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Cite this Article As. Selviasari, R. THE EFFECT OF SITUATIONAL LEADERSHIP STYLE,
COMPENSATION AND MOTIVATION ON E MPLOYEE PERFORMANCE IN PT. BANKRAKYAT
INDONESIA (PERSERO), Tbk. KEDIRI BRANCH. Journal of Engineering and Management in Industrial
System, 7(1), p40-52
Paper Accepted : Dec, 23
th
2019
Paper Published : May, 29
th
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.

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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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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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Table 1. Descriptive Data of Respondents
Information Total Percentage (%)
Gender

Man 1
8
48,6%
Women 1
9
51,4%
Age

20th -29
th
1
9
51,4%
30th -39
th
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




≤ 5
th
1
6
43,2%
6th –10
th
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
Source: SPSS Output (data analysis)

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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
Source: SPSS Output (data analysis)




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
Source: SPSS Output (data analysis)
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
Source: SPSS Output (data analysis)
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
Situational Leadership Style
variable (X1) is 0.524. This
shows that the Situational
Leadership Style (X1) has a
positive effect on employee
motivation (Z).
 In equation 2, the magnitude of
the path coefficient of the
Situational Leadership Style
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)
 In equation 1, the magnitude of
the variable compensation path
coefficient (X2) is 0.485. This
shows that Compensation (X2)
has a positive effect on employee
motivation (Z).
 In equation 2, the magnitude of
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)
 In equation 2, the magnitude of
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
Source: SPSS Output (data analysis)

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
Source: SPSS Output (data analysis)

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Table 12. T Value of Situational Leadership Style (X1), Compensation (X2) and Motivation (Z)
Against Employee Performance (Y)
Coefficients(a)
Model Unstandardized
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)
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
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)
Model Unstandardized
Coefficients
Standardized 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.
3. The magnitude of the influence of
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.
5. The magnitude of the influence of
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
Employee Performance (Y)
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 Empl oyee
Performance (Y) Through
Motivation (Z)
From the results of calculations
obtained shows the effect of Situational
Leadership Style (X1) indirectly through
Motivation (Z) on Employee
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
Employee Performance (Y)
Through Motivation (Z)
From the results of the calculation
obtained shows the effect of
Compensation (X2) indirectly through
Motivation (Z) on Employee
Performance (Y) of 0.264 greater than

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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

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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.

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