The Effect of
Leadership, Compensation and Motivation on Employee Performance in PT. Dua
Mutiara
Yetiani1, Herry Krisnandi2, Kumba Digdowiseiso3*
Faculty of Economics and
Business, Universitas National, Indonesia1,2,3
Email: [email protected]1,
[email protected], [email protected]3*
INTRODUCTION
Human
Resources play a role as a driver of activity in a company's achievements or
the success of a company is always measured by how much money or profit a
company has but other things that mean human resources located in the company
or organization. If in an organization, the work contained in the organization
will be against but if fulfilled properly then the work contained in the
organization will run smoothly. Therefore, qualified and skilled human
resources are needed to compete with human resources from various associations.
That way the human assets of the board have tasks to do, specifically
controlling and supervising HR in the organization. According to Susan (2019),
human resources in this connection are employees where they are always active
and dominant in carrying out every activity and activity of the company because
employees are like planning, implementing and determining the realization of
organizational goals.
The word
performance originated from the abbreviation of Kinetics of Work Energy, in
English called performance. In this case, the word performance generally refers
to "work performance" or "actual performance", meaning the
actual performance achieved by an individual in completing his task, so that
employee performance is something that is very influential in the success or
accompaniment of the organization. Performance is also the result of a job
function or activity determined to various elements to achieve organizational
goals or authorities within a certain period. The capacity of movement referred
to here is the implementation of the work or training of an individual and
association which is the strength and obligation of an organizational
association.
Leadership
in terms of the whole is the capacity contained in an individual that can
influence others to achieve goals. While the definition of leadership in the
Big Dictionary reference Indonesian is an individual who leads. So leaders not
only influence but also direct and supervise. In the journal The Impact of
Leadership, Compensation and Work Motivation on Employee Performance of PT.
Bank Rakyat Indonesia (BRI) Salo Unit Pinrang Branch (Thamrin etc, 2020). Bank
BRI has problems using leadership that has a negative and insignificant effect
on employee performance. Bank BRI was trying to further improve the leadership
system, especially in leadership indicators that are responsible for giving
direction to employees. This is a specific concern based on the attached
savings and loan data that the non-achievement of the targets given by the
company in 2016 to 2018 caused by the leadership system that has not been
aporism as a result affects employee performance. So that the model based on
the leader in his followers on efforts to achieve organizational goals must be
synchronous using performance precedents. The existence of research outputs
also indicates that leadership on employee performance has a negative and
significant effect. The results of this study explain that leadership variables
have an influence & significant on employee performance variables.
Some
researchers conducted research on the elements that affect the execution of
workers. The results of the examination by Sitompol and Ratnasari (2019) stated
that the variables of Leadership, Motivation and Compensation significantly
affect employee performance. Similarly, research directed by Nantu and Rumokoy
(2017): Wardani (2017); and Kemby, Tewel, and Walangitan (2017) who revealed
that there is a big influence between Leadership and Motivation on Employee
Performance.
Based on the
results of the study, it is known that the average data on the performance
level of PT Dua Mutiara employees has decreased where in 2017 the average
employee performance was 93%, in 2018 it was 88% and in 2019 it was 86%. Thus,
PT Dua Mutiara must know what is the problem as a reason to further develop
deficiencies and strengthen quality to advance the performance of its
employees.
This
research aims to investigate the impact of leadership, compensation systems,
and motivation on employee performance at PT Dua Mutiara. The primary focus of
this study is to analyze the individual influence of these three factors and
identify the complex interactions among them. Specific objectives include
evaluating the effects of leadership styles, assessing the effectiveness of
compensation systems, identifying significant motivational factors, and
analyzing the combined impact of these factors on employee performance. By
formulating recommendations based on research findings, it is anticipated that
the outcomes of this study will provide practical contributions to PT Dua
Mutiara in designing strategies that support the improvement of employee performance
and create a more productive and satisfying work environment.
From the
background data of the problem described above, the author will conduct a
research entitled "The Influence of Leadership, Compensation and
Motivation on the Performance of PT Dua Mutiara Employees.
METHODS
This research uses quantitative methods with
the object of research in the form of employee performance influenced by
leadership, compensation, and motivation at PT Dua Mutiara for three years.
