The Influence of Transformational Leadership Style, Work Environment and Compensation on Employee Performance with Motivation as an Intervening Variable in PT Metindo Erasakti

This quantitative research, 120 respondents with SmartPlS-4, aims to set a direct and indirect influence of the transformational leadership style on employee motivation and performance, work environment on employee motivation and performance, compensation on employee motivation and performance, motivation on employee performance, transformational leadership style, work environment and compensation on employee performance through work motivation as an intervening at PT Metindo Erasakti. transformational leadership do not impact performance, transformational leadership do not impact motivation. Compensation do not impact performance, compensation impact motivation, work environment impact performance. The work environment do not impact motivation. Motivation do not impact performance. Transformational leadership do not impact performance through motivation. Compensation do not impact performance through motivation. The work environment do not impact performance through motivation

This quantitative research, 120 respondents with SmartPlS-4, aims to set a direct and indirect influence of the transformational leadership style on employee motivation and performance, work environment on employee motivation and performance, compensation on employee motivation and performance, motivation on employee performance, transformational leadership style, work environment and compensation on employee performance through work motivation as an intervening at PT Metindo Erasakti.transformational leadership do not impact performance, transformational leadership do not impact motivation.Compensation do not impact performance, compensation impact motivation, work environment impact performance.The work environment do not impact motivation.Motivation do not impact performance.Transformational leadership do not impact performance through motivation.Compensation do not impact performance through motivation.The work environment do not impact performance through motivation

INTRODUCTION
Human Resources are essensial for companies in managing, organizing, and maximizing employees.Human Resources as the urge of the organization in reaching target, must encourage employee efforts to work harder.With employees who work harder and better, the outcome could reached in carrying their duties and work.Company goals can be achieved not depending on sophisticated and modern work tools, adequate facilities but more dependent on the people who carry out the job.Organization achievement is greatly affected by each employee.The company should improve the performance of the employees in the hope of achieving company goals.
Performance is a very important and interesting part because it turns out to be very important benefits.There are several ways to reach maximum performance by educating, workshop training, adequate compensation, conducive work environment also motivation.Giving motivation directly at each individual or by providing reasonable compensation rules.Therefore, efforts to improve staff performance are the most serious management challenge because the success of achieving a company's goals and survival depends on the quality of its human resource performance.Officer performance has a number of factors that can influence, One of the factors that influences staff performance is leadership style.The right leadership style will motivate a person to accomplish.The success of an employee's failure to accomplish his job can be influenced by the leadership style of leadership.Leadership style becomes the first factor in sustainable performance improvement.In this process, leaders have a major role in determining the implementation of the organization of a company.A leader is required to give clear direction to the vision and mission of the organization, and to be able to run the organization well so that the results obtained are in line with the goals that the company wants to.A leadership style that can be applied based on the results of this research is the leadership theory of Kouze and Posner.Kouze and Posner in their book The Leadership Challenge (2012) found that the most wanted leaders are leaders who have an attitude of Honest, Forwardlooking, Competent and Inspiring.These four attitudes, if put into leadership practice, will have a positive impact on the company.The challenge becomes a necessity, a challenge and a response to managing the staff, given that it's difficult and complex to do by a leader, because each staff member has a different background.
Compensation has a broader meaning than wages or salaries.Wages emphasize the reward of financial services, while compensation covers financial and non-financial services.Compensation is either a direct reward of money or an indirect reward.(non finansial) Compensation can improve performance and motivate employees.According to Edy Sutrisno in his book entitled Human Resource Management, the purpose of a man's work is for him to live from their work.Motivation can drive an employee to perform work optimally in accordance with the goals a leader wants in creating a conducive working atmosphere in the company.Such an incentive is motivation, that motivation can increase productivity, discipline, and can raise an employee's sense of responsibility for duties.
Tommy Waworundeng, William A. Areros, Wehelmina Rumawas (2021), in their research showed that leadership style influencing employee performance.Meanwhile, research by Nadia Putri Shahara, Noor Indah Rahmawati (2021) ststed that leadership style influence employee performance.Muhammad Adhan, Muhammad Andi Prayogi (2021), in their research shows that the Leadership have significant effect on Employee performance.According to Tomy Sun Siagian, Hazmanan Khair (2018) Leadership style affected job satisfaction.
Compensation come under financially or non-financially rewards.Providing compensation can improve work performance and motivate employees.
PT Metindo Erasakti, as one of the companies engaged in automotive stamping, welding, and dies center services that has more than one customer.Which plays a role in developing motorized vehicle products both two-wheeled and four-wheeled whose use has become a necessity for the people of Indonesia.PT Metindo Erasakti has also tried to provide training for all employees.Training in the field of basic skills is given every month for all divisions, for QCDSME training (Quality, Cost, Delivery, Safety, Morale, and Environment) and most training is given to the production division, for managerial and leadership training is given once a month for Group Leader level up and above.Given the large number of customers, the majority of 90% of customers are automotive market rulers in Indonesia, opening up market opportunities for PT Metindo Erasakti to expand its business and diversify into other automotive products.PT Metindo Erasakti was established in 1989, and is engaged in automotive services.The company is located in Bekasi.

