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1195

THE ROLE OF TRANSFORMATIONAL LEADERSHIP STYLE IN

PSYCHOLOGICAL EMPOWERMENT OF EMPLOYEES: LITERATURE

REVIEW

Egi Vizya Adri

, Dedi Setiawan

, Chandra Alfian F. Hia

Universitas Persada Indonesia YAI, Indonesia

1,2,3

Email : Egivizyaadri@gmail.com, Dedisetiawan.an@gmail.com, Alfianvhyn@gmail.com

ARTICLE INFO

ABSTRACT

Date Received: 29 June 2022

Revision Date : 15 July 2022

Date Approved: 20 July 2022

Leadership is closely related to the existing human resources in

the organization as a key success factor. Therefore, companies

need skilled leaders, who can serve as role models for their

subordinates, and are able to make changes for the better in the

future. The importance of employees in determining the success

of the organization, the company pays attention to performance

constraints. This study aims to examine the role of

transformational leadership style on employee psychological

empowerment. This type of research uses a literature review

with secondary data. The data is obtained through a search on

Google Scholar with the search limited from 2016 to 2022 which

can be accessed in full text. The role of transformational

leadership style on employee psychological empowerment can

be applied. Leaders with this leadership style can provide

encouragement to employees in their psychological

empowerment. So that leadership has a significant influence on

the psychology and welfare of its employees. Through

empowerment, it will motivate employees to participate more in

the company's internal decision making, thereby increasing the

sense of responsibility and improving performance, which also

affects employees and increases employee job satisfaction.

Keywords: Transformational

Leadership, and Psychological

Empowerment of Employees.

This work is licensed under CC BY-SA 4.0

INTRODUCTION

The organization's sustainability in achieving its goals for success is determined

by human resources who have high commitment and integrity as well as professional

attitude and character at work. Organizational systems will not be able to run without

human resources (Sista & Utama, 2019). Human resources are an important part of the

company so that their development is needed in order to get maximum performance

results to achieve organizational goals together. According to Inceoglu, Thomas, Chu,

Plans, and Gerbasi, (2018) behind the success of employees is strongly influenced by

The Role of Transformational Leadership Style In Psychological Empowerment Of Employees:

Literature Review

Indonesian Journal of Multidisciplinary Science

, Vol (10), July 2022

1196

the attitude, behavior and character of a leader. Leadership has a significant influence

on the psychology and welfare of its employees. Because leadership has a great

responsibility to plan, coordinate, direct and supervise its employees so that

performance is in accordance with the expected organizational goals (Mahmud &

Sopiah, 2022).

Through appropriate leadership behavior, the Company can empower employees

to increase employee job satisfaction, high employee loyalty, and willingness to

innovate at work. Job satisfaction is still related to the desire of employees to be able to

develop skills at work which causes them to feel their presence is cared for by the

company. Therefore, empowerment of employees that occurs within the company's

leadership will provide opportunities for employees to develop their potential. The

treatment of leaders and empowerment of employees is one of the important things

and can have a positive impact on employees. One way that can be applied so that

employees feel comfortable, feel there is meaning in their work, and feel the benefits is

to use psychological empowerment (Putri & Ratnaningsih, 2020).

One of the leadership styles that can have an impact on employee job

satisfaction in performing psychological empowerment of employees is transformational

leadership. One of the characteristics of transformational leaders must be able to

empower employees well. Through empowerment, it will motivate employees to

participate more in the company's internal decision making, thereby increasing the

sense of responsibility and improving performance, which also affects employees and

increases employee job satisfaction (Aidina Rahmma Nabila & Prihatsanti Unika, 2017).

This transformational leadership can face increasingly fierce and complex

organizational competition, making it possible to change the management pattern

strategy in this changing business competition. In addition, the importance of

employees in determining the success of the organization, the company pays attention

to performance constraints. Various obstacles that occur can be in the form of feeling

unmotivated at work so that it has an impact on the operational activities of the

organization. Therefore, it takes a leader who is able to change the performance

environment. Based on these problems, this study aims to examine the role of

transformational leadership style on employee psychological empowerment through

literature review.

Psychological empowerment has a good influence on employee performance

(Astutik & Surjanti, 2018). The data is obtained through a search on Google Schoolar

with rich variable keys that have been determined. The articles that have been collected

are studied to see whether the articles meet the criteria as literature in this study.

Search is limited from 2016 to 2022 which can be accessed full text. The source

The Role of Transformational Leadership Style In Psychological Empowerment Of Employees:

Literature Review

Indonesian Journal of Multidisciplinary Science

, Vol (10), July 2022

1197

becomes a reference in writing the role of transformational leadership style on the

psychological development of employees in the organization (Khumaira & Muhid, 2022).

