The Factors of Strategic Leadership on Commitment : An Empirical Banking in Indonesia

INTRODUCTION The economic crises are not new. The impact of each crisis varied widely. For example, the Asian country in 1997 had a major impact in the Indonesia. However, the economic crisis that began in the United States in 2007, and in 2010, the financial crisis in Greece roiled the European Union (Gup, 2011). The banking financial crisis, directly and indirectly affect the sustainability of financial performance. Therefore, the role of business leaders have the ability to anticipate and directing the crises that may occur. The most effective strategic leaders create viable options in making decisions regarding each of the key strategic leadership actions (O’Toole and Lawler, Jr., 2006), as citied in Hitt et al. (2007). Thus, in order to sustain the performance of the banking, it is required commitment banking leaders to deal with global crisis problems. Commitment is more than just membership, because the commitment consists Vol. 6 | No. 3 ISSN: 2089-6271 The Factors of Strategic Leadership on Commitment: An Empirical Banking in Indonesia


INTRODUCTION
The economic crises are not new.The impact of each crisis varied widely.For example, the Asian country in 1997 had a major impact in the Indonesia.However, the economic crisis that began in the United States in 2007, and in 2010, the financial crisis in Greece roiled the European Union (Gup, 2011).
The banking financial crisis, directly and indirectly affect the sustainability of financial performance.
Therefore, the role of business leaders have the ability to anticipate and directing the crises that may occur.The most effective strategic leaders create viable options in making decisions regarding each of the key strategic leadership actions (O'Toole and Lawler, Jr., 2006), as citied in Hitt et al. (2007).Thus, in order to sustain the performance of the banking, it is required commitment banking leaders to deal with global crisis problems.Commitment is more than just membership, because the commitment consists The Factors of Strategic Leadership on Commitment: An Empirical Banking in Indonesia of desire and display effort for the organization (Baron and Armstrong, 2007;Colquitt et al., 2013).
Acknowledging the complexity and the multifaceted nature of antecedents involved in organizational commitment, it is still necessary to understand the dynamics of relationships between these variables.

Organizational Commitment
Organizational commitment is defined as an event of individuals interested in the goals, values and goals of the company where he worked.Meyer and Allen, as cited in Biggs and David (2006), states that organizational commitment as a multidimensional work attitude that concerns the bond between the employee and their employing organization.
While Meyer and Allen (1997)  Strategic leadership is the ability to anticipate, envision, maintain flexibility, and empower others to create strategic change as necessary (Hitt et al., 2007).Because of the global economy's complexity, strategic leaders must learn how to effectively influence human behavior, often in uncertain environments (Hitt et al., 2007).By word or by personal example, and through their ability to envision the future, effective strategic leaders meaningfully influence the behaviors, thoughts, and feelings of those with whom they work (Kotter, 2007).Therefore strategic leadership must be focusing on implementation of training, organizational culture and ethical behavior (Song et al., 2009;Cullinan et al., 2008;Sharma et al., 2009;Bulut and Culha, 2010).Bulut and Culha (2010)  The motivation will also increase if employees perceive that specific training recommended by the supervisor or management will benefit him/ her in one way or the other (Mattox and Jinkerson, 2005).

Training
One work-related attitude out of many attitudes that is being studied for the relationship of training with management of employee behavior is organizational commitment, a concept that is being studied extensively as an important variable in explaining behaviors related to work because it is assumed that it has impact on performance (Aguinis and Kraiger, 2009).Various reports have been given on the positive impact of training on organizational commitment (Boxall and Macky, 2009).Bulut and Culha (2010) revealed some evidence that benefits of training positively affects organizational commitment.Chiang and Jang (2008) finding that an effective training experience as an indication that the organization is willing to invest in them and cares about them; thus, training may enhance their commitment to the organization.Boon and Arumugam (2006) were found access to organizational training activities is positively related to organization commitment.Thus, the following hypothesis is offered.

