The Effect of Compensation, Transformational Leadership, and Work Environment on the Performance of Ojju K-Food Restaurant EmployeesJakarta

 

Anisya Latifa Sabasri1, Herry Krisnandi2, Kumba Digdowiseiso3*

1,2,3Faculty of Economics and Business, National University of Jakarta

4Lecture of Faculty of Business, Economics, and Social Development, Universiti Malaysia Terengganu

Email: [email protected], [email protected], [email protected]

 

 

Abstrak


This study aims to determine and analyze the effect of Compensation, Transformational Leadership, and Work Environment on Employee Performance at Ojju K-Food Restaurant Jakarta. The data of this study used primary data in the form of a questionnaire to 102 employees of the Ojju K-Food Restaurant Jakarta. Data analysis techniques using multiple linear regression analysis and using the SPSS program. The results of this study indicate that there is an effect of compensation (X1) on employee performance (Y) of 0.332 and has an effect of 33.2%. Then the variable Transformational Leadership (X2) on Employee Performance (Y) is 0.134 and influences 13.4%. Likewise the variable Work Environment variable (X3) on Employee Performance (Y) of 0.403 and has an effect of 40.3%. Then to partially or simultaneously have a strong influence among the three variables, the most significant is the Work Environment variable of 0.000. The results of this study expect the company to be able to improve the work environment to help improve employee performance.

 

Keywords: Compensation, Transformational Leadership, Work Environment, Employee Performance

 

 

INTRODUCTION

Current economic developments make business competition tighter, requiring companies to increase their resources, one of which is human resources (HR). Human resources are one of the important roles in an organization or company. For a company to have quality employees, the company needs to appreciate all aspects of employees. With increased employee performance, it will have a positive impact on achieving company goals. Therefore, management must study the attitudes and behaviors of employees to be able to improve their performance.

Employee performance greatly influences in determining the back and forth of a company. This is an opinion (Afandi, 2018) that performance is the result obtained by a person or group of people after they work in a company by their responsibilities to achieve company goals illegally, comply with applicable laws, and by morals and ethics.

Ojju K-Food Restaurant is one of the culinary businesses that must compete in the increasingly tight culinary world. To be able to compete, Ojju K-Food must always improve employee performance effectively and efficiently. In this case, the company is required to compensate employees appropriately. In addition, a leader's ability to direct and motivate employees is needed to improve employee performance. The existence of a comfortable work environment for employees will motivate them to improve their performance, including providing the best service for customers.

Several factors influence performance, including compensation factors. According to (Liando et al., 2016), compensation is something that employees receive directly or indirectly as compensation from the company for their performance. The company's goal in providing remuneration is so that the bond of cooperation between the company and employees is stronger. (Nugraha &; Tjahjawati, 2018) have examined the effect of compensation on employee performance stating that compensation has a positive influence on employee performance.

Transformational leadership is another factor that can affect employee performance. Transformational leadership is a leadership style that can motivate employees, to be able to develop and achieve higher levels of performance than previously expected. According to (Widayati et al., 2017), transformational leaders are leaders who inspire their followers to put aside personal interests for the good of the organization and have a tremendous impact on their followers.

Transformational leadership is a form of leadership that is expected to be able to balance the way of thinking and reflect the new paradigm in this era of globalization. This is also supported by research (Sugiono &; Pratista, 2019) it is known that transformational leadership has a positive and significant effect on employee performance. Another factor that affects performance is the work environment factor. The work environment is a tool and material that concentrates, on the work environment in which a person works, his work methods, work methods, and work organizations both individually and in groups.

A comfortable work environment for employees can improve employee performance. On the other hand, an uncomfortable work environment for employees will reduce employee productivity (Nugroho et al., 2021). This is also supported by research conducted by (Nabawi, 2019) it is known that the work environment has a positive and significant effect on employee performance, when the work environment improves, employee performance also increases. The better the work environment in the company, the better the employee performance.

The implementation of HR activities in 2019 was 85.4%, which means that employee performance was quite good at Ojju K-Food Restaurant Jakarta, but in 2020 there was a decrease in the average percentage of employee performance recapitulation of 83.2%. In the following year, 2021, there was an increase in percentage to 83.8%. It can be seen that the company's performance has not been fully realized. So this information shows that there is a decrease in employee performance and it can be concluded that the Human Resources of Ojju K-Food Restaurant are not optimal. The authors estimate the decline in employee performance is due to the effects of compensation, transformational leadership, and the work environment.

