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TRANSACTIONAL LEADERSHIP EFFECTS, ORGANIZATIONAL

CULTURE, COMMITMENT AND JOB SATISFACTION ON
COMPENSATION AND EMPLOYEE PERFORMANCE IN THE AREA
OF AGRICULTURAL QUARANTINE, SOUTH SULAWESI

Fatmawati Saleh
fatmawatisaleh@gmail.com,
Indonesian Muslim University;

Abstract

The purpose of this study was to analyze the influence of transactional leadership,
organizational culture, commitment and compensation to job satisfaction, to
analyze the impact of transactional leadership, organizational culture,
commitment and compensation to employee performance, to analyze the effects of
job satisfaction on employee performance, as well as to analyze the influence
transactional leadership, organizational culture, commitment and compensation
through job satisfaction on employee performance. The experiment was
conducted at the Institute for Agriculture Quarantine South Sulawesi region with a
population of 193 people and a full set of samples sampling 193 respondents. Data
from the questionnaires were analyzed using Structural Equation Model using
AMOS assistance 18. The study found that organizational culture is directly a
significant negative effect on job satisfaction of employees. The reason is because
the negative influence organizational culture indicators of organizational culture
has not fully actualize employees well in providing reinforcement on the
application of organizational culture to perform their duties and functions, but the
implementation of this organizational culture significantly influence employee
satisfaction. Organizational culture directly and no significant negative effect on
employee performance. The reason organizational culture negative and not
significant due to the indicators of organizational culture has not been entirely
good employees can actualize the implementation of the organization's culture, so
the application of organizational culture is not significant effect on performance.
Organizational culture indirectly through job satisfaction and no significant
negative influence on employee performance. The reason organizational culture
negative and not significant due to the indicators of organizational culture that are
applied through job satisfaction has not actualized properly, so that the application
of the culture of this organization and no significant negative effect on employee
performance.

Keywords: Transactional Leadership, Organizational Culture, Commitment,

Compensation, Job Satisfaction and Performance, behavior

Electronic copy available at: https://ssrn.com/abstract=2919740

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I. Introduction

Facing the challenges and job competition intensifies, the existence of

human resources becomes important and needed to be managed and utilized in
achieving organizational goals. Momentum is important from the application of
human resource management is to make every employee in an organization that is
able to carry out the vision, mission, duties and functions and values embraced by
an organization to grow and progress.

On this basis, the application of human resource management becomes

urgent and relevant to be considered and developed in order to realize the
objectives of the organization. This becomes important and necessary for the
Agriculture Quarantine Territory of South Sulawesi to implement human resource
management as an important momentum in managing and using employees as
human resources.

Employees of Agricultural Quarantine Territory of South Sulawesi looked

at the importance of the application of human resource management to realize the
vision of "quarantine Being reliable and accountable in protecting the
sustainability of natural resources in order to achieve food self-sufficiency and the
acceleration of exports as well as the resilience and food security in South
Sulawesi". This vision is certainly easy actualized when the application of human
resource management implemented well, so that this vision is able to be
actualized in its mission statement.

Mission Agriculture Quarantine Territory of South Sulawesi are: 1)

improving governance in the quarantine system to protect the biological resources
of animals, plants from threats HPHK, quarantine pest and fresh food from
contamination of nuclear, biological and chemical; 2) improve the
competitiveness of plant and animal commodities in domestic and international
trade; 3) encourage the establishment of quarantine role in accelerating the export
of cocoa and other agricultural commodities featured in an acceptable South
Sulawesi able to compete in international markets; 4) create a system of quality
management services by consistently implementing the ISO 9000: 2008 / SNI 19-
9001-2008; 5) increases as a competence of testing laboratories (testing
laboratory) consistently implement ISO 17025: 2008; 6) improve compliance and
community participation in organizing quarantine of animals and plants; and 7)
improving infrastructure, technology applicable to a computerized system.

