Jurnal Manajemen Bisnis Vol. 8, No.1 (2021) March, Hal.

147-157
e-ISSN: 2621-1971|p-ISSN: 2088-7086

Implications of The Company's Internal Factors and Employee

Intrinsic Motivation on Employee Performance
Muhammad Akob1
1
Associate Professor, Postgraduate Management Program, STIEM Bongaya, Indonesia.

ARTICLE INFO ABSTRACT

Leadership and work environment has a large part in motivating each
member organization toward the company's goals. A leader should
implement a leadership style to manage his subordinates because a leader
will significantly affect the Organization's success in achieving its goals. No
less important will be this is the role of the work environment itself which
woke up, the work environment is one of the most critical components within
the employees finish his work. Here is the working environment: the
Correspondent Email:
akob.kadir@gmail.com immediate vicinity of the workers that can affect him in the exercise of duties
charged. This research was conducted at PT. Pegadaian Regional VI of
Makassar city with 30 research sample of respondents that are the employees.
Keywords: The study uses the method of multiple linear regression analysis with data
Work Environment, Leadership collection using questioners. These research results are the work
Style, Intrinsic Motivation environment does not affect employees' performance; leadership style and
intrinsic motivation significantly affect the employee's account. Leadership
styles and the variable is the variable that the dominant influence on the
dependent variable.

INTRODUCTION
In today's global competition, the world of work needs people who can think ahead, be
smart, innovative, and work with high enthusiasm in facing the progress of the times. This is due
to the increasingly competitive competition with other competing companies (Sayyidah & Saifi,
2017). Therefore, with competition in various sectors, the management process and organizational
management maintenance are getting serious attention from all elements in the company to create
an organizational system that is strong and able to keep up with current developments. In this case,
human resources are employees or employees of an institution or Organizationorganization, of
course, try to work with the abilities they have to achieve high performance (Pratama & Wardani,
2018). Entering the era of competition, the company can provide a safe and comfortable atmosphere
in the work environment for employees, supported by the right leadership style and nurturing the
organizational structural subordinates in a better direction to achieve the desired company goals
(Maria, 2018). This certainly motivates employees to be able to spur performance well,
professionally, and optimally. It was going towards the definition of universal motivation. The
theory he developed by Herzberg is known as the "Two-Factor Model" of motivation, namely
motivational factors and hygiene or "maintenance" factors (Rozalia, 2015). According to this theory,
what is meant by motivational factors are things that encourage achievement, which is intrinsic,
which means that they originate in a person. Intrinsic motivation arises from within the individual
himself without coercion or encouragement from others but based on his own volition. Intrinsic

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motivation is a working driver that comes from within the worker as an individual in awareness of
the importance or benefits or meaning of the work he is doing (Randy et al., 2019).
In this paper, internal company factors referred to in this paper are the leadership style and
work environment that have a significant role in motivating each organization member towards
company goals. A leader must apply a leadership style to manage his subordinates because a leader
will significantly influence its success in achieving its goals (Wiguna & Raf, 2014). Leadership style
is the behavior or method chosen and used by the leader in controlling the thoughts, feelings,
attitudes, and behavior of the subordinate organizations' members (Ayuningtyas et al., 2018). No
less important is the role of the work environment itself that is built. The work environment is an
essential component in employees completing their work (Ismanu & Kusmintarti, 2018). Here what
is meant by the work environment is everything around the workers that can affect him/her in
carrying out the assigned duties. There are two kinds of work environments, namely, physical work
environments and non-physical work environments. According to (Cintia & Gilang, 2016), the
physical work environment is all physical conditions around the workplace that can affect
employees either directly or indirectly. The non-physical work environment is all conditions that
occur related to work relationships, both relationships. Work with superiors and relationships with
colleagues, or relationships with subordinates. The creation of a work environment that is
comfortable, safe, and pleasant is one way the company can improve employee performance.
According to (Devita 2018), the version is the quality and quantity of work achieved by an employee
in carrying out his duties following his responsibilities. Employees can maximize their performance
supported by an appropriate work environment.
The application of the implications of the company's internal factors, the leadership style,
work environment, and the dimensions of intrinsic motivation are expected to lead BUMN
organizations in Indonesia, in this case, PT. Pegadaian achieves organizational goals and improves
employee performance, in particular for the better. Perum Pegadaian is a state-owned company in
Indonesia divided into three sectors: Perum Pegadaian at the Head Office, Perum Pegadaian
Regional Offices, and Perum Pegadaian Branch Offices. Its core business is in the industry of
extending credit to the public based on pawning law. Until now, there are still many community
members who know Pegadaian from its core business, namely pawning. Besides, Pegadaian has
several service products to offer, with the motto "Overcoming Problems Without Problems" (Fazini &
Suparno, 2018).
Sanny et al. (2013) found the fact in the Jakarta Pegadaian office that employees tend to be
passive in developing and providing fresh ideas needed to create the company because of the
sizeable power span between new and senior employees. Senior staff also tend not to offer an
excellent example to new employees, so that work motivation cannot be appropriately developed.
There is a gap between new employees and senior employees due to a work environment that is
not conducive. This is believed to have an impact on the motivation of the employees themselves
on their performance in the field. So, the role of a leader is needed to address this gap.

