the effect of situational leadership style, …

JOURNAL OF ENGINEERING AND MANAGEMENT IN

INDUSTRIAL SYSTEM VOL. 7 NO. 1 YEAR 2019 e-ISSN 2477-6025

DOI:10.21776/

Cite this Article As. Selviasari, R. THE EFFECT OF SITUATIONAL LEADERSHIP STYLE,

COMPENSATION AND MOTIVATION ON EMPLOYEE PERFORMANCE IN PT. BANKRAKYAT

INDONESIA (PERSERO), Tbk. KEDIRI BRANCH. Journal of Engineering and Management in Industrial

System, 7(1), p40-52

Paper Accepted : Dec, 23th 2019

Paper Published : May, 29th 2019 40

THE EFFECT OF SITUATIONAL LEADERSHIP STYLE,

COMPENSATION AND MOTIVATION ON EMPLOYEE

PERFORMANCE IN PT. BANK RAKYAT INDONESIA (PERSERO),

Tbk. KEDIRI BRANCH

Rike Selviasari

Universitas Islam Kadiri, Indonesia

Abstract This research was conducted at PT. Bank Rakyat Indonesia (Persero) KCP Ringinrejo Tbk.

Branch Kediri This study uses Styles Situational Leadership and Compensation Committee as an independent

variable, motivation as an intervening variable and performance as the dependent variable.

The purpose of this study to analyze and determine the influence of leadership style and

Compensation for performance through motivation as an intervening variable. The samples used were

employees of PT. Bank Rakyat Indonesia (Persero), Tbk. Branch Kediri with a total sample of 52

respondents using simple random sampling method. The analysis includes the validity, reliability, classic

assumption test, test models, linear regression analysis and intervening.

Based on the above results it can be seen that the Situational Leadership Styles and Compensation positive

and significant impact on motivation, Situational Leadership Style and Compensation positive and significant

impact on performance. Based on the two above analysis can be tested mediating (intervening) so that it is

known that the variables of motivation to become an intervening variable because the calculation of

standardized coefficients for the indirect effect of leadership style Situational and Compensation for

Performance through work motivation is greater than the direct influence Styles Situational Leadership and

Compensation on performance

Keywords: Situational Leadership Style, Compensation, Motivation, Performance

1. Introduction

In carrying out its operational

activities, a bank needs funds. Bank funds

come from various sources including funds

from own capital (equity), funds from

loans, funds from the public, and funds

from financial markets. Sources of funds

from the community are the largest source

of funds most relied on by banks to carry

out their operational activities. Therefore,

so that people are interested in saving at the

bank, the bank will offer many attractive

facilities for customers such as interest

rates, excellent service, security guarantees

for their savings, gifts, branches, and ATMs

that are easily accessible to the community,

and other services.

The interest rate is the price of using

money or it can also be referred to as rent

for the use of money for a certain period of

time as with other goods. Interest rates are

divided into two types, namely, deposit

interest and loan interest [1].

* Corresponding author. Email : [email protected]

Published online at http://Jemis.ub.ac.id Copyright ©2019 JTI UB Publishing. All Rights Reserved

The deposit interest is interest given as

a stimulus or remuneration for customers

who save their money in the bank. The loan

interest rate is the interest given to the

borrower or the price that must be paid by

the borrowing customer to the Bank. The

current deposit interest rate is a very

influential factor in attracting interest in

saving customers in banks [2]. We can

observe this in the daily lives of people who

are always looking for information about

deposit rates created in the money market.

If they know that the higher interest rates

on savings, the community will reduce their

spending on consumption activities to

increase their savings because the

community hopes that their money will

increase in the following month or year

than they have to save money at home. Vice

versa, if the deposit interest rate decreases,

the community will reduce savings, so the

increase in deposit interest rates will also

increase the interest of saving customers.

The higher the interest in saving customers,

the easier it is for banks to channel funds to

the public in the form of loans.

http://jemis.ub.ac.id/



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41

This shows that interest rates at

banks will affect the number of customers.

Therefore, the bank will greatly depend on

the interest rate that applies to the

continuity of its business, because the bank

will profit from the difference between loan

interest and deposit interest. From the

above conclusions In a company, achieving

goals is a business philosophy that always

underlies every activity. In carrying out an

activity, a company should have a leader

who is reliable so as to be able to direct and

develop businesses in accordance with the

power they have towards achieving the

goals and objectives of the company

efficiently, effectively and economically

[3].

