This research is aimed at analyzing the impact of leadership and compensation towards the performance of Akademi Manajemen Administrasi Yogyakarta (AMA Yogyakarta) employees with working motivation as the intervening variable. Forty eight employees from that organization became the population and sample in this research. Purposive sampling is used as the method of sampling, while the data analysis instruments used in the hypothesis testing are validity and reliability tests, multiple linear regression analysis, t - test and intervening testing. Based on the t – test and the result of multiple linear regression analysis, the research shows that leadership and compensation impact positively and significantly towards the employees’ working motivation and performance. Moreover, working motivation also influences positively and significantly to the employee’s performance. Based on the three linear regression analyses, the intervening variables can be tested and it shows that working motivation variable cannot be the intervening variable because the value calculation between the leadership and the compensation towards the employees’ performance through working motivation is lower than the direct impact of the leadership and the employees’ performance compensation.

 

Keywords: Leadership, compensation, work motivation and employee performance