THE EFFECTS OF LEADERSHIP STYLES ON MEMBERS’ PERFORMANCE IN GENERATION Z: A CASE OF SKILL UP FOUNDATION FINAL PROJECT By DAFFA’ULHAQ ZAIDAN HUSAIN 19019074 Bachelor of Management Program School of Business and Management Institut Teknologi Bandung 2022 This page is intentionally left blank iii THE EFFECTS OF LEADERSHIP STYLES ON MEMBERS' PERFORMANCE IN GENERATION Z: A CASE OF SKILL UP FOUNDATION Daffa’ulhaq Zaidan Husain 19019074 Undergraduate Program School of Business and Management Institut Teknologi Bandung 2022 Supervisor: Hary Febriansyah, S.Si, M.T, Ph.D ABSTRACT This study was conducted at Skill Up foundation in Indonesia. The primary purpose of this study is to investigate the effects of democratic, transactional, and transformational leadership styles on members' performance in Generation Z. The research is classified as descriptive and explanatory research design. The quantitative research methodology was used in this study as the Likert-scale data was collected through a questionnaire from all 117 members of Skill Up Foundation. After the data was collected, it was transformed into an interval data type using the Method of Successive Interval and passed the validity and reliability test before conducting the analysis. The researcher went on to conduct Normality, Multicollinearity, and Homoscedacity assumption analysis to fulfill the statistical requirements. Multiple Linear Regression (MLR) analysis was used to investigate correlations between various leadership styles (independent variables) on members' performance (dependent variable) using SPSS version 25 software. The research found that the democratic and transformational leadership styles have significantly positively affected generation z members' performance in a non-profit organization context. In contrast, the transactional leadership style negatively affects the members' overall performance. These findings emphasized the need to consider the effect of stated leadership styles on the next leader's selection process and implement the most appropriate leadership style practices for Generation Z members to perform at their highest performance. Keywords: democratic leadership style, transactional leadership style, transformational leadership style, members performance, generation z, Skill Up foundation. This page is intentionally left blank v THE EFFECTS OF LEADERSHIP STYLES ON MEMBERS' PERFORMANCE IN GENERATION Z: A CASE OF SKILL UP FOUNDATION Daffa’ulhaq Zaidan Husain 19019074 Program Studi Sarjana Sekolah Bisnis dan Manajemen Institut Teknologi Bandung 2022 Supervisor: Hary Febriansyah, S.Si, M.T, Ph.D ABSTRAKSI Penelitian ini dilakukan pada yayasan Skill Up di Indonesia. Tujuan utama dari penelitian ini adalah untuk mengetahui pengaruh gaya kepemimpinan demokratis, transaksional, dan transformasional terhadap kinerja anggota di Generasi Z. Penelitian ini diklasifikasikan sebagai desain penelitian deskriptif dan eksplanatori. Metodologi penelitian kuantitatif digunakan dalam penelitian ini karena data skala Likert dikumpulkan melalui kuesioner dari 117 anggota Skill Up Foundation. Setelah data terkumpul, data tersebut ditransformasikan menjadi tipe data interval dengan menggunakan Method of Successive Interval dan juga telah lolos uji validitas dan reliabilitas sebelum dilakukan analisis. Selanjutnya, peneliti melakukan analisis asumsi Normalitas, Multikolinearitas, dan Homoskedasitas untuk memenuhi syarat statistik. Analisis Regresi Linier Berganda digunakan untuk menyelidiki korelasi antara berbagai gaya kepemimpinan (variabel bebas) terhadap kinerja anggota (variabel terikat) dengan menggunakan software SPSS versi 25. Penelitian ini telah menemukan bahwa gaya kepemimpinan demokratis dan transformasional berpengaruh positif secara signifikan terhadap kinerja anggota generasi z dalam konteks organisasi nirlaba. Sebaliknya, gaya kepemimpinan transaksional berdampak negatif terhadap kinerja anggota secara keseluruhan. Temuan ini menekankan perlunya mempertimbangkan pengaruh gaya kepemimpinan yang dinyatakan pada proses pemilihan pemimpin berikutnya dan menerapkan praktik gaya kepemimpinan yang paling tepat bagi anggota Generasi Z untuk menunjukkan kinerja tertinggi mereka. Kata kunci: gaya kepemimpinan demokratis, gaya kepemimpinan transaksional, gaya kepemimpinan transformasional, performa anggota, generasi z, yayasan Skill Up. This page is intentionally left blank vii APPROVAL PAGE THE EFFECTS OF LEADERSHIP STYLES ON MEMBERS’ PERFORMANCE IN GENERATION Z: A CASE OF SKILL UP FOUNDATION By Daffa’ulhaq Zaidan Husain ID No: 19019074 A Final Project in Partial Fulfillment of the Requirement for the Degree of Bachelor of Management Undergraduate Program of Management Study School of Business and Management Institut Teknologi Bandung July 18 th , 2022 Approved By _____________________________ Hary Febriansyah, S.Si, M.T, Ph.D NIP: 19780204 201504 1 001 This page is intentionally left blank ix FOREWORD First and foremost, I want to thank The Almighty God, Allah SWT, for the countless blessings that have been presented upon me, and by Allah's favor, I could finally complete my final assignment. Through this letter, I would want to express my deepest gratitude and appreciation to: 1. My dearest family, Ahmad Anwari, Inna Mutmainnah, and by brothers for the unwavering support they have provided me throughout my whole life. Their continuous support has taken me to the brink of my dreams. Thank you for always