The Influence of Leadership Style and Incentive Provision on Employee Work Motivation at Peak Everest Mining LDA, Timor-Leste
Abstract
This study aims to analyze the influence of leadership style and incentivization on employee work motivation at Peak Everest Mining LDA, a mining company operating in Timor Leste. The background of this research is based on the importance of effective leadership roles and fair incentive systems in shaping the performance of motivated human resources, especially in the mining industry which demands high productivity and job security. The research method used is quantitative with a survey approach. Data was collected through a questionnaire that was distributed to 110 respondents out of a total population of 150 employees. The data analysis technique used was multiple linear regression, with classical assumption tests that included normality, multicollinearity, and heteroscedasticity tests. The results of the study show that leadership style and incentivization have a positive and significant effect on work motivation both partially and simultaneously. Leadership style has a regression coefficient of 0.998 with a significance value of 0.0000, while incentives have a regression coefficient of 2.056 with a significance of 0.0000. The F test showed that the two variables together had a significant effect on work motivation with an F-value of 733.863 and a p-value of 0.0000. A determination coefficient (R²) of 0.932 indicates that 93.2% variation in work motivation can be explained by leadership style and incentivization. This study provides the implication that improving the quality of leadership and providing effective incentives are indispensable in building optimal work motivation in the Timor Leste mining work environment.
Downloads
References
Almeida, J., & Gomes, R. (2023). Non-financial incentives and employee motivation in Timor-Leste’s public sector. Journal of Public Administration Studies, 14(2), 77–89.
Armstrong, M., & Taylor, S. (2023). Armstrong's handbook of human resource management practice (16th ed.). Kogan Page.
Bass, B. M. (1985). Leadership and performance beyond expectations. Free Press.
Bass, B. M., & Avolio, B. J. (1994). Improving organizational effectiveness through transformational leadership. Sage Publications.
Deci, E. L., & Ryan, R. M. (2020). Intrinsic motivation and self-determination in human behavior. Springer.
Dias, A. M., & Da Costa, M. S. (2022). Leadership style and employee motivation in the mining sector of Timor-Leste. Journal of Management Research, 12(1), 77–89.
Fayol, H. (1916). Administration industrielle et générale. Dunod.
Griffin, R. W., & Phillips, J. M. (2023). Management (14th ed.). Cengage Learning.
Guest, D. E. (1997). Human resource management and performance: A review and research agenda. International Journal of Human Resource Management, 8(3), 263–276.
Gómez-Mejía, L. R., Balkin, D. B., & Cardy, R. L. (2020). Managing human resources (9th ed.). Pearson.
Guterres, J., & Da Silva, F. (2024). Leadership, compensation, and work motivation in Timor-Leste’s construction industry. Asian Journal of Management Studies, 16(1), 102–118.
Hartono, A., & Susanto, H. (2019). The influence of incentive and leadership on employee motivation. Jurnal Bisnis dan Manajemen, 16(1), 12–21.
IMF. (2023). Timor-Leste: Staff report for the 2023 Article IV consultation. International Monetary Fund.
Jones, G. R., & George, J. M. (2021). Essentials of contemporary management (9th ed.). McGraw-Hill Education.
Kartika, Y., & Susilowati, I. (2021). The effect of leadership style and incentives on employee motivation at coal mining company. International Journal of Business Research, 14(2), 77–89.
Locke, E. A., & Latham, G. P. (2002). Building a practically useful theory of goal setting and task motivation. American Psychologist, 57(9), 705–717.
Mahardika, A., & Puspitasari, D. (2023). Pengaruh gaya kepemimpinan dan insentif terhadap motivasi kerja karyawan di perusahaan tambang. Jurnal Manajemen dan Organisasi, 14(2), 55–67.
Maslow, A. H. (1943). A theory of human motivation. Psychological Review, 50(4), 370–396.
Mondy, R. W., & Martocchio, J. J. (2022). Human resource management (15th ed.). Pearson.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2021). Fundamentals of human resource management (9th ed.). McGraw-Hill Education.
Northouse, P. G. (2021). Leadership: Theory and practice (9th ed.). Sage Publications.
Pratama, B., & Widodo, T. (2022). The effect of leadership style and incentives on employee motivation in mining industry. International Journal of Human Resource Studies, 12(3), 45–55.
Putra, I. G. A., & Suharto, S. (2021). Pengaruh gaya kepemimpinan terhadap motivasi kerja. Jurnal Manajemen Indonesia, 41(2), 45–56.
Robbins, S. P., & Coulter, M. (2022). Management (15th ed.). Pearson.
Robbins, S. P., & Judge, T. A. (2022). Organizational behavior (19th ed.). Pearson.
Setiawan, A., & Lestari, D. (2021). Pengaruh gaya kepemimpinan dan pemberian insentif terhadap motivasi kerja. Jurnal Ilmu Manajemen, 9(3), 200–210.
Soares, J., & Barreto, C. (2023). Effect of incentives on employee motivation in SMEs in Dili. International Journal of Human Resource Studies, 13(2), 133–145.
Vroom, V. H. (1964). Work and motivation. Wiley.
Wahyuni, N., & Permana, D. (2020). Pengaruh insentif finansial dan non-finansial terhadap motivasi kerja. Jurnal Ekonomi dan Bisnis, 23(1), 85–97.
Wang, X., Chen, Y., & Zhang, L. (2023). The impact of transformational leadership on employee motivation: Evidence from the mining industry. International Journal of Management Studies, 15(1), 45–58.
Werner, J. M., & DeSimone, R. L. (2012). Human resource development (6th ed.). Cengage Learning
Zuana, M. M. M., Toha, M., & Isbahi, M. B. (2024). Exploration of Community Empowerment in a Village as the Entrance to a Lake in East Java. Malacca: Journal of Management and Business Development , 1(1), 47–55. https://doi.org/10.69965/malacca.v1i1.52
Copyright (c) 2025 Sebastiao Barreto de Carvalho Soares, Ayu Mey Lestari, Kosasih Kosasih, Farida Yuliaty
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
