The Influence of Reward and Punishment on Employee Performance: The Mediating Role of Intrinsic Motivation at the Oil Palm Research Center in Medan
DOI:
https://doi.org/10.55927/ijems.v4i3.77Keywords:
Reward, Punishment, Intrinsic Motivation, Employee PerformanceAbstract
his study examines the effect of Reward and Punishment on Employee Performance through Intrinsic Motivation as an intervening variable at the Oil Palm Research Center Medan. A quantitative approach with an explanatory research design was employed. The population consisted of 180 employees, and 124 respondents were selected using a simple random sampling technique. Data were collected through questionnaires and analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results indicate that Reward has a positive and significant effect on Employee Performance and Intrinsic Motivation. Similarly, Punishment positively and significantly affects Employee Performance and Intrinsic Motivation. Furthermore, Intrinsic Motivation has a positive and significant effect on Employee Performance. The mediation analysis reveals that Intrinsic Motivation significantly mediates the relationships between Reward and Employee Performance as well as between Punishment and Employee Performance. The structural model demonstrates moderate explanatory power, with Reward and Punishment explaining 61.5% of the variance in Intrinsic Motivation, while Reward, Punishment, and Intrinsic Motivation explain 61.0% of the variance in Employee Performance. The findings highlight the importance of effective reward and disciplinary systems in enhancing employee performance through the development of intrinsic motivation
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