The Effects of Transformational Leadership on Commitment, Motivation, Compensation and Employee Performance of Local Water Supply Companies in Timor Tengah Selatan Regency Indonesia

Abstract

This research is motivated by the contradictions contained in organizational theory and empirical findings of previous research on the effect of transformational leadership on organizational commitment, employee motivation, compensation, employee performance. The purpose of this research is to examine and explain the effect of transformational leadership on organizational commitment, employee motivation, employee compensation and performance. The method in this research is a quantitative approach with explanatory research. The analysis technique uses Smart PLS 3. Sample data were obtained from 40 respondents as employees at the Regional Drinking Water Company in Timor Tengah Selatan Regency. The findings of this study are that transformational leadership has a positive and significant effect on organizational commitment, employee motivation, compensation and employee performance. Organizational commitment has a positive and significant effect on motivation. Employee motivation has a positive and significant effect on compensation. Compensation has a positive effect and is significant to employee performance. This study concludes that the variables of transformational leadership, organizational commitment, employee motivation, reasonable compensation have an important role in improving employee performance which excels in achieving organizational goals as a common goal. Therefore, it is necessary to get attention from policy makers to consider these variables.