The vision and mission is in line with the implementation of basic tasks and
functions of employees of South Sulawesi Regional Agricultural Quarantine
Regulation of the Minister of Agriculture No. 22 / Permentan / OT.1140 / 4/2008
Article 2 establishes the basic tasks "Implementing operational activities of animal
and plant quarantine and supervision of biosafety animal and vegetable ", with the
following functions: a) planning, evaluation and reporting; b) the implementation
of the examination, isolation, observation, treatment, detention, denial,

Electronic copy available at: https://ssrn.com/abstract=2919740

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extermination, and the liberation of the carrier HPHK and quarantine pest; c) the
implementation of regional monitoring and quarantine pest spread HPHK; d)
manufacturing operation HPHK collection and quarantine pest; e) monitoring the
implementation of biosafety animal and vegetable; f) the implementation of
operational service delivery animal and plant quarantine; g) the implementation of
operational service delivery oversight biosafety and animal; h) management of
information systems, documentation, facilities engineering, animal and plant
quarantine; i) the implementation of surveillance and repression of violations of
legislation in the field of animal quarantine, plant quarantine and biosecurity of
animal and vegetable; and j) the implementation of administrative affairs and
households.

On the basis of the main tasks and functions, it is expected of each

employee is able to apply the values of Agricultural Quarantine Territory of South
Sulawesi, namely: 1) strategic thinking to achieve the objectives, means always
seeks to achieve the best choice; 2) apply the mandate in the expanding tasks,
implies always professional in developing capabilities continuously in their
respective sectors and responsible use of effective resource efficient; 3)
innovative, creative continue to develop the best ways to achieve goals; 4)
cooperation and communicative, communicate to understand the needs of
stakeholders and collaborate both internally, and externally in achieving its
objectives; 5) science base, understand that the quarantine is the risk management
therefore always consider aspects of technology and science in policy decisions;
and 6) dedication in service, is committed to provide the public with the best
possible.

To realize the vision, mission, duties and functions as well as the values of
South Sulawesi Regional Agricultural Quarantine is not easy, because it must be
performed by employees who have performed. The fact is seen as a factual
phenomenon shows that the achievement of the performance of employees within
the last five years has not been realized in accordance with expectations.
According to Stuggard (2011: 122) increase of performance affects the realization
of achieving the targets according to the vision, mission and goals of the
organization.

The fact that became a phenomenon that in the last five years according to a
report of information part of human resource development indicates that
employees of Agricultural Quarantine Territory of South Sulawesi as the
Administrative Civil State (ASN) the realization of the achievement of
performance based on the assessment of quantity, quality, time efficiency and
effectiveness of the use of the budget for all activities policies, program and
activities implemented during this implementation did not correspond with the
target, there is even a trend in these five years has decreased the percentage. More
details are shown in Table 1 below:
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Table 1. Realization of Employee Performance by ASN on Regional Agricultural

Quarantine South Sulawesi Year 2011 - 2015

Performance Year
Standards
2011 2012 2013 2014 2015
ASN
Quantity 86.52 86.39 84.41 83.29 81.48
Quality 85.74 84.21 83.39 81.52 78.75
Time 77.14 78.18 80.85 78.67 75.85
Cost 75.53 75.85 74.68 75.82 73.29
Source: Regional Agricultural Quarantine South Sulawesi, 2016

The table above shows the percentage of performance that does not achieve
the target performance realization by ASN in five years (2011 - 2015), in which
the realization of the expected target of 90% - 100% as a result of the perfect.
Seen the performance seen from the quantity within a period of five years has
decreased from 86.52% in 2011 to 81.48% in 2015, which means the number of
work programs are held is reduced. Performance is based on quality in 2011
reached 85.74% decline until 2015 to 78.75%, which indicates that the quality of
the work produced is still low. Aspects of the use of working time of employees in
2011 was 77.14%, and continued to decline until it reaches 75.85% in 2015 is
inefficient in the administration duties. And the performance is based on the
utilization of cost-effectiveness in 2011 reached 75.53% also decreased to 73.29%
in 2015 in the allocation of budget programs and activities.

Based on the above data, it indicates the fact that the realization of the
achievement of the targets adopted by employees of the Agriculture Quarantine
South Sulawesi region does not meet the expectations of the target of achieving
the desired performance. According to Lie (2013:15) achievement of performance
that does not reach the expected target is usually influenced by the low level of
employee satisfaction. The cause of satisfaction and low employee performance
cannot be separated from the influence of weak leadership styles, organizational
culture is not actualized and work commitments inconsistent in its application.

