Leadership is vital to determine the direction by developing a foresight, since the employees need someone who inspires them to overcome challenges [1Fischer SA. Transformational leadership in nursing: A concept analysis. J Adv Nurs 2016; 72(11): 2644-53.
[http://dx.doi.org/10.1111/jan.13049] [PMID: 27322510] ]. Successful organizations have a common characteristic that distinguishes it from unsuccessful organizations [2Gilang A, Syarifuddin S, Pradana M, Fakhri M, Maisarah N. Factors analysis of basic human values at Indonesian insurance company. Int J Adv Sci Tech 2019; 28(8s): 755-63.]. A good leader is expected to communicate a vision that is won and inspired to overcome all obstacles [3Hoch JE, Bommer WH, Dulebohn JH, Wu D. Do ethical, authentic, and servant leadership explain variance above and beyond transformational leadership? A meta-analysis. J Manage 2018; 44(2): 501-29.
[http://dx.doi.org/10.1177/0149206316665461] ].

One of the challenges, which is often discussed by a company or organization, is encouraging employees [4Pradana M, Perez-Luno A, Fuentes-Blasco M. Innovation as the key to gain performance from absorptive capacity and human capital. Technol Anal Strateg Manage 2020; 32(7): 1-13.
[http://dx.doi.org/10.1080/09537325.2020.1714578] ]. It is a necessity for someone to have a motivation for the good direction of the organization [5Jensen JD. Employee motivation: A leadership imperative. Int J Bus Adm 2018; 9(2): 93-8.
[http://dx.doi.org/10.5430/ijba.v9n2p93] ]. Without the motivation to work of individuals, teamwork will not show a satisfying result [6Porter TH, Riesenmy KD, Fileds D. Work environment and employee motivation to lead. Am J Bus 2016; 31(2)
[http://dx.doi.org/10.1108/AJB-05-2015-0017] ]. That motivation itself contains an understanding of the results of individual interactions with everyone who has a basic motivation and a high level of motivation different at different times [5Jensen JD. Employee motivation: A leadership imperative. Int J Bus Adm 2018; 9(2): 93-8.
[http://dx.doi.org/10.5430/ijba.v9n2p93] , 7van der Kolk B, van Veen-Dirks PM, ter Bogt HJ. The impact of management control on employee motivation and performance in the public sector. Eur Account Rev 2019; 28(5): 901-28.
[http://dx.doi.org/10.1080/09638180.2018.1553728] ].

We would like to focus our research in an office focusing on energy, especially electricity. We acknowledge that the need for electrical energy has become the basic needs of society, hence Indonesian State-Owned Electricity Company needs competent human capitals in doing the tasks. Based on data obtained from the Statistics of Electricity in 2017 issued by the Indonesian Ministry of Energy and Mineral Resources (ESDM), the number of households that have enjoyed electricity in 2019 reached 60.61 million, increased by 2,69% compared to the year 2015 of 57,98 million homes. However, the number is still below the number of households in Indonesia in 2019 of 66.48 million homes. This electricity company performs the task of handling the quality control system, reverse engineering, electrical equipment manufacturing, and emergency repair handling to ensure the availability of power supply, development of innovation work. To be able to run these programs, PT PLN Electricity Maintenance Center requires human resources who have the qualified skills so that human resources in PT PLN Electricity Maintenance Center must be managed effectively in order to get employees who have qualified employees and have high competitiveness.

