The Impact of Leadership, Motivation, and Remuneration on Employee and Organizational Performance at PTN-BH in Sumatra
Abstract
In recent years, Indonesian universities have transitioned to legal entity state universities (PTN-BH). This transition significantly impacts employee performance, requiring adjustments in organizational management, particularly in leadership, motivation, and remuneration. This study investigated how leadership style, motivation, and employee compensation influence civil servant performance and, in turn, the performance of PTN-BH universities in Sumatra. The research focused on Universitas Sumatera Utara (USU), Universitas Andalas (UNAND), Universitas Negeri Padang (UNP), and Universitas Syiah Kuala (USK), with a population of 4,382 teaching staff members who have at least five years of service. A sample of 367 individuals was selected using the Slovin formula. Data analysis was conducted using Structural Equation Modeling (SEM) with SPSS-AMOS-22 software. Key findings showed that leadership style, motivation, and remuneration directly impact both employee and organizational performance. Specifically, leadership style affected both employee and organizational performance, as do motivation and remuneration. Employee performance served as a partial mediator between leadership style and organizational performance, as well as between motivation and organizational performance. The study highlighted how improving leadership practices, motivating employees effectively, and ensuring fair compensation contribute to the overall success of Legal Entity State Universities in Sumatra.
References
Ahn, Y.-j., & Bessiere, J. (2022). The Role of Participative Leadership in Empowerment and Resident Participation. Sustainability, 14(18), 11223. https://doi.org/10.3390/su141811223
Anwar, R., Hadi, R., Fitrasari, R. D., & Amaliyah, Z. (2024). The Impact of Team-Based Reward Systems on Collaboration and Innovation in the Workplace. Management Economics Trade and Accounting Journal (META-JOURNAL), 1(5), 173-182. http://abadiinstitute.org/index.php/META/article/view/271
Bakker, A. B., Hetland, J., Olsen, O. K., & Espevik, R. (2023). Daily transformational leadership: A source of inspiration for follower performance? European Management Journal, 41(5), 700-708. https://doi.org/10.1016/j.emj.2022.04.004
Baporikar, N. (2024). Contemporary Leadership Styles and Challenges for Governance. In Global Trends in Governance and Policy Paradigms (pp. 84-105). IGI Global. https://doi.org/10.4018/979-8-3693-1742-6.ch005
Baron, R. M., & Kenny, D. A. (1986). The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182. https://doi.org/10.1037/0022-3514.51.6.1173
Bauk, T. M., Angi, Y. F., & Tungga, C. A. (2023). Remuneration and Performance Contribution of Public Service Agencies in the Education Sector at Nusa Cendana University. JPNM (Jurnal Pustaka Nusantara Multidisplin), 1(3), 1-11. https://doi.org/10.59945/jpnm.v1i3.45
Bela, F. (2024). Komunikasi Bagian Hubungan Masyarakat Universitas Syiah Kuala Dalam Meningkatkan Kinerja Pegawai (Studi Pada Perubahan Status Perguruan Tinggi Negeri Badan Layanan Umum Menjadi Perguruan Tinggi Negeri Badan Hukum Universitas Syiah Kuala) [Skripsi, UIN Ar-Raniry ]. Banda Aceh. https://repository.ar-raniry.ac.id/id/eprint/35628/
Benarkuu, G. G., Katere, E., Ifenkwe, A., Sutinga, P. C., & Adjei, J. S. (2024). The Impact of Workplace Environment, Internal Communication, and Remuneration on Job Satisfaction among Lecturers in Private Universities in Ghana. Convergence Chronicles, 5(3), 40-50. https://doi.org/10.53075/Ijmsirq/42324235435
Bukit, P., Putri, H. T., Syekh, S., & Adisetiawan, R. (2022). SWOT Analysis, Value for Money, and Pareto Optimum in the Direct Procurement of Goods/Services at the Public Service Agency of UIN STS Jambi. J-MAS (Jurnal Manajemen dan Sains), 7(2), 1283-1290. https://doi.org/10.33087/jmas.v7i2.592
Dachlan, U. (2014). A complete guide to structural equation modeling. Lentera Ilmu. https://lib.unpak.ac.id/index.php?p=show_detail&id=1980
Darlis, A., Lubis, M. A., Farha, M., Laoli, R. R. P., & Lestari, S. I. (2023). Perguruan Tinggi Berbadan Hukum (PTN-BH). Humantech: Jurnal Ilmiah Multidisiplin Indonesia, 2(3), 585-597. https://doi.org/10.32670/ht.v2i3.2921
