Transformational
Leadership Influence, Intrinsic Motivation and Compensation for Employees
Performance PT. ABC
Dian Mega Sari1, Herry Krisnandi2,
Kumba Digdowiseiso3
Faculty of Economics and
Business, Universitas Nasional, Indonesia1,2,3
Email: dinamega.sari@gmail.com1, [email protected]2, [email protected]3
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ABSTRACT |
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Transformational
Leadership, Intrinsic Motivation, Compensation, Employee Performance. |
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This
research investigates the multifaceted influences of transformational
leadership, intrinsic motivation, and compensation on employee performance
within the context of PT. A B C. Employing a quantitative approach, data was
gathered from 125 respondents through the administration of structured
questionnaires. The study utilized both descriptive and inferential analyses,
incorporating techniques such as linear regression and modeling tests. The
findings revealed a positive and significant impact on employee performance,
as demonstrated by the regression equation: Employee Performance = 0.317
(Transformational Leadership) + 0.220 (Intrinsic Motivation) + 0.328
(Compensation). The overall model proved to be statistically significant
(ANOVA p-value < 0.001). Notably, transformational leadership (p <
0.001) and intrinsic motivation (p = 0.005) exhibited substantial effects on
performance, while compensation, although included in the model, did not show
a statistically significant impact (p = 0.10000). Based on the results,
recommendations are proposed to enhance organizational performance. These
include fostering improved communication skills among leaders, addressing
intrinsic motivation factors among employees, and reassessing compensation
strategies for greater effectiveness. Implementing these recommendations is
anticipated to contribute to overall performance enhancement and
organizational success. |
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INTRODUCTION
Meeting the demands of changing times in the
era of globalization which has also entered the era of the industrial
revolution 4.0 with increasingly rapid technological advances and human
mobility that continues to increase every year, making competition in any field
increasingly tight, which makes forcing companies to empower by optimizing as
much as possible their human resources so that the company's survival is
maintained. With the increasing business competition in any field, both in
domestic and international markets, a business that wants to grow or at least
survive must be able to take advantage of the important function of marketing
implementation that is better than its competitors.
In pursuing
set goals, government organizations and private companies, irrespective of
their size, heavily rely on the active involvement of individuals or groups
serving as key actors. Organizational performance, consequently, hinges on the
effectiveness of its employees. Human resource management is pivotal in
facilitating overall organizational performance by efficiently managing and
unifying employees towards achieving organizational objectives. The alignment
of perceptions and perspectives between company leaders and employees becomes
paramount in this endeavour.
Achieving these goals requires a series of
activities known as the management process, consisting of planning, organizing,
actuating and controlling, which is carried out to determine and achieve
predetermined goals using human resources and other resources (Hasibuan, 2013).
Therefore, to meet the achievement of organizational goals does not only depend
on modern equipment, complete facilities and infrastructure but rather depends
more on the humans who carry out the work To be able to compete in this era of
globalization, we must
implement a strategic plan to improve human resources to turn it into a
competitive strength factor.
Many factors can affect employee performance
in general, one of which can be influenced by the implementation of a leader in
leading his subordinates. As many experts argue, alliances, synergies,
competition, and co-creation are the main forces that can also be the key to
success in facing various existing obstacles. Therefore, an attitude of
alliance and synergy between leaders and leaders must be developed in the face
of global competition. Even good leadership sometimes cannot make its workers
excel in their performance. Leadership factors can and do not directly affect
one's performance. This influence is also reflected in how to motivate
employees to improve their performance.
In the situation and conditions of the COVID-19
pandemic that is currently sweeping the world, Indonesia is no exception which is currently happening
where no scenario has ever been simulated, making it a challenge and obstacle
that needs to be followed up immediately with special handling quickly,
precisely and strategically. Support from various elements is needed in the
current situation, including companies, both red plate companies and black
plate companies. Tak terkecuali dengan PT. ABC, which is engaged in the state of oil and gas, also needs
cooperation considering PT's business scope. ABC is a services company that
is very strategic in supporting synergy programs in the Pertamina Group
environment.
