Building Character of Leadership
DOI:
https://doi.org/10.38035/gijtm.v1i2.39Keywords:
Leadership, Compensation, Motivation, Employee PerformanceAbstract
The objective of this research was to examine the impact of leadership and compensation on employee motivation, as well as their implications on the performance of cooperative employees in Karawang, both individually and collectively. The research employed a descriptive and verificative method, utilizing a survey as the primary tool. The study focused on 330 employees of cooperatives as respondents. Data analysis was conducted using the LISREL 8.80 program, employing the Structural Equation Model (SEM). The findings of the study indicate that: 1) leadership and compensation have a significant positive effect on motivation, accounting for 52% of the variance (R2 = 0.52). 2) leadership, compensation, and motivation all have a positive and significant impact on employee performance, accounting for 75% of the variance (R2 = 0.75). Among the variables examined, motivation was found to have the most influence on performance, while compensation was identified as the most influential factor on motivation. Based on the research findings, it is recommended that efforts be made to enhance employee performance in cooperatives in the Karawang district through the improvement of employee motivation. This can be achieved by fostering strong relationships between employees and members, co-workers, and management, as well as by increasing compensation levels, which should encompass salary conformity, incentives, food allowance, transportation allowance, and by improving leadership qualities, including supportive behaviors such as providing employment opportunities, favorable working conditions, conflict resolution, and boosting morale.
References
Afshan , Sultana et al. 2012. Imcat of Training on Employees Performance : A Study of Telecommunication Sector in Pakistan. Indiciplinary Journal of Contemporary Research in Business, Vol 4, No. 6
Asad M. _ 2004. Industrial Psychology. Human Resource Management Science Series. Yogyakarta: Liberty Publishers
Anoraga, Panji. 2009. Business Management . Semarang, PT. Rineka Cipta.
Bachrudin, Achmad & Harapan L Tobing. 2003. Data Analysis for Survey Research Using Lisrel 8 Equipped with Case Examples , Bandung. Department of Statistics, FMIPA UNPAD.
Bass, B.M and Avolio . 2003. “Predicting Unit Performance by Assessing Transformational and Transactional Leadership. Journal of Applied Psychology , 88 (2), dd. 207-218.
Bernadin, H. John and Russell, Joyce E, A . 200 3. Human Resource Management: an Experimental Approach . Singapore: McGraw-Hill Book Co.
Bogomba Winfred Kombo, Geoffrey Ongondo Obonyo, and Margaret Oloko. 2014. Effects of Delegation on Employee Performance in Savings and Credit Cooperative Societies in Kisii County, Kenya. The International Journal Of Business & Management (ISSN 2321 – 8916)
Bohlander, G., Snell, S., & Sherman, A. 2001. Managing human resources. Australia: South-Western College Publishing.
Davis, Keith, and John W. Newstrom. 2002. Organizational Behavior, Human Behavior at Work. 11th Edition, New York. McGraw-Hill Irwin
Dessler, Gary. 2005, “ Human Resource Management” , Tenth Edition, New Jersey: Prentice Hall.
Drath, WH, McCauley, CD, Palus, CJ, Van Velsor, E., O'Connor, PMG, and McGuire, JB 2008. Direction, alignment, commitment: Toward a more integrative ontology of leadership. The Leadership Quarterly, 19(6), 635–653.
Elegwa Mukuru. 2011. Effect of Motivation on Employee Performance in Public Middle Level Technical Training Institutions in Kenya. International Journal of Advances in Management and Economics, Vol.2 | Issues 4|73-82
Emmanuel Akanpaadgi, Matthew Valogo and Christopher Akaligang. 2014, An Assessment of the Effects of Leadership on the Motivation of Employees towards the Achievement of Organizational Goals: A Case Study of the Hospitality Industry in the Bolgatanga Municipality. European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.6, No.24
Ernest J. McCormick, 2001, Industrial Psychology . New York: Prentice Hall, Inc.
Ficke H. Rawung. 2013. The Effect of Leadership on the Work Motivation of Higher Education Administration Employees (Study at Manado State University). IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 15, Issue 1
Gibson, James L, and James H, Donnelly. 2012. Organizational Behavior, Structure and Process. 11th Edition SC, London, McGraw-Hill.