Diyanto, C., Putranti, I. R., Yuwono, T., & Yuniningsih, T. (2021). Policy on Higher Education Autonomy in Indonesia: Between Privatization and Commercialization. Ijtimaiyya: Jurnal Pengembangan Masyarakat Islam, 14(1), 1-20. https://doi.org/10.24042/ijpmi.v14i1.7574
Fauzi, N. A. M., Azhar, Z., & Kishan, K. (2022). Financial Management System and the Dynamics of University’s Operations and Activities: The Case of a Malaysian Public University. Global Business and Management Research: An International Journal, 14(3s), 1393-1412. http://www.gbmrjournal.com/pdf/v14n3s/V14N3s-97.pdf
Ferdinand, A. (2014). Management Research Methods: Research Guidelines for Writing Management Science Theses and Dissertations. University Diponegoro Press. https://digilib.ub.ac.id/opac/detail-opac?id=74137
Girdwichai, L., & Sriviboon, C. (2020). Employee Motivation and Performance: Do the work Environment and the Training Matter? Journal of Security and Sustainability Issues, 9, 42-54. https://doi.org/10.9770/jssi.2020.9.J(4)
Hamsin, M. K., Halim, A., Anggriawan, R., & Lutfiani, H. (2023). Sharia E-Wallet: The Issue of Sharia Compliance and Data Protection. Al-Manahij: Jurnal Kajian Hukum Islam, 17(1), 53–66. https://doi.org/10.24090/mnh.v17i1.7633
Iska, S., Nofrivul, N., Jaya, I., Nengsih, I., & Renie, E. (2024). The Implications of the Countercyclical COVID-19 Policy on the Performance of Rural Banks and Sharia Rural Banks in Indonesia. Juris: Jurnal Ilmiah Syariah, 23(1), 143–153. https://doi.org/10.31958/juris.v23i1.12329
Iskandar, I. (2016). Implementation of Abraham Maslow’s Hierarchy of Needs Theory to Improve Librarian Performance. Khizanah Al-Hikmah: Jurnal Ilmu Perpustakaan, Informasi, Dan Kearsipan, 4(1), 24-34. https://doi.org/10.24252/kah.v4i1a2
Iswahyudi, M. S., Munizu, M., Muktamar, A., Badruddin, S., Suryani, L., Kustanti, R., . . . Munawar, A. (2023). Organizational Leadership: Theory and Practice. PT. Green Pustaka Indonesia. https://www.greenpustaka.com/2023/11/kepemimpinan-organisasi-teori-dan.html
Kayode, O. J., Adeyinka, A. J., & Abiodun, A. J. (2019). Employees’ Remuneration and Performance in Nigerian Breweries plc. International Journal of Business and Management Future, 3(1), 1-18. https://doi.org/10.46281/ijbmf.v3i1.263
Khairudin, Baihaqi, Y., Zaelani, A. Q., Hafiz, L., Enizar, & Fahlevy, M. R. (2024). Cyber Security and Legal Protection for Dropshipping Transactions in Indonesia: between State Law and Islamic Law. Juris: Jurnal Ilmiah Syariah, 23(1), 81–92. https://doi.org/10.31958/juris.v23i1.11786
Kususiyanah, A., Wahid, S. H., & Saputra, W. (2021). Operational permits and brandings of savings and loan cooperatives and sharia financing (KSPPS) in legal validity perspective. Ijtihad : Jurnal Wacana Hukum Islam Dan Kemanusiaan, 21(1), 59–78. https://doi.org/10.18326/ijtihad.v21i1.59-78
Maksum, M. (2023). The Mechanism of Avoiding Riba in Islamic Financial Institutions: Experiences of Indonesia and Malaysia. Juris: Jurnal Ilmiah Syariah, 22(2), 235–244. https://doi.org/10.31958/juris.v22i2.6952
Mien, O. L., Senathirajah, A. R. B. S., Isa, M. B. M., Haque, R., Lertatthakornkit, T., Ramasamy, G., & Krishnasamy, H. N. (2023). Leadership Style’s Impact on Operational Performance Towards Sustainable Growth: A Case Study of the Malaysian Banking Industry. International Journal of Instructional Cases, 7(2), 107-130. https://ijicases.com/menuscript/index.php/ijicases/article/view/90/66
Ned, A. E., & Umesi, C. D. (2023). Effective Leadership and Employee Motivation for Sustainable Development. Journal of Education in Developing Areas, 31(2), 310-321. https://journals.journalsplace.org/index.php/JEDA/article/view/355/284
Nnubia, A. L. (2020). Monetary Incentives and Employee Performance of Manufacturing Firms in Anambra State. International Journal of Innovative Finance and Economics Research, 8(1), 10-22. https://www.seahipublications.org/wp-content/uploads/2024/06/IJIFER-M-2-2020.pdf
Prastiwi, I. E., Pardanawati, S. L., & Kurniawan, D. (2022). Employee Performance: Work Ability and Work Motivation. International Journal of Economics, Business and Accounting Research (IJEBAR), 6(1), 1-10. https://doi.org/10.29040/ijebar.v6i2.4691