The fact that seen today shows that the performance of employees
agriculture quarantine Territory of South Sulawesi did not reach the expected
target, because among employees of many who complained about the level of job
satisfaction low perceived, where employees voted apparatus of civil states often
complain and show a sense of disappointment in carrying out daily activities , It is
also affected by the problems in the supervisor's leadership style that does not
correspond to the desire of subordinates, implementing an organizational culture
that is executed at this time is not institutionalized well and amongst employees
are still many who do not have a firm commitment to work in the face of the
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dynamics of daily work. So the influence of leadership styles, organizational

culture, job commitment is a variable that often gives the effect of the low
employee satisfaction to continuously improve performance.

As a result of the performance given by employees decreases this is because

among employees often complain of perceived job satisfaction levels are low,
where the state civil servants as officials often complain and show a sense of
disappointment in carrying out daily activities. It is also affected by the problems
of transactional leadership boss that does not correspond to the desire of
subordinates, the implementation of an organizational culture that is executed at
this time is not institutionalized well and amongst employees are still many who
do not have work commitments are steadfast in the face of the dynamics of the
work, and the low compensation received employees. So the influence of
transactional leadership, organizational culture, commitment and compensation is
a variable that gives the effect of the low employee satisfaction to continuously
improve performance.

The phenomenon of poor employee performance caused by low job

satisfaction of the influence of leadership styles, organizational culture and
commitment to work to make the achievement of employee performance did not
reach the expected target. Therefore, to be considered for the management of the
Agricultural Quarantine South Sulawesi region to apply the theory of employment
targets of Dessler (2013: 41) that assess a job performing, seen from the
achievement of targets in terms of quantity, quality, time efficiency and
effectiveness of the budget is generated.

The cause of the performance of employees decreased in fact influenced by

employee satisfaction is declining. It can be seen from the phenomenon shows
that employees frequently complain or be disappointed with a work activity faces,
especially with regard to the demands to be met work satisfaction. Things are
always questioned by employees in carrying out their work activities which lead
to lower employee job satisfaction, namely matters relating to the work performed
by employees less attractive, often show feeling lazy and bored running routine.
Similarly, employees often complain to the labor challenges it faces, not willing to
take risks and dare to make innovative decisions in the work. Employees in work
rarely exhibit satisfactory performance, the compensation received by lower-level
officials, so that employees are not satisfied do his job, and employees do not feel
satisfied because rarely awarded promotion to a higher level. The realization of
this discontent led to poor employee performance as a result of the influence job
satisfaction owned by lower-level officials.

Understanding that, according to Mohamad (2014:7) that low job

satisfaction influence on decreasing the achievement of the performance. It is
proven that low job satisfaction causing employees often complain, protest and
disappointment in carrying out their work activities, so that the performance of a
given, not as expected.
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Understanding the causes of low job satisfaction in improving employee

performance, then management must address and pay attention to the importance
of implementing two-factor theory of Herzberg as a motivator and hygiene theory
to be done for an organization to improve customer satisfaction-oriented work on
improving the performance of employees. Theory two factors of Herzberg in
Rival (2008: 255) states that satisfaction leads people to feel happy and discontent
caused the upset, so keep in mind the things that give satisfaction as provide
interesting work, the courage to face the challenges of employment, spur to
continue to excel , increasing compensation and sale of office.

Low job satisfaction and lower employee performance achievement that

occurred during the time in South Sulawesi Regional Agricultural Quarantine, not
in spite of the influence of transactional leadership shown by officials who lead
their subordinates in carrying out their duties and functions. Among the leaders in
show of transactional leadership to his subordinates did not apply the reward
depends on the work that is accomplished, the leadership did not implement
exception management actively by inviting each subordinate to maintain the rules
and standards of work that has been agreed, not implement exception management
passive to participate in implementing work together with subordinates, and not
apply the principle of laissez faire to relinquish responsibility by providing
authority to subordinates to make decisions. Subordinates have often protested,
complained even ignore transactional leadership given to subordinates. The result
is many of those subordinate who is not satisfied in the work that led to lower
work satisfaction and achievement of the performance decline.

According Wiwiek (2013) that one of the causes of job satisfaction and
performance is decreased due to the problem of transactional leadership are not
actualized properly within an organization. In which the organization's leaders
were unable to show transactional leadership that led to his subordinates receive
transactional leadership that well, so it's easy to be directed subordinates, driven
and influenced together in realizing the objectives of the organization.

