Impact of Democratic Leadership, Compensation, and Work Environment on Employee Performance via Motivation

2023-11-25
Published
92-101
Pages
OPEN
Access
EA
Effendy Akhirudin
Universitas Dr. Soetomo, Surabaya
BP
Bambang Raditya Purnomo
Universitas Dr Soetomo, Surabaya
Abstract

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.

Compensation Democratic Leadership Employe Performance Work Environment Work Motivation
How to Cite
Akhirudin, E. ., & Purnomo, B. R. . (2023). Impact of Democratic Leadership, Compensation, and Work Environment on Employee Performance via Motivation. Jurnal Bisnis, Ekonomi, Manajemen, Dan Kewirausahaan , 3(2), 92-101. https://doi.org/10.52909/jbemk.v4i2.174
References
  1. Abidin, A. A., Muratin, M., & Rahadian, M. I. (2022). Analyzing the effect of product quality on consumer satisfaction at shoe and sandal stores in bogor regency. Journal of Economics, Management, Entrepreneurship, and Business, 2(1), 52–64. https://doi.org/10.52909/jemeb.v2i1.78
  2. Amegayibor, G. K. (2021). Leadership styles and employees’ performance: A case of family-owned manufacturing company, cape coast. International Journal of Financial, Accounting, and Management, 3(2), 149–164. https://doi.org/10.35912/ijfam.v3i2.624
  3. Anaperta, M., Fiddaraini, H., Rinaldi, M., Nissa, A. J., & Putri, H. G. (2021). Development of problem-based learning e-book media for proxy server configuration in tkj smk negeri 3 padang. Jurnal Teknika Dan Informatika, 1(2), 161–176. https://doi.org/10.52909/jti.v3i2.136
  4. Arslan, M., & Roudaki, J. (2019). Examining the role of employee engagement in the relationship between organisational cynicism and employee performance. International Journal of Sociology and Social Policy, 39(1–2), 118–137. https://doi.org/10.1108/IJSSP-06-2018-0087
  5. Atouba, Y. (2021). How does participation impact it workers’ organizational commitment? examining the mediating roles of internal communication adequacy, burnout and job satisfaction. Leadership & Organization Development Journal, 42(4), 580–592. https://doi.org/10.1108/LODJ-09-2020-0422
  6. Basuki, P. L., & Khalid, Z. (2021). The influence of organizational culture and working environment on employee performance at pt. pusaka ayu bahari. Reviu Akuntansi, Manajemen, dan Bisnis, 1(1), 21–26. https://doi.org/10.35912/rambis.v1i1.403
  7. Bindlish, P. K., Nandram, S. S., & Gupta, R. K. (2019). Definition schema for redefining leadership: An integrative approach. International Journal of Indian Culture and Business Management, 18(1), 34–58. https://doi.org/10.1504/IJICBM.2019.096921
  8. Breaugh, J., Ritz, A., & Alfes, K. (2018). Work motivation and public service motivation: Disentangling varieties of motivation and job satisfaction. Public Management Review, 20(10), 1423–1443. https://doi.org/10.1080/14719037.2017.1400580
  9. Fernando, L., & Surjandari, D. A. (2022). The impact of internal control, cultural control, incentives, and work discipline on employee performance (case study in pt lestari jaya raya). Annals of Management and Organization Research, 2(3), 209–223. https://doi.org/10.35912/amor.v2i3.929
  10. Hajiali, I., Kessi, A. M. F., Budiandriani, B., Prihatin, E., & Sufri, M. M. (2022). Determination of work motivation, leadership style, employee competence on job satisfaction and employee performance. Golden Ratio of Human Resource Management, 2(1), 57–69. https://doi.org/10.52970/grhrm.v2i1.160
  11. Hakim, M. M., Nurhayati, N., & Setiawan, J. (2022). Optimizing green investment portfolios using the markowitz model for sustainable financial and social returns. Jurnal Bisnis, Ekonomi, Manajemen, Dan Kewirausahaan, 2(1), 24–41. https://doi.org/10.52909/jbemk.v4i2.184
  12. Harywibowo, R., & Hariadi, A. (2022). Effect of preventive maintenance, traffic management, technology, communication support, operator care on osh performance at pt. xyz. Journal of Economics, Management, Entrepreneurship, and Business, 2(2), 142–161. https://doi.org/10.52909/jemeb.v2i2.103
