The Situational Leadership and Employee Competence: Assessing the Impact on Employee Performance through Work Motivation

This study investigates the mediating role of work motivation in the relationship between situational leadership, employee competence, and employee performance at PDAM Tirta Amertha Buana in Tabanan, Bali. Human resource management emphasizes the importance of effective leadership and employee competencies in achieving superior organizational performance. Employing a quantitative research design, data were collected from 80 permanent employees through validated and reliable questionnaires. The study utilized Structural Equation Modelling (SEM) with Smart-PLS 3.0 to analyses the causal relationships. Findings reveal that situational leadership and employee competence positively influence employee performance, both directly and indirectly through work motivation. Situational leadership—characterized by adaptability to team dynamics and organizational conditions—enhances motivation by aligning leadership styles with employee needs. Similarly, employees with competencies aligned with their tasks exhibit higher motivation levels, contributing to improved performance. The mediation analysis confirms that work motivation significantly strengthens the impact of both situational leadership and competence on performance outcomes. These results highlight the necessity for organizations to foster adaptive leadership practices and invest in competency development while simultaneously cultivating motivational strategies. Understanding these dynamics enables the design of effective HR policies that enhance employee engagement and drive sustained organizational success.