believing in me. You know how much I love you. 2. My final project supervisor, Hary Febriansyah, for all the insightful knowledge to guide me from the very beginning of this final project. Thank you for all the time you have committed to support me until the end. I am very grateful to have such an inspirational and highly dedicated supervisor like you. 3. My final project collaboration institution, Skill Up Foundation, for all the help and assistance in providing me with full data transparency. To Tarreq Kemal and Medeline Agita, the founding team of Skil Up foundation, for being open with the current condition of Skill Up and for the time interviewing with me. I would also like to express my gratitude to Fikri Ariansyah, the Chief Human Capital Officer of Skill Up, for the plentiful help in sharing my questionnaire and making sure all of the members have filled the survey used in this research. 4. The board of teaching team of SBM ITB, to keep our campus running efficiently and design a beautiful place for us to come and learn in such a positive environment every day. Thank you for giving your all every day, working to provide us with quality education, and pushing on our best even on the days we do not want to learn. All the while taking extra time to build relationships with us that, for some, will last forever. 5. All of my supportive colleagues, especially the Crisbar Family, to always add more color to my day-to-day learning moments. My whole education experience cannot be this memorable without you in it. I hope that you will achieve your beautiful curated dreams and that our relationship will last a lifetime. 6. My significant other, Nanette Aliyazahra, for the continuous love and support throughout the process of finishing my undergraduate degree. Thank you for being there through thick and thin. Your presence in my life has always given me the energy to always live my dreams. The future has always been exciting with you in it. xi LIST OF CONTENT ABSTRACT .................................................................................................................... iii ABSTRAKSI ................................................................................................................... v APPROVAL PAGE ...................................................................................................... vii FOREWORD ................................................................................................................. ix LIST OF CONTENT ..................................................................................................... xi LIST OF FIGURES ...................................................................................................... xv LIST OF TABLES ...................................................................................................... xvii CHAPTER I .................................................................................................................... 1 1.1. Research Background................................................................................. 1 1.2. Problem Statement ..................................................................................... 2 1.3. Research Question(s) .................................................................................. 3 1.4. Research Objective(s) ................................................................................. 4 1.5. Scope and Limitations ................................................................................ 4 1.5.1. Concept Scope .............................................................................................. 4 1.5.2. Research Limitation ...................................................................................... 5 1.5.3. The Impact of Research ................................................................................ 5 CHAPTER II ................................................................................................................... 6 2.1. The Concept of Leadership ........................................................................ 7 2.1.1. Democratic Leadership Style ........................................................................ 7 2.1.2. Transactional Leadership Style ..................................................................... 8 2.1.3. Tranformational Leadership Style ................................................................ 9 2.2. The Concept of Job Performance .............................................................. 9 2.3. Leadership Styles and Members’ Performance ..................................... 10 2.3.1. Democratic Leadership Style and Members’ Performance ........................ 11 2.3.2. Transactional Leadership Style and Members’ Performance ..................... 11 2.3.3. Transformational Leadership Style and Members’ Performance ............... 12 2.4. Hypothesis Development .......................................................................... 13 CHAPTER III ............................................................................................................... 15 3.1 Study Area and Period ............................................................................. 15 3.2 Research Design ........................................................................................ 15 xii 3.2.1. Problem Identification ................................................................................. 16 3.2.2.