As a
supporting services company in the energy sector, PT. ABC must optimize its
workforce's performance to fulfil its obligations effectively. Employee
motivation is a critical factor in achieving this, with performance appraisal
emerging as a key tool to evaluate and enhance performance across various
divisions. The recent performance evaluation at PT. ABC indicates a decline in
performance over the last three years, underscoring the urgency for
organizational intervention to address obstacles and improve overall
performance.
One of the successes of a company can be seen
by performance evaluation with a comparison between the company's targets and
objectives with its overall realization. Performance evaluation at PT. ABC as a
company in the field of supporting services in the
energy sector with business lines including EPC, HDD, Food & Lodging, Man
Power Services, HTE, and Marines, as a whole, which uses Key Performance
Indicators (KPI) with a system that includes targets determined by the
achievement of its realization in the last 2 years.
Based on the results of the study, it shows a
decrease in performance in the last three years, which is shown in the results of
achievement in performance performance in 2018, reached 125.5%, followed by a
decrease in two consecutive years, namely 90% in 2019 and continued to
experience a decrease in performance at the end of 2020, namely the final
evaluation results with an achievement of 82.8%. This can mean paying attention
to the existence of an obstacle or problem in achieving a goal or what is said
to be a target that management has planned and expected. Therefore, the company must
improve its performance in all departments; in this case, it is none other than the
performance of its employees.
Achievement of employee performance is
important to produce maximum performance and how to maintain existing
performance. Many factors can affect the rise and fall of performance. In this
study,
researchers specialized in transformational leadership factors, intrinsic
motivation and compensation. Of these three factors, which factor is the
biggest in influencing performance, in terms of superiors, employees, and
management, will be analyzed, which may help maintain and improve performance
at PT. ABC
Transformational leadership is a leader who
stimulates and inspires (transforms) followers to achieve extraordinary
results. Transformational leadership develops from transactional leadership.
Moreover, transformational leadership is more than charisma leadership because
transformational leaders try to instill in followers the ability to question
not only established views but views held by the leader. Leaders pay attention
to the needs, care and development of individual followers, change followers'
awareness of problems by helping them to see old problems in new ways and they
are able to arouse and inspire followers to extinguish extra effort in
achieving group goals (Robbins and Coulter, 2012).
This study
focuses on understanding the impact of transformational leadership, intrinsic
motivation, and compensation on employee performance at PT. ABC. Despite the
decline in performance, the organization's strategic importance within the
Pertamina Group emphasizes the need for comprehensive research to identify and
address the factors influencing employee performance. This study aims to bridge
the existing gap in the literature and provide valuable insights for the
organization to enhance its workforce's effectiveness and contribute to its
overall success. Hasibuan (2017: 119) said that "Compensation
is an opinion in the form of money, direct or indirect goods received by
employees or employees in return or services provided to organizations or
companies. Compensation has a huge effect on a person's performance, this has
been proven in Yohny's research (2016), which found that compensation is proven
to affect performance. Based on the background of the above problems, the
author is interested in conducting research with the title "The Effect of
Transformational Leadership, Intrinsic Motivation and Compensation on Employee
Performance of PT. ABC".
METHODS
This study uses descriptive research
methods and inferential analysis to examine the effect of transformational
leadership, intrinsic motivation, and compensation on employee performance at
PT. ABC. The object of research is employee performance which is influenced by
three independent variables, namely transformational leadership, intrinsic
motivation, and compensation. Employees of PT. ABC becomes a source of data
through filling out questionnaires designed to measure the level of these
variables.
The
population in this study was all employees of PT. ABC, and samples were taken
using probability sampling techniques. With reference to the Slovin formula, as
many as 125 respondents were taken to represent the population. The data
collected are primary and obtained through questionnaires filled out by
respondents.
The
data analysis method used involves descriptive analysis to describe the
characteristics of the variables studied, as well as inferential analysis such
as multiple linear regression. Hypothesis testing is performed with a t-test to
determine whether the independent variable has a significant influence on the
dependent variable.
