In a high level of competitive industry, employees’ performance become a determinant factor to gain
the competitive advantages in the industry. PT Telkom Jakarta Region, a public telecommunication company at
Jakarta, had shown low business growth in the recent years. It came to an assumption that company’s low
growth due to the problem of employees’ performance. A preliminary survey that had been conducted described
that more than 30% employees had problem with their work performance especially in quantity and quality of
their work results, and in efficiency, effectiveness, accuracy as well as their productivity in doing their jobs.
Using a correlational study and 125 employees as research sample, this research designed to study the
company’s organizational culture and transformational leadership that hypothesized had positive relationship
with employees’ performance. The research findings accepted all research hypotheses that (1) organizational
culture had a positive relationship (r = 0.756, p<0.01) with employees’ performance, (2) transformational
leadership had a positive relationship (r = 0.641, p<0.01) with employees’ performance, and (3) organizational
culture and transformational leadership had a positive relationship (r = 0.799, p<0.01) simultaneously with
employees’ performance. Based on that findings, we suggest to strengthen the company’s organizational culture
and to improve transformational leadership of all managers in the organization in order to enhance employees’
performance and gain competitive advantage in the industry.
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