Effects of work motivation and leadership toward work satisfaction and employee performance: Evidence from Indonesia

Abstract

The purpose of this study is to determine the effect of work motivation and leadership on job satisfaction and its implications on employee performance. A total of 355 samples of Bukit Asam Coal Mining Company Ltd. in Indonesia were selected proportionally with random sampling. Data were obtained through questionnaires. Data analysis technique employed structural equation modeling (SEM) with AMOS 22. The results of the study show that leadership and work motivation have a positive and significant effect on job satisfaction. Leadership has a more considerable influence (0.263) than work motivation (0.171) toward employee job satisfaction. The influence of leadership towards job performance is 0.175. The influence of work motivation towards job performance is 0.166. Job satisfaction has the most dominant influence (0.363) towards employee performance. The direct effect of leadership on employee performance is 0.175 greater than the indirect influence of leadership on employee performance through employee job satisfaction, which is only 0.096. Likewise, the direct effect of work motivation towards employee performance is 0.166 greater than the indirect effect of work motivation towards employee performance through employee job satisfaction, which is only 0.062. Thus, job satisfaction does not mediate the effects of leadership and work motivation toward employee performance.