THE EFFECT OF REWARD, PUNISHMENT, WORK ENVIRONMENT, INCENTIVES, AND WORK DISCIPLINE ON EMPLOYEE PERFORMANCE AT THE BATU AJI SUB-DISTRICT OFFICE, BATAM CITY
Published:
2026-06-01Downloads
Abstract
The purpose of this study was to see how rewards, punishments, work environment, incentives, and work discipline impact employee performance at the Batu Aji District Office in Batam City. Employee performance plays an important role in the success of a company, so it is important to understand the components that influence it. This study was conducted quantitatively, and a survey was conducted on fifty employees. The data was analyzed using multiple linear regression after being collected through a questionnaire. The results showed that rewards, punishments, work environment, incentives, and work discipline were significantly correlated with employee performance. While punishment did not have a significant impact on employee performance, rewards, work environment, incentives, and work discipline were proven to have the greatest partial influence on their performance. The results can be used as a recommendation for management to pay more attention to these aspects to improve employee performance at the Batu Aji Sub-District Office.
Keywords:
Reward Punishment Work Environment , IncentiveReferences
Abekah-Nkrumah, G., & Nkrumah, J. (2021). Perceived work environment and patient-centered behavior: A study of selected district hospitals in the central region of Ghana. PLoS ONE, 16(1 January).
Agussalim, M., Ayu Rezkiana Putri, M., & Ali, H. (2016). Analysis work discipline and work spirit toward performance of employees (case study tax office Pratama two Padang). International Journal of Economic Research, 13(6), 2541–2556.
Alimudin, A., Sukoco, A., Prebawa, A. A., Dhaniarti, I., & Hartono, Z. Z. Z. (2020). Strategy model to build employee discipline. Proceedings of the International Conference on Industrial Engineering and Operations Management, 0(March), 1969–1977.
Anselme, P., & Tirelli, E. (2012). Specificity and interactive properties of incentive motivations: The role of cognition. Psychologie Francaise, 57(3), 175–191.
Bruni, L., Pelligra, V., Reggiani, T., & Rizzolli, M. (2020). The Pied Piper: Prizes, Incentives, and Motivation Crowding-in. Journal of Business Ethics, 166(3), 643–658.
Chen, Y.-C., Wang, Y.-H., & Chu, H.-C. (2024). Meta-analytic structural equation modeling for exploring workplace friendship, well-being, and organizational commitment. Work, 79(3), 1039–1053.
Chingan Thottathil, S., & Nandakumar, M. K. (2024). Integrating Hedonic and Eudaimonic Perspectives of Well-Being: A Conceptual Model for Sustaining Employee Well-Being in the Remote Work Context. Human Resource Development Review.
Cong, R., Li, K., Wang, L., & Zhao, Q. (2016). Cooperation induced by wise incentive allocation in spontaneous institution. EPL, 115(3).
Dizon, R. L., & Monsura, M. P. (2021). Do productivity incentives really equate to the increased work performance of employees? International Journal of Business and Globalisation, 28(1–2), 64–76.
Fang, Y., Benko, T. P., Perc, M., Xu, H., & Tan, Q. (2019). Synergistic third-party rewarding and punishment in the public goods game. Proceedings of the Royal Society A: Mathematical, Physical and Engineering Sciences, 475(2227).
Farida, U., Nongkeng, H., Ybnu, M., Al Amin, L. O. A. S., Manoktong, S. N., & Yusriadi, Y. (2021). The role of work environment and leadership on employee performance through employee work discipline. Proceedings of the International Conference on Industrial Engineering and Operations Management, 3734–3740.
Gath-Morad, M., Egli, S., Grübel, J., Steemers, K., Hölscher, C., & Aguilar, L. (2024). Designing affective workplace environments: The impact of typology, contour, ceiling and partition height on cognitive and aesthetic appraisal. Building and Environment, 265.
Huang, X.-H., Bao, Y.-Z., Chen, Y.-Z., & Cai, B.-Q. (2023). The evolution game analysis of enterprise’s strategic environmental governance with the effect of different combinations of reward policies and punishment policies. Zhongguo Huanjing Kexue/China Environmental Science, 43(7), 3808–3820.
Ingraham, P. W., & Getha-Taylor, H. (2014). Incentivizing collaborative performance aligning policy intent, design, and impact. In Big Ideas in Collaborative Public Management (pp. 79–96).
Jo, H. (2025). Interplay among collaborative culture, empowerment leadership, and IT work environment in the public sector: A mixed methods study. International Journal of Information Management, 82.
Kralikova, R., Dzunova, L., Pinosova, M., Wessely, E., & Koblasa, F. (2019). Man-machine-environment system analyses and impact of environment factors to productivity and health of employees. Annals of DAAAM and Proceedings of the International DAAAM Symposium, 30(1), 131–138.
Kullgren, J. T., Williams, G. C., Resnicow, K., An, L. C., Rothberg, A., Volpp, K. G., & Heisler, M. (2016). The promise of tailoring incentives for healthy behaviors. International Journal of Workplace Health Management, 9(1), 2–16.