It turns out that there is an insignificant effect of compensation (Ningsih et al., 2021). In the journal, it was concluded that the results of the study showed that compensation variables did not have a significant effect on employee performance. In addition, the results of the study (Asbari et al., 2020) stated that transformational leadership has no significant effect on employee performance.

Based on the above background, the problem is formulated as follows: 1) Does compensation affect the performance of employees of Ojju K-Food Jakarta Restaurant? 2) Does transformational leadership affect the performance of Ojju K-Food Jakarta employees? 3) Does the work environment affect the performance of Ojju K-Food Jakarta employees? Based on the previous problem formulation, the objectives to be achieved in this study are to: 1) Analyze the effect of compensation on employee performance. 2) Analyze the effect of transformational leadership on employee performance. 3) Analyze the effect of the work environment on employee performance.

A hypothesis was formulated that is a temporary conjecture in testing this research, namely:

H1: Compensation has a positive and significant effect on employee performance.

H2: Transformational leadership has a positive and significant effect on employee performance.

H3: The work environment has a positive and significant effect on employee performance.

 

RESEARCH METHOD

In this study, the object of the author's research is the Performance of Ojju K-Food Restaurant Employees, which is influenced by Compensation, Transformational Leadership, and Work Environment. The source of data used in this study is primary data. Data collection by distributing questionnaires to respondents (employees) of Ojju K-Food Restaurant.

The type of data for this study is primary data. Regarding the time of collection, using point data (cross-section data), which is data collected at a certain time (at a point of time) to describe conditions and activities at that time. The source of this study was obtained directly from the responses of respondents who worked by distributing questionnaires using the Likert scale.

The population in this study is Ojju K-Food Jakarta Restaurant Employees as many as 137 permanent employees divided into 5 branches, namely Kota Kasablanka, Gandaria City, Grand Indonesia, Central Park, and Mall of Indonesia. To determine the size of the sample to be studied from all employees, the Taro Yamane formula is used. Taro Yamane's formula was used to determine the sample size of a known population of 137 employees.

In this study, the data collection technique used through the distribution of questionnaires and the measurement scale used to measure research variables is the Likert scale. According to (Nabawi, 2019) the Likert scale is a research subject that is faced with statements and the respondents are asked to answer every question in the questionnaire. Using the Likert scale, respondents' answers to each statement item ranged from very positive to very negative regarding compensation, transformational leadership, and the work environment.

The t-test is used to test how each independent variable partially affects the dependent variable. For compensation testing, transformational leadership, and work environment on employee performance, a t-test was performed at alpha 0.05, the decision-making criteria were as follows:

If tcount > stable and significant < 0.05 then H0 is accepted. This means that compensation, transformational leadership, and work environment each have a positive and significant effect on employee performance. If tcount < stable and significant > 0.05 then H0 is rejected. This means that compensation, transformational leadership, and work environment respectively have no positive and significant effect on employee performance.

 

RESULTS AND DISCUSSION

Complete Results of Research Estimates

Data Analysis Methods

Descriptive Analysis

The results of the descriptive static test are to determine the average value of the total mean and the total overall mean for each variable. The independent variables are Compensation (X1), Transformational Leadership (X2), and Work Environment (X3), and the dependent variable is Employee Performance (Y), each of which consists of several statement items, namely: (1) Compensation: 8 statements. (2) Transformational Leadership: 8 statements. (3) Work Environment: 8 statements. (4) Employee Performance: 8 statements

Compensation Variable Data Description

Compensation is a reward for services or remuneration provided by the company to employees because these employees have given energy and thought to the progress of the company to achieve the company's goals that have been set. The table below is the average total mean result of Compensation.

 

Table 1

Average Total Mean and Total Mean Compensation (X1)

 

Salary

 

1

The salary or wages I receive are by my responsibilities

work.

4,20

 

2

The salary or wages I receive correspond to the current department.

4,19

 

Average Total Mean

4,195

 

Incentives or Bonuses

 

3

I feel compelled to be more enthusiastic in working

with incentives.

4,14

 

4

I feel that the incentives I received are as expected

I.

4,20

 

Average Total Mean

4,17

 

Allowances

 

5

Benefits provided by the company according to the position

employee.

4,22

6

The company provides allowances (THR) that help meet needs.

4,33

 

Average Total Mean

4,275

 

Facilities

 

7

The Company provides health insurance facilities for

all employees.

4,23

 

8

Workplace facilities (work uniforms, P3K, work equipment)

complete and adequate.