Responding to transactional leadership of superiors or officials that lead to

job satisfaction and employee performance decreases, because the management in
the scope of the Agricultural Quarantine Territory of South Sulawesi less attention
to the application of transactional leadership is good, so it is necessary to apply
the theory of the characteristics of transactional leadership of Bass (2010: 125)
that every leader must be able to exchange in influence and mobilize subordinates
to run well leadership characteristic. That is, leaders give orders or directives to
his subordinates in accordance with the right person for the job leads, so it
becomes a consideration for the transaction conducted between leaders and
subordinates.

In addition to transactional leadership, organizational culture is also a

variable that lead to job satisfaction and employee performance decreases. The
fact is that among the employees there are not able to actualize the culture of the
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organization well in accordance with the value of the philosophy of the founders
of the organization before. Consequently among employees there who ignore the
culture of the organization to not apply well as the integrity of employees are low
in work, does not indicate the identity of pride as employees are expected to
promote the organization, the level of responsibility of low employment, lack of
discipline in the work and do not have a results orientation in the work , As a
result of organizational culture is not institutionalized well within every employee
causes employees to work often show dissatisfaction and not able to demonstrate
achievement of improved performance. That is the culture that applied during
these secret societies still low which lead to job satisfaction and employee
performance decreases.

Wei Zheng (2010) states that a weak organizational culture affects the level
of satisfaction and achievement of the performance of employees decreased. It
proved that the organizational culture is not institutionalized make dishonest
employee working, no identity, less responsible, undisciplined and unable to
achieve the maximum work. Due to weak organizational culture lead to job
satisfaction and employee performance decreases. Addressing the importance of
organizational culture to be addressed and corrected institutionalized is the
management philosophy should apply the theory of the value of Pormant (2013:
96) states that there are five values organizational philosophy that is advanced and
modern, namely integrity, identity, responsibility, discipline and results
orientation. Fifth this philosophy when executed properly to give effect to the
increased job satisfaction and performance achievement.

Including lower job commitment that lead to job satisfaction and employee
performance decreases. This phenomenon can be seen that as a result of the
commitment as a pledge or a pledge of allegiance that is often uttered by an
employee, was not in accordance with the actions or deeds even sometimes
among employees there is a violation and neglect of work commitments that have
been understood, that due to work commitments low owned employee causes job
satisfaction and employee performance decreases. Work commitment that is often
ignored is the low employee affective commitment to promote the organization,
normative commitment to adhere to the rules of the organization, the continuous
commitment of paying less attention to organizational objectives and
prospectively are not able to maintain the achievement of the organization. As a
result of this low job commitment, affect employee satisfaction in the work that
led to decreased employee performance.

This is the assessment for the management of the Agricultural Quarantine

Territory of South Sulawesi to consider measures to improve the commitment of
employee by applying the theory of ratings commitment of Smith and Meyer
(2013: 56) that one's commitment is a form of the totality of behavior to advance,
comply with the rules, realize goals and sustain the gains that have been achieved
the organization. Strong job commitment led to the establishment of job
satisfaction and improved performance of a person in an organization. This theory
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is important to implement in order to improve and increase job satisfaction and

employee performance achievement.

Furthermore, the phenomenon of compensation received by the employee in

fact employees are still demanding for increased compensation in accordance with
the results of work achieved. Seen the compensation as the organization's policies
have not been able to increase employees’ welfare, even employees noticed that
the receipt of compensation has not been comparable to the demands of what is
done by the employees. As a result of the compensation received by employees
working low, this affects job satisfaction and employee performance decreases. It
can be seen employees be diligent and hardworking if any work performed as a
favor to compensation and if no compensation tendency lazy employees to work
and often delay the work given to him. This is a phenomenon that compensation
had a stake in an organization to improve customer satisfaction and employee
performance. To fix the increase job satisfaction and employee performance for
the low compensation received by employees, it is necessary to consider the
application of theory appreciation of Schuler and Jackson (2012: 133) that
everyone in the organization to work for a reward receive compensation in
accordance with a reward for services rendered to the organization , Award of the
compensation is an important factor that concerns everyone in the organization to
meet your satisfaction and improve its performance.

