Abstract
Developing country workers in some sectors were still dominated by informal workers. They usually belong together in one group with one leader. Leaders controlled all group activities. The dependence and responsibilities of workers towards the leader was greater than the company. Companies would find it difficult to improve performance without relying on their leaders. This study purpose was to explore effective leadership and performance improvement in according to perception of informal workers. Characteristics of effective leadership could be used as a reference to determine the workers planning for national and global construction companies in Indonesia. Foreign companies that would enter to Indonesia could also study the employment situation in Indonesia to become more effective in completion their work. The phenomenological approach with qualitative method was used to reveal an assessment based on perceptions and perspectives of informal workers. The findings showed that characteristics of effective leaders in according to informal workers were: preferred by workers, care, understand the subordinates and keep promises. For such leaders they were willing to work hard so their leaders' achievements would be good.
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