THE EFFECT OF LEADERSHIP STYLE, COMPENSATION, AND OHS ON PERFORMANCE MEDIATED BY WORK MOTIVATION

Abstract

This study uses work motivation as a mediating variable to examine the influence of leadership style, compensation, and occupational safety and health (OHS) on employee performance. This study was conducted at PT. Bukit Baiduri Energi, Kutai Kertanegara, using a probability sampling procedure to select 111 respondents from the entire employee population. Smart Partial Least Square (PLS) software was used to evaluate the data.

The analysis findings indicate that: (1) Employee performance is not significantly influenced by leadership style. (2) There is a positive correlation between compensation and performance, with higher remuneration resulting in better performance. (3) Performance is also not significantly influenced by occupational safety and health (OHS). (4) A leader's approach can improve staff morale. (5) Workplace motivation is positively influenced by good pay. (6) OHS has no significant impact on motivation. (7) Improved employee performance is largely dependent on motivation. (8) The impact of leadership style on performance is mediated by motivation. (9) The impact of recovery on performance is also mediated by motivation. (10) Motivation functions as a mediator that strengthens relationships, and K3 does not have a significant influence on improving employee performance.