ANALYSIS OF LEADERSHIP STYLE, COMPENSATION, AND ORGANIZATIONAL CULTURE ON EMPLOYEE PERFORMANCE THROUGH WORK MOTIVATION AT AL-FITYAN SCHOOL FOUNDATION TANGERANG

Abstract

This study investigates how leadership style, compensation, and organisational culture relate to employee performance, with work motivation examined as an intervening variable at Al-Fityan School Foundation Tangerang. The research adopted a quantitative design and surveyed 116 employees using a saturated sampling technique. Primary data were obtained from a five-point Likert-scale questionnaire and processed using Structural Equation Modelling–Partial Least Squares (SEM-PLS) through SmartPLS 4.1.1.8. The results indicated that leadership style, compensation, and organisational culture each have a positive and significant effect on work motivation and employee performances. Work motivation likewise exerts a positive and significant effect on employee performances. Regarding the indirect relationships, work motivation significantly mediates the effect of compensation on employee performance. In contrast, its mediating effects on the relationships between leadership style and employee performance, as well as between organisational culture and employee performance, are statistically insignificant. The coefficient of determination further indicates that the proposed model provides substantial explanatory power for work motivation and employee performance. These results highlight the relevance of consistent leadership practices, appropriate compensation, and a supportive organisational culture in fostering employee motivation and performance. The findings may serve as a reference for Al-Fityan School Foundation Tangerang when developing human resource management strategies aimed at improving employee performance and sustaining organisational effectiveness.