THE EFFECT OF MANAGEMENT MOTIVATION AND COMPENSATION ON EMPLOYEE PERFORMANCE AT PT INHIL SARIMAS KELAPA

Abstract

The research was conducted at PT Inhil Sarimas Kelapa. The aim is to determine the direct

effect of the influence of management motivation and compensation on employee performance. This

study took a sample of 115 employees. The variables used are management motivation and

compensation and employee performance. Data were analyzed using SEM (Structural Equation

Modeling) analysis which was operated through the Smart PLS 3.2.8 program. The research results

show that there isMotivation has a positive and significant effect on employee performance.

Based on the results of the respondents' responses, it was found that the respondents had

accepted that the motivation given by the company had been well implemented. However, for

indicators of recognition of performance, getting higher wages and jobs that challenge the

desire to learn to master jobs in their field still need to be improved, because the average

response of respondents compared to other indicators has the lowest value. Compensation

has a positive and significant effect on employee performance. Based on the results of the

responses of the respondents, it was found that the respondents had considered the

compensation was good. However, it is necessary to pay attention to the Salary/Wage

indicator because compared to other compensation indicators the respondents gave the

lowest score. Motivation and Compensation have a positive effect simultaneously on

Employee Performance.