Comparative Analysis of Transformational Leadership in Generation X and Generation Y and Its Impact on Power Plant Company Performance

Abstract

This study examines differences in transformational leadership characteristics between Generation X and Generation Y and their respective impacts on company performance in two major power generation companies in North Sumatra Province. A total of 100 respondents—50 from Generation X and 50 from Generation Y—were selected using purposive sampling. Data were analyzed using SPSS through F-tests, T-tests, the coefficient of determination, and independent sample T-tests. Findings show that the four dimensions of transformational leadership—charismatic influence, inspirational motivation, intellectual stimulation, and individualized consideration—simultaneously influence performance for both generational groups. For Generation X employees, inspirational motivation and individualized consideration have a positive and significant partial effect on company performance. In contrast, only charismatic influence significantly affects company performance among Generation Y employees. The coefficient of determination indicates that transformational leadership explains 70.2% of performance variability among Generation X employees, compared to 22.3% among Generation Y. The independent sample T-test confirms significant differences in transformational leadership characteristics between the two generations. This study contributes by demonstrating how generational traits shape leadership effectiveness within power plant operations—a context requiring high reliability, structure, and discipline.