Leadership Theory

Leadership Theory. One theory that emphasizes a change and the most comprehensive theory of leadership is associated with transformational leadership and transaksiona l (Bass, 1990). Initial ideas aboutstyletransformational and transactional leadership was developed by James MacFregor Gurns who apply it in a political context. This idea is further refined and introduced into the organizational context by Bernard Bass (Berry and Houston, 1993).

Burn (in Pawar and Eastman, 1997) suggests that styletransformational and transactional leadership can be sorted by firm, and both are styleleadership which contradict each other.Transformational and transactional leadership are very important and needed by every organization.

Furthermore, Burn (in Pawar and Eastman, 1997; Keller, 1992) developed the concept of transformational and transactional leadership with opinions based on Maslow's hierarchy of human needs. According to Burn (in Pawar and Eastman, 1997) these linkages can be understood with the idea that lower employee needs, such as physiological and safety needs can be met only through practicestyletransactional leadership. In contrast, Keller (1992) suggests that higher needs, such as self-esteem and self-actualization, can only be fulfilled through the practice ofstyletransformational leadership.

How far the leader said to be a transformational leader, Bass (1990) and Koh, et al. (1995) suggested that this could be measured in relation to the influence of these leaders faced employees. Therefore, Bass (1990) suggests there are three ways a transformational leader motivates employees, namely by:
1) encouraging employees to be more aware of the importance of the results of operations;
2) encourage employees to put the interests of the group; and
3) increase employees' higher needs like self-esteem and self-actualization.

Relationship between Transformational Leadership Style Perception 38 With regard to transformational leadership, Bass (in Howell and Hall-Crazy, 1999) suggests that four characteristics of transformational leadership, namely:

1) charisma,

2) inspirational,

3) intellectual stimulation, and

4) individual attention.

Furthermore, Bass (1990) and Yukl (1998) suggested that transactional leadership with employee relations reflected by three things:

1)	leaders know what they want employees and identifies what they will get if it works in line with expectations;
2)	leaders exchanged efforts made by employees with benefits; and
3)	leaders responsive to private interests over the interests of employees is equivalent to the value of employee work already done.

Bass (in Howell and Avolio, 1993) suggested that the characteristics of transactional leadership consists of two aspects, namely contingent reward, and exception management.

With regard to the influence styletransformational leadership on employee behavior, Podsakoff et al. (1996) suggested thatstyletransformational leadership is a key factor influencing the attitudes, perceptions, and behavior of employees where there was an increase trust in the leadership, motivation, job satisfaction and can reduce the number of conflicts that often occur in a
organization.

According Bycio et al. (1995) and Koh et al. (1995), transactional leadership isstyleleadership where a leader focused his attention on interpersonal transactions between leaders of the employee involving an exchange relationship. The exchange was based on an agreement regarding the classification of objectives, work standards, job assignments, and awards.

Judge and Locke (1993) asserted that styleleadership is one of the determinants of job satisfaction. Jenkins (in Management, 1990), reveals that the discharge of employees caused more by dissatisfaction with working conditions because employees feel management does not give confidence to employees, no employee involvement in decision making, effective leaders are not objective and honest with employees. This opinion is supported by Nanus (1992) who argued that the main reason employees leave the organization because leaders fail to understand the employees and leaders do not pay attention to the needs of employees. In regard to cooperatives, Kemalawarta (2000) in his research showed that constraints that hinder the development of cooperatives inIndonesiais the limited skilled manpower and high turnover.

In essence, leadership is the ability of leaders to influence the employee in an organization , so they are motivated to achieve organizational goals. In providing an assessment ofstyleleadership applied leaders, employees perform cognitive processes to receive, organize, and provide interpretation of the leader (Solso, 1998).

Various studies conducted related to job satisfaction, especially in relation tostyletransformational and transactional leadership. Research conducted by Koh et al. (1995) showed that there was a significant relationship between transformational and transactional leadership and job satisfaction. Research conducted by Popper and Zacchaeus (1994) showed that the influence
transformational leadership on a very large organization.