4,51

 

Average Total Mean

4,37

 

Average Total Mean Compensation

4,25

 

Source: Processed Questionnaire Data

 

Based on Table 1 the average total mean salary indicator has an average value of 4.195 which means that most respondents say they quite agree that the salary to improve performance at Ojju K-Food Restaurant is good, while for the incentive or bonus indicator, the average total mean has an average value of 4.17 which means most respondents say they quite agree that the incentives or bonuses for Ojju K-Food Restaurant employees are good,then the average total mean allowance indicator has an average value of 4.275 which means that most respondents expressed enough agreement that the benefits for employees at Ojju K-Food Restaurant are good, and the average total mean facility indicator has an average value of 4.37 which means that most respondents expressed enough agreement that the facilities for employees at Ojju K-Food Restaurant are good. The average result of the total mean on the overall compensation variable is 4.25. This means that most respondents stated that they quite agree that the compensation managed at Ojju K-Food Jakarta Restaurant is good.

Transformational Leadership Variable Data Description

Transformational leadership is a type of leadership that motivates subordinates toward predetermined goals by clarifying the roles and demands of each individual. The table below is the average total mean result of Transformational Leadership:

 

Table 2

Average Total Mean and Total Mean of Transformational Leadership (X2)

Ideal Influence

1

Leaders��������� are ������������� my����� role������� ���������������� models�� in

company.

4,29

2

The leader���������������������������� instructed���������������� me����� on how

complete a job.

4,31

Average Total Mean

4,3

Inspirational Motivation

3

The leader motivates me to work more

good.

4,39

4

Leaders grow my confidence in doing

work.

4,45

Average Total Mean

4,42

Intellectual Stimulation

5

Leaders solve problems from different points of view.

4,57

6

The leader encouraged me to always give my best

to customers.

4,41

Average Total Mean

4,49

Individual Considerations

7

The leader seeks to increase the development me.

4,45

8

Leaders are willing to listen to my difficulties and complaints

alami.

4,43

Average Total Mean

4,44

Average Total Mean of Transformational Leadership

4,41

Source: Processed Questionnaire Data

 

Based on Table 2 on the ideal influence indicator, the total mean has an average value of 4.3, which means that most respondents agree that the ideal influence to improve performance at Ojju K-Food Restaurant is good, while for the inspirational motivation indicator, the average total mean has an average value of 4.42, which means that most respondents agree that inspirational motivation in employees at Ojju K-Food Restaurant is good,then the total average intellectual stimulation indicator has an average value of 4.49 which means that most respondents expressed quite agree that the intellectual stimulation at Ojju K-Food Restaurant is good, and the average total mean individual consideration indicator has an average value of 4.44 which means that most respondents expressed enough agreement that individual consideration at Ojju K-Food Restaurant is good. The average result of the total mean on the overall transformational leadership variable was 4.41. This means that most respondents said they quite agree that the transformational leadership that Ojju K-Food Restaurant has is good enough.

Work Environment Variable Data Description

Work Environment is everything that surrounds employees at work, whether physical or non-physical, directly or indirectly, which can affect themselves and their work during work. The table below is the mean result of the Work Environment:

 

Table 3

Average Total Mean and Total Mean of Work Environment (X3)

Workplace Building

1

Air circulation in the work environment is up to standard.

4,15

2

Description or light at work is enough.

4,20

Average Total Mean

4,17

Adequate Work Equipment

3

The work equipment available today is sufficient for

support my work activities.

4,28

4

Facilities and infrastructure in the workplace are adequate and

support my work.

4,40

Average Total Mean

4,34

Cooperation Between Employees

5

Employees have a good work team and support each other.

4,51

6

Give each other help to colleagues who have difficulty completing their work.

4,27

Average Total Mean

4,39

Harmonious Relationships

7

The creation of harmonious and familial relationships between

I am with colleagues as well as with superiors.

4,52

8

Good communication between me and colleagues and

superiors to add compactness and good cooperation.

4,32

Average Total Mean

4,42

Average Total Mean Work Environment

4,33

Source: Processed Questionnaire Data

 

Based on Table 4 the average total mean workplace building indicator has an average value of 4.17 which means that most respondents agree that the workplace building to improve performance at Ojju K-Food Restaurant is good, while for adequate work equipment indicators, the average total mean has an average value of 4.34 which means that most respondents say they quite agree that adequate work equipment at Ojju K-Food Restaurant is good,then the average total mean employee cooperation indicator has an average value of 4.39 which means that most respondents agree that cooperation between employees at Ojju K-Food Restaurant is good, and the harmonious relationship indicator average total mean has an average value of 4.42 which means that most respondents agree that harmonious relationships at Ojju K-Food Restaurant are good. The average result of the total mean on the overall Work Environment variable was 4.33. This means that most respondents said they quite agreed that the Work Environment managed by Ojju K-Food Restaurant was quite good.