According to a study [8Saragih R, Fakhri M, Pradana M, Gilang A, Vidjashesa GA. Ethical leadership’s effect on employee discipline: Case of an Indonesian telecommunication company Proc Int Conf Ind Eng Oper Manage South Africa. 2018.2018.], performance is the result of work achieved by a person based on job requirements. Meanwhile, according to another study [9Fakhri M, Aditya M, Pradana M. Factor analysis of work motivation using Maslow’s hierarchy of needs: Case study on civil servants at Banten Province’s Office of Agriculture and Livestock International Conference on Emerging Trends in Academic Research Bali, Indonesia. 2014.2014.], it is explained that performance is the work that can be achieved by a person or group of people in an organization based on their respective responsibility and authority to achieve organizational goals with no violation of the law and in accordance with moral and ethics. The performance of PT PLN Electricity Maintenance Center employees can be seen from 3 components, namely employee delay data, organizational performance value and value of employee talent value. Based on employee delay data, the rate of employee late shows in the first and second semester of 2016 were 8,12% and 4,94%, respectively. The phenomenon is shown in Table 1:

Table 1
Organizational performance grade.

Based on Organization Performance Values of PT PLN Electricity Maintenance Center main office, it can be seen that the performance of the organization did not reach the target set by the company, which is 100%. The main office of PT PLN Electricity Maintenance Center is only able to reach the company's target of 91.30% in the first semester of 2015 and 97.96% in the second semester of 2016. Based on employee talent value, there is a decrease of employees with optimal talent from 45.45% in the first semester 2016 to 37.66% in the second half of 2016.

In this research, we focused more on transformational and transactional leadership styles. The transformational leadership style has been discussed in various literature, such as, according to a previous report [1Fischer SA. Transformational leadership in nursing: A concept analysis. J Adv Nurs 2016; 72(11): 2644-53.
[http://dx.doi.org/10.1111/jan.13049] [PMID: 27322510] , 10Rosnani T. Transactional Leadership and Transformational Leadership on Job Satisfaction and Performance of Tanjungpura University Lecturers in Pontianak 2012., 11Pradana M, Perez-Luno A, Fuentes-Blasco M. Revisiting measure of absorptive capacity: Applying the scales in spanish wine industry. J Manage Inf Decis Sci 2019; 22(4): 515-26.], it is defined as a process by which leaders try to increase employees’ awareness of what is right and important and can motivate followers to show greater expectations. While the transactional leadership according to a study [12Maulizar A. The effect of transactional and transformational leadership on the performance of employees of bank syariah mandiri banda branch. Postgrad J Syiah Kuala Univ 2012; 1(1): 58-65.] is a leadership model in which a leader tends to provide direction to subordinates, as well as rewards and punishments for their performance and focuses on behavior to guide their followers towards defined goals by clarifying the role and task demands.

Based on pre-research and preliminary observations on transformational leadership styles conducted, the implementation of the transformational leadership style by the leadership in PT PLN Electricity Maintenance Center 's main office has not been implemented according to expectation. This is shown by the results of pre-research that shows that the leader in the office of PT PLN Electricity Maintenance Center does not entirely get the respect of employees. Based on pre-research and preliminary observations on the transactional leadership style conducted by researchers, the implementation of a transactional leadership style by the head of PT PLN Electricity Maintenance Center main office has not been implemented well. It is shown by the results of the pre-research survey, that the leaders in the main office of PT PLN Electricity Maintenance Center give rewards to employees if they have completed the work according to the specified target.

Based on the above background, the researcher intends to identify how are the relationships between transformational leadership style, transactional leadership style and employee performance? Thus, it will lead to the further research question on how are the partial and simultaneous effects of transformational and transactional leadership style on employee performance at the Main Office of PT PLN Electricity Maintenance Center?

There are several definitions of leadership from some experts, one of them is according to a previous report [12Maulizar A. The effect of transactional and transformational leadership on the performance of employees of bank syariah mandiri banda branch. Postgrad J Syiah Kuala Univ 2012; 1(1): 58-65.], which is leadership that describes the relationship between the leader and the led (followers/subordinates). According to a study [13McCleskey JA. Situational, transformational, and transactional leadership and leadership development. J Bus Stud Quarterly 2014; 5(4): 117.], the leader influences something he leads, but the relationship between the two sides must be mutually related and beneficial to both parties. While the style of leadership according to another report [14Appelbaum SH, Degbe MC, MacDonald O, Nguyen-Quang TS. Organizational outcomes of leadership style and resistance to change (Part One). Ind Commer Train 2015; 47(2): 73-80.
[http://dx.doi.org/10.1108/ICT-07-2013-0044] ] is the Style of Leadership being the norm of behavior used by a person when the person is trying to influence the behavior of others as he sees.