As a
first step, the validity and reliability of measuring instruments are tested
using validity and reliability tests with the Pearson Product Moment and
Cronbach's Alpha methods. Descriptive analysis is carried out to provide a
general overview of the characteristics of respondents and research variables.
Furthermore, classical assumption tests such as normality tests,
multicollinearity tests, autocorrelation tests, and heteroscedasticity tests
are performed to ensure that the regression models used meet statistical
assumptions.
The
feasibility test of the model is carried out with the F Anova test and the
coefficient of determination (R2) to assess how well the model can explain the
phenomenon under study. Hypothesis testing uses a t-test to evaluate the
significance of the effect of each independent variable on the dependent
variable. With these steps, this research is expected to provide a deep
understanding of the factors that affect employee performance at PT. ABC, as
well as contributing to the development of knowledge in human resource
management.
RESULTS
Instrument Validity Test
This study involved 125 respondents as a sample, and
validity and reliability tests were conducted on the questionnaire instrument.
The validity test aims to determine whether the questionnaire items are
suitable for use in the study. The author compares the calculation results with
the r-product-moment table to decide the validity of the questionnaire, with
the criterion if the r-count > the r-table, then the instrument is
considered valid.
The results of the detailed validity test showed that all
questionnaire items on the variables Transformational Leadership (X1),
Intrinsic Motivation (X2), Compensation (X3), and Performance (Y) had a
Corrected Item-Total Correlation value greater than r table (0.174) in the sample N = 125. This indicates that
all questionnaire items are considered valid.
Based on the SPSS output, the largest coefficient value for
the Transformational Leadership variable (X1) was found in the seventh
questionnaire (0.798). While the Intrinsic Motivation variable (X2) has the
largest value in the second statement (0.827), and the Compensation variable
(X3) shows the largest value in the fifth statement (0.799). Similarly, the
dependent variable Performance (Y) has the largest coefficient value on the
fifth statement (0.679).
Based on these results, all questionnaires in this study
were declared valid, with a calculated value greater than rtable. The next
stage is reliability testing to ensure the consistency of the instruments used
in the study.
Reliability Test
Reliability tests are used to determine the
consistency of measuring instruments, whether the measuring instruments are
reliable for further use. After the Validity Test was carried out and valid
question items were obtained, a reliability test was carried out, in this study
using a Cronbach Alpha coefficient of more than 0.6 or more. The results of the
Reliability Test are presented in the table below:
Table
1. Instrument Reliability Test Results of Each Variable
|
No |
Variable |
N of Items |
Cronbach's Alpha |
Alpha |
Information |
|
1. |
Leadership transformational
(X1) |
8 |
0,895 |
0,7 |
Reliable |
|
2. |
Intrinsic
motivation (X2) |
8 |
0,932 |
0,7 |
Reliable |
|
3. |
Compensation
(X3) |
6 |
0,926 |
0,7 |
Reliable |
|
4. |
Performance (Y) |
10 |
0,856 |
0,7 |
Reliable |
Source : SPSS output,
Cronbach's Alpha. Data processed 2021.
From the output of data processing carried
out with the SPSS program as a calculation tool, the values shown in table 4.10
above, it can be said that all questionnaire items used to measure all
variables in this study are declared valid and reliable, which is shown in
Cronbach's alpha value all variables have a value level above sufficient, which
is above 0.7. This means that all variable values are said to be good and
acceptable because they are above the level of not good even the results are
good, which is shown in the outputReliability statistic where all values of
Cronbach's alpha of all variables above the level are sufficient.
