This study aims to determine the effect of leadership, and motivation on employee performance. The unit of analysis in this study as many as 33 units of cooperatives spread in Malang, Malang and Batu. The study population was the employees of Islamic Cooperation (BMT) as many as 170 people. The sample size of 118 people selected by using the technique of proportional sample or samples counterweight. Collecting data using questionnaires of the sample as well as respondents. Furthermore, the data were analyzed by hypothesis testing using the technique SEM (Structural Equation Modelling) and data processing using a data processing computer software program AMOS (Analysis Of Moment Structure) v.4.0. Data processing and analysis of the obtained results of this study: 1) Leadership positive and significant effect on employee performance as indicated by the level of influence with standarized value of 0.326 with a p-value level of 0.00; 2) Motivation employee positive and significant effect on the performance of employees with a degree of influence is shown by a standardized value of 0.391 to the level of p-value of 0.00. The conclusion of this research that theoretically implication is the need for cooperative scientific development by adopting the theories of economics and management of cooperative sound general (conventional) and Islamic law. Keywords: Leadership, Motivation, employee performance