This is in accordance with the

current changing global competition

conditions, so it is required to be more

adaptive to the environment. Leadership

plays an important role in planning and

developing corporate strategies [4], and [5]

because different leadership styles will

influence the way managers to use and

develop accounting systems and corporate

data. Therefore, leaders must be able to use

the right leadership style so that directly

employees can be motivated and improve

performance. Providing the motivation to

employees must be done to encourage the

achievement of good performance.

"Motivation (activator) works for

employees so they want to work for the

achievement of corporate goals effectively

and efficiently" [6].

Compensation is a service provided

by the organization to its employees in the

form of money or other forms because it

has participated in achieving organizational

goals. The program, and is the most

important cost component [7], and [8]. To

ensure the achievement of goal alignment

between employees and the organization

where he works, organizations can pay

attention to the provision of compensation,

because compensation is part of the

reciprocal relationship between

organizations and human resources.

Therefore to avoid the failure of the

banking program, employees are always

motivated in carrying out their functions

and roles according to their assigned duties.

Employee motivation that is actualized in

the implementation of banking activities is

much influenced by various factors, in

addition to experience and suitability with

the field of work, motivation is also needed

more passion in work. And in this

motivation employees will feel the comfort

and happiness at work. Motivation is also

done so that employees are able to think in

a more real way and be able to face the

challenges they will face.

Their performance is quite good and

accompanied by teamwork which can

affect the smoothness of their work more

or less. They have educational

backgrounds from the economy, some are

not from an economic education

background. However, they can carry out

their respective tasks. This raises questions

for the writer. In relation to working on

assignments, training is certainly needed

so that employees are able to carry out the

tasks carried out in accordance with their

respective fields of work. This is certainly

very influential on the results of their final

work which will then determine their level

of performance at the BRI Syariah Branch

of Kediri. In addition, motivation is also

needed in carrying out each task that is

ordered. Motivation can also affect their

loyalty to continue working at BRI

Syariah. Bank Rakyat Indonesia (Persero),

Tbk. Kediri Branch hereinafter referred to

as BRI Kediri Branch, is one of the BUMN

in the banking sector that has long been

established in Indonesia. It has an

important role as an agent of development

to support the national economy. BRI does

not only reach the middle and upper

classes, but also the middle to lower

classes. This is evidenced through unit

offices spread in almost every sub-district

of Indonesia, thus influencing a large

number of BRI employees.

The purpose of employees in

meeting their needs and desires is obtained

through compensation given by the

company in accordance with the

performance produced by employees so

that they can motivate employees to be

better at work.

Based on the results of these studies, the

hypothesis can be formulated as follows:



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42

H1: Situational leadership style influences

motivation.

H2: Compensation has an effect on

motivation.

H3: Situational leadership style influences

employee performance.

H4: Compensation affects employee

performance.

H5: Motivation affects employee

performance.

H6: Situational leadership style has an

influence on employee performance with

motivation as an intervening variable.

H7: Compensation has an influence on

employee performance with motivation as

an intervening variable.

2. Research Method

The study was conducted at the BRI

office of KCP Ringinrejo Jl. Raya Kediri

Blitar, Sionma Shop, Susuhbango Village,

Ringinrejo Subdistrict, Kediri Regency.

The study was conducted in September

2015 and the population of this study was

all employees of Bank Rakyat Indonesia

Kediri Branch with 60 people consisting of

30 units, 28 each unit 5 people (marketing

employees) and 1 branch office 5 people

and 1 Kcp 5 people and 5 employees

marketing department and data collection

using survey methods using survey

methods with interview techniques and

questionnaires.