Inferential Analysis
Multiple Linear Regression
Multiple linear regression analysis is a form
of analysis that discusses the extent of the influence of the independent
variable (X) on the dependent variable (Y), which for the independent variable
is transformational leadership (X1), intrinsic motivation (X2) and compensation
(X3) and the dependent variable is performance (Y). The calculation of the
regression coefficient in this study using SPSS software, the output results
are as follows:
Table
2. OutputCoefficients
on the Effect of Transformational Leadership, Intrinsic Motivation and
Compensation on Performance
Coefficientsa
|
Type |
Unstandardized Coefficients |
Standardized Coefficients |
T |
Sig. |
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B |
Std. Error |
Beta |
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1 |
(Constant) Transformational leadership |
18.081 .306 |
3.122 .075 |
.317 |
5.790 4.082 |
.000 .000 |
|
Intrinsic motivation Compensation |
.169 .370 |
.059 .084 |
.220 .328 |
2.856 4.399 |
.005 .000 |
|
Source : SPSS output.
Coefficients,linear regression. Processed 2021
The results shown in the coefficients table
above, then the regression
equation is; KK=0.317(B1KT) + 0.220 (B2MI)+ 0.328 (B3K). From the results of the multiple linear
regression equation above, it is interpreted that: The regression coefficient of the
transformational leadership variable (X1) of 0.317 means that if intrinsic motivation and
compensation are assumed to be constant or fixed, then every increase of 1
(one) point of value in transformational leadership, can affect the increase in
performance by 0.317.
The regression coefficient of the intrinsic
motivation variable is positive 0.220 which means that if the value of
compensation and transformational leadership is assumed to be constant, then
any change or increase in the value of intrinsic motivation will affect
employee performance by 0.220. The compensatory regression coefficient (X3) is 0.328 which means that if the value of the
variables transformational leadership and intrinsic motivation is assumed to
have a constant value, then each increase in the value of compensation will
affect the increase in performance by 0.328.
Of all the independent variables studied,
transformational leadership, intrinsic motivation and compensation had a
positive relationship to employee performance. The largest contribution is in
the compensation factor shown in the Standardized Coefficient Beta value column
of 0.328.Which means that the compensation factor is more considered and other
factors in this study to be maintained to achieve the main goals of the
company.
Classical Assumption Deviation Test
Normality Test
The Normality Test is used to determine the
distribution of the population, whether it follows the distribution
theoretically (normal, poisson or uniform), which aims to test whether in the
regression model, the dependent variable and the independent variable both have
a normal distribution. The distribution data is said to be normal if the
significance value level is > 0.05 and if the opposite is < 0.05 then it
is said to be abnormal. Test normality in this study with One Sample Kolmogorov-Smirnov Test. The
following are the results of the Normality test in this study shown in table 3.
Table
3. One-Sample
Kolmogorov-Smirnov Test
|
|
Unstandardized Residual |
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N |
125 |
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Normal Parametersa,b |
Mean |
.0000000 |
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|
Std. Deviation |
2.88142389 |
|
Most Extreme |
Absolute |
.063 |
|
Differences |
Positive |
.044 |
|
|
Negative |
-.063 |
|
Test Statistics |
.063 |
|
|
Asymp. Sig. (2-tailed) |
.200cd |
|
Source: SPSS output. Data processed
2021.
Based on the results shown in Table 4.12, the
Sig value is 0.200, which is interpreted in the formulation of the hypothesis
in this study; if the Significance value is < 0.05, then Ho is rejected, and if the Sig value is >
0.05, then Ho is accepted. From these results, it can be said that the normality
test results
based on the significance value are (0.200 > 0.05). Ho is accepted, which
concludes that the population distribution or employee performance results
derived from transformational leadership, intrinsic motivation, and
compensation are normally distributed at a significant level of 0.05.
Multicollinearity Test
Multicollinearity is a state in which between
two or more independent variables in a regression model a perfect or
near-perfect linear relationship occurs. The multicollinearity test tests
whether the regression model found a correlation between independent variables.
A good regression model should be multicollinearity-free or do not correlate with independent variables.
The
following is a table of results from the multicollinearity test by looking at the results
in the Tolerance and VIF columns below:
Table
4. Coefficientsa
Multicollinearity Test Output
|
Type |
Collinearity Statistics |
||
|
Tolerance |
VIF |
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|
1 |
Transformational leadership |
0.892 |
1.121 |
|
|
Intrinsic motivation |
0.906 |
1.104 |
|
|
Compensation |
0.970 |
1.031 |
Source:
Multicollinearity output data. Data processed 2021.
