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
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.
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)
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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