3. Result and Analysis

Characteristics of respondents consisted

of gender, age, last education and years of

service. Data relating to the characteristics

of respondents were then processed with

descriptive analysis in table 1. This

descriptive analysis is used to be able to get

an idea of the identity or characteristics of

respondents. The results of the descriptive

analysis of the characteristics of the

respondents in full are presented in table

4.2. It illustrates that most of them were 19

respondents or 51.4% female and 18

respondents or 48.6% male sex. The

number of respondents aged 20-29 years is

the most respondents, namely 19

respondents with a percentage of 51.4%,

the rest with ages 30-39 years 35.1% and

ages more than 40 years are 5 respondents

with a percentage of only 13.5%. The

majority of the respondent's education was

undergraduate (S1), 51.4% with a number

of respondents of 19 people, then the

Diploma level was 14 respondents (37.8%).

Respondents have the highest working

period of fewer than 5 years with a number

of 16 respondents (43.2%), with a working

period of 6 to 10 years as many as 14

respondents (37.8%) and the rest more than

10 years with a total of 7 respondent

(18.9%).

The statistical results in Table 2, show

that from the situational leadership style

variable (X1) it has a mean of 33.5405 with

a standard deviation of 2.81459. This mean

value has a higher value than the specified

average of 25.00. This shows that

respondents tend to have a high level of

participation in supporting situational

leadership styles.

The compensation variable (X2) has a

mean of 33.3514 with a standard deviation

of 2.0030. This mean has a higher value

than the specified average of 28.00. This

shows that the compensation that has been

given by the company in the form of

material compensation, social

compensation and activity compensation

can already provide satisfaction to

employees.

The motivation variable (Z) has a mean

of 31.1351 with a standard deviation of

2.9829. This mean has a value higher than

the specified average of 26.00. This shows

that respondents' motivation tends to be

high in improving employee performance.

Employee performance variable (Y) has

a mean of 31.7568 with a standard

deviation of 3.03137. This mean value has a

higher value than the specified average of

27.00. This shows that respondents tend to

have better performance.



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43

Table 1. Descriptive Data of Respondents

Information Total Percentage (%)

Gender

Man 1

8

48,6%

Women 1

9

51,4%

Age

20th -29th 1

9

51,4%

30th -39th 1

3

35,1%

> 40 years 5 13,5%

Education High school 4 10,8%

Diploma 1

4

37,8%

Undergraduate (S1) 1

9

51,4%

Years of service

≤ 5th 1

6

43,2%

6th –10th 1

4

37,8%

>10 th

7 18,9%

Source: Primary data analysis, 2018

Table 2. Variable Descriptive Test Results

Leadership Style

Std.

N Minimum Maximum Mean Deviation

Situational (X1) 37 25,00 38,00 33,5405 2,81459

Compensation (X2) 37 28,00 36,00 33,3514 2,00300

Motivation (Z) 37 26,00 36,00 31,1351 2,98293

Employee Performance (Y) 37 27,00 38,00 31,7568 3,03137

Valid N (listwise) 37

Source: SPSS Output (data analysis)

Table 3. Validity test of the Situational Leadership Style (X1)

No

Question item

Pearson Correlation

Significance

Conclusion

1. X1.1 0,543 0,001 Valid

2. X1.2 0,548 0,000 Valid

3. X1.3 0,651 0,000 Valid

4. X1.4 0,708 0,000 Valid

5. X1.5 0,652 0,000 Valid

6. X1.6 0,473 0,003 Valid

7. X1.7 0,517 0,001 Valid

8. X1.8 0,438 0,007 Valid

9. X1.9 0,419 0,010 Valid

10. X1.10 0,406 0,013 Valid




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Based on Table 3, it is known that

testing of situational leadership styles

using 10 items of questions obtained

valid results. This is because it has

fulfilled the requirements of the

significance value <0.05 and the

calculated r-value is greater than r table

(r table = 0.325). Thus all question items

can be used and can be trusted to collect

the required data. Analysis of the

validity test on compensation also uses

the product moment correlation method

with the result shown in table 4.

Table 4 shown that testing of

compensation obtained valid data. This

is because it meets the requirements of

the significance value <0.05 and the

calculated r-value is greater than r table

(r table = 0.325). Thus it can be stated

that 10 items of questions in the

questionnaire are valid and can be used

and can be trusted to collect the required

data. Validity test on motivation variable

uses productmoment correlation method

with the shown in table 5. Based on

Table 5, it can be seen that testing of

motivation obtained valid data. Fulfill

the requirements of the significance

value <0.05 and the calculated r-value is

greater than r table (r table = 0.325).