Company Work Environment

The work environment in a company is one of the things that are important to note. Even
though the work environment does not carry out the production process in a company, the work
environment directly influences the employees who carry out the production process (Darmayanti,
2017). According to (Iskandar & Juhana, 2014), the work environment is designed in such a way as
to create a working relationship that binds workers to their domain. A right work environment is
when employees can carry out activities in an optimal, healthy, safe, and comfortable manner. An

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unfavorable work environment can demand more labor and time and does not support an efficient
work system plan. Gardjito et al. (2014) state that is broadly speaking, the type of work environment
is divided into 2, namely: (a) physical work environment and (b) non-physical work environment.
According to Gardjito et al. (2014), what is meant by a physical work environment is all physical
conditions that exist around the workplace which can affect employees either directly or indirectly.
Gardjito et al. (2014) state that a non-physical work environment is all conditions related to work
relationships, both with superiors and with colleagues or with subordinates. Gardjito et al. (2014)
state that several factors can influence the formation of a work environment related to the ability of
employees, including lighting at work, temperature/air temperature at work, humidity at work, air
circulation at work, noise at work, mechanical vibration at work, workplace odors, color design in
the workplace, decoration at work, music at work, and safety at work. Wiguna & Raf (2014) suggest
that the physical work environment is also a factor that causes employee work stress, affecting job
performance. This is reflected in consistent repurchasing.

Leadership Style
Leadership is defined in terms of individual characteristics, habits, ways of influencing
others, interactions, positions in organizations, and legitimate influence perceptions. Leadership is
the ability to influence others to achieve goals enthusiastically (Wiguna & Raf, 2014). According to
(Maria 2018), leadership is the process of controlling or giving an example to his followers through
communication to achieve organizational goals. Leadership is the process of directing, guiding, and
influencing others' thoughts, feelings, actions, and behavior to be moved towards specific goals.
Leadership plays a significant role, and it can even be said to be very decisive in achieving the goals
that have been previously set. The leadership style represents the philosophy, skills, and attitudes
of the leader in politics. Leadership style is a behavior designed to integrate organizational goals
with individual goals to achieve specific goals (Ayuningtyas et al., 2018). Leadership behavior is an
unusual/personal behavior of leaders related to their duties and roles as a leader. Leadership
behavior is understood as a leader's personality, manifested in leadership activities concerning
managing tasks and relationships with subordinates/employees to achieve organizational goals
(Rajagukguk, 2017). A leader's behavior is closely related to several things, namely the abilities they
have, the character of each subordinate they lead, certain positions or positions they hold, and
organizational culture and the conditions that accompany it. (Maria, 2018) divides four leadership
styles, namely: consultative style, participative style, delegative style, and instructive style. Being a
successful leader is mostly determined by the leader's abilities. The individual ability in question is
the quality of a person with various traits, temperaments, or traits.

