowledge and information in

organization, and elaboration of organizational vision

(Hodge, Anthony and Gales, 1996). The purpose of

organizational learning is to successfully adapt to

ever-changing environment, to adapt to uncertain

conditions, and to improve efficiency (Dodgson,

1993).

2.3 Organizational Performance

Wheelen and Hunger (2001) proposed the definition

of organizational performance, that the end result of

activities where selection of measures for

performance appraisal depends on the organizational

unit being assessed and the objectives achieved. The

predetermined purpose in a strategy formulation as

part of strategic management process (related to

profit, marketing audit, and cost reduction) should

be used to measure company performance when the

strategy is being implemented. Performance

indicators are quantitative and qualitative measures

describing the level of predetermined goal or target

achievement by calculating the indicator elements,

such inputs, outputs, outcomes, and impacts

(Wheelan and Hunger, 2004).

Research has proved that the impact of servant

leadership has a positive and significant effect on

organizational learning and therefore has a positive

impact on organizational performance (Choudary,

Akhtar and Zaheer, 2013). Its is also founf found

that organizational learning has a positive and

significant effect on organizational performance

(Kunartinah and Sukoco, 2010; Marlikan, 2011).

Based on the results of previous study, the

hypotheses in this study are as follows:

Hypotheses: Organizational learning mediates

the impact between Servant leadership with

Organization Performance in INASGOC

Figure 1: Research model.

BINUS-JIC 2018 - BINUS Joint International Conference

Table 1: Reliability and validity test results.

Variable Item KMO

Factor

Loadin

Valid

Cronbach’s

Alpha

Reliability

Servant

Leadership

SL2

0.699

0.592 Valid

0.724 Reliable

SL4 0.602 Valid

SL5 0.724 Valid

SL6 0.796 Valid

SL7 0.634 Valid

SL8 0.691 Valid

SL9 0.808 Valid

Organizational

Learning

OL1

0.689

0.657 Valid

0.742 Reliable

OL2 0.684 Valid

OL3 0.736 Valid

OL4 0.678 Valid

Organizational

Performance

OP1

0.763

0.839 Valid

0.863 Reliable

OP2 0.706 Valid

OP4 0.750 Valid

OP5 0.800 Valid

3 METHODOLOGY

This study is a causal study because it aims to

examine the causal relationship or causality between

servant leadership and organizational learning with

organizational performance. The method used is a

survey by distributing questionnaires to INASGOC

employees. However, interview was also conducted

in building the items for organizational performance

as well as to confirm the survey results. In this

study, the researchers used non-probability sampling

and specifically purposive sampling which means a

person or an object is taken as a sample because the

researchers believe that the person possesses the

information needed for the study (Malhotra, 2007).

Specifically, this study collected samples of the I, II,

and III deputies of INASGOC employees who has a

direct contact with INASGOC's leaders and

deputies, this was intended to obtain samples of

respondents who already have enough experience in

organizing at INASGOC and understand the

leadership style from leaders in this organization.

The sample of each deputy is 50 respondents and the

total respondents are 150 people.

To measure all servant leadership and

organizational learning variables, researchers used

measurements from the results of a study review of

journals which were then summarized by Choudary,

Akhtar and Zaheer (2013) totaling 18 questions.

Organizational performance variables will be

measured by the measurement results that have been

modified by researchers because the context of the

2018 Asian Games implementation has different

success indicators compared to previous studies that

have success indicators of profit oriented

organizations. The question modification process is

carried out by conducting interviews with three

Deputy Heads. In this study, statistical tests that will

be used are multiple regression statistical methods

and mediation analysis on SPSS software (Statistical

Package for the Social Science) 24.0 to perform

primary data processing.

4 FINDINGS

4.1 Reliability and Validity

The researchers distributed questionnaires to 150

respondents divided into 3 deputies which are I, II,

and III deputies in random departments of the

deputies. Table I shows the results of reliability and

validity Main-Test of questionnaire results

distributed to 150 respondents within INASGOC.

Based on Table 3, it can be concluded that the

indicator items that have been determined as reliable

and valid are 15 items, where these items are ready

to be included in the linear regression test. Items that

are reliable and valid from servant leadership are

items SL2, SL4, SL5, SL6, SL7, SL8, SL9, from

organizational learning are OL1, OL2, OL3, OL4,

and from organizational performance are OP1, OP2,

OP4, and OP5.

Servant Leadership in Indonesia Asian Games 2018 Organizing Committee: Its Impact on Organizational Learning and Performance

Table 2: Multiple regression test results.

Independent Variable Dependent

Variable

Sig R Square Standardized

Coefficient Beta

Notation

Servant Leadership Organizational

Performance

0.002 0.063 0.250 C

Organizational

Learning

0.000 0.080 0.283 A

Servant Leadership dan

Organizational Learning

Organizational

Performance

0.135 0.295 0.108 c’

0.000 0.503 B

4.2 Multiple Regression

Based on multiple regression test results (Table 2),

no servant leadership impact on organizational

performance was found due to the significance level

of 0.135> 0.05, but there was servant leadership

impact on organizational performance if mediated

by organizational learning with a significance level

of 0.000 from servant leadership on organizational

learning and from organizational learning on

organizational performance.

Furthermore, direct effect c' of 0.108 which is

smaller than c = 0.250 was found which means that

servant leadership impact on organizational

performance is reduced and not significant (p-value

>0.05) after multiple regression tests on all

variables. INASGOC needs the role of strong

organizational learning, as in the OL1 indicator

which has the highest mean value of 4.19 which

indicates INASGOC absorbing and using new and

relevant knowledge that provides competitive

advantage and is explained in OL3 which is the

highest loading factor of 0.736 indicating the

progress of INASGOC which was influenced by the

new study on INASGOC itself. From this, it can be

concluded that without organizational learning,

leaders at INASGOC will find it difficult to

influence organizational performance. As for some

examples of organizational learning that has been

applied by INASGOC, the role of leaders in

providing information and guiding the work of their

employees, this is in accordance with the words of

one of the employees at INASGOC.

“For me there is a lot of organizational learning

that can be gained here, even though this

organization is actually private but we have to

follow government regulations or civil servant style.

The example of learning that we get is that we know

a lot of new things about the procurement of goods

and the bureaucratic process and many others. I

would need two days to explain them all.”

(H, member of Broadcast Department)

This shows that the learning process at

INASGOC must be as comprehensive as possible,

starting with how the leader organizes and

coordinates his employees. This greatly helps

employees to achieve organizational performance

targeted by INASGOC.

5 CONCLUSION

In this study, organizational learning variables fully

mediate a relationship between servant leadership

and organizational performance. This means that

organizational learning fully mediates between

servant leadership style on organizational

performance. In other words, organizational learning

is very influential on the performance of employees

at INASGOC, because INASGOC is a temporary

organization that has new employees and not all

employees are experienced workers, therefore

organizational learning is of great important in this

organization. This study also provides an

opportunity for INASGOC to examine

organizational performance at the 2018 Asian

Games event and to make improvements to the

organization learning process that occurs within the

organization to improve the final performance of the

2018 Asian Games

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Servant Leadership in Indonesia Asian Games 2018 Organizing Committee: Its Impact on Organizational Learning and Performance