Thus all items in the questionnaire can

be used and can be trusted to collect the

required data.

Table 4. Validity Test for Compensation (X2)

No

Question item

Pearson Correlation

Significance

Conclusion

1. X2.1 0,621 0,000 Valid

2. X2.2 0,591 0,000 Valid

3. X2.3 0,466 0,004 Valid

4. X2.4 0,405 0,013 Valid

5. X2.5 0,565 0,000 Valid

6. X2.6 0,540 0,001 Valid

7. X2.7 0,348 0,035 Valid

8. X2.8 0,385 0,019 Valid

9. X2.9 0,442 0,006 Valid

10. X2.10 0,457 0,004 Valid


Table 5. Validity Test of Motivation (Z)

No

Question item

Pearson Correlation

Significance

Conclusion

1. Z1 0,543 0,001 Valid

2. Z2 0,674 0,000 Valid

3. Z3 0,561 0,000 Valid

4. Z4 0,713 0,000 Valid

5. Z5 0,693 0,000 Valid

6. Z6 0,490 0,002 Valid

7. Z7 0,746 0,000 Valid

8. Z8 0,693 0,000 Valid

9. Z9 0,646 0,000 Valid

Source: SPSS 14 output (data processed)



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Test the validity of the variable

performance of permanent employees by

using the product moment method with

the results shown in table 6. Based on

Table 6, it is known that testing of

employee’s performance obtained valid

data. This is because it fulfills the

requirements of the significance value

<0.05 and the calculated r-value is

greater than r table (r table = 0.325).

Thus all question items can be used and

can be trusted to collect the required

data.

The reliability test result is shown in

table 7. It is said to be reliable if it has a

Cronbach Alpha value of more than 0.60

[7]. Based on the results of the above

analysis, it can be concluded that the

value of Cronbach alpha in each variable

shows a value above 0.60.

In this study, it is known that the VIF

value at Table 8 of each variable value is

less than 10. This shows that the

variables in this study are non-

multicollinearity. So that the first

classical assumption is pleased with the

free regression model of

multicollinearity has been fulfilled.

Table 9 is the results of

heteroscedasticity test after data

processing.

Table 6. Validity Test of the Employee’s Performance (Y)

No

Question item Pearson Correlation

Significance

Conclusion

1. Y1 0,750 0,000 Valid

2. Y2 0,570 0,000 Valid

3. Y3 0,739 0,000 Valid

4. Y4 0,686 0,000 Valid

5. Y5 0,639 0,000 Valid

6. Y6 0,594 0,000 Valid

7. Y7 0,429 0,008 Valid

8. Y8 0,587 0,000 Valid

9. Y9 0,508 0,001 Valid

10. Y10 0,603 0,000 Valid

Table 7. Reliability Test Results

No. Variable Cronbach Alpha Conclusion

1. Situational Leadership Style (X1) 0,722 Reliable

2. Compensation (X2) 0,621 Reliable

3. Motivation (Z) 0,817 Reliable

4. Employee’s Performance (Y) 0,817 Reliable

Source: SPSS Output (data analysis) Table 8. Multicollinearity Test Results

Variable Variable VIF Conclusion

Situational Leadership Style

(X1)

Compensation (X2)

Motivation (Z)

Situational Leadership

Style (X1) Compensation

(X2)

1,000

1,000

Non-

Multikolinieritas

Employee Performance (Y) Situational Leadership

Style (X1) Compensation

(X2) Motivation (Z)

1,559

1,479

2,038

Non

Multikolinieritas


Table 9. Heteroscedasticity Test Results



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Equation Variables Significance value Conclusion

Style Style 0,730 Homoscedasticity

Leadership Leadership

Situational and Situational

Compensation (X1)

Against Motivation Compensation 0,184 Homoscedasticity

(X2)

Style

Style Leadership

Leadership Situational 0,780 Homoscedasticity

Situational, (X1)

Compensation and Compensation 0,795 Homoscedasticity

Motivation towards (X2)

Employee

performance

Motivation (Z) 0,176 Homoscedasticity

Conclusion


Based on the results of processing

data in the table above it can be seen

that the results of the residual regression

of all independent variables have a

significant value greater than 0.05. So it

can be concluded that in this study there

was no heteroscedasticity.