Motivation
Motivation can be defined as a state in a person that encourages, activates, or drives and
directs behavior towards the goals of (Rismayadi & Maemunah, 2016). According to (Rozalia, 2015)
motivation can be interpreted as internal and external encouragement in a person, which is
indicated by the desire and interest to carry out activities, hopes and aspirations, appreciation and
respect for oneself, a right environment, and exciting activities. Intrinsic motivation is motivation
that encourages a person to achieve what originates in the individual, which is better known as the
motivational factor. According to Herzberg, quoted by Maria (2018), classified as motivational
factors include: achievement, recognition, work itself, responsibility, and advancement. Extrinsic
motivation is motivation that comes from outside the self that helps determine a person's behavior
in a person's life, known as the theory of hygiene factors, according to Herzberg quoted by Maria

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(2018). In general, the purpose of motivation is to move someone so that the desire and willingness
to do something arises to get results and achieve goals. Each person's motivational action has a plan
to be completed. The clearer the goals that are expected or acquired, the clearer the motivating story
will be. Motivating activities will be more successful when the goals are clear and based on what is
motivated. Therefore, everyone who will motivate someone must know and understand their life
background, needs, and personality to be inspired (Tanjung, 2015).

Employee performance
Darto (1969) says that "Performance is (a) something achieved, (b) demonstrated
achievement, (c) workability." According to (Darto 1969), another definition of performance is
"Performance is said to be high if a work target can be completed at the right time or does not exceed
the time limit provided." Performance becomes low if it is completed beyond the allotted time limit
or is not completed at all. Employee performance is the ability to achieve job requirements, where
a work target can be met at the right time or does not exceed the time limit provided. The goal will
be under company morals and ethics (Massie, Renaldy, Tewal & Sendow, 2015). Thus, employee
performance can contribute to the company. According to Wiguna & Raf (2014), several factors
affect employee performance. These include internal factors, including intellectual ability, work
discipline, job satisfaction, and employee motivation. External factors include leadership style,
work environment, compensation, and management systems in the company. These factors should
be considered by the leadership so that employee performance can be optimal. According
(Nurhayati et al. (2019), "To achieve employee performance goals it can be assessed from three
things, including the assessment must have a relationship with work, the existence of work
implementation standards, practical (easy to understand or understand employees or appraisers)."

Hypotheses Framework Development

Based on the literature review description, the authors propose a conceptual framework for
this research as follows in figure 1.

Leadership Style (X1.1)

Internal
Company Factors
(X1)
Work Environment (X1.2
Employee
performance
(Y)

Success (X2.1)

Reward (X2.2)
Intrinsic
Motivation (X2)
The work itself (X2.3)

Responsible (X2.4)

Development (X2.5)

Figure 1. Conceptual Framework

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Based on the formulation of the problem that has been described previously, then a hypothesis can
be given an answer or provisional assumption on the issue, namely:

H1: It is suspected that internal factors consisting of leadership style positively and
significantly affect employee performance at PT. Pegadaian City of Makassar.
H2: It is suspected that internal factors consisting of work environment positively
and significantly affect employee performance at PT. Pegadaian City of
Makassar.
H3: It is suspected that intrinsic motivation has a positive and significant effect on
employee performance at PT. Pegadaian City of Makassar.

RESEARCH DESIGN
Our research was conducted at PT. Pegadaian Regional Office VI Makassar City, The data
collection methods we use are divided into three types: interviews, questionnaires, and
documentation. The interview method is a data collection technique that asks a list of questions in
writing to the respondent to obtain information related to the research. The questionnaire method
is a technique of collecting data through several lists of questions submitted to responses that are
directly related to the problem to be studied. The documentation process is a method to find, read,
take notes, and collect readings from the literature available in the library and data from specific
sources—relating to the problems studied in our script. The types of data we use in this study are
divided into two types, namely primary data and secondary data. Primary data is data obtained
directly from research subjects. This data is obtained through interviews and the results of
questionnaires distributed to respondents, while secondary information is data obtained indirectly
from the source or, in other words, the data already exists or has been collected by other parties.
Our study population was all employees numbering below 100 people, namely 30 employees/staff,
so all PT employees. Pegadaian Regional Office VI Makassar was used as a sample in this study.
There are (2) analytical methods used to identify and test the relationship between variables in our
research: descriptive analysis and analysis methods.