The Transformational Leadership Style theory [15Northouse PG. Leadership Theory and Practice 2013.] states that “Transformational leadership motivates followers to do more than expected by increasing the level of followers” understanding of the usefulness and value of detailed and ideal goals, making followers defeat their own interests by team or organization, mobilizing followers to meet higher level needs. Transformational leadership provides a vision of mission and awareness of the industry or organization that produces high-level skills and expertise [16Fakhri M, Pradana M, Syarifuddin S, Hafid H, Mustika NP. Analyzing work satisfaction of employees at production department: Case study of indonesian state military equipment manufacturer. Int J Adv Sci Tech 2019; 28(8s): 163-75.].

According to literature [15Northouse PG. Leadership Theory and Practice 2013.] and [1Fischer SA. Transformational leadership in nursing: A concept analysis. J Adv Nurs 2016; 72(11): 2644-53.
[http://dx.doi.org/10.1111/jan.13049] [PMID: 27322510] ], dimensions of the transformational leadership style are ideal influence, inspirational motivation, intellectual stimulation and adapted considerations. Transformational leadership is different from transactional leadership. Transformational leadership is leadership that goes beyond just exchange or reward for performance displayed by followers but based more on trust and commitment [3Hoch JE, Bommer WH, Dulebohn JH, Wu D. Do ethical, authentic, and servant leadership explain variance above and beyond transformational leadership? A meta-analysis. J Manage 2018; 44(2): 501-29.
[http://dx.doi.org/10.1177/0149206316665461] ]. Transformational leaders pay attention to the development needs of each of the followers and the problems by helping them view old problems in new ways, and they are able to excite, awaken, and inspire followers to make extra efforts to achieve group goals [4Pradana M, Perez-Luno A, Fuentes-Blasco M. Innovation as the key to gain performance from absorptive capacity and human capital. Technol Anal Strateg Manage 2020; 32(7): 1-13.
[http://dx.doi.org/10.1080/09537325.2020.1714578] ].

With the implementation of transformational leadership, subordinates will feel trusted, valued and subordinates will appreciate their leaders more [3Hoch JE, Bommer WH, Dulebohn JH, Wu D. Do ethical, authentic, and servant leadership explain variance above and beyond transformational leadership? A meta-analysis. J Manage 2018; 44(2): 501-29.
[http://dx.doi.org/10.1177/0149206316665461] ]. Thus, transformational leadership is the ability of a leader to work with and or through other people to optimally transform organizational resources in order to achieve meaningful goals in accordance with predetermined achievement targets [5Jensen JD. Employee motivation: A leadership imperative. Int J Bus Adm 2018; 9(2): 93-8.
[http://dx.doi.org/10.5430/ijba.v9n2p93] ]. The characteristics of transformational leadership are charisma, inspirational, individual attention, and intellectual stimulus [3Hoch JE, Bommer WH, Dulebohn JH, Wu D. Do ethical, authentic, and servant leadership explain variance above and beyond transformational leadership? A meta-analysis. J Manage 2018; 44(2): 501-29.
[http://dx.doi.org/10.1177/0149206316665461] ].

The transactional leadership style is also described [17Ariesta R. Analysis of the Effects of Transformational and Transactional Leadership Styles on Employee Performance (Study at PT PLN (Persero) Distribution of Central Java and DIY) 2014.] as a leadership style that gets the motivation of his subordinates by calling for their own interests. Leadership behavior focuses on the outcome of the tasks and relationships of the good workers in exchange for the desired rewards. On the other hand, dimensions of transactional leadership style [15Northouse PG. Leadership Theory and Practice 2013.] are conditional rewards and management with exceptions, which consists of two indicators: management with active exception and management with passive exception.