Based on the background described, the problems in this research are: 1) Is

the transactional leadership directly affect employee satisfaction Agricultural
Quarantine Territory of South Sulawesi? 2) Is the organizational culture directly
affect employee satisfaction Agricultural Quarantine Territory of South Sulawesi?
3) Does work commitments directly affect employee satisfaction Agricultural
Quarantine Territory of South Sulawesi? 4) Is the compensation directly affecting
employee satisfaction Agricultural Quarantine Territory of South Sulawesi? 5) Is
the transactional leadership directly affecting employee performance Agricultural
Quarantine Territory of South Sulawesi? 6) Is the organizational culture directly
affecting employee performance Agricultural Quarantine Territory of South
Sulawesi? 7) Is the job commitment directly affects the performance of employees
Agriculture Quarantine Territory of South Sulawesi? 8) Is the compensation
directly affecting employee performance Agricultural Quarantine Territory of
South Sulawesi? 9) Is the effect of satisfaction to employee performance
Agricultural Quarantine Territory of South Sulawesi? 10) Is the transactional
leadership indirectly through employee satisfaction on the performance of South
Sulawesi Regional Agricultural Quarantine? 11) Is the organizational culture
indirectly through employee satisfaction on the performance of South Sulawesi
Regional Agricultural Quarantine? 12) Does the commitment indirectly through
employee satisfaction on the performance of South Sulawesi Regional
Agricultural Quarantine? And 13) Is the compensation indirectly through
employee satisfaction on the performance of South Sulawesi Regional
Agricultural Quarantine?
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II. LITERATURE AND TESTING HYPOTHESES

In this study, there are six variables observed is composed of four

variables exogenous and two endogenous variables. Exogenous variables in this
study consist of transactional leadership, organizational culture, work
commitments and compensation. While the endogenous variables in the form of a
variable between job satisfaction and that are the dependent variable is employee
performance.

Transactional leadership trait theory proposed by Bass (2010: 215) that

every leader must be able to exchange in influence and mobilizes subordinates to
run leadership characteristic well. Transactional leadership is to give effect to an
increase in employee satisfaction and performance.

Linkages with previous studies that the research of Andrew and Geoffrey
(2010) as well as Charles and Katherine (2007) were equally examine
transactional leadership to satisfaction and performance found that the application
of transactional leadership determines satisfaction and performance. Application
of transactional leadership provides a significant negative influence either directly
or indirectly to the satisfaction and performance.

H 1a Transactional leadership is directly positive and significant impact on

employee satisfaction Agricultural Quarantine Territory of South Sulawesi.
H 1b Transactional leadership is directly positive and significant influence on
employee performance Agricultural Quarantine Territory of South Sulawesi.
H 1c Transactional leadership indirectly through a positive and significant impact
on employee performance satisfaction Agricultural Quarantine Territory of South
Sulawesi.

The theory of the philosophy of value (philosophy value theory) proposed

by Pormant (2013: 96) that the philosophy of the organization's founder advanced
and modern philosophy is always based on five values: integrity, identity,
responsibility, discipline and results orientation. This theory plays an important
role in instilling the culture of the organization to its members to carry out the
duties, so it feels satisfied with his work and influence on the performance of
employees in the organization.

Linkages with previous studies are research Wei Zheng (2010) and Erick et
al (2010) who studied the work culture and work to satisfaction. Wiwiek’s
research shows a negative and significant organizational culture on job
satisfaction and performance. While the study looked Wei Zheng organizational
culture and not significant positive effect on job satisfaction and performance.
While research Erick and Alison (2010) organizational culture and not significant
positive effect on job satisfaction and performance.
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H 2a Organizational culture is directly positive and significant impact on employee

satisfaction Agricultural Quarantine Territory of South Sulawesi.
H 2b Cultural organizations direct and significant positive effect on employee
performance Agricultural Quarantine Territory of South Sulawesi.
H 2c Organizational culture indirectly through a positive and significant impact on
the performance of employee satisfaction Agricultural Quarantine Territory
of South Sulawesi.

Further reference in understanding the assessment of individual

organizational commitment refers to the theory of appraising commitment by
Smith and Meyer (2013: 56) that the commitment assessed based on the totality of
behavior according to affective commitment, normative, sustainable and
perspective. The realization of the affective commitment that is committed to
always involved (participate), committed to the development organization,
committed to advancing the organization and sustain organizational success.

Linkages with previous studies is Aries Susanti’s et al research (2013) and

Chamdan Purnama (2013) which examined the organizational commitment and
job satisfaction. Aries Susanti’s Research directly demonstrates organizational
commitment and significant negative effect on performance through customer
satisfaction. While research’s Chamdan directly visible commitment organization
significant negative effect on job satisfaction.