Based on the results of the Coefficient table
above, the value of variance inflation factor (VIF) is below 10 for all variables X1, X2,
and X3, namely in transformational leadership of 1.121 then in the intrinsic
motivation variable of 1.104 and the compensation variable of 1.031. While obtaining the results of
tolerance values for all each variable, on the
transformational leadership variable (X1) = 0.892 >0.10, then on the intrinsic motivation variable (X2)
= 0.906> 0.10 and for the compensation variable (X3) = 0.970> 0.10. Based
on these results, it can be concluded that the regression equation model
between independent variables does not have multicollinearity.
Autocorrelation Test
The autocorrelation test in this study aims
to see whether, in this model, there is a problem of deviation in
autocorrelation, which is a strong correlation in an observation between one
and another. The regression model is said to be good if it has no problems in
autocorrelation; if it has problems in autocorrelation, then the model is not good for
research. Below are the results of the autocorrelation test in the study
Table
5. Model Summaryb
|
Type |
R |
R Square |
Adjusted
R Square |
Std. Error of the Estimate |
Durbin- Watson |
|
1 |
.590a |
.348 |
.332 |
2.917 |
1.809 |
Judging from the results of the table above,
it is known that the value of Durbin-Watson is 1.809. In this case, it is said to be in the area of
no autocorrelation. Based on the formulation of the theory used in this study,
which refers to the comparison with the DW table with a significance level of
0.05, with the entire sample in this study amounting to (N = 125), with a value
(K) of three (3). Then the value in the DL table is = 1.6592, and the DU value is = 1.7574,
then at the value (4 - DL = 2.3408) and the value (4 - DU = 2.2426).
Based on the formulation criteria explained
in the research method used in this study to conclude the results of the
autocorrelation test. The DW value is 1.809, then the DW value lies in DU and
(4 - DU), = 1.7574< 1.809< 2.2426. So, in this study, the regression
model is stated either because it is not present or is in the area of
autocorrelation in the model.
Heteroscedasticity Test
A
good regression model is one in which homoscedasticity or heteroskedasticity does not occur. The
heteroscedasticity test aims to show whether, in the regression model, there is
an inequality of variance from the residual of one observation to another
observation that is fixed. Then, it is called homoscedasticity; if different,
it is called heteroskedasticity. The authors used a heteroscedasticity test
with Spearman's rho correlation method in this study.
The
results of heteroskedasticity
testing with Spearman's rho are presented in table 6 as follows:
Table
6. Heterokedasticity Correlations Test
|
|
Unstandardized Residuals |
K.T (X1) |
M. I (X2) |
K (X3) |
||
|
Spearman's rho |
Unstandardized Residual |
Correlation Coefficient |
1.000 |
.077 |
-.009 |
.094 |
|
|
|
Sig. (2-tailed) |
. |
.392 |
.917 |
.295 |
|
|
|
N |
125 |
125 |
125 |
125 |
|
|
Transformational leadership |
Correlation Coefficient |
.077 |
1.000 |
.359* |
.175 |
|
|
|
Sig. (2-tailed) |
.392 |
. |
.000 |
.052 |
|
|
|
N |
125 |
125 |
125 |
125 |
|
|
Intrinsic motivation |
Correlation Coefficient |
-.009 |
.359* |
1.000 |
.134 |
|
|
|
Sig. (2-tailed) |
.917 |
.000 |
. |
.136 |
|
|
|
N |
125 |
125 |
125 |
125 |
|
|
Compensation |
Correlation Coefficient |
.094 |
.175 |
.134 |
1.000 |
|
|
|
Sig. (2-tailed) |
.295 |
.052 |
.136 |
. |
|
|
|
N |
125 |
125 |
125 |
125 |
Source
: SPSS output. Data processed 2021.
