THE INFLUENCE OF TRANSFORMATIONAL LEADERSHIP STYLE AND WORKING ENVIRONMENT TOWARDS EMPLOYEE WORKING
MOTIVATION IN PT CLIPAN FINANCE INDONESIA TBK
By:
Nicolas Alvin 11403117
BACHELOR’S DEGREE In
BUSINESS ADMINISTRATION – INTERNATIONAL BUSINESS MARKETING CONCENTRATION
FACULTY OF BUSINESS AND COMMUNICATION
SWISS GERMAN UNIVERSITY The Prominence Tower,
Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 – Indonesia
THE INFLUENCE OF TRANSFORMATIONAL LEADERSHIP STYLE AND WORKING ENVIRONMENT TOWARDS EMPLOYEE WORKING
MOTIVATION IN PT CLIPAN FINANCE INDONESIA TBK
By:
Nicolas Alvin 11403117
BACHELOR’S DEGREE In
BUSINESS ADMINISTRATION – INTERNATIONAL BUSINESS MARKETING CONCENTRATION
FACULTY OF BUSINESS AND COMMUNICATION
SWISS GERMAN UNIVERSITY The Prominence Tower,
Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 – Indonesia
August 2018
Revised after Thesis defense on 27thJuly 2018
Statement by the Author
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Nicolas Alvin
Student Date
Approved by:
Dr. Dr. Rachman Sjarief, Dipl.-Ing., MM., MH
Thesis Advisor Date
Dr. Nila K. Hidayat, SE., MM.
Dean of Business and Communication Faculty Date
Abstract
THE INFLUENCE OF TRANSFORMATIONAL LEADERSHIP STYLE AND WORKING ENVIRONMENT TOWARDS EMPLOYEE WORKING
MOTIVATION IN PT CLIPAN FINANCE INDONESIA TBK
By
Nicolas Alvin
Dr. Dr. Dipl. –Ing. Rachman Sjarief, MM., MH., Advisor
SWISS GERMAN UNIVERSITY
The purpose of this research is to identify the influence between Employee Working Motivation, implementing Transformational Leadership Style and Working Environment in PT Clipan Finance Indonesia Tbk. The company headquarters is located in Indonesia with branch and marketing offices spread throughout Indonesia.
This research will implement the quantitative research method to analyze the variables.
The data of this research is obtained from 71 employees in the PT Clipan Finance Indonesia Tbk headquarters which is collected through distributing questionnaires and analyzed using IBM SPSS Statistics Version 25 and SmartPLS v 3.2.7 to examine the statistical analysis. The Structural Equation Modeling (SEM) method is used as the statistical and analytical tool to verify the validity, reliability and the model fit towards the structural parameters which are the relationships between the variables in the constructed model.
This research concludes that there are influence in the relationship of Employee Working Motivation, Transformational Leadership Style and Working Environment, despite the low impacts amongst each other.
PT Clipan Finance Indonesi Tbk is expecting the result of this research to increase further their employees’ working motivation.
Keywords: Employee Working Motivation, Transformational Leadership Style and Working Environment.
© Copyright 2018 By Nicolas Alvin All rights reserved
Dedication
For my family.
For my friends.
For Evangelyn.
Acknowledgement
I would like to express my gratitude to God, my family and friends who have supported me throughout the entire process of completing this thesis and showed the patience and resilience that keeps me going.
My utter gratitude is to my advisor, Dr. Dr. Rachman Sjarief, Dipl.-Ing., MM., MH for his cosmic knowledge, expertise, patience and guidance in keeping me under his wings and supporting me in completing this thesis. I also would like to thank all other lecturers and advisors that showed their support to me.
To my parents, Halim Ngatidjan and Irma Rochyani that defines unconditional love and showed tireless support and persistence. To my brother, Lukas who had always supported me despite being far from home. To my beloved dog, Caesar who has cheered me up at times I am down.
To my forever-supporting-and-loving “friend” Evangelyn, who has always been there for me in dire times day or night, who keeps pushing and reminding me without tire and without whom this research wouldn’t be able to reach this stage.
To Mario and Jesslyn, who have been the “couple-next-door” that has been fighting and struggling together for the sake of this thesis and also providing an alternative place to do this thesis.
To all my friends that I couldn’t mention by name who have supported me and fighting together until this day side-by-side towards success.
Lastly, I would like to thank PT Clipan Finance Indonesia Tbk which has opened their doors for me to make this research possible and giving me your valuable time despite the business of your schedule.
Table of Contents
Statement by the Author ... 3
Abstract ... 4
Dedication ... 6
Acknowledgement ... 7
Table of Figures ... 12
Table of Tables ... 13
Chapter I... 15
1.1. Background ... 15
1.1.1. Financial Industry ... 15
1.1.2. Banking Industry ... 15
1.1.3. Banking Industry in Asia ... 17
1.1.4. Banking Industry in Indonesia ... 19
1.1.5. Human Capital ... 21
1.1.6. Human Resource Management ... 23
1.1.7. HR in the Banking Industry ... 24
1.1.8. Current Company Situation ... 25
1.2. Research Problems ... 27
1.3. Research Questions ... 27
1.4. Research Objectives ... 27
1.5. Scope & Limitations... 27
1.6. Significance of Study ... 28
Chapter II ... 29
2.1. Conceptual Framework ... 29
2.1.1. Motivation ... 30
2.1.2. Employee Working Motivation ... 33
2.1.3. Leadership & Styles of Leadership ... 35
2.1.4. Transformational Leadership ... 38
2.1.5. Working environment ... 41
2.2. Previous Studies ... 47
2.3. Study Differences & Similarities ... 50
2.4. Hypothesis ... 50
Chapter III ... 52
3.1. Type of Research ... 52
3.2. Unit of Analysis & Observation ... 53
3.3. Sampling Design ... 53
3.3.1. Population & Sample Target ... 53
3.3.2. Sampling Method ... 54
3.3.3. Sampling Size ... 54
3.4. Location & Time Frame of Study ... 56
3.5. Data Source & Collection ... 57
3.5.1. Type of Data ... 57
3.5.2. Data Collection Method ... 57
3.5.3. Questionnaire Structure ... 57
3.6. Research Model ... 58
3.7. Variable of Operationalization ... 59
3.8. Data Processing Procedures ... 60
3.8.1. Data Preparation... 60
3.8.2. Data Screening ... 60
3.8.3. Validity Test... 61
3.8.4. Reliability Test ... 64
3.9. Data Analysis Techniques ... 66
Chapter IV ... 71
4.1. Brief Company Background... 71
4.2. Respondent Profiles... 72
4.2.1. Gender ... 72
4.2.2. Educational Background ... 73
4.2.1. Working Experience ... 74
4.3. Descriptive Statistic Analysis... 74
4.3.1. Educational background towards Employee Working Motivation ... 75
4.3.2. Working experience towards Employee Working Motivation ... 80
4.4. Inferential Statistic Analysis ... 86
4.4.1. Measurement (Outer) Model... 87
4.4.2. Structural (Inner) Model ... 89
4.4.3. Path Diagram ... 94
4.5. Hypothesis Testing Result & Analysis... 96
Chapter V ... 99
5.1. Conclusion ... 99
5.2. Managerial Implications ... 100
5.3. Recommendation for Further Research... 103
GLOSSARY ... 105
References ... 108
Appendix ... 117
1. Questionnaire ... 117
2. Raw Data ... 120
3. Pre-test Validity Result ... 123
4. T-Value ... 126
5. Post-test results ... 126
Curriculum Vitae ... 132
Plagiarism Check ... 133
