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The Effect of Transformational Leadership Style and Compensation on Employee Performance with Employee Motivation as Intervening Variable

Author

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  • Romli

    (Esa Unggul University, Indonesia.)

  • Idrus Jus’at

    (Esa Unggul University, Indonesia.)

  • Ratna Indrawati

    (Esa Unggul University, Indonesia.)

Abstract

In the current era of globalization, high organizational performance demands to be able to survive in the midst of a very tight competition level, taking into account various aspects that influence it. The purpose of this study was to determine the effect of leadership style, and compensation on performance through motivation as an intervening variable. Survey method will be applied with causality design based on cross-sectional time dimension with data analysis method using regression. The population in this study was 170 people. The data collection technique is a questionnaire with a measurement scale using a modified Likert scale. It is known that the coefficient of determination or R Square is 0.737 or equal to 73.7%. This figure means that the variable Motivation (Z), Transformational Leadership Style (X1), and Compensation (X2) has an effect on the Performance variable (Y) by 73.7%, while the remaining 26.3% is influenced by other variables not examined by the author. The application of a good transformational leadership style, compensation for hospital commitment, and the strength of employee motivation have a positive effect on employee performance.

Suggested Citation

  • Romli & Idrus Jus’at & Ratna Indrawati, 2022. "The Effect of Transformational Leadership Style and Compensation on Employee Performance with Employee Motivation as Intervening Variable," European Journal of Business and Management Research, European Open Science, vol. 7(5), pages 208-214, September.
    • Handle: RePEc:epw:ejbmr0:v:7:y:2022:i:5:id:51584
    DOI: 10.24018/ejbmr.2022.7.5.1584
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