Abstract
This study aimed to measure the effect of transformational leadership on employee performance of the employee of a shoe industry in Tangerang which are mediated by readiness for change. Data collection was done by simple random sampling technique and the returned and valid questionnaire results were 117 samples. Data processing was used SEM method with SmartPLS 3.0 software. The results of this study concluded that transformational leadership have not significant effect on the employee performance, but transformational leadership have a positive and significant effect on readiness for change. This study conclude also that readiness for change have a positive and significant effect on relationship between transformational leadership and employee performance. Readiness for change as fully mediator. This new research proposed a model for building employee performance among the employee of a shoe industry in Tangerang through enhancing transformational leadership practice with readiness for change as a mediator. This research could pave the way to improve employee readiness in facing the era of industrial revolution 4.0.
Highlights
IntroductionIndustrial revolution era 4.0 is an absolute phenomenon and is unavoidable
In most companies, industrial revolution era 4.0 is an absolute phenomenon and is unavoidable
The conclusions from this study provide evidence to us that transformational leadership can have no effect on employee performance when standard of operating procedures (SOPs) are so good and detailed
Summary
Industrial revolution era 4.0 is an absolute phenomenon and is unavoidable. A company should own a strategy that is able to do transformation and innovation to deal with this issue. This strategy could help the company and other businesses that has been built to not get affected by the era and inhibits its development (Asbari, 2015; Agistiawati, 2020; Jumiran et al, 2020; Novitasari et al, 2020; Nuryanti et al, 2020; Sudiyono et al, 2020; Yuwono et al, 2020). In between the strategy that is urged to be noticed is the readiness for change in every organization, especially to the global business organization. The global competition in this era requires readiness for change without any breaks from every industrial people. Management must do practical and strategic steps to bring organization out from puddle of crisis that has almost drown some part of companies that is not prepared well
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