Promoting Organizational Excellence in Indonesian Public Service Agencies: The Impact of Servant Leadership, Talent Management, and Remuneration Systems

Abstract

This study examines how servant leadership, talent management, and remuneration systems promote organizational performance in Indonesian Public Service Agencies (BLUs). Grounded in stewardship theory and the input-output-impact model, it aims to explore the mediating roles of talent management and remuneration systems in linking servant leadership to maturity performance. The research seeks to provide a comprehensive understanding of how service-oriented leadership, effective human resource practices, and equitable incentives improve public service delivery, offering policy insights for BLU administrators to achieve higher organizational maturity. A quantitative, cross-sectional design was employed, collecting data from 121 BLU leaders and managers in Java, Indonesia, via structured questionnaires and focus group discussions. Partial Least Squares Structural Equation Modeling (PLS-SEM) analyzed relationships among servant leadership, talent management, remuneration systems, and maturity performance with information technology as controls. A modified servant leadership scale with personal and ethical leadership dimensions was tested to ensure robust findings aligned with public sector contexts. Servant leadership and remuneration systems significantly promote BLU maturity performance, with remuneration systems partially effect this relationship. Talent management showed no significant effect, reflecting bureaucratic constraints. A modified servant leadership scale improved predictive accuracy, with ethical leadership as the strongest dimension. It is role was primary, emphasizing servant leadership and remuneration as key drivers of organizational excellence in public service settings.