Track: Entrepreneurship

Abstract

This research aimed to examine and to analyze the effect of compensation and transformational leadership on job satisfaction, either directly or indirectly, mediated with job motivation variable, and the effect of job motivation on employees’ job motivation in Muhammadiyah Hospital of Lamongan (thereafter called RSML). This study was explanatory research; the analysis method employed was Partial Least Square (PLS), by evaluating the structural model (inner model) and measurement model (outer model). The population of the research consisted of 364 employees of Muhammadiyah Hospital of Lamongan, while the sample consisted of 79 employees, taken using the Slovin technique. Overall, the finding of research showed that compensation and transformational leadership are fundamental instruments underlying Muhammadiyah Hospital of Lamongan in improving its employees’ job motivation and satisfaction.