IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 22, Issue 11. Ser. IV (November 2020), PP 33-43 www.iosrjournals.org DOI: 10.9790/487X-2211043343 www.iosrjournals.org 33 | Page Determinants of Employee Performance with Work Motivation as an Intervening Variable at the PTPN X Bobbin Industrial Unit. Mamik Nila Sari, Researcher, Jember, East Java, Indonesia Diana Sulianti K. Tobing, Faculty of Management & Bussiness, Universitas Jember East Java, Indonesia Sumani, Faculty of Management & Bussiness, Universitas Jember East Java, Indonesia Abstract: This research was conducted to see the determinants of employee performance with work motivation in mediating compensation and transformational leadership at the PTPN X Bobbin Industrial Unit Office. The sample of the study was 274 female employees in the cutting department with different criteria and backgrounds. Sampling was done by random sampling technique, that is, all populations were taken randomly to become the research sample. This is done to improve employee performance in cutting Bobbin through work motivation seen from compensation and transformational leadership. The analysis used is Path Analysis or path analysis assisted by the Sobel Test to determine the determinants of employee performance. The results showed that compensation has an effect on employee work motivation, transformational leadership on work motivation, compensation for employee performance, transformational leadership on employee performance, work motivation on employee performance, compensation through work motivation on employee performance, and transformational leadership through work motivation on employee performance. Keywords: Employee Performance, Transformational Leadership, Work Motivation. --------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 06-11-2020 Date of Acceptance: 19-11-2020 --------------------------------------------------------------------------------------------------------------------------------------- I. Introduction PTPN X Bobbin Industrial Unit is a state-owned company (BUMN) in the largest tobacco management plantation with quality products in Jember Regency which has 3,100 employees (Data on employees of PTPN X Industrial Unit Bobbin in 2019). The Bobbin industry brings enormous benefits, namely opening new jobs, improving people's welfare, increasing the amount of money in circulation, and as an example of successful cooperation with foreign parties. The Bobbin Industrial Unit has three parts of work carried out by workers, namely in the field of cutting tobacco leaves into cigar wrapping/wrapping materials (cutting bobbin), small cigars, and tobacco grading. Researchers focused on one unit, namely cutting Bobbin. Employees in this unit must have high performance in order to produce the best product and meet company targets. If the employee's performance is good, the company's performance will also be good. Employee performance in this study is influenced by factors such as compensation, work motivation, and transformational leadership. Based on the above background, this study aims to: 1. Testing the effect of compensation on work motivation at PT PTPN X Bobbin Industry Unit. 2. Testing the effect of transformational leadership on work motivation at PTPN X Bobbin Industry Unit. 3. Testing the effect of compensation on employee performance at PTPN X Bobbin Industry Unit. 4. Testing the effect of transformational leadership on employee performance at PTPN X Bobbin Industry Unit. 5. Testing the effect of work motivation on employee performance at PTPN X Bobbin Industry Unit. 6. Testing compensation through work motivation has an effect on employee performance at PTPN X Bobbin Industry Unit 7. Testing transformational leadership through work motivation has an effect on employee performance at PTPN X Industrial Unit Bobbin. II. Literature Review Compensation Compensation is all forms of financial and tangible services and benefits received by employees as part of a working relationship (Moazzam 2016). Compensation can be in the form of employee wages and salaries, incentive payments, bonuses, and commissions. According to Coulter (2010, Transformational leadership is a leader who is able to stimulate and inspire (change) followers (employees) to achieve extraordinary results, the transformational leadership model is more than charismatic because transformational leadership seeks to instill