The Role of Fairness in Allocating Performance Incentive as Moderating Variable on the Effect of Work Discipline, Self-Efficacy, and Leadership Competency to Employee Performance

Abstract

This research aims to analyze, examine, and explain the role of fairness in incentive distribution as moderator between the relationship of work discipline, self-efficacy, and leader competence to employee performance. The research is conducted at The Office of Lembaga Layanan DIKTI VIII Denpasar with a total sample of 55 people. Survey research was conducted by distributing questionnaires to all target respondents. Data attained from the survey results subsequently analyzed using Structural Equation Modeling with the Smart-PLS program. The result indicates that working discipline and self-efficacy are able to improve employee performance at LLDIKTI VIII Denpasar, while leader competence cannot increase employee performance. The essential key to improve employee performance depends on working discipline and self-efficacy. Furthermore, by examining the moderating variable of fairness in incentive distribution, this study also found that. The overall result suggests that self-efficacy is the most significant variable that determine employee performance in addition to working discipline, while leader competence cannot improve employee performance. On the other hand, fairness in incentive distribution determines leader competence in improving employee performance at LLDIKTI VIII.