Primary data is obtained through surveys of company employees, while secondary
data is in the form of profiles and information on the implementation of
workers at PT Dua Mutiara. The type of data used is quantitative data with
analysis methods using multiple linear regression. The population of this study
was the entire organization of PT Dua Mutiara, with a sample of 102 employees
selected using purposive sampling techniques. Data collection techniques
involve surveys using Likert scale-based questionnaires, documentation, and
interviews. Data analysis was carried out using descriptive and inferential
methods, including multiple linear regression tests to assess the effect of
independent variables (leadership, compensation, motivation) on dependent
variables (employee performance). Instrument tests involve validity and
reliability, whereas classical assumption tests include normality,
multicollinearity, autocorrelation, and heteroscedasticity. Regression models
are evaluated through the F test and coefficient of determination (R2), while
the T test is used to test the significant influence of each independent
variable.
RESULTS
Test Instrument
Analysis
In
the validity section, the test is carried out by comparing the value of r
Calculate and r Table using degree of freedom (df) = n-2 with alpha 0.05. If r
Calculate > r Table, then the question item or indicator is considered
valid. The results of the validity test show that all questionnaire question
items for leadership, compensation, motivation, and employee performance
variables have a calculated r value greater than r Table (0.1638), so it can be
considered valid. In reliability testing, it aims to measure the consistency of
data within a certain period of time. A variable is said to be reliable if
Cronbach's Alpha is greater than 0.6. The results of the reliability test show
that all variables, namely leadership (0.956), compensation (0.957), motivation
(0.969), and employee performance (0.974), have Cronbach's Alpha value that
meets the reliability requirements, so it can be considered good and
trustworthy in revealing accurate data.
Classical
Assumption Test Analysis
Normality
Test
The
normality test is used to find out whether in regression models the independent
variables and the dependent variables are normally distributed or not . The
normality test is performed with the Kolmogorov – Smirnov One Simple Test i.e.
if significant > 0.05 then the data is normally distributed. Meanwhile, if
< 0.05, the data is normally distributed.
Table 1.
Normality Test Results
|
One-Sample Kolmogorov-Smirnov Test |
||
|
|
Unstandardized Residual |
|
|
N |
102 |
|
|
Normal Parametersa,b |
Mean |
0,0000000 |
|
Std. Deviation |
2,82689933 |
|
|
Most Extreme Differences |
Absolute |
0,072 |
|
Positive |
0,072 |
|
|
Negative |
-0,069 |
|
|
Test Statistics |
0,072 |
|
|
Asymp. Sig. (2-tailed) |
,200c,d |
|
|
a. Test distribution is Normal. |
||
|
b. Calculated from data. |
||
|
c. Lilliefors Significance Correction. |
||
|
d. This is a lower bound of the true
significance. |
||
Source :
Data processed, 2022
Based on
table 1. above, it can be seen that the value of Asymp. Sig (2 – tailed) of
0.005 which means that the regression model of the dependent variable and the
independent variable in this study the data is normally distributed because of
its significance of 0.005
> 0.05.
Multicholinerarity
The
multicholinerarity test is useful for using whether the regression model found
a correlation between independent variables. This can be measured from the
value of Tolerance Value and Value Variance Inflation Factor (VIF). If the
Variance Infaltion Factor (VIF) value < 10 or if the Tolerance Value >
0.1 then multicholinerarity does not occur. A good regression model does not
occur perfect or near-perfect correlation between variables
(multicholinerarity). The results of the multicholinerarity test can be seen in
table 2 below:
Table 2. Multicholinerarity Test Results
|
Coefficientsa |
|||
|
Type |
Collinearity Statistics |
||
|
Tolerance |
VIF |
||
|
1 |
Leadership |
0,229 |
4,370 |
|
Compensation |
0,217 |
4,609 |
|
|
Motivation |
0,193 |
5,171 |
|
|
a. Dependent Variable: Employee performance |
|||
Source : Data processed, 2022
Based on table 2. above it can be seen that
the independent variable, namely leadership, has a Variance Inflation Factor
(VIF) value of 4.370 < 10 and a tolerance value of 0.229 > 0.1,
compensation has a Variable Inflation Factor (VIF) value of 4.609 < 10 and a
tolerance value of 0.217 > 0.1, motivation has a variance Inflation Factor
(VIF) value of 5.171 < 10 and a tolerance value of 0.193 > 0.1 so that it
can be concluded that the regression model does not occur multicholinerity.
Autocorrelation Test
The
autocorrelation test aims to test whether in the linear regression model there
is a strong relationship both positive and negative between the data and the
research variables. In autocorrelation testing, the authors used Durbin Watson
(DW) statistics.
