Develop organizational culture

Oct 13, 2025 by vinooalluri.com 123 views

The Influence of Leadership and Compensation on Employee Performance of PT Patra Badak Arun Solusi

Introduction

Effective leadership and fair compensation are crucial factors in improving employee performance in any organization. PT Patra Badak Arun Solusi, a company located in Jakarta, is no exception. This study aims to determine the effect of leadership and compensation on employee performance at PT Patra Badak Arun Solusi. The population in this study consisted of employees of PT Patra Badak Arun Solutions involved in the company's operations. In this study, the sampling technique used was the Slovin formula, where 55 of 199 employees were randomly chosen. Primary data collection is carried out through a questionnaire, while secondary data is obtained from the literature study. The hypothesis in this study was analyzed using multiple linear regression analysis with a significance level of α of 5% (0.05).

The Importance of Leadership in Employee Performance

Effective leadership is a critical factor in improving employee performance. Good leadership is able to create a positive work environment, encourage employees to work harder and contribute greater. An inspiring leader not only directs the task, but also provides motivation and support to his team. With strong leadership, employees feel valued and involved, which results in increased productivity. Leadership styles such as transformational leadership, transactional leadership, and servant leadership have been shown to have a positive impact on employee performance. Transformational leaders, in particular, are able to inspire and motivate their employees to achieve exceptional results.

The Role of Compensation in Employee Performance

Compensation is another important factor that affects employee performance. Employees who get a fair and competitive reward will tend to be more satisfied with their work and are motivated to achieve the best performance. When employees feel that the salaries and facilities they receive are proportional to the contributions given, they will be more committed to their work. Fair compensation is essential in motivating employees to perform at their best. It is also important to note that compensation is not just limited to monetary rewards, but also includes non-monetary benefits such as health insurance, retirement plans, and paid time off.

The Effect of Leadership and Compensation on Employee Performance

The results of this study indicate that leadership and compensation simultaneously have a significant influence on employee performance at PT Patra Badak Arun Solusi Jakarta. The R square value obtained is 0.481, which means 48.1% of employee performance can be explained by leadership and compensation, while the remaining 51.9% is influenced by other variables that are not included in this study. This implies that leadership and compensation are crucial factors in improving employee performance, but other variables such as organizational culture, career development opportunities, and relationships between colleagues also play a significant role.

Additional Analysis and Explanation

The results of this study also showed that 51.9% of employee performance could not be explained by leadership and compensation only. This implies the existence of other influential variables, such as organizational culture, career development opportunities, and relationships between colleagues. Therefore, companies need to consider other factors that can improve employee performance. Organizational culture, for example, plays a significant role in shaping employee behavior and attitudes. A positive organizational culture can lead to increased employee engagement, motivation, and productivity.

Conclusion

In conclusion, this study provides valuable insight to the management of PT Patra Badak Arun Solutions in formulating human resource management strategies. By strengthening aspects of leadership and compensation, employee performance is expected to be significantly improved. In addition, identification and management of other variables that affect performance is also an important step to achieve the company's goals. Effective leadership and fair compensation are essential in improving employee performance, but other variables such as organizational culture, career development opportunities, and relationships between colleagues also play a significant role.

Recommendations

Based on the findings of this study, the following recommendations are made:

Strengthen leadership: The company should focus on developing effective leadership skills among its managers and supervisors. This can be achieved through leadership development programs, training, and coaching.
Improve compensation: The company should review its compensation package to ensure that it is fair and competitive. This can include increasing salaries, providing non-monetary benefits, and offering career development opportunities.
Develop organizational culture: The company should focus on developing a positive organizational culture that promotes employee engagement, motivation, and productivity.
Identify and manage other variables: The company should identify and manage other variables that affect employee performance, such as career development opportunities, relationships between colleagues, and organizational culture.

By implementing these recommendations, PT Patra Badak Arun Solusi can improve employee performance, increase productivity, and achieve its business goals.
Frequently Asked Questions (FAQs) about the Influence of Leadership and Compensation on Employee Performance

Q: What is the main objective of this study?

A: The main objective of this study is to determine the effect of leadership and compensation on employee performance at PT Patra Badak Arun Solusi.

Q: What is the population of this study?

A: The population of this study consists of employees of PT Patra Badak Arun Solutions involved in the company's operations.

Q: What is the sampling technique used in this study?

A: The sampling technique used in this study is the Slovin formula, where 55 of 199 employees were randomly chosen.

Q: What is the significance level of this study?

A: The significance level of this study is α of 5% (0.05).

Q: What is the R square value obtained in this study?

A: The R square value obtained in this study is 0.481, which means 48.1% of employee performance can be explained by leadership and compensation.

Q: What are the implications of the results of this study?

A: The results of this study imply that leadership and compensation are crucial factors in improving employee performance, but other variables such as organizational culture, career development opportunities, and relationships between colleagues also play a significant role.

Q: What are the recommendations of this study?

A: The recommendations of this study are:

Strengthen leadership: The company should focus on developing effective leadership skills among its managers and supervisors.
Improve compensation: The company should review its compensation package to ensure that it is fair and competitive.
Develop organizational culture: The company should focus on developing a positive organizational culture that promotes employee engagement, motivation, and productivity.
Identify and manage other variables: The company should identify and manage other variables that affect employee performance, such as career development opportunities, relationships between colleagues, and organizational culture.

Q: What are the limitations of this study?

A: The limitations of this study are:

Small sample size: The sample size of this study is relatively small, which may limit the generalizability of the results.
Limited scope: The scope of this study is limited to PT Patra Badak Arun Solusi, which may not be representative of other organizations.
Methodological limitations: The study uses a quantitative approach, which may not capture the nuances of employee performance.

Q: What are the future research directions?

A: The future research directions are:

Replication studies: Replication studies can be conducted to verify the findings of this study in other organizations.
Qualitative studies: Qualitative studies can be conducted to gain a deeper understanding of the factors that affect employee performance.
Longitudinal studies: Longitudinal studies can be conducted to examine the effects of leadership and compensation on employee performance over time.

Q: What are the practical implications of this study?

A: The practical implications of this study are:

Improved employee performance: The study provides evidence that leadership and compensation are crucial factors in improving employee performance.
Increased productivity: The study suggests that organizations can increase productivity by strengthening leadership and compensation.
Better employee engagement: The study implies that organizations can improve employee engagement by developing a positive organizational culture.