The Effect of Reward and Punishment on Employee Performance Through Work Motivation as an Intervning Variable (Case Study at PT. MOA)

Anggun Badriyansyah Fahlevi1*, & Dedi Rianto Rahadi2
1 STIA Pemerintahan Annisa Dwi Salfarizi, Indonesia
2Management, President University, Indonesia
DOI – http://doi.org/10.37502/IJSMR.2024.7110

Abstract

This research aims to investigate the effect of reward and punishment on work motivation and employee performance at PT. MOA. The research methodology uses Partial Least Squares Structural Equation Modeling (PLS-SEM) with the SmartPLS analysis tool, allowing in-depth analysis of the relationship between the variables studied. The research population includes employees from various levels and functions at PT. MOA, with 155 respondents selected representatively as the research sample. The research results show that rewards have a positive and significant influence on work motivation, while punishment also contributes to motivation, independent of the level of perceived severity. Furthermore, reward and punishment make a positive contribution to employee performance. These findings provide valuable insight for PT management. MOA to design more effective employee motivation strategies and improve the company’s reward and punishment system, as well as understand more deeply the complex interactions between reward, punishment, work motivation and employee performance in a business context.

Keywords: Motivation, Performance, Reward, Punishment

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