Golem, Daniel. 2007. Social Intelligence . USA: A Bantam Book.
Gomes, Faustino Cardoso. 2005. Human Resource Management . Yogyakarta: CV. Andi Offset.
Hair et al., 2006 . Multivariate Data Analysis , Fifth Edition, Upper Saddle River. New Jersey. Prentice Hall,
Hasibuan Malayu, 2007, Organization and Motivation: Basics of Increasing Productivity . Jakarta: Earth Script
Irum Shahzadi, Ayesha Javed, Syed Shahzaib Pirzada, Shagufta Nasreen, Farida Khanam. 2014. Impact of Employee Motivation on Employee Performance. European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.6, No.23
Ivancevich, John M., Robert Konopaske, and Michael T. Matteson. 2008. Organizational Behavior and Management 8 th . Singapore: McGraw-Hill International., inc.
Jamil Bilal and Naintara Sarfaraz Raja. 2011. Impact of Compensation, Performance Evaluation and Promotion Practices on Government Employees Performance VS Private Employees Performance. Interdisciplinary Journal Of Contemporary Research In Business VOL 3, NO 8
Jane Nelima Wekesa and Silas Nyaroo. 2013. Effect of Compensation on Performance of Public Secondary School Teachers in Eldoret Municipality Kenya. International Journal of Scientific and Research Publications, Volume 3, Issue 6, June 2013 1 ISSN 2250-3153
Jayaweera, Thusel. 2015. Impact of Work Environmental Factors on Job Performance, Mediating Role of Work Motivation: A Study of Hotel Sector in England. International Journal of Business and Management vol 10, no 3
Jöreskog, Karl G. and Dag Sörbom. 2001. LISREL 8: User's Reference Guide . Lincoln wood, IL: Scientific Software International, Inc.
Khaliq Ahmad , 2009 "Leadership and work motivation from the cross cultural perspective", International Journal of Commerce and Management , Vol. 19 Issue: 1, pp.72-84, ISSN: 1056-9219
Khan, Waqas and Mufti, Owais. 2012. Effect of Compensation on Motivating Employees in Public and Private Banks of Peshawar (BOK and UBL). Journal of Basic and Applied Scientific Research , ISSN 2090-4304, 2(5)4616-4623.
Long, Richard J., 2006 . “ Strategic Compensation in Canada”, 3rd edition , Toronto: Thomson Nelson Learning.
Lucy Kagwiria Kuria, Namusonge, Mike Iravo. 2016. Effect of Leadership on Organizational Performance in the Health Sector in Kenya. International Journal of Scientific and Research Publications, Volume 6, Issue 7, ISSN 2250-3153
Lynne, Whatmore. 2012. Raising Performance through Motivation Part One: Content Theories . United Kingdom, Michael Heath Consulting.
Luthans, Fred. 2002. Organizational Behavior. Nineth Edition, New York Mc. Graw-Hill.
Mahmudi, (2005). Public Sector Performance Management. Yogyakarta: UPP AMP YKPN.
Mahmood, Iqbal and Samsaa, 2014, "The Relationship between Role Ambiguity, Competency and Person-Job Fit With the Job Performance of Employees in the Service Sector SMEs in Malaysia" . Business Management Dynamics, Vol.1, No.2.
Mathis, RL and Jackson, JH. 2002. " Human Resource Management". Book I. Translator Jimmy Sadeli & Bayu Prawir. Jakarta. PT. Salemba Emban Patria.
Michael West, Kirsten Armit, Lola Loewenthal, Regina Eckert, Thomas West, Allan Lee. 2015. Leadership and Leadership Development in Health Care: The Evidence Base . London, Faculty of Medical Leadership and Management
Mangkunegara, Anwar Prabu. 2008, Corporate Human Resource Management . Bandung: Rosdakarya Youth.
Muhamad Rizal , Syafiie Idrus, Djumahir, Rahayu Mintarti. 2014. Effect of Compensation on Motivation, Organizational Commitment and Employee Performance (Studies at Local Revenue Management in Kendari City). International Journal of Business and Management Invention ISSN (Online): 2319 – 8028, ISSN (Print): 2319 – 801X www. ijbmi. org, Volume 3, Issue 2February 2014, PP. 64-79
Munandar, Ashar Sunyoto. 2004. Industrial and Organizational Psychology, Jakarta, University of Indonesia Publisher.