H1: Training is positively affected on organizational commitment Organization Culture
Garibaldi de Hilal (2009) looked organizational culture "refer to some set of meanings and values that members of an organization have".Sisaye (2005) emphasizes that culture thereby performs a functional role by directing instrumental control mechanisms on how best to manage groups.Bhalla and Nazneen (2013) found that the most dominant components of culture were confrontation, openness, experimentation, and proactively.They also observed that a culture characterized by high standards of ethics, values, attitude, norms, and organizational climate contributed to the retention of both new hires and existing employees.Simosi and Xenikou (2010) investigated that an employee show commitment to it work organization when this organization embraces positive group norms.And, it also seems reasonable to suggest that employees who attribute to their organization a constructive orientation are likely to perceive that the risk of leaving the organization are high (Simosi and Xenikou, 2010).In line with Jarnagin and Slocum (2007) conclude that leaders as culture creators or transformers, high-ranking managers who have the capacity to envision and enact a strong culture with loyalty and commitment.
The behavioral norms and expectations that exist within an organization (organizational culture) explain, in part, differences in the quality of care across organizations and the extent to which service providers report high levels of commitment and satisfaction with their work (Kagaari, 2011).

Ethical Practice
Ethical practice refers to right and wrong conduct within a frame of rules and moral principles (Hejase and Tabch, 2012;Ferrell et al., 2011).There are four basic ethical principles namely control and direct the managers' ethical conducts, perceptions and behavior in situations where it is necessary to strike a balance between a company's self-interest and that of its stakeholders (George and Jones, 2009).
However, the main purpose of ethical in business is to lead businessmen and businesswomen to abide by the codes of conduct that would help them secure public confidence in the services and products they offer to the concerned stakeholders (Smith et al., 2005).Vitell and Hidalgo (2006) stated that is, the U.S. sample was higher in terms of the organizational factors of corporate ethical values (CEV) and enforcement of a code of ethics, but the Spanish sample was higher in terms of individual factors such as idealism, relativism and commitment to the organization.Cullinan et al. (2008) suggest that individuals with higher organizational commitment are consistently significant relationship between organizational commitment and ethical decision making.This relationship holds even for issues in which the organization may benefit in the medium term (i.e., the restructuring charge vignette).The instrument was validated by panel of academics.The instrument was then put through a two way language translation process to ensure that the translation to Indonesia language was valid.The instrument was also validated for ease of answer by fifteen branch banking and pilot tested to thirty branch banking heads randomly selected from the population of banker.
The questionnaire was mailed to 265 branch banking heads registered.The final number of usable responses was 206, i.e., a response rate of 45.3 percent.Sixty-five percent of the branch banking heads have been in business for more than six years from private bank.Twenty-eight percent of the respondents from government bank, and seven percent from foreign bank.

Principal component analysis was performed.
All constructs appeared to be reliable and valid.
Hence, individual item reliability for all constructs was further assessed by examining the simple correlations of the measures with their respective constructs using SPSS program.All items of the constructs were above the 0.50 cut-off values recommended.Furthermore, the results of the principal component analysis as shown in Table 1.In this study all the items related to strategic Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

Principal Factor Analysis
In Table 3, the results show that those three factors explain reliability analysis, the three factors  These results are also consistent with the results found in the factor analysis.
To examine the effect between variables, multiple regression analysis is done.It is seen in

MANAGERIAL IMPLICATIONS
Much attention has been given to the impact of the organizational behaviour on organization commitment as an outcomes in the HRD field, with focus on the training, organization culture, and ethical practice effect on the organizational commitment.The concept of the organization commitment is closely related to culture aspects and ethical practice that individual has a higher levels of organizational commitment identify more strongly with their organization (Song et al., 2009;Cullinan et al., 2008).
The main research question is: What is the strategic leadership factors affect on commitment?It is divided sub research question are (1) what is training affected on the commitment?(2) what is organizational culture affected on the commitment?(3) what is ethical practice affected on the commitment?
as cited in Colquitt et al. (2013) classify three motives of commitment organization as "employees with strong affective commitment remain because they want to, those with strong continuance commitment remain because they need to, and those with strong normative commitment because they feel.They ought to do".Song et al. (2009) found that "dyadic interpersonal trust could influence organizational level collectivistic behaviors, such as organizational commitment, through the collaboration-based learning organizational culture".Song et al. (2009) affirmed the centrality of the dyadic leader-subordinate relationship (LMX) to a variety of organizational outcomes.This means that leaders committed both to their subordinates and organization as a leader commitment.A leader commitment of banking institutions related to leadership implementation strategies.
defined "training is becoming the core element of HR management functions, along with the other HR activities, such as recruitment, selection and reward".Tanova and Nadiri, (2005) identified that "successful HR planning for the future is only possible through sustainable training, which means that organizational training is one of the most important aspects of organizational strategy".Gegenfurtner and Vauras (2012) have suggested that motivation for training represents an important factor in improving the effectiveness of training outcomes that ultimately lead to organizational effectiveness.
Since culture plays a major part in the way employees react to the new structure of their work environment, ranging from quick adapting and commitment to the new expectations, to resistance, withdrawal and other forms of unproductive behaviors (Garibaldi de Hilal et al., 2009) the identification of the organizational values and practices is a key strategy for cultural management.