LITERATURE REVIEW Definition of Performance
Performances are both quantity as well as quality of jobs attained by an employee to finish duties based on responsibilities given (Mangkunegara, 2017: 67).According to Mangkunegara in (Fransiska & Tupti, 2020) employee performance are quantity as well as quality of jobs attained by an employee in doing their duties according to the duty given to them.

Definition of Motivation
Koldakar in Hamali (2018: 131) steted that motivation is a desire caused by needs, willingness that makes individual do anything to get the goal.Motivation is the empowerment of the work eagerness of a person to be willing to work with others effectively, and integrate to reach satisfaction (Hasibuan, 2014).

Definition of Leadership Style
Leadership style according to Moeheriono ( 2012) is a pattern of conduct of the leader related to the skill to lead.Leadership style can also be defined as a group of leaders characteristics to govern subordinates in order to reaching goals (Rivai and Mulyadi, 2012).The way a leader has is very affecting on every step to take to organize company.

Definition of Work Environment
Work environment is all thats in the employees area that may influence them at work such as humidity, heat, ventilation, light, sound, workplace sanitary and tools for work (Afandi, 2018).Work environment divided into two types.First, a physical work environment where everything involves physical aspects.Second, a nonphysical work environment that cannot be senses (Suwondo and Sutanto 2015).

Definition of Compensation
Compensation is all that is get by employees as a prize for their doing to the organization.(Sedarmayanti, 2017: 173).According to Edy Sutrisno in Tohadi (2017: 182) argues that compensation is counted based on job evaluation to get compensation close to feasibility and justice (equity).8. (H8) transformational leadership has significant impact to performance through motivation as an intervening variable.9. (H9) compensation has significant impact to performance through motivation as an intervening variable.(H10) work environment has significant impact to performance through motivation as an intervening variable

