The Effectivenes of Transactional Leadership Style on Employee Performance at Boy Trenggalek Cigarette Company

Abstract

This study aims to analyze the effectiveness of transactional leadership style on employee performance at PT. Alfi Putra Cigarette Company in Trenggalek Regency. The background of this study is based on the company’s ability to survive amid intense competition and the impact of the COVID-19 pandemic, which demands adaptive and effective leadership in managing human resources. This study employs a qualitative descriptive method, with data collected through observations and interviews involving employees and management. The results indicate that transactional leadership has not been fully effective in enhancing employee performance, particularly regarding evaluation practices that remain focused on individual performance rather than team collaboration. Furthermore, the implementation of reward and punishment systems has not optimally improved collective performance or strengthened teamwork. These findings suggest that leadership practices still tend to emphasize short-term targets rather than long-term organizational development. This study contributes by highlighting the importance of a more collaborative and integrative evaluation system to enhance teamwork, productivity, and overall organizational performance. Furthermore, the results of this study are expected to provide practical recommendations for improving leadership strategies within similar organizational contexts.