Transformational Leadership and Compensation on Employee Performance at PT Blambangan Foodpackers Indonesia: The Mediating Role of Motivation

Abstract

The purpose of this study was to determine the effect of transformational leadership and compensation on employee performance with motivation as an intervening variable. The study was conducted by looking at the research gap as a result of the influence of transformational leadership on motivation and the effect of compensation on performance and also on PT Blambangan FoodPackers Indonesia, which has a high turnover rate. The study was conducted on 73 employees using a likert scale in their measurements. Validity and reliability tests are performed to ensure that the questionnaire statement is valid and reliable. It also conducted a classic assumption test to determine whether there are symptoms of multicollinearity and latency. The results obtained using Path Analysis show that transformational leadership and compensation directly influence employee motivation and performance, meanwhile motivation does not significantly influence the performance of the employees of PT Blambangan FoodPackers Indonesia