THE EFFECT OF WORK ENVIRONMENT AND WORK MOTIVATION ON EMPLOYEE PERFORMANCE WITH WORK DISCIPLINE AS A MEDIATING VARIABLE AT PT. MADINA DZIKRA CEMERLANG LAMONGAN

Abstract

This study aims to analyze the effect of work environment and work motivation on employee performance with work discipline as a mediating variable at PT Madina Dzikra Cemerlang Lamongan. This study uses a quantitative approach with the survey method as a data collection technique. Data obtained from the results of questionnaires distributed to permanent employees in the company, with a total of 132 respondents who have been determined through stratified random sampling techniques to ensure representation from all parts of the organization. Hypothesis testing was carried out using a Structural Equation Modeling (SEM) approach based on Partial Least Square (PLS), which was processed using SmartPLS 4.0 software. Based on the results of the hypothesis test analysis, it is known that work motivation has a positive and significant direct effect on employee performance as well as work discipline and the work environment has no significant direct effect on employee performance, but has a positive and significant effect on work discipline. Work discipline itself is proven to have a significant effect on employee performance, besides that work discipline is proven to be a significant mediator in the relationship between work environment and work motivation on employee performance. This means that although the work environment does not directly affect employee performance, the indirect effect through work discipline shows significant results. With the sake of. Thus, work discipline has an important role in improving employee performance, especially in strengthening the influence of work environment and motivation.