Transformational leadership style and organizational commitment in pandemic Covid-19

Abstract

International bank and other monetary institution suffer the most spectacular deterioration because banks are the party of mediator between borrowers and lenders (Emmons & Neely, 2020) . Banks are at the heart of the Euro area crisis (CEPR 2015). During this pandemic many enterprises suffer in financial difficulties, almost all companies borrowed to banks as part of the business (Yilmazkuday, 2020) . In order to solve this problem, one of the efforts is to increase organizational effectiveness, because rising the goals of organizational effectiveness will be achieved properly. However, this act is not easy to do because of the problems that employee often face in the organization. Generally, this research aims to prove empirically about the contribution of transformational leadership toward organizational commitment. The population of this research are the employees of conventional bank in Semarang city, Central Java province, Indonesia. Random sampling is employed in this research in order to obtained 198 respondents. The analytical tool used in this study is Statistical Package for the Social Science (SPSS). Based on the hypothesis show that simultaneously idealized influence, intellectual stimulation, inspirational motivation and individualized consideration variables are proven a significant positive effect toward organizational commitment. However, partially based on the hypothesis show that inspirational motivation and individualized consideration have significant positive effect toward organizational commitment. However, idealized influence and intellectual stimulation have no effect toward organizational commitment. The limitation of this research is that R square value is low, which is 37.4%. The implication of this research is the importance of transformational leadership to increase organizational commitment during this COVID-19 outbreak.