H 3 a Direct employment commitment and significant positive effect on employee

satisfaction Agricultural Quarantine Territory of South Sulawesi.
H 3b Direct employment commitment and significant positive effect on employee
performance Agricultural Quarantine Territory of South Sulawesi.
H 3c Work commitment indirectly through a positive and significant impact on
employee performance satisfaction Agricultural Quarantine Territory of
South Sulawesi.

Application of the theory of compensation refers to the award of Schuler

and Jackson (2012: 133) that everyone in the organization to work for a reward
receive compensation in accordance with a reward for services rendered to the
organization. Award of the compensation is an important factor that concerns
everyone in the organization to meet your satisfaction and improve performance.

Linkages with previous studies is research Aries Susanti et al (2013) and

Chamdan Purnama (2013) who studied the compensation to satisfaction and work.
Research shows Aries Susanti directly compensated a significant negative effect
on performance through customer satisfaction. While the study looks
compensation directly Chamdan a significant negative effect on job satisfaction
and performance.

H 4a Compensation direct and significant positive effect on employee satisfaction

Agricultural Quarantine Territory of South Sulawesi.
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H 4b Compensation direct and significant positive effect on employee performance

Agricultural Quarantine Territory of South Sulawesi.
H 4c Compensation indirectly through a positive and significant impact on
employee performance satisfaction Agricultural Quarantine Territory of
South Sulawesi.

Furthermore, the theory used for variable job satisfaction as an intervening

variable refers to the theoretical expectations or two factor theory proposed by
Herzberg in Rival (2008: 255) that satisfaction and dissatisfaction is a different
matter. The realization of this satisfaction depends expectations on interest
interesting work, work challenges, rewards and promotions.

A linkage with previous studies are research Eric and Alison (2010), Aries
Susanti et al (2013) and Baharom (2012), which examines the satisfaction of the
performance. Erick research and Alison (2010) showed a negative and significant
job satisfaction to the intensity of the work / performance. Research Aries Susanti
et al showed job satisfaction positive and significant effect on performance. And
research job satisfaction Baharom also looks positive and significant effect on
performance.

Assessment of performance as a variable of interest (ending variable)

refers to the theory of employment targets of Dessler (2013: 41) that assess a job
performing, seen from the achievement of targets in terms of quantity, quality,
time efficiency and effectiveness of the budget is generated.

Linkages with previous studies is research Yitzhak Fried et al (2008) found

a decrease in the performance of domination influenced by the low level of job
satisfaction is demonstrated, research Lew Hardy (2010) showed a decline in
performance due to job satisfaction, leadership style and organizational culture are
still low. Further research Erick and Alison (2010) showed a decline in
performance because of poor level of organizational culture on job satisfaction,
and Chamdan study (2013) showed low performance due to the weakness of
organizational commitment and job satisfaction achievement.

H 5a Satisfaction direct and significant positive effect on employee performance

Agricultural Quarantine Territory of South Sulawesi.

III. METHODOLOGY

This study was designed to address problems that have been formulated
and the goals to be achieved and to test the hypothesis. This research is
exploratory in that they seek to find relationships that are relatively new and
explanatory research that is done by way of explaining the symptoms caused by
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an object of research. Review of aspects of the data is the research ex post facto,
which means that after the incident research that is systematic empirical finding,
which researchers cannot control the independent variables because events have
occurred or nature cannot be manipulated. Judging from the goal is causal studies
that attempt to explain the causal relationship influence the effect of transactional
leadership, organizational culture, commitment and compensation to employee
satisfaction and performance of South Sulawesi Regional Agricultural Quarantine.

Location of the study conducted at the Agricultural Quarantine Territory

of South Sulawesi as the object to see the effect of transactional leadership,
organizational culture, commitment and compensation for job satisfaction and
employee performance. The research was scheduled for six months.

The type of data in this study consisted of primary and secondary data.
Primary data is data obtained from the results of observations, questionnaires and
interviews. Secondary data is data obtained in South Sulawesi Regional
Agricultural Quarantine.

Sources of data obtained from the parties associated with this research.
Parties referred to is the leadership of the Agricultural Quarantine Territory of
South Sulawesi in obtaining a variety of information that support the
completeness of the data. Data collection techniques (instruments) are
observation, questionnaires, interviews and documentation.

