This study aims to examine and analyze the effect of reward and
punishment on employee performance and to find out whether motivation is able
to mediate reward and punishment on the performance of the employees of the
Manpower, Cooperative and UMKM Office of Banyumas Regency. The
population in this study were all employees of the Department of Manpower,
Cooperatives and MSMEs in Banyumas Regency. The sample used in this study
was 106 employees using a saturated sampling technique (census). Statistical
tests and data processing were carried out using the data analyzed by the Partial
Least Square (SmartPLS) method.
The results showed that: 1) reward had a positive and significant effect on
employee performance, 2) punishment had no positive and insignificant effect on
employee performance, 3) work motivation had a positive and significant effect
on employee performance, 4) reward had a significant positive effect. on
motivation, 5) punishment has a positive and significant effect on motivation, 6)
work motivation is able to mediate the effect of rewards on employee
performance, 7) work motivation is able to mediate the effect of punishment on
employee performance. The results of the coefficient of determination (R2) show
that the effect of reward, punishment, work motivation on employee performance
is 63.9%.