Transactional leadership can involve values, but those values are relevant to the exchange process, such as honesty, responsibility, and reciprocity. Transactional leaders help the followers identify what needs to be done, in that identification, the leader must consider the concept of self-esteem from the subordinate [10Rosnani T. Transactional Leadership and Transformational Leadership on Job Satisfaction and Performance of Tanjungpura University Lecturers in Pontianak 2012.]. Thus, transactional leadership is leadership where a leader encourages his subordinates to work by providing resources and rewards in return for effective motivation, productivity and achievement of tasks. The characteristics of transactional leadership consist of three aspects, namely, contingent reward, exception management, and laissez-faire [16Fakhri M, Pradana M, Syarifuddin S, Hafid H, Mustika NP. Analyzing work satisfaction of employees at production department: Case study of indonesian state military equipment manufacturer. Int J Adv Sci Tech 2019; 28(8s): 163-75., 17Ariesta R. Analysis of the Effects of Transformational and Transactional Leadership Styles on Employee Performance (Study at PT PLN (Persero) Distribution of Central Java and DIY) 2014.].

The preferred leadership style will lead to satisfying performance, which describes [8Saragih R, Fakhri M, Pradana M, Gilang A, Vidjashesa GA. Ethical leadership’s effect on employee discipline: Case of an Indonesian telecommunication company Proc Int Conf Ind Eng Oper Manage South Africa. 2018.2018.]: “Performance is the result of work and work behavior that has been achieved in the completion of tasks and responsibilities given in a certain period”. A report [18Subekhi A, Jauhar M. Introduction to Human Resource Management (HRM) 2012.] argues that the aspects of performance appraisal consist of 5 elements, namely the quantity of results, quality of results, speed of results, presence, and teamwork ability.

This research uses descriptive research type and causality. Based on the background, this study was conducted to see whether there is a relationship between transformational and transactional leadership styles on employee performance at PT PLN Electricity Maintenance Center main office. The transformational leadership style consists of ideal dimensions of influence, inspiring motivation, intellectual stimulation, and consideration that is adapted [3Hoch JE, Bommer WH, Dulebohn JH, Wu D. Do ethical, authentic, and servant leadership explain variance above and beyond transformational leadership? A meta-analysis. J Manage 2018; 44(2): 501-29.
[http://dx.doi.org/10.1177/0149206316665461] , 4Pradana M, Perez-Luno A, Fuentes-Blasco M. Innovation as the key to gain performance from absorptive capacity and human capital. Technol Anal Strateg Manage 2020; 32(7): 1-13.
[http://dx.doi.org/10.1080/09537325.2020.1714578] ]. Transactional leadership consists of conditional reward and management dimensions with the exception [15Northouse PG. Leadership Theory and Practice 2013.]. Employee performance consists of the quantity of the results, the quality of the results, the timeliness of the results, the presence and ability to work together [8Saragih R, Fakhri M, Pradana M, Gilang A, Vidjashesa GA. Ethical leadership’s effect on employee discipline: Case of an Indonesian telecommunication company Proc Int Conf Ind Eng Oper Manage South Africa. 2018.2018.] [11Pradana M, Perez-Luno A, Fuentes-Blasco M. Revisiting measure of absorptive capacity: Applying the scales in spanish wine industry. J Manage Inf Decis Sci 2019; 22(4): 515-26.]. Based on the above explanation, it can be described that the research framework is (Fig. 1).