Path analysis was used to determine the

effect of Situational Leadership Style

variables (X1) and Compensation (X2)

on motivation (Z), and to determine the

effect of the Situational Leadership

Style variable (X1), Compensation (X2)

and motivation (Z) on employee

performance (Y). The results of path

analysis are summarized in the table as

shoen in table 10. Based on Table 10

above, the path analysis model is

obtained as follows:

Z = 0.524 ZX1 + 0.485 ZX2 + e (1)

Y = 0.258 YX1 + 0.240 YX2 + 0.545

YZ + e (2)

Where :

P : variable regression coefficient

X1 : Situational leadership style

X2 : Compensation

Z : Motivation

Y : Employee Performance

e12 : residual or prediction error

The above variable shows that:

a) Variable Coefficient of Path

Situational Leadership Style (X1)

In equation 1, the magnitude of

the path coefficient of the


variable (X1) is 0.524. This

shows that the Situational

Leadership Style (X1) has a

positive effect on employee

motivation (Z).


the path coefficient of the


variable (X1) is 0.258. This

shows that the Situational

Leadership Style (X1) has a

positive effect on employee

performance (Y).

b) Compensation Variable Path

Coefficient (X2)


the variable compensation path

coefficient (X2) is 0.485. This

shows that Compensation (X2)

has a positive effect on employee

motivation (Z).


the variable compensation path

coefficient (X2) is 0.240. This

shows that Compensation (X2)

has a positive effect on employee

performance (Y).



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c) Work Motivation Variable Path

Coefficient (Z)


the path coefficient of work

motivation variable (Z) is 0.545.

This shows that work motivation

(Z) has a positive effect on

employee performance (Y).

Table 10. Path Analysis Results

INFLUENCE

SC. BETA

(Path coefficient)

Effect of X1 on Z 0,524

Effect of X2 on Z 0,485

Effect of X1 on Y 0,258

Effect of X2 on Y 0,240

Effect of Z on Y 0,545


3.1. Effect of Situational Leadership

Style (X1) and Compensation

(X2) Against Motivation (Z)

Dependent Variable: Z

a) The significant value of the

Situational Leadership Style (X1) on

Motivation (Z) is 0,000. The

significance value is smaller than

0.05, this states there is significant

influence between the Situational

Leadership Style (X1) on motivation

(Z). Thus it can be said that in this

study Ho and H1 can be accepted.

b) The significant value of

Compensation (X2) to Motivation

(Z) is 0,000. The significance value

is smaller than 0.05, this states there

is significant influence between

Compensation (X2) on Motivation

(Z). Thus it can be said that in this

study it can reject Ho and H2 can be

accepted.

3.2. Situational Leadership Style

(X1), Compensation (X2) and

Motivation (Z) Against Employee

Performance (Y)

The results of the significance of the

-t value between Situational Leadership

Style (X1), Compensation (X2) and

Motivation (Z) on Employee

Performance (Y) can be seen in table 12.

3.3. Test the Effect of Mediation

(Intervening)

This Sobel test is done by testing the

strength of the indirect effect of the

independent variable (X) on the

dependent variable (Y) through the

intervening variable (Z).

From the results of the SPSS 14.0 output

below for the first regression (1)

obtained as shown in table 13.

Table 11. T Value of Situational Leadership Style (X1) and Compensation (X2) Against

Motivation (Z)

Coefficients(a)

Model Unstandardized

Coefficients

Standardized Coefficients

B Std.

Error

Beta T Sig.

1 (Constant) -11,559 7,347 -1,573 ,125

X1 ,555 ,127 ,524 4,360 ,000

X2 ,722 ,179 ,485 4,034 ,000




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Table 12. T Value of Situational Leadership Style (X1), Compensation (X2) and Motivation (Z)

Against Employee Performance (Y)

Coefficients(a)


Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

1 (Constant) -6,910 6,189 -1,117 ,272

X1 ,278 ,129 ,258 2,148 ,039

X2 ,363 ,177 ,240 2,052 ,048

Z ,554 ,139 ,545 3,971 ,000

Dependent Variable : Y

Source: SPSS 14 output (data analysis)

Table 13. The first’s regression of the indirect effect of the independent and dependent variable

Coefficients(a)


Coefficients


B Std. Error Beta T Sig.

