The Influences of Transformational Leadership and Compensation Can Affect Employees’ Performance and their Motivation

Melissa P. Stolz

Student of School of Business, Duquesne University, Pittsburgh,, USA

Weng R. Lau

Associate Professor of Swinburne University of Technology Sarawak Campus, Kuching, Sarawak, Malaysia

Irine R. Lee

Senior Lecturer of Swinburne University of Technology Sarawak Campus, Kuching, Sarawak, Malaysia


Numerous empirical articles in management emphasize the influence managers can have on various job-related responses of employees, such as job satisfaction, motivation, and performance. The purposes of this study is to examine and analyze the influences of transformational leadership and compensation to employee performance on their motivation. The primary research data is surveys, and secondary data are performance values and interview results. Saturated sampling as a sampling method in this study, the subjects were taken from all employees consist of 93 people. The analytical method in this study is using the SmartPLS software there is variant based structural analysis (SEM) that can simultaneously test to measurement model and target the structural model. This paper reports results of a study, however, which found that a transactional approach may be preferable to a transformational style for enhancing employee’s motivation and behavioral responses.


Transformational Leadership, Compensation, Motivation, Employee Performance

To cite this article

Stolz, M. P., Lau, W. R., & Lee, I. R.  (2017). The Influences of Transformational Leadership and Compensation Can Affect Employees’ Performance and their Motivation, International Journal of  Management, and Social Sciences Review (IJMSSR). Vol. 1, No. 2, pp.41-57. Doi:10.5281/zenodo.2648495



Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.



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