Description of Employee Performance Variable Data

Performance is the result of work that has been completed by a person or group of people in a company by their respective authorities and responsibilities to achieve organizational goals illegally, does not violate the law, and does not conflict with morals and ethics. The table below is the mean result of Employee Performance:

Table 5

Average Total Mean and Total Mean of Employee Performance (Y)

Quality

1

I always try to improve the quality of my work.

4,13

2

I meet the requirements or work standards (SOPs) that

set company.

4,27

Average Total Mean

4,20

Quantity

3

I was able to get more work done than targeted.

4,27

4

I was able to get the job done neatly.

4,39

Average Total Mean

4,33

Timeliness

5

I was able to get the job done on time.

4,53

6

I am always absent on time and never late.

4,38

Average Total Mean

4,45

Efficiency and Effectiveness

7

I can use my time efficiently and effectively.

4,22

8

I have commitments and responsibilities in my work.

4,20

Average Total Mean

4,21

Average Total Mean Employee Performance

 

4,29

 

 

 

Source: Processed Questionnaire Data

 

Based on Table 5 the average total mean quality indicator has an average value of 4.20 which means that most respondents agree that the quality to improve performance at Ojju K-Food Restaurant is good, while the average total mean quantity indicator has an average value of 4.33 which means most respondents agree that the quantity of employees at Ojju K-Food Restaurant is good,then the average total mean punctuality indicator has an average value of 4.45 which means that most respondents agree that punctuality for employees at Ojju K-Food Restaurant is good, and the average total mean efficiency and effectiveness indicator has an average value of 4.21 which means most respondents state that the efficiency and effectiveness of employees at Ojju K-Foood Restaurant is good. The average result of the total mean on the overall Employee Performance variable was 4.29. This means that most respondents say they quite agree that the performance of employees at Ojju K-Food Restaurant is quite good.

The t-test (partial regression test) is used to determine whether partially each independent variable means Compensation, Transformational Leadership, and Work Environment have a positive effect on Employee Performance.

 

Table 6 Uji t

Model

Unstandardized Coefficients

Standardized Coefficients

 

t

 

Sig.

 

B

Std. Error

 

Beta

1

(Constant)

5,889

2,611

 

2,256

,026

 

Total.X1

,305

,099

,331

3,094

,003

 

Total.X2

,157

,075

,153

2,096

,039

 

Total.X3

,360

,101

,394

3,572

,001

a. Dependent Variable: Total.Y

Source: SPSS 23 Processed Data

 

Based on the results of the t-test referring to Table 1 above, it can be seen that the calculated value for Compensation is 3.094 with a significant level of 0.003, while the table value with df = n-k-l (102-3-1=98), a significant level of 0.05 is obtained at 1.660. Because the count> table (3,094>1,660) then H0 is rejected and Ha is accepted, meaning that Compensation has a positive and significant effect on the Performance of Ojju K-Food Jakarta Restaurant Employees.

For the calculated value of Transformational Leadership of 2.096 with a significant level of 0.039, while the value of table with df = n-k-l (102-3-1=98), a significant level of 0.05 is obtained at 1.660. Because count> table (2,096>1,660) then H0 is rejected and Ha is accepted, meaning that Transformational Leadership has a positive and significant effect on the Performance of Ojju K-Food Jakarta Restaurant Employees.

For the calculated value of the Work Environment of 3.572 with a significant level of 0.001, while the value of the table with df = n-k-l (102-3-1=98), a significant level of 0.05 is obtained at 1.660. Because the count> table (3,572 > 1,660) then H0 is rejected and Ha is accepted, meaning that the Work Environment has a positive and significant effect on the performance of employees of Ojju K-Food Jakarta Restaurant.

The Effect of Compensation on Employee Performance

Based on the results of hypothesis testing, it was found that compensation has a positive and significant effect on employee performance at Ojju K-Food Restaurant Jakarta. The results of hypothesis testing have a value of 3.094 with a significant level below 0.05, which is 0.003. This positive and significant influence indicates that good compensation affects the improvement of employee performance at Ojju K-Food Restaurant Jakarta. This is also proven by the value of the coefficient of 0.331 which means that the better and according to the compensation given by the company to employees, the higher the employee performance that will be produced.