1 (Constant) -11,559 7,347 -1,573 ,125

X1 ,555 ,127 ,524 4,360 ,000

X2 ,722 ,179 ,485 4,034 ,000

Dependent Variable: Z

Whereas the second regression (2) is obtained as follows:

Table 14. The second’s regression of the indirect effect of the independent and dependent variable

Coefficients(a)


Coefficients


B Std. Error Beta T Sig.

1 (Constant) -6,910 6,189 -1,117 ,272

X1 ,278 ,129 ,258 2,148 ,039

X2 ,363 ,177 ,240 2,052 ,048

Z ,554 ,139 ,545 3,971 ,000

Dependent Variable: Y

3.4. Heteroscedasticity Test

1. The magnitude of the influence of

the Situational Leadership Style

(X1) variable on Motivation (Z)

directly is 0.524.

2. The magnitude of the effect of the

Compensation (X2) variable on

Motivation (Z) directly is 0.485.


the Situational Leadership Style

variable (X1) on Employee

Performance (Y) directly is 0.258.

4. The amount of influence of the

Compensation variable (X2) on

Employee performance (Y) directly

is 0.240.


the Motivation variable (Z) on

Employee Performance (Y) directly

is 0.545.

3.5. Indirect Effect

1. Style through Motivation (Z) as an

intervening variable = 0.524 x

0.545 = 0.286.

2. Compensation (X2) on Situational

Leadership (X1) on Employee

Performance (Y)



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3. Employee Performance (Y) through

Motivation as an intervening

variable = 0.485 x 0.545 = 0.264.

Effect of Situational Leadership

Style (X1) on Motivation (Z)

The influence of Situational

Leadership Style (X1) on Motivation (Z)

is 0.524 with a significant value of

0,000, indicating that Situational

Leadership Style (X1) has a positive and

significant influence on Motivation (Z),

because one of the main goals of

employees is to work at the company is

getting good treatment from the

leadership policy. So that the policy can

motivate employees to work optimally.

3.6. Effect of Compensation (X2)

on Motivation (Z)

The calculation results to look for

the effect of Compensation (X2) on

Motivation (Z) using a significance test

with a significance level of <0.05, it is

known that the value of sig. 0,000. Sig

value This is smaller than 0.05, so there

is a significant effect of Compensation

(X2) on Motivation (Z) at BRI Branch

Kediri

3.7. Effect of Situational

Leadership Style (X1) on

Employee Performance (Y)

The calculation results to look for

the influence of Situational Leadership

Style (X1) on Performance (Y) using a

significance test with a significance

level of 0.05, it is known that the

significant value of Situational

Leadership Style (X1) on Performance

(Y) is 0.039. Sig value smaller than

0.05, then there is a significant effect of

Situational Leadership Style (X1) on

Performance (Y) at BRI Branch Kediri

3.8. Effect of Compensation (X2)

on Employee Performance (Y) The influence of Compensation

(X2) on Performance (Y) is 0.240 and

the value of sig. amounting to 0.048

indicates that Compensation (X2) has a

significant effect and has a positive

effect on improving Performance (Y), so

compensation provided can improve

employee performance. Giving

compensation that is more feasible and

accepted by employees because in

accordance with the personnel and

abilities that are issued and respecting

the hard work of employees, will make

employees more professional by

working diligently and making various

efforts to achieve better work results so

that their performance can be more

increase.

3.9. Motivation (Z) Against


The influence of Motivation (Z) on

Employee Performance (Y) is 0.545 and

sig. equal to 0,000 shows that

Motivation (Z) is very significant and

has a positive effect on improving

Employee Performance (Y), because

with motivation it is expected that every

employee is encouraged to work hard to

achieve high performance.

3.10. Situational Leadership Style

(X1) Against Employee

Performance (Y) Through

Motivation (Z)

From the results of calculations

obtained shows the effect of Situational

Leadership Style (X1) indirectly through


Performance (Y) of 0.286, greater than

the influence of Situational Leadership

Style (X1) directly on Employee

Performance of 0.239. These results

indicate that Situational Leadership

Style (X1) has an indirect effect on

Employee Performance (Y) through

Motivation (Z), or it can be concluded

that Motivation (Y) is a variable that

mediates between Situational

Leadership Style (X1) on Employee

Performance (Y).

