Discover Knowledge Without Limits

ABSTRACT

Employee performance is a crucial factor in supporting the achievement of a company's production targets. Production data at PT CDS Asia Electronics indicates that employee target achievement is still suboptimal. This condition is suspected to be related to the work environment and employee work motivation. This study aims to analyze the influence of the work environment on employee performance, the influence of the work environment on work motivation, the influence of work motivation on employee performance, and the role of work motivation in mediating the influence of the work environment on employee performance at PT CDS Asia Electronics.
The study used a quantitative approach with a population of 1,500 employees. The sample size was 94 respondents, determined using the Slovin formula and selected through accidental sampling. Data were collected using a Likert-scale questionnaire and analyzed using Partial Least Squares-based Structural Equation Modeling using the SmartPLS application. The results indicate that the work environment has a positive and significant effect on employee performance. The work environment also has a positive and significant effect on work motivation. Work motivation has a positive and significant effect on performance. However, work motivation cannot mediate the influence of the work environment on employee performance due to its indirect effect. The research findings confirm that employee performance can be improved through direct and separate improvements to the work environment and strengthening work motivation.

Keywords: work environment, work motivation, employee performance, mediation, SEM-PLS