The effect of transformational leadership and compensation on job performance at bank

Abstract

This study aims to explore the direct impact of transformational leadership and compensation on job performance within the organizational setting of PT. Bank X. Utilizing a quantitative approach, data was collected through survey methods employing non-probability sampling, resulting in a sample size of 108 respondents. Analysis of the gathered data was conducted using SPSS 25 software. Validity testing was performed through confirmatory factor analysis, while reliability testing was assessed using Cronbach's alpha. The findings indicate a statistically significant positive relationship between transformational leadership and job performance, as well as a positive influence of compensation on job performance. The study underscores the importance of effective leadership and equitable compensation schemes in enhancing employee job performance within the banking sector. Additionally, it recommends further research endeavors aimed at expanding the population and sample size, as well as exploring additional variables to provide a more comprehensive understanding of organizational dynamics and performance determinants. Such insights are vital for fostering sustainable organizational success and competitiveness in the ever-evolving business landscape.