3.11. Compensation (X2) Against


Through Motivation (Z)

From the results of the calculation

obtained shows the effect of

Compensation (X2) indirectly through


Performance (Y) of 0.264 greater than



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50

the effect of Compensation (X2) directly

on Employee Performance (Y) of 0.24.

These results indicate that

Compensation (X2) has an indirect

effect on Employee Performance (Y)

through Motivation (Z), or it can be

concluded that Motivation (Z) is a

variable that mediates between

Compensation (X2) on Employee

Performance (Y).

PT. Bank Rakyat Indonesia

(PERSERO), Tbk., Is one of the largest

and oldest banks in Indonesia which was

established on December 16, 1895. At

present, BRI is headquartered in BRI I

Building, Jl. Jendral Sudirman Kav. 44 -

46, Jakarta 10210, Indonesia. Initially,

Bank Rakyat Indonesia was established

in Purwokerto, Central Java by Raden

Bei Aria Wirjaatmadja by name

De Poerwokertosche Hulp en Spaarbank

der Inlandsche Hoofden or Bank

Assistance and Deposits Belonging to

Priyayi Purwokerto, a financial

institution that serves people of

Indonesian nationality. The institution

was established on December 16, 1895,

which later became the birthday of BRI.

In the period after Indonesian

independence, based on Government

Regulation No. 1 of 1946 Article I states

that BRI is the first Government Bank in

the Republic of Indonesia. In the period

of the war to defend independence in

1948, BRI's activities had stopped for a

while and only began to be active again

after the Renville agreement in 1949 by

changing its name to Bank Rakyat

Indonesia Serikat. At that time through

PERPU No. 41 of 1960 a Farmers and

Fisheries Cooperative Bank (BKTN)

was formed which was a fusion of BRI,

Fisheries Farmers Bank and

Nederlandsche Maatschappij (NHM).

Then based on Presidential Decree

(Penpres) No. 9 of 1965, BKTN was

integrated into Bank Indonesia under the

name of Bank Indonesia Farmers and

Fisheries Cooperative Affairs.

After running for one month, the

Presidential Decree No. came out. 17 of

1965 concerning the establishment of a

single bank under the name Bank

Negara Indonesia. In the new provision,

Bank Indonesia Cooperative, Farmer

and Fishermen Affairs (ex BKTN) was

integrated with the name Bank Negara

Indonesia unit II in the Rural sector,

while NHM became Bank Negara

Indonesia Import Export unit (Exim).

Based on Law No. 14 of 1967

concerning the Basic Banking Law and

Law No. 13 of 1968 concerning the

Central Bank Law, which essentially

restores the functions of Bank Indonesia

as the Central Bank and Bank Negara

Indonesia Unit II for the Rular and

Import-Export Sector which are

separated into two banks, namely Bank

Rakyat Indonesia and the Indonesian

Export Import Bank. Furthermore, based

on Law No. 21 of 1968 reestablished

BRI's main duties as a commercial bank.

Therefore, to find out what needs

are desired by employees, situational

leadership needs to conduct a survey of

each subordinate. To achieve

organizational goals, leaders must be

able to motivate, direct, and

communicate with their employees to

work well Simamora (2004: 442),

compensation is what employees receive

in exchange for their contribution to the

organization. Compensation is done by

the company to reward employee

achievements, retain employees, get

more qualified employees and

compensation systems must be able to

motivate employees so that their

performance always increases.

According to Michael and Harold in

Wulandari A Dyah (2010),

compensation can be divided into

wages, salaries, facilities provided by

the company. Social compensation in

the form of rewards and status, and

activity compensation in the form of

compensation outside of work

responsibilities to treat saturation of

work routines.

According to Hasibuan (2002: 118)

compensation is all income in the form

of money or goods directly or indirectly

received by employees in return for

services that have been given to the



DOI:10.21776/

51

company. Whereas according to Mondy

(2008: 4) compensation is the total of all

the rewards received by employees in

lieu of the services they have provided.

The definition of Compensation

according to Panggabean (2004)

suggests that: Compensation is any form

of award given to employees as a reward

for their services to the organization.