  13. Hasan, H. (2022). Ethics work in increase performance employees in the aviation industry. Jurnal Transportasi, Logistik, dan Aviasi, 2(1), 55–62. https://doi.org/10.52909/jtla.v2i1.99
  14. Hee, O. C., Yan, L. H., Rizal, A. M., Kowang, T. O., & Fei, G. C. (2018). Factors influencing employee job satisfaction: A conceptual analysis. International Journal of Academic Research in Business and Social Sciences, 8(6), 331–340. https://doi.org/10.6007/IJARBSS/v8-i6/4207
  15. Henning, G., Stenling, A., Tafvelin, S., Hansson, I., Kivi, M., Johansson, B., & Lindwall, M. (2019). Preretirement work motivation and subsequent retirement adjustment: A self-determination theory perspective. Work, Aging and Retirement, 5(2), 189–203. https://doi.org/10.1093/workar/way017
  16. Heriyanto, D. (2021). The impact of service quality and compensation on crew satisfaction in manning companies. Jurnal Transportasi, Logistik, dan Aviasi, 1(1), 31–41. https://doi.org/10.52909/jtla.v1i1.35
  17. Ikhsani, K., Widayati, C. C., & Wuryandari, N. E. R. (2021). Effect of risk perception, promotion, and brand trust on purchase intention post-covid-19 era. Jurnal Bisnis, Ekonomi, Manajemen, Dan Kewirausahaan, 1(2), 83–93. https://doi.org/10.52909/jbemk.v1i1.31
  18. Kurniawanto, H., Rahmadi, Z. T., & Wahyudi, M. A. (2022). Effect of work environment and motivation on employee performance with job satisfaction as a mediation. International Journal of Social and Management Studies, 3(3), 150–162. https://doi.org/10.5555/ijosmas.v3i3.209
  19. Lumi, A. N., & Yosef, M. (2022). The effect of supervision on employee performance at pt. indo suharjaya (narma toserba). Journal of Economics, Management, Entrepreneurship, and Business, 2(1), 1–13. https://doi.org/10.52909/jemeb.v2i1.69
  20. Mairia, M., Komardi, D., & Panjaitan, H. P. (2021). Leadership, organizational commitment, work discipline, and employee performance at public health office of pekanbaru city. Journal of Applied Business and Technology, 2(2), 154–168. https://doi.org/10.35145/jabt.v2i2.72
  21. Makambe, U., & Moeng, G. J. M. (2019). The effects of leadership styles on employee performance: A case of a selected commercial bank in botswana. Annals of Management and Organization Research, 1(1), 39–50. https://doi.org/10.35912/amor.v1i1.274
  22. Nuraeni, N., Ahmad, G., Matin, M., Sulaiman, S., & Izhari, F. (2022). Effect of work motivation and discipline on employee performance mediated by work competency at pt. bprs al salaam. Journal of Economics, Management, Entrepreneurship, and Business, 2(1), 23–35. https://doi.org/10.52909/jemeb.v2i1.80
  23. Olafsen, A. H., Deci, E. L., & Halvari, H. (2018). Basic psychological needs and work motivation: A longitudinal test of directionality. Motivation and Emotion, 42(2), 178–189. https://doi.org/10.1007/s11031-017-9646-2
  24. Oral, M. (2019). Meaning management: A framework for leadership ontology. The Journal of Values-Based Leadership, 12(2), 11. https://doi.org/10.22543/0733.122.1273
  25. Parmenas, N. H. (2022). Employee engagement: Turnover prevention strategies and key to improving performance management in multinational company. Journal of Economics, Management, Entrepreneurship, and Business, 2(1), 14–22. https://doi.org/10.52909/jemeb.v2i1.70
  26. Pawirosumarto, S., Sarjana, P. K., & Gunawan, R. (2017). The effect of work environment, leadership style, and organizational culture towards job satisfaction and its implication towards employee performance in parador hotels and resorts, indonesia. International Journal of Law and Management, 59(6), 1337–1358. https://doi.org/10.1108/IJLMA-10-2016-0085
  27. Phina, O. N., Patrick, O. A., & Nwabuike, C. (2022). Emotional resilience and employee performance of commercial banks in south-east nigeria. Annals of Human Resource Management Research, 2(2), 105–115. https://doi.org/10.35912/ahrmr.v2i2.1352