Based on the results of the table above, it
is interpreted that the correlation between transformational leadership
variables and unstandardized residuals obtained a signification value of more
than 0.05, which is 0.392. The correlation between intrinsic motivation and
unstandardized residuals, the significance value is also more than 0.5, namely
at 0.917. The correlation between compensation variables and unstandardized
residuals, the results of the signification number are also more than 0.05,
which is 0.295. Based on the results shown in the table above, it can be
concluded that there is no heteroskedasticity problem.
Model Due Diligence
Test f
To test the significance of the effect
between the independent variables transformational leadership (X1), intrinsic motivation
(X2) and compensation (X3) on the performance-bound variable (Y) using
the outcome assumptions in the ANOVA table. Test results that use a
significance limit level of 0.05, then obtained the results shown in table 7. as follows:
Table
7. ANOVA
|
Type |
Sum of Squares |
Df |
Mean Square |
F |
Sig. |
|
|
1 |
Regression |
549.677 |
3 |
183.226 |
21.535 |
.000b |
|
|
Residuals |
1029.523 |
121 |
8.508 |
|
|
|
|
Total |
1579.200 |
124 |
|
|
|
Based on the results of calculations assisted
by the SPSS program, the Sig value is (0.000), smaller than the alpha
probability limit or the allowable error limit level of 5% (0.05). The meaning
of the Sig value in the Anova table, the results are said to be significant
because they are below the specified alpha value limit of 0.000<0.05. So the
feasibility test of the f test model is accepted based on the results of the
significance value obtained which is smaller than 0.05.
So it can be said that in this study the
model is said to be feasible to predict the dependent variable and is used in
this study based on the significance value obtained, meaning that all
independent variables can explain any changes in the value of the dependent
variable because it has a significant influence.
Coefficient
of Determination R2
The coefficient of determination to analyze
how strong the relationship and influence of variables in this study are shown
in the table below:
Table
8. Model Summaryb
|
Type |
R |
R Square |
Adjusted R Square |
Std. Error of the Estimate |
|
1 |
.590a |
.348 |
.332 |
2.917 |
Based on the results in the Model Summary
table which shows the value of the R correlation coefficient of 0.590, this
means that the relationship between the independent variable and the dependent
can be concluded that the relationship between the independent variable and the
dependent is not too strong because it is still far from the value number 1
(one).
While the results shown in the R Square
column of 0.348, the results of the statistical calculation mean that the
ability of the independent variable to explain each variation in changes in the
dependent variable is only 34.8%. In comparison, the remaining 65.2% is
explained by other factors and variables outside the regression model analyzed
in this study.
Hypothesis Test (Test t)
This test is used to determine whether or not
the influence of the independent variable partially or individually on the
dependent variable. This influence can be seen from the significant value
obtained. To find out whether transformational leadership (X1), intrinsic motivation
(X2) and compensation (X3) have a significant influence on employee
performance (Y), the test results in table 9 are presented.
Table
9. Coefficientsa
|
Type |
Standardized Coefficients |
|
|
|
Beta |
T |
Sig. |
|
|
Transformational leadership |
.317 |
4.082 |
.000 |
|
Intrinsic motivation |
.220 |
2.856 |
.005 |
|
Compensation |
.328 |
4.399 |
.000 |
Source : SPSS output. Data
processed 2021.
Based on the results of the research
obtained, which are shown in table 4.18, it is concluded that the results of
partial hypothesis testing (t-test) are as follows:
Partial
hypothesis of transformational leadership coefficient to employee performance.
The result of the significance value obtained
is 0.000, meaning that the influence of transformational leadership variables
on employee performance seen based on the significance value obtained is
smaller than bats alpha 5%, which is 0.000 <0.005. So it means that
transformational leadership partially has a significant influence on the
performance of PT ABC employees.
Partial
hypothesis of the intrinsic coefficient of motivation on employee performance.
