COMPENSATION ANALYSIS IN RELATIONSHIP MODERATION BETWEEN TRANSFORMATIONAL LEADERSHIP STYLE AND WORK ENVIRONMENT ON THE EMPLOYEE PERFORMANCE

Abstract

The objectives of the research were: 1) to know the influence of transformational leadership style on employee performance, 2) to know the influence of work environment on employee performance, 3) to know the influence of compensation on employee performance. The research used non-hierarchical analysis method or cell means method by using betweensubject of 2x2 and applied Univariate General Linier Model (GLM) procedure. The findings of the research were 1) transformational leadership style does not improve employee performance, 2) work environment improves employee performance, 3) in a good transformational leadership style, low-compensated employee groups improve employee performance, 4) in a poor transformational leadership style, high-compensated employee groups have better performance than low-compensated employee groups, 5) in a good work environment, low compensation does not improve employee performance than high compensation, 6) in a good work environment high compensation does not improve employee performance than a poor work environment.

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