RESULT AND DISCUSSION

Description of Research Results

The description of the results of this study describes the respondents' demographic status
in the research object that has been selected. The descriptions of the research results are formed into
several classification classes, namely based on gender and variations in respondents' answers as
divided as in the table below:

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1. Based on Gender
Table. 1 Description of Research Results Based on Gender
Measurement Amount Percentage
Female 9 30%
Male 21 70%
26 – 33 Years 9 30%
34 – 41 Years 11 36.7%
42 – 49 Years 7 23.3%
50 years and above 3 10%
Diploma (I, II, III) 6 20%
Bachelor 17 56.7%
Magister 7 23.3%

Based on table 1, there were 30 respondents at the Regional Office of PT. Makassar City
Pegadaian is male dominant with a percentage of 70%. The most dominant age of respondents is in
the vulnerable category, aged 34 - 41 years, as many as 11 people or with a percentage of 36.7%, at
the Regional Office of PT. Pegadaian City of Makassar. The most dominant education of
respondents in the bachelor category is 17 people or 56.7% at the Regional Office of PT. Pegadaian
City of Makassar.

2. Based on the Variations of Respondents' Answers

The variation of respondents' answers to work environment variables is the dominant variation
in the agree on category, which is 59.3%, and the Strongly Agree type with an average percentage
of 33.6%, the neutral kind of 15%, and the Disagree category of 20%. There is no variation in the
answer for the class strongly disagree. The interpretation of respondents' responses to the
leadership style variable is the dominant variation in the agree category, which is 16.1%, and the
Strongly Agree category with an average percentage of 10.8%, the neutral type is 3%, and there is
no variation in the answer for the no class. Agree and strongly disagree. The interpretation of
respondents' responses to the leadership style variable is the dominant variation in the agree with
category, which is 15.4%, and the Strongly Agree class with an average percentage of 9.6%, the
neutral type is 5%. There is no answer variation for the no agree and strongly disagree. The
interpretation of respondents' answers to the performance variable is the dominant variation in the
blend with category, which is 16.5%, and the Strongly Agree type with an average percentage of
11%, the neutral class of 2.5%. There is no variation in the answer for the disagree category. And
strongly disagree.

Description of Data Analysis

Table 2 describes the correlation of each construct variable to the latent variable. Or the
relationship between the Behavioral Leadership Style variable (X1.1), Work Environment (X1.2)
Intrinsic Motivation (X2) to the Employee Performance variable (Y), which is described below.

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Table. 2 Correlation Between Variables

Work Leadership Intrinsic Employee
environment_X1.1 Style Motivation performance
Work environment Pearson 1 .822** .841** .832**
_X1.1 Correlation
Sig. (2-tailed) .000 .000 .000
N 30 30 30 30
Leadership Style Pearson .822** 1 .838** .874**
Correlation
Sig. (2-tailed) .000 .000 .000
N 30 30 30 30
Intrinsic Motivation Pearson .841** .838** 1 .859**
Correlation
Sig. (2-tailed) .000 .000 .000
N 30 30 30 30
Employee performance Pearson .832** .874** .859** 1
Correlation
Sig. (2-tailed) .000 .000 .000
N 30 30 30 30
**. Correlation is significant at the 0.01 level (2-tailed).