Based on the results shown in Table 9, it can
be explained that the influence of intrinsic motivation variables on employee
performance, as seen from the significance value obtained by 0.005, which is
smaller than 0.05, is partially interpreted that intrinsic motivation has a
significant effect on employee performance.
Partial
hypothesis of the coefficient of compensation to employee performance.
Based on the results of the partial
hypothesis on compensation shown in Table 4.18 with a significance value of
0.000, it is interpreted in this study to prove the third hypothesis that
compensation has a significant effect on employee performance.
Discussion
Transformational
leadership has a significant positive influence on the performance of PT ABC
employees.
Based on the results of coefficients and
testing hypotheses in this study, a regression coefficient of 0.317 was
obtained with a significance value smaller than the set alpha probability limit
of 5% (0.000< 0.05). This means that transformational leadership variables significantly
positively influence
PT ABC. This positive influence means that if the leader leads only what the
employees at PT ABC want, it is possible that it will improve the performance
of employees at PT ABC and improve their performance.
The findings of this study are as mentioned
in the theory that leadership is a set of characteristics used by leaders to
influence subordinates so that organizational goals are achieved, or it can also be said that
leadership style is a pattern of behavior and strategy that is preferred and
often applied by a leader". (Rivai, 2012). In addition, the results of this
study also strengthen the results of research conducted (Ujang, 2015) with the
findings in his research that transformational leadership has a significant
influence on the performance of employees of KJKS BMT Tamziz Bandung.
There
is a significant positive influence of intrinsic motivation on the performance
of PT ABC employees.
Based on the analysis results in several
tests in this study, the results obtained a significant value smaller than the
probability limit of the error rate used, namely (0.005<0.05), and the value
of a positive regression coefficient of 0.220. So it is interpreted that the
intrinsic motivation variable has a significant positive effect on employee
performance. This positive influence can be interpreted if employees have high
motivation at work, it can affect the performance of PT ABC employees.
This study's results are similar to
Herzberg's motivation theory, which states that motivational factors encourage intrinsic
achievement, which
means they originate in a person (Luthans, 2011). In addition, the results of
this study also strengthen the results of research conducted (Abdul, 2018),
which states in the results of his research that intrinsic motivation has a
significant effect on the performance of PT
Permata
Finance Banjarmasin.
There
is a significant positive effect of compensation on performance.
Based on the results of hypothesis testing
shown in the coefficients table in this study, a regression coefficient of
0.328 was obtained with a significance value below the 5% alpha probability
limit, which is 0.000 < 0.05, which means that compensation has a
significant positive influence on performance. This positive influence
indicates that if the compensation of employees is getting better and it can be
felt that employees are appropriate and sufficient, it will be able to bring
employees in a positive direction, it is likely to be able to achieve common
goals to maintain and improve the performance of PT ABC employees.
The similarity of theories and previous
research results reinforces the findings of this study. It is said that
compensation is a network of various subprocesses to provide remuneration to
employees for the implementation of work and to motivate employees to achieve
the desired level of achievement (Sunyoto, 2012: 29). The results of this study
also strengthen the research conducted by Rifky. Silvia and Yantje (2016) who
said in the results of their research that compensation has a significant
influence on employee performance at the BPBD Sul-Sel office.
CONCLUSION
Based on the research results and discussion in the previous
chapter, involving supporting theories and concepts, this study aims to
evaluate the influence of transformational leadership, intrinsic motivation,
and compensation on employee performance at PT ABC. The overall study found that transformational
leadership has a significant positive influence on employee performance, which
is evident through the results of the t test. In addition, intrinsic motivation
also significantly impacts
employee performance, as revealed in the t-test results. Similarly,
compensation shows a significant positive influence on employee performance, as
evidenced in the t-test results. Therefore, it can be concluded that in the
context of PT ABC, transformational leadership, intrinsic motivation, and compensation
each play an important role in improving employee performance, positively contributing to the achievement of company
goals.
This
article is a part of joint research and publication between Faculty of
Economics and Business, National University, Jakarta and Faculty of Business,
Economics, and Social Development, Universiti Malaysia Terengganu.
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