  28. Prinhandaka, D. J. P., Rohman, I. Z., & Wijaya, N. H. S. (2022). Supportive leadership and employee creativity: Will leader-member exchange (lmx) mediate the relationship? Annals of Management and Organization Research, 4(1), 35–45. https://doi.org/10.35912/amor.v4i1.1477
  29. Psychogios, A., & Dimitriadis, N. (2021). Brain-adjusted relational leadership: A social-constructed consciousness approach to leader-follower interaction. Frontiers in Psychology, 12, 672217. https://doi.org/10.3389/fpsyg.2021.672217
  30. Putri, E. M., Ekowati, V. M., Supriyanto, A. S., & Mukaffi, Z. (2019). The effect of work environment on employee performance through work discipline. International Journal of Research-GRANTHAALAYAH, 7(4), 132–140.
  31. Rizky, K., Ramadhani, P., Husnia, R., & Saputra, N. (2021). Work engagement pada karyawan di dki jakarta: Pengaruh collaboration skills, digital leadership, dan perceived organizational support. Studi Ilmu Manajemen dan Organisasi, 2(1), 61–75. https://doi.org/10.35912/simo.v2i1.540
  32. Satria, B. (2021). The effect of transformational leadership and work motivation on employee performance at pt. xyz. Jurnal Bisnis, Ekonomi, Manajemen, Dan Kewirausahaan, 1(1), 36–47. https://doi.org/10.52909/jbemk.v1i1.25
  33. Setyawati, A., & Aristiyanto, F. K. (2021). Improving discipline through apron movement control (amc) at pt angkasa pura i adi soemarmo airport. Jurnal Transportasi, Logistik, dan Aviasi, 1(1), 1–17. https://doi.org/10.52909/jtla.v1i1.33
  34. Shintani, N. P., Iramani, R., & Lutfi, L. (2022). Impact of financial experience on financial well-being in surabaya: Mediating role of financial behavior. Jurnal Bisnis, Ekonomi, Manajemen, Dan Kewirausahaan, 2(1), 52–60. https://doi.org/10.52909/jbemk.v4i2.186
  35. Simorangkir, A. C., Pakpahan, B. A., & Ariawan, S. (2021). The role of leadership in improving employee discipline. Jurnal Christian Humaniora, 5(1), 125–132. https://doi.org/10.46965/jch.v5i1.623
  36. Solihin, A. (2021). The effect of workload, compensation, and career development on employee loyalty at pt. abc. Jurnal Bisnis, Ekonomi, Manajemen, Dan Kewirausahaan, 1(1), 48–58. https://doi.org/10.52909/jbemk.v1i1.26
  37. Sugiyono. (2010). Metode penelitian pendidikan pendekatan kuantitatif, kualitatif, dan r&d. Alfabeta.
  38. Sulila, I. (2019). The effect of discipline and work motivation on employee performance, btpn gorontalo. International Journal of Applied Business and International Management, 4(3), 121–131. https://doi.org/10.32535/ijabim.v4i3.690
  39. Trisnawati, A. A., Sianto, K., Seansyah, L. A., & Saputra, N. (2021). Holistic work engagement pada tenaga kesehatan di kota jakarta barat: Pengaruh digital quotient, authentic leadership, dan perceived organizational support selama covid-19. Jurnal Akuntansi, Keuangan, dan Manajemen, 2(4), 255–278. https://doi.org/10.35912/jakman.v2i4.425
  40. Van den Broeck, A., Howard, J. L., Van Vaerenbergh, Y., Leroy, H., & Gagné, M. (2021). Beyond intrinsic and extrinsic motivation: A meta-analysis on self-determination theory’s multidimensional conceptualization of work motivation. Organizational Psychology Review, 11(3), 240–273. https://doi.org/10.1177/20413866211006173
  41. Wahyuningsih, E., Widodo, S., & Rahmanto, R. (2021). Prototype manufacture of the arjuno autobost covid-19 robot. Jurnal Teknika Dan Informatika, 1(1), 19–33. https://doi.org/10.52909/jti.v1i1.8

How to Cite

Akhirudin, E. ., & Purnomo, B. R. . (2023). Impact of Democratic Leadership, Compensation, and Work Environment on Employee Performance via Motivation. Jurnal Bisnis, Ekonomi, Manajemen, Dan Kewirausahaan , 3(2), 92-101. https://doi.org/10.52909/jbemk.v4i2.174
Downloads
View PDF PDF · Open Access
Statistics

Most read articles by the same author(s)

Similar Articles

1-10 of 27

You may also start an advanced similarity search for this article.