The Effect of Servant Leadership, Employee Empowerment, Compensation and Workload on Organizational Performance with Employee Engagement as A Mediating Variable (A Case Study of The Local Government of Sungai Penuh City)
DOI:
https://doi.org/10.38035/gijea.v4i3.1100Keywords:
Servant Leadership, Employee Empowerment, Compensation, Workload, Employee Engagement, Organizational PerformanceAbstract
This study aims to analyze the effect of servant leadership, employee empowerment, compensation, and workload on organizational performance, with employee engagement as a mediating variable, in the Local Government of Sungai Penuh City. The study employed a quantitative approach with an explanatory survey design. Data were collected through a five-point Likert-scale questionnaire administered to 250 civil servant (ASN) respondents, selected using proportionate stratified random sampling across the regional apparatus organizations within the Sungai Penuh City Government. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with the SmartPLS 4 software. The results show that servant leadership, employee empowerment, and compensation have a positive and significant effect on employee engagement, whereas workload has a negative and significant effect on employee engagement. Employee engagement has a positive and significant effect on organizational performance. Servant leadership and employee empowerment have a direct, positive, and significant effect on organizational performance, workload has a significant negative direct effect, while compensation has no significant direct effect on organizational performance. Employee engagement is shown to mediate the effect of all four exogenous variables on organizational performance, with full mediation on the compensation path and partial mediation on the servant leadership, employee empowerment, and workload paths. These findings imply that improving the organizational performance of local government requires strengthening servant leadership, empowering employees, establishing a fair compensation system, and managing workload proportionally in order to foster employee engagement.
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