Table 3. Autocorrelation Test Results
|
Model Summaryb |
|||||
|
Type |
R |
R Square |
Adjusted R Square |
Std. Error of the Estimate |
Durbin- Watson |
|
1 |
.958a |
0,917 |
0,914 |
2,870 |
1,977 |
|
a. Predictors: (Constant), Motivation,
Leadership, Compensation |
|||||
|
b. Dependent Variable: Employee performance |
|||||
Source :
Data processed,
|
N |
= 102 |
Du |
= 1.7383 |
|
d |
= 1,977 |
4-dL |
= 2.3826 |
|
Dl |
= 1.6174 |
4-dU |
= 2.2617 |
From the
test results, it can be said that dU < d < 4-dU (1.7383 < 1.977 <
2.2617) which means Ho is accepted, it can be concluded that in this test study
there are no symptoms of autocorrelation.
Heteroscedasticity Test
The heteroscedasticity
test using the Glaser test aims to test whether in this regression model there
is an imbalance of changes from the residual one perception to another. A
viable relapse model does not occur heteroscedasticity provided that an
importance value (sig) of > 0.05 is obtained. to decide whether
heteroscedasticity with the Glaser test, specifically by regression of
independent variables to Outright Lingering or Abs Res values. The results of
the heteroscedasticity test can be seen in table 4.14 below:
Table 4. Heteroscedasticity Test Results
|
Coefficientsa |
||||||
|
Type |
Unstandardized
Coefficients |
Standardize d Coefficients |
T |
Sig. |
||
|
B |
Std. Error |
Beta |
||||
|
1 |
(Constant) |
3,410 |
0,608 |
|
5,610 |
0,000 |
|
Leadership |
-0,070 |
0,042 |
-0,340 |
-1,673 |
0,097 |
|
|
Compensation |
0,017 |
0,045 |
0,077 |
0,368 |
0,714 |
|
|
Motivation |
0,003 |
0,042 |
0,015 |
0,070 |
0,945 |
|
|
a. Dependent Variable: ABRESID |
||||||
Source :
Data processed, 2022
Based on
Table 4.14 above, namely testing heteroscedasticity using the Glacier test, it
can be explained that the regression model in this study can be stated that
heteroscedasticity does not occur because all independent variables of
leadership have a significance value of 0.097 > 0.05, compensation has a
significance value of 0.714 > 0.05 and motivation has a significance value
of 0.945 > 0.05.
Motede Analysis
Multiple
Linear Regression Analysis
Many direct examinations are used to decide
the impact of the independent variable on the dependent variable. For this
situation the model is to discover how much influence leadership, compensation
and motivation have on employee performance. Side effects of some Multiple
Linear Regression Analysis examinations are seen in regression coefficients
that have direct condition regression through Standardization in table 5.
under:
Table 5. Multiple Linear Regression Results
|
Coefficientsa |
||||||
|
Type |
Unstandardized Coefficients |
Standardized Coefficients |
T |
Sig. |
||
|
B |
Std. Error |
Beta |
||||
|
1 |
(Constant) |
0,823 |
0,945 |
|
0,871 |
0,386 |
|
Leadership |
0,245 |
0,065 |
0,231 |
3,794 |
0,000 |
|
|
Compensation |
-0,049 |
0,071 |
-0,044 |
-0,696 |
0,488 |
|
|
Motivation |
0,783 |
0,066 |
0,791 |
11,948 |
0,000 |
|
|
a. Dependent Variable: Employee performance |
||||||
Source :
Data processed, 2022
Based on table 4.15 above, the following
equation can be formed:
Y = 0.231X1 –
0.044X2 + 0.791
The basis of the equation above, the results
of multiple linear regression have conclusions, namely:
1.
The value of the regression coefficient for
leadership in the regression equation shows a value of 0.231 and a
signification value of 0.000, so it can be interpreted that if the leadership
increases by one unit, then employee performance will increase by 0.231
assuming other independent variables have a fixed value. Improvement in
employee leadership will increase employee performance.
2.
The value of the regression coefficient for
compensation in the regression equation shows a value of -0.044 and a
signification value of 0.488, so it can be interpreted that if compensation
increases by one unit, then employee performance will increase by 0.044
assuming other independent variables have a fixed value. An increase in
compensation given to each employee will increase employee performance.
3.
The value of the regression coefficient for
motivation in the regression equation shows a value of 0.791 and a
signification value of 0.000, so it can be interpreted that if motivation
increases by one unit, then the performance of the supervisor will increase by
0.791 assuming other independent variables have a fixed value. Increasing the
motivation given to each employee will have an impact on improving employee
performance.
