Effect Of Compensation, Environment and Leadership Style On Employee Spirit and Performance Through Motivation

Muhammad Yani

doi:10.21070/jbmp.v7i1.1337

Abstract

This study aims to examine the effect of compensation, environment and leadership style on employee morale and performance through study motivation at PT. EX. This study used a sample of 95 respondents, namely employees of the production section of PT. EX. which is taken using non-probability sampling techniques from the population or production employees. The data analysis technique used the Structural Equation Modeling (SEM) Partial Least Square (PLS) approach using the Smart PLS version 3.0 software. The results showed that: Compensation and work environment have a positive and significant effect on work motivation, compensation and work environment have a positive and significant effect on morale, work motivation has a positive and significant effect on employee performance and employee morale. Leadership style has no effect on work motivation, employee performance and morale. Compensation and work environment have no effect on employee performance. Compensation has a positive and significant effect on employee performance through work motivation, work environment has a positive and significant effect on employee performance through work motivation, compensation has a positive and significant effect on work motivation through work motivation, the environment has a positive and significant effect on morale through work motivation. In addition, motivation cannot mediate the relationship between leadership style and employee performance, and motivation cannot mediate the relationship between leadership style and morale.

Highlights

As a result of the 4.0 Industrial Revolution, many factories have started implementing internet network systems to facilitate internal information, employee supervision, and bookkeeping
This study examines the effect of compensation, environment, and leadership style on employee work passion and performance through motivation studies at PT
The results showed that compensation and work environment positively and significantly affected work motivation, compensation, and work environment completely and affected substantially work passion

Summary

Introduction

As a result of the 4.0 Industrial Revolution, many factories have started implementing internet network systems to facilitate internal information, employee supervision, and bookkeeping. Companies must always exist and survive to face competition. Human resources' role is significant to compete and survive challenges because human resources are seen as a determining element in the business development process and realizing company goals; human resources must be prepared thoroughly, directed, and integrated. Human resources or employees are the most expensive assets owned by the company to be managed carefully. The management includes providing compensation, a comfortable environment, a good leadership style, and employee motivation. The employees will produce good performance if they are compensated fairly to avoid a social gap between employees, impacting decreased performance.Kinerja berkaitan dengan perilaku kearah pencapaian tujuan atau misi organisasi, atau produk dan jasa yang dihasilkan dari perilaku tersebut (Hughes, Ginnett dan Curpy, 2015:311). Ada faktor-faktor yang mempengaruhi gairah kerja menurut Nitisemito (Murtisaputra & Ratnasari, 2018) adalah kepemimpinan, motivasi, komunikasi, hubungan manusiawi, kompensasi dan lingkungan kerja

Results

Discussion

Conclusion