The population of this study was all employees of the Agriculture

Quarantine Territory of South Sulawesi with purposive sampling to determine the
two regions of Makassar city and of Pare Pare city. Institute for Agriculture
Quarantine Makassar City has a number of employees 157 people and the Institute
for Agriculture Quarantine Pare-pare having employees 36 people. So the total
population of more than 193 employees. The sampling technique using full
sampling or sample census method by setting equal to the number of population is
taken purposively based on the working area. So the sample size in this study was
193 respondents.

Data analysis techniques used in explaining the phenomenon in this study

is a descriptive statistical analysis techniques and analysis of Structural Equation
Modeling (SEM).

IV. RESULTS AND ANALYSIS

Based on the method of determining the value in the model, the first
model testing variables are grouped into exogenous variables and endogenous
variables. Exogenous variables are a variable whose value is determined outside
the model. While endogenous variable is a variable whose value is determined by
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an equation or model-established relationships. Included in the group of

exogenous variables is the measurement of transactional leadership,
organizational culture, commitment and compensation, while those classified as
an endogenous variable is job satisfaction and employee performance.

The model is said to be good if the development of hypothetical model

theoretically supported by empirical data. Detailed SEM analysis results are
shown in the following figure:

Figure 1 : Measurements Model Relations SEM Variables for Early

From the evaluation of the eight criteria model shows a goodness of fit
indices seen the value of chi-square still great and seemingly some criteria do not
match the value of the cut-off is determined, so that a modification of the model
by performing the correlation between error indicator according to the instructions
of the modification indices. The results of the analysis after the final models
obtained are as follows:
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Figure 2: Measurement Model Relationships Variable SEM End

The results of the test model is presented in Figure 2 above were evaluated
based on the goodness of fit indices in Table 2 following the criteria presented
models as well as critical values that have compatibility data.

Table 2: Evaluation criteria Goodness of Fit Indices Overall Model

Goodness results results

Cut-o ff
of Model exp Model exp
Value
fit index Early stage Final stage
expected
Chi-square 479 946 marginal 261 200 Good
to be small
probability ≥ 0:05 0000 marginal 0415 Good
CMIN / DF ≤ 2:00 1690 Good 1016 Good
RMSEA ≤ 0:08 0060 Good 0009 Good
GFI ≥ 0.90 0838 marginal 0907 Good
AGFI ≥ 0.90 0800 marginal 0873 Marginal
TLI ≥ 0.94 0862 marginal 0997 Good
CFI ≥ 0.94 0879 marginal 0997 Good
Df 284 257
Source: Data after processing
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The evaluation results indicate the model for the early stages of 8th criteria
of goodness of fit indices are only two that meet the criteria of the cut off value is
CMIN / DF and RMSEA, so still need to be modified in accordance with the
instructions of the model modification indices, as previously described. After the
modification of the model, then the final stage shows there are seven criteria for
goodness of fit indices have met the criteria or according to criteria of the cut-off
value , so that the model can be said to have been in accordance with the criteria
of goodness of fit indices for in the analysis.

Overall based empirical model are shown in the following table regarding
the direct effect and the indirect effect of the variables studied. The test results are
presented in the following table:

Table 3: Hypothesis Testing Direct Effect and Indirect Effect

standardize
Independent Intervening Dependent
HIP Direct indirect total P- Information
variables variable variables
Effect Effect Effect Value
Transactional Job Positive
1 leadership - satisfaction 0559 - 0559 0003 and
(X1) (Y) Significant
Organizational Job Negative
- -
2 culture - satisfaction - 0008 and
0520 0520
(X2) (Y) Significant
Work Job Positive
3 commitment - satisfaction 0270 - 0270 0006 and
(X3) (Y) Significant
Job Positive
Compensation
4 - satisfaction 0182 - 0182 0042 and
(X4)
(Y) Significant
Transactional Positive
performance
5 leadership - 0205 - 0205 0035 and
(Z)
(X1) Significant
Organizational Negative
performance - -
6 culture - - 0720 and Not
(Z) 0068 0068
(X2) Significant
Work Positive
performance
7 commitment - 0204 - 0204 0027 and
(Z)
(X3) Significant
Positive
Compensation performance
8 - 0198 - 0198 0032 and
(X4) (Z)
Significant
Job Positive
performance
9 satisfaction - 0371 - 0371 0000 and
(Z)
(Y) Significant
 16/25

