THE ROLE OF LEADERSHIP, COMPENSATION, ORGANIZATION CULTURE AND MOTIVATION TO MAINTAIN WORKER’S PERFORMANCE AT PT INDO KAYA ENERGI

Abstract

PT. X is one of the local oil and gas support company that has fabrication in Indonesia. As a new company, PT. X has a great opportunity to be one of great oil and gas supporting industry in Indonesia. Now PT. X has reached the Domestic Component Level up to 30% for goods. Human Resources Development (HRD) has an important role in the company develpment, especially to managing human resources so that they have high integrity and initiative to support company development. Therefore, its important for companies to know what they can do to improve employee performance in order to develop their business. Theoretically, the factors that can affect an employee's performance are efforts, competence and environment. This study focuses its analysis on two factors; the effort factor (leadership, compensation, and organizational culture), and the competency factor (motivation). The study involved 70 employees of PT. X to be a sample obtained randomly with cross-sectional study design. Based on the F Test, it is known that leadership, compensation, organizational culture and motivation have a significant effect on employee performance with determination coefficient (R2) of 0.613. This means that the factors of leadership, work motivation, compensation and work culture together can improve employee’s performance by 61.3%. While based on the partial regression test known that the compensation variable has the strongest role with the β coefficient 6.219. It means that compensations can improve employee’s performance six times better than no compensation.