Determinants of Employee Performance in the Public Sector-the Role of Public Service Motivation, Love of Money, and Leadership: A Case Study

Rizky F.H. Sagala

Master of Management, Universitas Islam Sumatera Utara, Indonesia.

Nurliasniati Lingga

Master of Management, Universitas Islam Sumatera Utara, Indonesia.

Khaidar Hilman Banurea

Master of Management, Universitas Islam Sumatera Utara, Indonesia.

Nola Kariyama Munte

Master of Management, Universitas Islam Sumatera Utara, Indonesia.

Mhd. Muiz Wira Munte

Master of Management, Universitas Islam Sumatera Utara, Indonesia.

Supar Wasesa *

Master of Management, Universitas Islam Sumatera Utara, Indonesia.

*Author to whom correspondence should be addressed.


Abstract

Aims: This study aims to analyze the influence of Public Service Motivation (PSM), Love of Money, and Leadership on Employee Performance, both partially and simultaneously, at the Agriculture, Food Security, and Fisheries Service (DPKP3) of Dairi Regency.

Study Design: This study uses a quantitative approach with an explanatory research design to test the causal relationship between variables.

Place and Duration of Study: The research was carried out at DPKP3 Dairi Regency for three months, from February to April 2025.

Methodology: The research population was all DPKP3 employees totaling 93 people and was used as a sample with total sampling techniques. Primary data was obtained through a Likert scale questionnaire. Data analysis included validity, reliability, classical assumption, multiple linear regression, t-test, F-test, and determination coefficient (R²).

Results: The results of the study show that PSM has a significant positive effect on employee performance, Love of Money has a significant negative effect, and Leadership has a significant positive effect. Simultaneously, the three variables had a significant effect on performance with an R² value of 0.534, which means that 53.4% of the variation in performance can be explained by PSM, Love of Money, and Leadership.

Conclusion: PSM and Leadership play a role as drivers of performance improvement, while Love of Money is an obstacle. Improving the performance of DPKP3 employees can be achieved through strengthening public service motivation, controlling financial orientation, and developing participatory and visionary leadership.

Keywords: Public service motivation, love of money, leadership, employee performance, public sector


How to Cite

Sagala, Rizky F.H., Nurliasniati Lingga, Khaidar Hilman Banurea, Nola Kariyama Munte, Mhd. Muiz Wira Munte, and Supar Wasesa. 2025. “Determinants of Employee Performance in the Public Sector-the Role of Public Service Motivation, Love of Money, and Leadership: A Case Study”. Journal of Basic and Applied Research International 31 (5):196-206. https://doi.org/10.56557/jobari/2025/v31i59832.

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