Putra, A. R. (2022). Improving Employee Performance through the Implementation of Total Quality Management and the Effectiveness of the Remuneration System. International Journal of Service Science, Management, Engineering, and Technology, 2(2), 1-5. https://ejournalisse.com/index.php/isse/article/view/31
Putri, L. D., Nugroho, C., Malik, A., & Nastain, M. (2024). Developing ecological piety in pesantren: the Kyai’s cognition and the practice of living fiqh al-bī’ah in Banten. Ijtihad : Jurnal Wacana Hukum Islam Dan Kemanusiaan, 23(2), 235–259. https://doi.org/10.18326/ijtihad.v23i2.235-259
Qadari, A. Q. A., Abdurahim, A., & Sofyani, H. (2018). The Relationship of Budgetary Participation and Remuneration System to Local Government Managerial Performance: The Intervening Role of Motivation. Jurnal Akuntansi Publik, 1(1), 145-161. https://doi.org/10.32554/JAP.V1.I1.P145-161
Rasyid, M. (2021). Problematics of Implementation of the Mudhārabah Contract on Sharia Banking in Indonesia. Journal of Islamic Law, 2(1), 22–42. https://doi.org/10.24260/jil.v2i1.135
Setiawan, A., & Hendarman, A. F. (2024). Boosting Employee Loyalty at XYZ Consulting: Strategies for Long-Term Commitment. Journal Integration of Management Studies, 2(1), 82-94. https://doi.org/10.58229/jims.v2i1.145
Sriani, E., Hasan, F., & Ma’mun, S. (2023). Violation of Human Right for Collateral Fraud in Sharia Financial Institution Based on Fiduciary Guaranty Law and Rahn Law. Juris: Jurnal Ilmiah Syariah, 22(1), 133–143. https://doi.org/10.31958/juris.v22i1.9157
Sulaksono, Masnun, M. A., Sulityowati, E., Nugroho, A., & Lovisonya, I. (2023). Arrangement of Internal Regulations at UNESA after Status of a State University with a Legal Entity (PTN-BH). Proceedings of the International Joint Conference on Arts and Humanities 2023 (IJCAH 2023), Advances in Social Science, Education and Humanities Research 785, Surabaya. https://doi.org/10.2991/978-2-38476-152-4_148
Suryani, R., Sunarmi, S., Sembiring, R., & Siregar, M. (2024). Equity Participation of the University of Sumatera Utara as a Legal Entity State University in Business Enterprises. Locus Journal of Academic Literature Review, 3(1), 85-102. https://doi.org/10.56128/ljoalr.v3i1.279
Tahir, K. H. K., & Iraqi, K. M. (2018). Employee Performance and Retention: A Comparative Analysis of Theory X, Y, and Maslow’s Theory. Journal of Management Sciences, 5(1), 100-110. https://doi.org/10.20547/jms.2014.1805106
Uman, T., Argento, D., Grossi, G., & Mattei, G. (2024). Supportive Leadership and Job Satisfaction at the European Court of Auditors. International Review of Administrative Sciences, 90(2), 454-473. https://doi.org/10.1177/00208523231187275
Weda, S. (2018). The Effects of Knowledge Management on Performance of Government Employees (ASN) at Faculty of Languages and Literature State University of Makassar Indonesia. International Journal of Academic Research in Business and Social Sciences, 8, 521-542. https://doi.org/10.6007/IJARBSS/v8-i4/4030
Widodo, M., Setiyawan, W. B. M., & Mursidah, S. (2023). Employee Resistance and the [Agent of] Change Management Model on the Juridical Implications of PTN-BH Status. Journal of Social Science (JoSS), 2(8), 735-749. https://doi.org/10.57185/joss.v2i8.109
Witro, D. (2024). State Islamic University Students’ Perceptions of IsraelAffiliated Products: A Study After the Fatwa of Indonesian Ulema Council No. 83 of 2023 Concerning the Law on Support for the Palestinian Struggle. Al-Manahij: Jurnal Kajian Hukum Islam, 145–160. https://doi.org/10.24090/mnh.v18i1.10554
Zhu, J., & Huang, F. (2023). Transformational Leadership, Organizational Innovation, and ESG Performance: Evidence from SMEs in China. Sustainability, 15(7), 5756. https://doi.org/10.3390/su15075756
Zulkarnain, M. I. (2016). The Effect of Leadership, Work Motivation, and Remuneration on Employee Performance at the Regional Office of the Directorate General of Taxes of East Java I. DIA: Jurnal Administrasi Publik, 14(2), 165-178. https://doi.org/10.30996/dia.v14i2.1029

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms: (1) Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License (CC-BY-SA) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal; (2) Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal; (3) Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).