METHOD

This research uses a literature review with secondary data. Literature review is

the process of placing, obtaining, reading and evaluating (Saidah & Muhid, 2021). The

data is obtained through a search on Google Scholar with rich variable keys that have

been determined. The articles that have been collected are studied to see whether the

articles meet the criteria as literature in this study. Search is limited in 2016 to 2022

which can be accessed full text. The source becomes a reference in writing the role of

transformational leadership style on the psychological development of employees in the

organization.

RESULT AND DISCUSSION

Leadership is closely related to the existing human resources in the organization

as a key success factor. Therefore, companies need skilled leaders, who can serve as

role models for their subordinates, and are able to make changes for the better in the

future. Leaders must also be able to establish bonds with employees so that they

support and motivate each other. According to (Saputro, 2021) Motivation is a powerful

support for achieving company goals in understanding behavior, foresight, directing,

changing, and even controlling behavior in all organizations is a necessary prerequisite

for effective leadership goals to achieve company goals, mission and vision.

Motivating employee development carried out by company leaders aims to create

an effective work climate so that work can be more efficient is a process in the

psychological development of employees (Martono, 2016). Through psychological

empowerment, proactive behavior patterns can be formed and are more optimal

because in the implementation process they can develop existing principles, one of

which is related to full awareness of employees in the work process (Saifullah, Tarigan,

& Nurendah, 2019). Psychological empowerment provides confidence and

encouragement in individual employees in doing their jobs. Someone who is

psychologically empowered will have positive feelings about his work and do it more

than expected (Kurniawan & Daeli, 2021).

Psychological empowerment is carried out to increase individual self-confidence

and positive feelings among employees. Psychological empowerment affects employees

to have competence, resilience, and responsibility for their work.

Empowerment is a variable that enables employees to set work goals, make

decisions, and solve problems on the responsibility and authority that is decentralized

by superiors. That empowerment is a process carried out by leaders in utilizing and

The Role of Transformational Leadership Style In Psychological Empowerment Of Employees:

Literature Review

Indonesian Journal of Multidisciplinary Science

, Vol (10), July 2022

1198

developing employee potential to improve individual performance which in the

aggregate leads to the achievement of organizational goals with indicators of granting

autonomy, utilizing resources, and increasing participation (Maulina, Sulistyani, &

Suharmanto, 2018).

Bass in (Mangundjaya & Ratnaningsih, 2017) mentions how transformational

leaders inspire followers to achieve more than usual by making them realize their true

potential. Transformational leaders always pay attention to the self-development needs

of their subordinates, guide their subordinates to see and solve problems with new

perspectives, and can motivate their subordinates to achieve common organizational

goals by working hard (Juniartha, Wardana, & Putra, 2017).

The role of transformational leadership style on employee psychological

empowerment can be applied. This transformational leadership can face increasingly

fierce and complex organizational competition, making it possible to change the

management pattern strategy in this changing business competition. (Mohammadi &

Boroumand, 2016) see more components in transformational leadership which include

(1) the influence of idealized leaders as role models that followers can rely on, (2)

inspirational motivation, which represents leaders who talk about high expectations and

motivate them through vision, (3) intellectual stimulation, namely trying new innovative

approaches, and (4) individual considerations that describe leaders who build a

supportive climate by listening to the needs of their followers and becoming new

mentors to actualize their followers.

Leaders with this leadership style can provide encouragement to employees in

their psychological empowerment. So leadership has a significant influence on the

psychology and welfare of its employees. Leaders who can empower employees to the

maximum will determine the success of employee performance above the abilities they

have. So that the leader must have the characteristics of a transformational leader who

can empower employees well. Through empowerment, it will motivate employees to

participate more in the company's internal decision-making, thereby increasing the

sense of responsibility and improving performance, which also affects employees and

increases employee job satisfaction.

CONCLUSION

Leadership is closely related to the existing human resources in the organization

as a key success factor. Therefore, companies need skilled leaders, who can serve as

role models for their subordinates, and are able to make changes for the better in the

future. The importance of employees in determining the success of the organization,

the company pays attention to performance constraints. This study examines the role of

transformational leadership style on employee psychological empowerment.

The Role of Transformational Leadership Style In Psychological Empowerment Of Employees:

Literature Review

Indonesian Journal of Multidisciplinary Science

, Vol (10), July 2022

1199

The effect of transformational leadership style on employee psychological

empowerment can be applied. The components of transformational leadership include

(1) idealistic leaders as reliable role models for their employees (2) inspirational

motivation, which represents leaders who talk about high expectations and inspire them

through vision, (3) intellectual stimulation, i.e. experimenting with new approaches,

innovations, and (4) personal consideration, describing a leader building a supportive

atmosphere by listening to the needs of his followers and becoming a new mentor for

the fulfillment of his followers.

Leaders with this leadership style can provide encouragement to employees in

their psychological empowerment. Thus leadership has a significant influence on the

psychology and welfare of its employees. Through empowerment, it will motivate

employees to participate more in the company's internal decision-making, thereby

increasing the sense of responsibility and improving performance, which also affects

employees and increases employee job satisfaction.

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