Whereas According to Sikula (1981)

quoted by Mangkunegara (2007) that

Compensation is something that is

considered as something comparable to

the results of their work. Simamora

(2004: 450) states that organizations

empower compensation to motivate their

employees. Compensation is an award

or reward for workers who have

contributed to realizing their goals

through activities called work (Nawawi,

2001: 315). This is also explained by

Michael and Harold (1993: 443) in

Wulandari (2010) who divide

compensation into three forms, namely

material compensation, social

compensation, and activity

compensation. To generate motivation

for employees, compensation is

necessary.

Research in the banking sector is

interesting and needs to be learned about

the behavior and effectiveness of

employee performance since banks play

an important role as financial

institutions with the main task of

collecting funds from the public, which

is a successful banking record, of

course, reliable human resources are

needed. indication for the bank, that the

bank concerned has trust from the

public. The results of empirical research

found that Situational Compensation

leadership style of mutation towards

employee performance at PT Bank

Rakyat Indonesia (Persero), Tbk Kediri

Branch needs to be improved so that it

has an impact on improving

performance. The results of the study

prove that the Situational leadership

style has not been applied optimally in

the Bank Rakyat Indonesia (Persero),

Tbk Branch of Kediri. The findings

indicate that the indicator that best

reflects situational leadership is outcome

orientation.

Organizational performance in this

study is reflected in the form of factors

of quantity, quality, timeliness,

effectiveness and attendance. The most

influencing factor is the effectiveness of

the utilization of resources and

maximum time in the organization to

increase profits and reduce losses,

besides the level of attendance of

employees in the company can

determine employee performance. PT

Bank Rakyat Indonesia (Persero), Tbk

Kediri Branch

Based on employee perceptions,

Pt.Bank Rakyat Indonesia (Persero),

Tbk. The Kediril Branch focuses on all

performance indicators, namely quality,

quantity, time, effectiveness, and

presence; this is evidenced by the

average of all indicators in the high

category. In addition to indicators that

affect performance, other factors that

influence performance achievement are

factors of knowledge, skills, and

motivation. Thus the performance needs

to be improved to achieve the vision and

mission at PT Bank Rakyat Indonesia

(Persero), Tbk Kediri Branch

4. Conclussion

The company is expected to pay

attention to the needs and desires of the

employees in terms of supporting the

achievement of good performance

results. For example leaders who pay

attention to the difficulties of their

subordinates and provide solutions to

problems faced; always provide

competence motivation regularly or

continuously as encouragement and

never give up in carrying out work;

inform the existing rules continuously so

that problems related to work discipline

can be avoided; companies must

improve existing competencies to be

better along with the development of

modern times and organizational culture

that refers to high values and culture and

always creates a harmonious working

atmosphere. All of that aims to improve

performance better than before.



DOI:10.21776/

52

5. References

[1] Baihaqi M, Fauzan. Effect of

Leadership Style on Job Satisfaction

and Performance with Organizational

Commitment as Intervening

Variables (Study at PT. Yudhistira

Ghalia Indonesia Yogyakarta Area).

Essay. Diponegoro University. 2010.

[2] Fahmi. Analysis of the Effect of

Leadership Style and Work

Motivation on Employee

Performance of Pandanaran Gas

Station Semarang. Description.

University of Gunadarma. 2009

[3] Puspa M, Wismantoro Y. The Effect

of Leadership, Motivation, Training,

Work Environment on Employee

Performance of BRI Bank in Ahmad

Yani Branch Semarang. 2011.

[4] Yukl, Gary. Leadership in

Organizations. Jakarta: Prenhallindo;

1994

[5] Yuliana. Christina's Leadership Role.

In. Achievement "Organizational

Performance Through Culture,

Strategy, and Organizational

Management Accounting Systems":

Journal of the National Symposium

on Accounting XIII Purwokerto.

2010.

[6] Anoki, H, Dito. Effect of

Compensation on Employee

Performance of PT. Islamet

Langgeng Purbalingga With Work

Motivation As Intervening Variables.

Diponegoro University; 2010.

[7] Ghozali I.. Application of

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Program, Edition 2. Semarang: Bada

Diponegoro University Publishers.

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[8] Gomes, Faustino C. Human Resource

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the effect of situational leadership style, …

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