This paper aims to explore the relationship between school principal supervision, motivation and work satisfaction vis-a-vis teacher’s performance in Indonesian education system. The accountability and quality assurance mechanism developed by the Indonesian government in the form of principal supervision works and directly impacts teacher’s performance. It binds teacher to follow predefined patterns and if they deviate, they can face penalties. Moreover, motivation is linked with choice of profession and excellence in profession. Motivation can be drawn from monetary benefits, power associated with profession and prestige, or social status and respect. It has been observed that teachers are usually demotivated by lack of monetary and social benefits. It has been noted that teacher’s performance enhances dramatically when they’=are not under undue pressure and are given their due liberty. Performance also increases when work place environment is suitable for nurturing the professional and personal skills of teachers. Furthermore, teachers are well motivated when they receive approval from their supervisors and when their colleagues were more cooperative. This also compensates for the lower monetary benefits and prestige associated with teaching. Data is collected from teaching sector of Indonesia via questionnaires. This study will help in ensuring a bright educational future for next generation in Indonesia. Keywords: Principal Supervision, Work Satisfaction, Motivation, Teacher Performance
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