Model Feasibility Test Analysis
Simultaneous
Test (Test F)
The F test
is used to test the significance of regression together, namely whether the
independent variable has an influence on the dependent variable. The test was
conducted using a signification level of 0.05 (a = 0.5%). The results of the F
test can be seen in table 6. next:
Table 6.
F Test Results
|
ANOVAa |
||||||
|
Type |
Sum of
Squares |
Df |
Mean
Square |
F |
Sig. |
|
|
1 |
Regression |
8914,333 |
3 |
2971,444 |
360,788 |
,000b |
|
Residuals |
807,127 |
98 |
8,236 |
|
|
|
|
Total |
9721,461 |
101 |
|
|
|
|
|
a. Dependent Variable: Employee performance |
||||||
|
b. Predictors: (Constant), Motivation,
Leadership, Compensation |
||||||
Source :
Data processed, 2022
Based on the
ANOVA table in table 6 above, it can be seen that the calculated F value is
360,788 with a signification level of 0.000. The F value of the table is
obtained from the value of the free degree df (residual) which is 2.69 at a
confidence level of 5% (a = 0.05). because the calculated F value is greater
than the table F (360.788 > 2.69) with a signification level of 0.000 <
0.05. Thus, it can be concluded that the independent variables, namely
leadership, compensation and motivation, together have a significant effect on
the dependent variable, namely employee performance.
Test Coefficient of Determination (R2)
The
coefficient of determination (R2) is a measure to determine the suitability or
determination of the analysis model made. The higher the Adjust R square value,
the better the independent variable is at explaining the dependent variable. A
value of 0% to 100% coefficient of determination that is close to 100%
indicates the independent variable provides the information needed to predict
the variance of the dependent variable. The results of the coefficient of
determination (R2) test
can be seen in table 4.17 below:
Table 7. Test
Results of Coefficient of Determination (R2)
|
Model Summaryb |
||||
|
Type |
R |
R Square |
Adjusted
R Square |
Std. Error of the Estimate |
|
1 |
.958a |
0,917 |
0,914 |
2,870 |
|
a. Predictors: (Constant), Motivation,
Leadership, Compensation |
||||
|
b. Dependent Variable: Employee performance |
||||
Source :
Data processed, 2022
Based on the 7 above, the Adjusted R Square
is 0.914 or 91.4%, meaning that employee performance variables are influenced
by leadership, compensation and motivation. While the remaining 9.6% was
influenced by other variables outside the regression model studied by the
authors.
Hypothesis Test (T Test)
Test the
hypothesis (t-test) to determine whether there is an influence on the
independent variable on the dependent variable. The value of t table is known
through the formula df = n-k-1 ie (df = 102 - 3 - 1 = 98) signification 0.05 (a
= 5%) obtained t Table of 1.984, the result t Calculate is at a signification
of < 0.05 then Ho is rejected money meaning that the proposed hopotesis can
be accepted. Here is the table of T test results:
Table 8. Results
of Hypothesis Test (T Test)
|
Coefficientsa |
||||||
|
Type |
Unstandardized
Coefficients |
Standardized Coefficients |
T |
Sig. |
||
|
B |
Std. Error |
Beta |
||||
|
1 |
(Constant) |
0,823 |
0,945 |
|
0,871 |
0,386 |
|
Leadership |
0,245 |
0,065 |
0,231 |
3,794 |
0,000 |
|
|
Compensation |
-0,049 |
0,071 |
-0,044 |
-0,696 |
0,488 |
|
|
Motivation |
0,783 |
0,066 |
0,791 |
11,948 |
0,000 |
|
|
a. Dependent Variable: Employee performance |
||||||
Source :
Data processed, 2022
Based on
the t test in table 4.18 above, it can be concluded as follows:
1.
Hypothesis testing of leadership variables on
employee performance obtained a calculated t value of 3,794 > t table 1,984
with a signification level of 0.00 < 0.05 and this means that the leadership
variable has a positive and significant effect on the employee performance
variable of PT Dua Mutiara Jakarta.
2.
Testing the compensation variable on employee
performance obtained a calculated t value of -0.696 < t table 1.984 with a
signification level of 0.488 >0.05 and means that the compensation variable
does not have a negative and insignificant effect on the employee performance
variable of PT Dua Mutiara Jakarta.
3.
Testing the motivation variable on employee
performance obtained a calculated t value of 11,948 > 1,984 with a
signification level of 0.000 < 0.05 and this means that the motivation
variable has a positive and significant effect on the employee performance
variable of PT Dua Mutiara Jakarta.