Transactional Job Positive

performance
10 Leadership Satisfaction 0205 0208 0413 0035 and
(Z)
(X1) (Y) Significant
Organizational Job Negative
performance - -
11 culture Satisfaction -0103 0720 and Not
(Z) 0068 0171
(X2) (Y) Significant
Work Job Positive
performance
12 commitment Satisfaction 0204 0149 0353 0027 and
(Z)
(X3) (Y) Significant
Job Positive
Compensation performance
13 satisfaction 0198 0189 0387 0032 and
(X4) (Z)
(Y) Significant
Source: Appendix 8

From the whole of the model there are seven lines provide a direct positive
influence and significant, two-lane direct influence negative and significant.
Furthermore, the indirect effect is there are two pathways that are positive and
significant, while the two other lines of negative and significant. The
interpretation of Table 2 for the direct effects and the indirect effect can be
explained as follows: a) transactional leadership directly affect significant positive
at 0.559 and 0.003 on employee satisfaction; b) organizational culture is directly
influenced negatively by significant -0520 and 0008 on employee satisfaction; c)
a commitment directly affect significant positive at 0.270 and 0.006 on employee
satisfaction; d) compensation directly positive effect for 0182 and 0042
significantly to employee satisfaction; e) The transactional leadership directly
affect significant positive at 0.205 and 0.035 on employee performance; f)
organizational culture is directly positive effect for 0268 and 0020 significantly on
employee performance; g) commitment direct positive effect and significant 0.204
0.027 on employee performance; h) compensation directly affected negatively by
significant -0260 and 0022 on employee performance; i) job satisfaction directly
affect significant positive at 0.371 and 0.000 on employee performance; j)
transactional leadership indirect positive effect for 0208 and 0035 significant to
the performance through employee satisfaction; k) organizational culture indirect
negative effect of a significant -0193 and 0020 on the performance through
employee satisfaction; l) the commitment indirect positive effect for 0100 and
0027 significant to the performance through employee satisfaction; m)
compensation indirect negative effect of a significant -0167 and 0022 on the
performance through employee satisfaction.

V. CONCLUSIONS

Based on the analysis of the results of research and discussion empirically

and theorists, it concluded as follows: 1) Transactional leadership and significant
positive effect directly on job satisfaction of employees. Transactional leadership
 17/25

has been applied properly by the leadership that directs subordinates to increase
work satisfaction; 2) Organizational culture a significant negative effect directly
on job satisfaction of employees. Organizational culture has not been actualized
well, but the existence of organizational culture plays an important role in
increasing employee satisfaction; 3) direct the organization's commitment and
significant positive effect on job satisfaction of employees. Every employee has
been committed in accordance with the level of work satisfaction in performing
duties; 4) direct compensation positive and significant impact on job satisfaction
of employees. The compensation is feasible perceived by employees as
remuneration and employees feel satisfied with the compensation received; 5)
direct transactional leadership and significant positive effect on employee
performance. Application of transactional leadership has been actualized by either
directing every employee to improve their performance; 6) directly to
organizational culture and no significant negative effect on employee
performance. An organizational culture that has not actualized properly which
causes decreased employee performance; 7) direct the organization's commitment
and significant positive effect on employee performance. Organizational
commitment has been actualized well by employees in an effort to improve
performance; 8) are directly compensated positive and significant influence on
employee performance. Compensation is given significant importance for
employees to improve their performance; 9) directly to job satisfaction and
significant positive effect on employee performance. Job satisfaction felt by
employees are in accordance with the achievement of the performance; 10)
indirectly transactional leadership through job satisfaction and significant positive
effect on employee performance. Application of transactional leadership through
job satisfaction has been actualized shared between leaders and subordinates in
carrying out the duties to increase employee performance; 11) indirectly through
job satisfaction organizational culture and no significant negative influence on
employee performance. Cultural organization through job satisfaction has not
been actualized run well, so the performance of employees has decreased; 12)
indirectly through job satisfaction organizational commitment and significant
positive effect on employee performance. Commitment through job satisfaction
has been actualized with good cause increased employee performance; and 13) are
not directly compensated through job satisfaction and significant positive effect
on employee performance. Compensation through job satisfaction has been
applied in accordance with the provision of remuneration to improve employee
performance.

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