THE EFFECT TRANSFORMATIONAL LEADERSHIP, FINANCIAL INCENTIVES, POWER OF LEADERSHIP, AND EMPOWERMENT CLIMATE ON INTRINSIC MOTIVATION

Finthariasari, Meilaty and Intihan, Intihan (2016) THE EFFECT TRANSFORMATIONAL LEADERSHIP, FINANCIAL INCENTIVES, POWER OF LEADERSHIP, AND EMPOWERMENT CLIMATE ON INTRINSIC MOTIVATION. In: 4th AIMI INTERNATIONAL CONFERENCE 2015, 14-15 November 2015, Bengkulu, Indonesia.

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Abstract

The study examined whether empowerment climate, transformational leadership, financial incentives, and the power of leadership can enhance intrinsic motivation of civil servants at the Ministry of Religious Affairs Office of Bengkulu. 150 employees from the full sample of employees in Bengkulu Regional Office with Muslim backgrounds were surveyed with a questionnaire consisting of 37 questions. Age and gender had no significant effect on intrinsic motivation. Structural equation modeling confirm the hypothesis that the climate of empowerment and financial incentives significantly influence intrinsic motivation. Transformational leadership have negative effect on intrinsic motivation while the power of leadership have a positive effect on intrinsic motivation. Empowerment climate themselves positively influenced by transformational leadership. The negative effect of transformational leadership due to the failure in the mission on the side of employees who do not make employees become motivated and decreasing motivation if kept pressed by the leader. Power have positive influence because the leadership is collective, rather than individual. Further research should clarify the direct effect of transformational leadership and financial incentives on intrinsic motivation.

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