Impact of Democratic Leadership, Compensation, and Work Environment on Employee Performance via Motivation
Purpose: This study aims to analyze the influence of democratic leadership style, compensation, and work environment on employee performance through work motivation as an intervening variable. The study’s objective was to analyze ASN Employees of the Sidoarjo Regency Regional Secretariat, totaling 37 people.
Research Methodology: This study used a quantitative research method. The Partial Least Squares (PLS) technique was used for analysis, with validity, reliability, and hypothesis tests.
Results: The study results indicate that democratic leadership, compensation, and work environment have positive and significant effects on employee work motivation and performance. In addition, work motivation positively and significantly affects employee performance and mediates the influence of democratic leadership, compensation, and work environment on employee performance.
Conclusions: Democratic leadership, compensation, and work environment all positively influence employee performance, both directly and indirectly through work motivation. Work motivation strengthens the effects of these factors, indicating its role as a key intermediary in improving performance.
Limitations: The study is limited by its small sample size, single-agency focus, and cross-sectional design, which may affect generalizability and causal interpretation.
Contributions: This study highlights the importance of democratic leadership, fair compensation, and a supportive work environment in enhancing employee performance. Practically, it provides guidance for managers to foster motivation and optimize workplace conditions to achieve higher productivity.
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