With the provision of compensation, employees become more eager to work as much as possible. One of them is improving employee performance through providing appropriate compensation in recompense to employees for the efforts they make for the company. The results of this study are by empirical studies (Nugraha &; Tjahjawati, 2018), (Isvandiari &; Fuadah, 2017), and (Sugiono &; Pratista, 2019) which state that compensation has a positive and significant effect on employee performance.

The Effect of Transformational Leadership on Employee Performance

Based on the results of hypothesis testing, it was found that transformational leadership has a positive and significant effect on employee performance at Ojju K-Food Restaurant Jakarta. The results of hypothesis testing have a value of 2.096 with a significance level below 0.05, which is 0.039. This positive influence and significance signifies that transformational leadership improvement affects employee performance improvement at Ojju K-Food Restaurant. This is also proven by the value of the coefficient of 0.153 which means that the better the transformational leadership, the higher the employee performance that will be produced.

Thus transformational leadership can also influence efforts to improve employee performance. According to (Saputra, 2022) transformational leadership can influence employees with their vision, instill their charisma, motivate and become an inspiration, and stimulate intellectually which makes employee performance will also increase. The results of this study are by empirical studies from (Setiadi et al., 2022), (Zulkarnaen &; Sudarma, 2017), and (Pratama &; Amali Rivai, 2021) which state that transformational leadership has a positive and significant effect on employee performance.

 

The Effect of the Work Environment on Employee Performance

Based on the results of hypothesis testing, it was found that the work environment has a positive and significant effect on employee performance at Ojju K-Food Restaurant Jakarta. The results of hypothesis testing have a value of 3.572 with a significance level below 0.05, which is 0.001. This positive and significant influence indicates that the work environment affects the improvement of employee performance at Ojju K-Food Restaurant Jakarta. This is also proven by the coefficient value of 0.394 which means that the better the work environment an employee has, the higher the employee performance that will be produced.

Thus the work environment also has an important role in improving employee performance, because improving employee performance in a company is inseparable from the work environment felt by employees. The work environment has a direct influence on employees, where the work environment can improve employee performance. Conversely, an uncomfortable work environment can reduce performance, the work environment also plays a role in company commitment, where an employee will not feel at home if working in an unsupportive environment (Nabawi, 2019). The results of this study are by empirical studies from (Nugroho et al., 2021), (Kustianto, 2020), and (Ronal &; Hotlin, 2019) which state that there is a positive and significant influence of the work environment on employee performance.

 

CONCLUSION

Then the following conclusions can be drawn:

Based on the results of testing the research hypothesis, there is a positive and significant influence between Compensation on Employee Performance. That is, if the management of compensation is given fairly, it can provide solutions in dealing with employee problems with their work, and direct employees about the work they will carry out. Conversely, if compensation is not given fairly, employee performance will decrease. This is evidenced by the value in the results of multiple linear analysis, namely, Compensation has a regression coefficient value of 0.331 and the t-test which shows that count 3.094 > table 1.660 and sig. 0,003 < α 0,05. So the H1 hypothesis stating "The Effect of Compensation on the Performance of Ojju K-Food Jakarta Restaurant Employees" is accepted based on the assumptions of the previous hypothesis.

Based on the results of hypothesis testing, there is a positive and significant influence between Transformational Leadership on Employee Performance. That is, if the management of Transformational Leadership is carried out properly, it can provide solutions in dealing with employee problems with their work, as well as direct employees about the work they will carry out.

Conversely, if Transformational Leadership is not objective, employee performance will decrease. This is evidenced by the value in the results of multiple linear analysis, namely Transformational Leadership has a regression coefficient value of 0.153 and the results of the t-test which shows that count 2.096 > ttable 1.660 and sig. 0,039 < α 0,05. So the H2 hypothesis stating "The Effect of Transformational Leadership on the Performance of Ojju K-Food Jakarta Restaurant Employees" is accepted based on the assumptions of the previous hypothesis.

Based on the results of hypothesis testing, there is a positive and significant influence between the Work Environment and Employee Performance. That is, if the Work Environment is stabilized, it can provide comfort and security for employees in carrying out their work. Conversely, if the work environment is uncomfortable, employee performance will decrease. This is evidenced by the value in the results of multiple linear analysis, namely the Work Environment has a regression coefficient value of 0.394 and the results of the t-test which shows that count is 3.572 > table 1.660 and sig. 0,001 < α 0,05. So the H3 hypothesis stating "The Effect of Work Environment on the Performance of Ojju K-Food Jakarta Restaurant Employees" is accepted based on the assumptions of the previous hypothesis.

 

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Anisya Latifa Sabasri, Herry Krisnandi, Kumba Digdowiseiso* (2024)

 

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Journal of Social Science

 

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