We used the measurement scales [3Hoch JE, Bommer WH, Dulebohn JH, Wu D. Do ethical, authentic, and servant leadership explain variance above and beyond transformational leadership? A meta-analysis. J Manage 2018; 44(2): 501-29.
[http://dx.doi.org/10.1177/0149206316665461] ] to measure transformational leadership; the scales used in previous works [10Rosnani T. Transactional Leadership and Transformational Leadership on Job Satisfaction and Performance of Tanjungpura University Lecturers in Pontianak 2012.] and [15Northouse PG. Leadership Theory and Practice 2013.] to measure transactional leadership; and [11Pradana M, Perez-Luno A, Fuentes-Blasco M. Revisiting measure of absorptive capacity: Applying the scales in spanish wine industry. J Manage Inf Decis Sci 2019; 22(4): 515-26.] to measure performance. In total, there are questions in the questionnaire which are graded using a Likert scale [1Fischer SA. Transformational leadership in nursing: A concept analysis. J Adv Nurs 2016; 72(11): 2644-53.
[http://dx.doi.org/10.1111/jan.13049] [PMID: 27322510] -5Jensen JD. Employee motivation: A leadership imperative. Int J Bus Adm 2018; 9(2): 93-8.
[http://dx.doi.org/10.5430/ijba.v9n2p93] ]. Before proceeding with regression analysis, we checked the validity of the items by conducting confirmatory factor analysis. The result is shown in Table 2:

Fig. (1) Research Framework.

Table 2
Confirmatory factor analysis.

Based on the result of confirmatory factor analysis, all items have factor loadings above 0.6, which indicate valid measurements [11Pradana M, Perez-Luno A, Fuentes-Blasco M. Revisiting measure of absorptive capacity: Applying the scales in spanish wine industry. J Manage Inf Decis Sci 2019; 22(4): 515-26.]. The Standardized Root Mean-Square Residual (SRMR) also shows an acceptable value, which is the value of 0.085. Therefore, we can proceed with the structural equation model.

The result of the descriptive analysis of the transformational leadership style (X₁) is in the good category with a percentage of 78.10%. The result of the descriptive analysis of the transactional leadership style (X₂) is in the good category with a score of 81.64%. While the performance of employees based on descriptive analysis results is in the good category with a value of 80.12%.

The questionnaire was filled by 73 respondents who work in the company (the office of PT PLN Electricity Maintenance Center). Fifteen female employees (20.5%) and 58 male employees (79.5%) took part in the survey.

4.1. Structural Equation Result

Next, we review the structural equation model. The result is analysed based on the criteria below:

• 1. If the value of the path is positive with significance value is less than 0.05, then H₀ is rejected and H_a is accepted, it can be concluded that there is a significant influence of independent variables on the dependent variable.
• 2. If the value of the path is negative with significance value more than 0.05, then H₀ is accepted and H_a is rejected, it can be concluded that there is no influence of independent variables on the dependent variable.

Afterwards, we analysed the relationships of transformational leadership and transactional leadership style on employees’ performance. We analysed the path result from SmartPLS software, which can be seen in the following Table 3:

Table 3
Structural equation model result.

Leaders are often regarded as an agent of change, since they play an important role in directing subordinates in decision making, care and pay attention to subordinates, and create a comfortable work environment. This all leads to approval or obedience to the leadership and regulations, because employees feel satisfied and cared for. Leaders who are accepted as partners will have the confidence of their subordinates, and have a sense of ownership of the duties and responsibilities of work in the organization.

Afterwards, supported by a supportive work atmosphere and kinship, it naturally creates a comfortable working atmosphere, mutual respect, and mutual trust between leaders and subordinates. A comfortable work environment can make employees or subordinates not feel burdened with their duties or work. Therefore, both transformational and transactional leadership styles might have positive and significant contributions. In the case of our research, they were proven to be significant in improving the team’s performance.

Based on the research results above, we notice an important point taken from this study. Both styles have a positive and significant effect on employees’ performance, meaning managers can practice these two different styles to improve performance. However, they need to be applied depending on each delegated task in accordance with the agreements that have been submitted previously.

Both transactional and transformational leadership styles are dynamic, active and effective leadership styles that can influence employee motivation in improving performance. In addition, there are also determinants other than leadership styles that are not discussed in this study, which also helps influence the employees. Therefore, we acknowledge the limitation of our research was the scope, which was only limited to a single workplace. Future studies comparing these two styles of leadership in different types of the workplace will be a useful contribution.