Discussion
The Influence of Leadership on Employee
Performance
Based on the
results of the study above, the hypothesis test (Test t) shows that leadership
affects employee performance (Y) by 0.231 which means that if leadership
increases then employee performance will increase by 23.1% and the results of
the t test show that t count > t table is the value of t count 3,794 > t
table 1,984 with a level of significance of 0.00 < 0.05 and this means that
the leadership variable has a positive and significant effect on the employee
performance variable of PT Dua Mutiara Jakarta. This shows that leadership has
a great effort to influence employees in order to achieve organizational goals
set by PT Dua Mutiara Jakarta. The results of respondents' answers to
questionnaires that have been given by the author by means of communication,
motivation, decision making and positive power that most respondents agree with
leadership so that it has a positive and significant effect on employee
performance. Therefore, the scope of work must be considered by the company.
This
research is also supported by previous research conducted by (Husada, 2019)
leadership has a positive and significant influence on employee performance at
BPRS Metro Madani Jatimulyo Branch. This is corroborated by research that has
been conducted (Risky Cahyo Prasetyo, 2018) leadership has a positive and
significant effect on employee performance at Bank BRI Syariah KC Semarang.
The effect of compensation on employee
performance
Based on the
results of the study above, the hypothesis test (Test t) shows that
compensation (X2) does not affect employee performance (Y) by -0.044 which
means that if compensation increases then employee performance will increase
then employee performance will increase by -4.4% and the results of the t test
show that the calculated t value is -0.696 < t table 1.984 with a level of
significance of 0.488 > 0.05 and means that the compensation variable does
not have a negative and insignificant effect on the variable employee
performance of PT Dua Mutiara Jakarta. This shows that compensation cannot
trigger employees to excel and work harder, compensation given to employees is
usually in the form of direct compensation, indirect compensation and
non-financial compensation. Compensation received by representatives outside of
salary includes event remittances, event prizes, claims for write-offs and
sports expenses. Although the payment given was fairly large, the appearance of
PT Dua Mutiara workers was not affected because representatives felt that
remuneration was their right. This examination is supported by research by
Riyadi (2011), Mutmainah (2013) and Munzakir, Zainuri (2018) which shows that
compensation does not affect and is significant on employee performance. The
amount of payment obtained has no impact on execution. It is for this reason
that representatives work not solely to seek remuneration from the
organization.
The effect of motivation on employee
performance
Based on the
results of the study above, the hypothesis test (t test) shows that motivation
(X3) affects employee performance (Y) by 0.791 which means that if it
increases, employee performance will increase by 79.1% and the results of the t
test show that the t value is calculated at 11,948 > 1,984 with a
signification level of 0.000 < 0.05 and means that the motivation variable
has a positive and significant effect on the employee performance variable of
PT Dua Mutiara Jakarta. This shows that motivation is the basic factor for an
employee to work well in order to give a good effort to advance the vision and
mission of the organization that has been set. The results of respondents'
answers to questionnaires given by the author with indicators such as training,
welfare, periodic motivation and promotion showed that most respondents agreed
on work motivation so that it had a positive and significant effect on employee
performance. This research is also supported by (Mahardika et al., 2020)
Intrinsic motivation has a significant effect on the performance of employees
at PT. AXA Financial Indonesia. This hail is corroborated by research conducted
by (Santander, 2017) motivation has a positive and significant effect on
employee performance at Dompet peduli Ummat Darut Yauhid Palembang Branch.
CONCLUSION
Based on the results of
research on employee performance at PT Dua Mutiara Jakarta, conclusions can be
drawn from the analysis of variables that have been carried out. First, the leadership
variable (x1) was shown to have a positive and significant effect on employee
performance, with multiple linear regression test results of 23.1%. This shows
the importance of attention to leadership factors, especially in giving work
orders and communication, with a focus on motivational indicators. Second, the
compensation variable (x2) did not show a negative and significant influence on
employee performance, amounting to -0.044 or 4.4%. Although the facilities
indicator has the lowest average points, the conclusions show that employee
performance is not significantly affected by the gradual increase in
compensation, because the job aspect is considered more important by employees.
Third, the motivation variable (x3) is considered to have a positive and
significant effect on employee performance. Management that rewards and
encourages outstanding employees can improve performance, and help overcome
fluctuations in achieving company targets. Thus, these findings provide
important insights for the development of HR management strategies at PT Dua
Mutiara Jakarta.
Acknowledgment
This article is a
part of joint research and publication between Faculty of Economics and
Business, Universitas Nasional, Jakarta and Faculty of Business, Economics, and
Social Development, Universiti Malaysia Terengganu.
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Copyright holder: Yetiani,
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