Figure 1 .
Figure1.The Strategic Leadership Model (Modified Models fromColquitt et al., 2013;Hitt et al., 2007;Pearce and Robinson, 2007) of this study were evaluated using the Statistical Package for the Social Sciences (SPSS) version 20.0 for Windows.Throughout the statistical analysis, significance level of 0.05 was taken into consideration.Descriptive statistics was used to present the main characteristics of the sample.For the factor structure of the scales, factor.
(ð = 0,883).This means Indonesian Banker are moderate satisfied with that factor practices by the Banking and it is well accepted by all the employees.From the characteristics of the data, it is observed that the data of organization culture (μ = 3.364, ð = .959)is highly deviated from the mean among all other factors.This statistical evidence implies that this factor involved in the practice of the banking are not adequately designed for all the employee.Thus, the banking should build and internalization their organization culture.On the other hand, the data of training (μ =3.433, ð =.869) has been found less deviated from the mean.This statistics indicates that the banking has been successfully maintaining good training which is appreciated by all level of the employee positions.In the table, a significant positive and strong correlation was found for the organizational commitment in relationship with training (r = .538,p <.05), with organizational culture (r = .629,p <.05), and also with ethical practice (r=.494, p <.05).This significant correlation indicates that these factors have strong influence on organizational commitment of the banking.All factors have a positive and strong correlation which implies the banking should develop and implement a strategic leadership that has complete synchronization among those factors.

(
Cronbach's α training = 0.866, α organizational culture = 0.903, α ethical practice = 0.781) indicate high internal consistency.Organizational culture exhibit as the most important factor that contains more information than any of other factors loaded with explains 83,81% variance, which indicates that it provides the maximum insights of commitment of the banking industry.Hence, the policy makers of this organization ought to enhance friendly culture and policies in order to retain their key employees.The second most important factor here is training.Training itself explains 78,88% variance of the dependent variable organizational commitment.So, the organization must continue do the training of employee to take their valued for the long time which is ultimate target for a learning organizational.The others strategic leadership factors for the study were ethical practice, which constitute the factor account for 70,68% of the variance in the data attitudes.
This research contributes to theoretical knowledge about strategic leadership of branch banking heads in respect to factors affecting commitment organization, namely training, organizational culture and ethical practice of these human resources development.In so doing, the research also has a range of managerial implications.The first major finding result indicate that branch banking heads are confident that is employee training can be increasing organization commitment.It was also identified that they lack business skill.Second, Employees commitment may address through organizational culture.Thus, banking management in implementing the strategic leadership in culture development need to involve comprehensive human resource development activities which often include assignments of branch managers to headquarters.Third, the results underline the need for banking management to consider how ethical practice can be pursued more effectively.An important aspect of the employee of bank is identifying and developing potential them, entailing providing on the job training and mentoring to bank managers in areas such as organizational culture and ethical practice.
results for all three research questions.First, training showed positive effect on organization commitment.Second, organization culture is positively effect on organization commitment.Third, ethical practice in banking management play the role to explain the organizational commitment.Most significantly in this final result, a large amount of the effect of training in predicting the perceived level of the organizational commitment.This research contributes to the emerging literature on banking staffing, the writer acknowledge has limitations.First, our study used a quantitative survey approach; hence, our findings reflect perception of branch heads in each branches.Future research might involve in-depth case studies in selected organizations, which would entail a range of interviews with decision-makers at headquarters, branches and sub branches, and supported by bank documentation.

Table 4 .
Results of Multiple Regression