Newstrom, John W. 2010. Organizational Behavior; Human Behavior at Work 13 th . Singapore.
Prasetya, A. and Kato, M. 2011. The Effect of Financial and Non-Financial Compensation to the Employee Performance . Yogyakarta, Indonesia. The 2nd International Research Symposium in Service Management.
Rijalu Negash, Shimelis Zewude, and Reta Megersa. 2014. The effect of compensation on employee motivation: In Jimma University academic staff. Journal of Business Management and Accounts ISSN 2315-6899 Vol. 3(2)pp. 17-27
Rivai, Veithzal. 2008. Human Resource Management for Companies . Jakarta : PT. Bhuana Popular Science
Rizal Muhamad, M Syafiie Idrus, Djumahir, and Rahayu Mintarti, 2014, Effect of Compensation on Motivation, Organizational Commitment and Employee Performance (Studies at Local Revenue Management in Kendari City). International Journal of Business and Management Invention, ISSN (Online): 2319 – 8028, ISSN (Print): 2319 – 801X , , Volume 3, Issue 2, PP. 64-79
Robbins, Stephen P. 2003. Organizational Behavior. Ninth Edition , New Jersey: Prentice Hall International Inc.
Robbins, Stephen P and Mary Coulter. 2012. Management , 11 th ed. New Jersey: Prentice Hall.
Sarmiento, R., & Beale, J. 2007. Determinants of performance among shop-floor employees . Management Research News, 30 (12), 915-927.
Saraswathi, S. 2011. A Study on Factors that Motivate IT and Non-IT Sector Employees: A Comparison. International Journal of Research in Computer Application and Management, Vol. 1(2), pp. 72-77
Siagian, Sondang P., 2008. Human Resource Management. seventh printing: Jakarta Radar Jaya Offset Publisher.
Sinungan, Muchdarsyah. 2009. What productivity and how ? . Jakarta: Earth Script.
Sedarmayanti. 2000. Human Resource Management, Bureaucratic Reform and Management of Civil Servants . Bandung : PT. Aditama Refika
Sekaran, U. and Bougie, R. 2011. Research methods for business: a skill building approach . United Kingdom Wiley,
Sri Rahardjo. 2014. The Effect Of Competence, Leadership And Work Environment Towards Motivation And Its Impact On The Performance Of Teacher Of Elementary School In Surakarta City, Central Java, Indonesia. International Journal of Advanced Research in Management and Social Sciences Vol. 3 | No. 6 ISSN: 2278-6236
Sugiyono. 2013. Statistics for Research. Bandung. Alpha Beta.
Suharsimi, Arikunto . 2002 . Research Procedures A Practice Approach , Jakarta: Rineka Cipta.
Tahir Masood Quershi. 2010. Relationship between HR Practices and Perceived Employees' Performance of Bankers in NWFP Pakistan (An Empirical Evidence). African Journal of Business Management Vol. 4(7), pp. 1281-1288.
Timpe, A. Dale. 2005. Performance Science Series and Aspects of Business Management , Jakarta: Elex Media Komputindo.
John Susanto. 2016. Leadership and Compensation Effects on Work Motivation and Its Implications on Employee Performance of Savings and Loans Cooperatives in Palembang City. Economica Sharia Vol. 2 No. 1, ISSN : 2641-002X
Yukl, S. 2013. Leadership in Organizations (8th ed.) . England: Pearson Education Limited.
Downloads
Published
How to Cite
Issue
Section
License
Copyright :
Authors who publish their manuscripts in this journal agree to the following conditions:
- Copyright in each article belongs to the author.
- The author acknowledges that the Greenation International Journal of Tourism and Management (GIJTM) has the right to be the first to publish under a Creative Commons Attribution 4.0 International license (Attribution 4.0 International CC BY 4.0).
- Authors can submit articles separately, arrange the non-exclusive distribution of manuscripts that have been published in this journal to other versions (for example, sent to the author's institutional repository, publication in a book, etc.), by acknowledging that the manuscript has been published for the first time at GIJTM.
