The Effect of Transformational Leadership on Employee Motivation, Compensation and Employee Performance of the Kupang District Water Supply Company

Abstract

This research is motivated by contradictions of thought contained in organizational theory and empirical findings of previous research on the effects of transformational leadership on employee motivation, compensation, employee performance. Analysis techniques, using Generalized Structured Component Analysis (GSCA). Data sample of 150 respondents as employees in the Kupang District Water Supply Company.This research is motivated by contradictions of thought contained in organizational theory and empirical findings of previous research on the effects of transformational leadership on employee diversity, employee motivation, compensation, employee performance. Analysis techniques, using Generalized Structured Component Analysis (GSCA). Data sample of 150 respondents as employees in the Kupang District Water Supply Company.This study found that transformational leadership has a positive and significant effect on employee diversity, employee motivation, compensation and employee performance. Employee motivation has a positive and significant effect on compensation and employee performance. Compensation has a positive and significant effect on employee performance. This study concludes that the variables of transformational leadership employee motivation, compensation and reasonable compensation have an important role in improving superior performance for the achievement of organizational goals as shared goals. Therefore, attention needs to be paid by policy makers to consider these variables.

Keywords: Transformational Leadership, Employee Motivation, Compensation, Employee Performance

DOI: 10.7176/EJBM/12-5-08

Publication date: February 29^th 2020