METHODOLOGY
This study is using quantitative research.Quantitative research is research that uses numerical data.(Sugiyono: 2016, p.7).The author uses the type of quantitative research because in this research the data used is obtained from the expected questionnaire result so that the data in the research is in the form of numbers.Quantitative research in research looks at variable relationships to objects studied that are causal, so the authors use descriptive and verification research methods.A descriptive method is a method of research conducted to determine the value of independent variables, either one or more variables (independent) without making comparisons, or connecting with other variables.(Sugiyono, 2015:35).A verification method is a method of research aimed at finding the relationship between two or more variables, or a method used to test the truth of a hypothesis.(Sugiyono, 2015:36).
The research achieved by spreading a questionnaire to 120 respondents which are employees of PT Metindo Erasakti.Sampling technique is Sample Random Sampling that population member are selected one by one randomly.Data Analysis Methods The data analysis method in this study uses the Partial Least Square approach (PLS).Partial Least Square (PLS) is an alternative method of Structural Equation Modeling (SEM) that can be used to address relationships between highly complex variables, but small data sample sizes.(Haryono, 2016).PLS is a Structural Equation Modeling (SEM) model based on components or variants.PLS is an alternative approach that shifts from a covariant-based SEM approach to a variance-based one.(Ghozali, Konsep, Teknik, dan Aplikasi Menggunakan Program smartPLS 3.0 ed. 2, 2015).SmartPls (SEM analysis) as software to calculate convergent and discriminant validity, AVE, reliability test, r-square and direct -indirect influence of each variables.The measurement model is used to test the validity of the construction and the reliability of the instrument.The validity test was performed to measure the ability of the research instrument to determine what should be measured (Cooper and Schindler, 2006) in (Hartono & Willy, 2014) (AVE).The reliability test is used to measure the consistency of measuring instruments in measuring concepts or it can also be used for measuring respondent consistencies in answering instruments.An instrument is said to be reliable if a person's answer to a question is consistent or stable over time.Reliability testing in PLS can use composite reliability and cronbach's alpha methods (Hartono & Willy, 2014).After evaluating the structure/variable measurement model, the next step is to evaluate the structural model or the outer model.The first step is to evaluate the structural model by looking at the significance of the construction/variable relationship.This can be seen from the path coefficient that describes the strength of the interconstructive relationship.The path coefficient must correspond to the theory hypothesized, its significance can be seen in the t-test or C.R (critical ratio) obtained from the bootstrapping process or resampling method.(Haryono, 2016).Testing this hypothesis is done by comparing t-computing with t-table.A t-calculation comparison with a t-table is used to determine whether or not there is an influence between variables in this study.The t-calculation value is obtained from bootstraping with SmartPLS software.The path coefficient value indicates a significant level in the hypothesis test.The path factor score shown by the Tstatistic value, must be above 1.96 for two-tailed hypotheses and above 1.64 for one -tailed.(Hartono & Abdillah, 2015).For the hypothesis test at = 5%.For the hypothetical test in this study using statistical values, then for = 5% the statistical t-value used is 2,014.So the criterion for acceptance/rejection of the hypothesis is Ha accepted and H0 rejected at t-statistics > 2,014.
The demographic aspects consist of gender, age, education, time of service and work unit.Cross loadings each variable all above 0.70 and correlation constructs to the indicators is greater than the score of others.this explains latent construc estimates higher block size than others.The AVE value for every variables are above 0.5 and the reliability test shows the score of every variables in the Cronbachs alpha as well as composite reliability parameters >0.70 means these research variables meet the reliability test requirements.Source: SmartPls 4 Calculation Results (2024) R Square with a point of 0,75 indicates a strong point, 0,50 a moderate point and 0,25 a weak point.R-square of performance is 0,983 or 98,3% (strong category).R-square score of motivation is 0.836 or 83,6% (Strong category).Hypothesis Test

RECOMMENDATIONS
In the transformational leadership variable, the worst score is on indicator x1.9 with a score of 4.15 regarding "Superiors will participate employees if there are obstacles".It is necessary to improve the communication from superiors to their subordinates if the superior is unable to attend in terms of delegating tasks.
In the work environment variable, the worst score is in indicator x2.12 with a score of 4.14 regarding "The work atmosphere makes me not feel tired".Some things that the company might consider are creating a comfortable work environment such as bright enough lighting, cool room temperature, ergonomics of work furniture such as chairs and tables are comfortable to use and according to body posture.Apart from the room conditions factor, it is also necessary to pay attention to relationships with coworkers by conducting open communication, helping each other and celebrating achievements together.
In the compensation variable, the worst score is in indicator x3.8 with a score of 4.17 regarding "The benefits provided by the company are in accordance with your position".For employees, it's better to understand the job description and related benefits in related with the provisions outlined by the company.If it is not appropriate, it can be communicated with superiors politely and professionally.
In the motivation variable, the worst score is in indicator y1.10 with a score of 4.03 regarding "Leaders in my workplace always provide input regarding the activities we will do".For subordinates, they can take the initiative to ask for input first to superiors, for superiors it is better to pay more attention to employees by taking special time for them.
In the employee performance variable, the worst score is in indicator y2.10 with a score of 4.15 regarding "Employees are always responsible for the job description that has been determined".All work that has been delegated to each employee must be the responsibility of each employee.

FURTHER STUDY
This research still has limitations, so it is necessary to carry out further research related to the topic The Influence of Transformational Leadership Style, Work Environment and Compensation on Employee Performance With Motivation as an Intervening Variable in order to perfect this research and increase the reader's insight.

Figure
Figure 1.Total Sales

Figure
Figure 4. Structural Model Testing

Table 2 .
Cross Loading Value

Table 5 .
Direct Effect