Table 8 shows that the value of N was 30 respondents at the Regional Office IV PT. Pegadaian
City of Makassar. The closeness relationship is indicated if the value is getting closer to the number
"1", it is stated that the variable has a healthy relationship. Vice versa, if the value of the correlation
is not below the number "1" and is close to the number "0", then it is stated that the correlation is
weak. The Pearson Correlation, or the relationship between variables both partially and
simultaneously, is worded as follows: 1. Work Environment (X1.1) has a significant connection
to Employee Performance (Y). 0.832 or 83.2%. 2. Work Environment (X1.1) has a substantial
relationship with Leadership Style (X1.2). amounting to 0.822 or equal to 82.2%. 3. Work
Environment (X1.1) has a significant relationship with Intrinsic Motivation (X2). amounted to 0.841
or 84.1%. 4. Leadership Style (X1.2) has a substantial relationship to the Work Environment (X1.1)
of 0.822 or 82.2%. 5. Leadership Style (X1.2) has a significant connection to Intrinsic Motivation (X2)
of 0.838 or equal to 83.8%. 6. Leadership Style (X1.2) has a substantial relationship to employee
performance (Y) by 0874, or by 87.4%. 7. Intrinsic Motivation (X2) has a significant relationship to
the Working Environment (X1.1) of 0841 or by 84.1%. 8. Intrinsic Motivation (X2) has a substantial
connection to Leadership Style (X1.2) of 0.838 or 83.8%. 9. Intrinsic motivation (X2) has a significant
relationship to employee performance (Y) of 0.859 or 85.9%. 10. Employee performance (Y) has a
substantial connection with the work environment (X1.1) of 0.832 or 83.2%. 11. Employee
performance (Y) substantially connects to the Leadership Style (X1.2) of 0.874 or 87.4%. 12.
Employee performance (Y) has a significant relationship with Intrinsic Motivation (X2) of 0.859 or
85.9%.

Table. 3 Descriptive Analysis

N Minimum Maximum Mean Std. Deviation
Work environment _X1.1 30 3.00 5.00 4.1367 .49861
Leadership Style 30 3.00 5.00 4.2533 .49809
Intrinsic Motivation 30 3.00 5.00 4.1533 .54503
Employee performance 30 3.00 5.00 4.3000 .46238
Valid N (listwise) 30

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In table 3, the standard deviation of the Work Environment variable (X1.1) is 0.49,
Leadership Style (X1.2) is 0.54, Intrinsic Motivation (X2) is 0.49, Employee Performance (Y) is 0.46,
or it can be assumed that there is a standard deviation. Is at a moderate level in the data obtained.
Respondents as many as 30 people with a minimum answer with a score of 3 and a maximum of 5
(Strongly Agree), all variables have the answer to be vulnerable 4 (agree).

Multiple Linear Regression Analysis

The regression analysis test explains whether there is an effect between variable X on
variable Y and shows how much influence it is symbolized as a significant number. The significance
in this study is with reference (Sig) p <0.5. The details of the multiple linear regression analysis
tables can be seen in the table below:

Table 4. Multiple Linear Regression Analysis

Unstandardized Coefficients Standardized Coefficients
Model t Sig.
B Std. Error Beta
(Constant) .663 .334 1.981 .058
Work environment _X1.1 .180 .152 .194 1.184 .247
1
Leadership Style .410 .151 .442 2.721 .011
Intrinsic Motivation .276 .145 .326 1.904 .068

From the results of multiple linear regression data analysis, it can be stated as follows: 1.
Work Environment Variable (X1.1) Has no significant effect on Employee Performance (Y) with the
acquisition of a significance level of 0.247, or it can be stated (sig) 0.247> 0.5. 2. The leadership style
variable (X1.2) has a significant and positive effect on employee performance (Y) with a significance
level of 0.011, or it can be stated (sig) 0.011 <0.5. 3. Intrinsic Motivation variable (X2) has a significant
and positive effect on employee performance (Y) with a significance level of 0.068, or it can be stated
(sig) 0.068 <0.5. So the regression equation is:

Employee Performance (0.663) = 0.180 (X1.1) + 0.410 (X1.2) + 0.276 (X2) + 0.334e

Assuming constant factors as follows: 1. If the work environment factor at PT. Pegadaian
Regional Office VI of Makassar City increases to 1 unit from 0.180 or 18% to 0.280 or 28%, so the
assumption is that Employee Performance also increases from 0.663 or 66.3% to 0.763 or 76.3%.
Likewise, if the work environment factor has decreased by 1 unit, the employee's performance will
decrease by 1 unit. 2. If the work environment factor at PT. Pegadaian Regional Office VI of
Makassar City increases to 1 unit from 0.410 or 41% to 0.510 or 51%, so the assumption is that
Employee Performance also increases from 0.663 or 66.3% to 0.763 or 76.3%. Likewise, if the work
environment factor has decreased by 1 unit, the employee's performance will decrease by 1 unit. 3.
If the intrinsic motivation factor at PT. Pegadaian Regional Office VI of Makassar City increased to
1 unit from 0.276 or 27.6% to 0.376 or 37.6%, so the assumption is that Employee Performance also
increases from 0.663 or 66.3% to 0.763 or 76.3%. Likewise, if the work environment factor has
decreased by 1 unit, the employee's performance will decrease by 1 unit. While the F table test on F

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count shows a significant number for the vulnerable 41,661. or 41,661> 0,000. A detailed explanation
can also be seen in the table below:
Table 5. F test
Model Sum of Squares df Mean Square F Sig.
1 Regression 5.132 3 1.711 41.661 .000a
Residual 1.068 26 .041
Total 6.200 29
a. Predictors: (Constant), Intrinsic Motivation, Leadership Style, Work environment_X1.1
b. Dependent Variable: Employee performance

Hypothesis Testing
Based on data processing results, the next stage is hypothesis testing to find out whether the
initial hypothesis (H0) is accepted or the New Hypothesis (H1) is accepted. The further explanation
is described as follows: 1. H0: It is suspected that internal factors consisting of leadership styles
positively and significantly affect employee performance at PT. Pegadaian City of Makassar. The
results of data analysis show that the Initial Hypothesis (H0) Leadership Style has a significant effect
on Employee Performance (Y), so that it is stated that H0 = Accepted, H1 = Rejected. 2. H0: It is
suspected that internal factors consisting of work environment positively and significantly affect
employee performance at PT. Pegadaian City of Makassar. The results of data analysis show that
the Initial Hypothesis (H0) of the Work Environment has no significant effect on Employee
Performance (Y), so that it is stated that H0 = Rejected, H1 = Accepted. 3. H0: It is suspected that
intrinsic motivation has a positive and significant effect on employee performance at PT. Pegadaian
City of Makassar. The results of data analysis show that the Initial Hypothesis (H0) Intrinsic
Motivation is having a significant impact on Employee Performance (Y), so that it is stated that H0
= Accepted, H1 = Rejected. 4. Leadership Style (X1.2) is the most dominant variable influencing
Employee Performance (Y).

Discussion
From the results of statistical analysis, it was found that the Leadership Style (X1.2) at the
Regional Office VI Makassar City had a significant effect on employee performance, as many as
seven dimensions of measuring instruments regarding this leadership style. The leadership's ability
to make employees' decisions is an adequate number; as many as 20 employees answered they agree
and six employees responded strongly agree. Furthermore, the work environment factor is the
second variable discussed in this study. The statistical processing results show that the work
environment has no significant effect on performance; of course, this statement is contrary to
previous studies as stated by Darmayanti (2017). The third factor in this discussion is intrinsic
motivation at PT. Pegadaian Regional Office VI Makassar City. The statistical data results
significantly affect employee performance on the dimensions of measuring intrinsic motivation at
PT. Pegadaian Regional Office VI Makassar City development indicators and awards are the
dominant factors answered by employees.

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CONCLUSION
This study's conclusions are: Leadership Style has a positive and significant effect on
Employee Performance at PT. Pegadaian City of Makassar. The work environment has no positive
and significant impact on employee performance at PT. Pegadaian City of Makassar. Intrinsic
motivation has a positive and significant effect on Employee Performance at PT. Pegadaian City of
Makassar. Leadership Style is the most dominant variable influencing employee performance. The
suggestion of this research is where the employees work at PT. There are noise sources and
mechanical vibrations that can interfere with employee performance, so that the noise and
mechanical vibrations at PT. Pegadaian Regional Office VI of Makassar City needs attention and
control to improve employee performance.

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