THE EFFECT OF REWARD AND PUNISHMENT ON EMPLOYEE PERFORMANCE AT PT. FLOW SOLUTION INDONESIA

Abstract

Employee performance is an important factor in achieving organizational goals, especially in business competition. To improve performance, companies need to implement effective human resource management policies, one of which is through the provision of rewards and punishments. PT. Flow Solution Indonesia is one of the companies that implements reward and punishment policies as part of human resource management. This journal aims to analyze the effect of rewards and punishments on employee performance at PT. Flow Solution Indonesia. The research method used is a quantitative approach with a comparative causal research type. Primary data was collected through a Likert-scale questionnaire distributed to the entire population of 59 employees at PT. Flow Solution Indonesia. Data processing was conducted using SPSS 30 software. The data analysis includes validity and reliability tests, classical assumption tests, multiple linear regression analysis, F-test, and t-test. The results of the study show that, partially, rewards (X1) have a significant positive effect on employee performance (Y) with a coefficient value of 0.415. Punishments (X2) also have a significant positive effect on employee performance (Y) with a coefficient value of 0.563. Simultaneously, rewards and punishments have a significant effect on employee performance, with an F-value of 66.774 and a significance level of < 0.001.