The Role of Transformational Leadership in Motivating and Improving Employee Performance at PT. SEM Institut

Abstract

This study aims to analyze the role of transformational leadership in providing motivation and improving employee performance at PT. SEM Institut. The study employs a descriptive qualitative approach to obtain an understanding of leadership practices and their relationship with employee motivation and performance. Data were collected through interviews, observations, and documentation involving the President Director, Director of Operations, Senior Manager, and employees. Data analysis was conducted through data collection, editing and coding, data reduction, data display, verification, and conclusion drawing. The findings show that transformational leadership has been implemented through four dimensions: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration. Leaders are perceived as role models, provide direction and encouragement, stimulate innovation, and support employees’ development. Employee motivation is relatively good, particularly in physiological, safety, and social needs, although esteem and self-actualization require further strengthening through formal rewards and structured career development. Employee performance is generally good, reflected in work quality, achievement of targets, timeliness, effective resource utilization, supervision, and harmonious relationships. The findings indicate that transformational leadership contributes positively to employee motivation and performance, with motivation strengthening the relationship between leadership and performance. Key challenges include limited human resources, an underdeveloped reward system, variations in SOP understanding, and the absence of an integrated performance measurement system. The study recommends strengthening reward policies, competency development, career pathways, resource allocation, and integrated performance monitoring to support sustainable organizational performance.