Layek, D., & Koodamara, N. K. (2024). Impact of contingent rewards and punishments on employee performance: the interplay of employee engagement. F1000Research, 13.
Mortimer, D., Wijnands, J. S., Harris, A., Tapp, A., & Stevenson, M. (2018). The effect of ‘smart’ financial incentives on driving behaviour of novice drivers. Accident Analysis and Prevention, 119, 68–79.
Musso, J. A., & Weare, C. (2020). Performance Management Goldilocks Style: A Transaction Cost Analysis of Incentive Intensity in Performance Regimes. Public Performance and Management Review, 43(1), 1–27.
Nawangsari, S., Nurcahyo, B., & Nur’Ainy, R. (2016). Analysis of effect of incentives, work environment, motivation on employee performance (Case in state employee from Indonesia). Social Sciences and Interdisciplinary Behavior - Proceedings of the 4th International Congress on Interdisciplinary Behavior and Social Science, ICIBSOS 2015, 409–412.
Oktari, S. D., & Suhardi, A. R. (2021). Discipline And Motivation to Teacher Performance at Geography Education Department. Review of International Geographical Education Online, 11(3), 392–401.
Ozimec, K., & Lišanin, M. T. (2011). Motivational Incentives for developing salesforce performance in emerging markets. APBITM 2011 - Proceedings2011 IEEE International Summer Conference of Asia Pacific Business Innovation and Technology Management, 245–249.
Pellerano, J. A., Price, M. K., Puller, S. L., & Sánchez, G. E. (2017). Do Extrinsic Incentives Undermine Social Norms? Evidence from a Field Experiment in Energy Conservation. Environmental and Resource Economics, 67(3), 413–428.
Prastiwi, D., & Bon, A. T. (2019). Model of reward system toward the performance of public sector organizations. Proceedings of the International Conference on Industrial Engineering and Operations Management, July, 2516–2525.
Promberger, M., & Marteau, T. M. (2013). When do financial incentives reduce intrinsic motivation? Comparing behaviors studied in psychological and economic literatures. Health Psychology, 32(9), 950–957.
Ravishankar, K., Mahadevan, A., & Batcha, H. M. (2014). Influence of organizational climate on the performance of cement industry. International Journal of Economic Research, 11(1), 151–166.
Roshida, D. S., & Paskarini, I. (2021). The Correlation between Discipline and Work Productivity at PT. Bina Megah Indowood. Indonesian Journal of Occupational Safety and Health, 10(1), 34–42.
Salsabilla, N., Puspitasari, P., Haqi, D. N., Rofiq, A., & Wulandari, R. D. (2022). Analysis Of Work Motivation And Work Discipline Of Employee At Wiyung Sejahtera Hospital Surabaya. Indonesian Journal of Public Health, 17(1), 95–105.
Scekic, O., Truong, H.-L., & Dustdar, S. (2013). Incentives and rewarding in social computing: Praise, pay, and promote crowd-member workers to elicit desired behavioral responses and performance levels. Communications of the ACM, 56(6), 72–82.
Simanjuntak, J., Raja, P. L., & Lubis, A. N. (2018). Effect of human resources development, work environment and compensation to bhabinkamtibmas performance with work satisfaction as intervening variables on Bhabinkamtibmas polres deli Serdang. International Journal of Scientific and Technology Research, 7(4), 136–159.
Siswanto, S., Maulidiyah, Z., & Masyhuri, M. (2021). Employee Engagement and Motivation as Mediators between the Linkage of Reward with Employee Performance. Journal of Asian Finance, Economics and Business, 8(2), 625–633.
Strang, S., Park, S. Q., Strombach, T., & Kenning, P. (2016). Applied economics: The use of monetary incentives to modulate behavior. In Progress in Brain Research (Vol. 229, pp. 285–301).
Tambunan, W., Partiwi, S. G., & Sudiarno, A. (2024). Impact of toxic work environment on employee engagement mediated by employee well-being and supportive work culture. Journal of Infrastructure, Policy and Development, 8(8).
Wächter, T., Lungu, O. V, Liu, T., Willingham, D. T., & Ashe, J. (2009). Differential effect of reward and punishment on procedural learning. Journal of Neuroscience, 29(2), 436–443.
Yadav, J., Chaturvedi, V., & Pandey, A. K. (2024). Changing Aspects of Employee Satisfaction in Digital Era with Flexible Work Scheduling. Proceedings of International Conference on Communication, Computer Sciences and Engineering, IC3SE 2024, 637–640.
Yusshinta, A., Alimudin, A., Purwanto, E. W., Suyono, J., & Elisabeth, D. R. (2020). Analysis of the effect of work discipline and reward on work performance through work motivation. Proceedings of the International Conference on Industrial Engineering and Operations Management, 59, 2664–2675.
Zhang, M., Zhang, X., Qu, C., Wang, G., & Lu, X. (2022). The combination of social reward and punishment is conducive to the cooperation and heterogeneity of social relations. Chaos, 32(10).
License
Copyright (c) 2026 Martini Plantika Dwi Utama, Sri Langgeng Ratnasari, Ervin Nora Susanti
This work is licensed under a Creative Commons Attribution 4.0 International License.
