The Effect of Reward and Punishment on Employees' Performance at Gulung Janebora, Balikpapan City

Agus Fitriadi; Budi Eko Soetjipto

doi:10.63922/ijebir.v4i03.1799

Agus Fitriadi Universitas Negeri Malang
Budi Eko Soetjipto Universitas Negeri Malang

DOI: https://doi.org/10.63922/ijebir.v4i03.1799

Keywords: Reward, Punishment, Employee performance, MSMEs

Abstract

This study aims to analyse the effect of reward and punishment on employee performance at UMKM Gulung Janebora, Balikpapan. Reward and punishment are strategies in human resource management that can affect employee motivation and productivity. This research uses quantitative approach with survey method through questionnaires to 32 employees in four branches of Gulung Janebora. The data analysis technique used is multiple linear regression to measure the effect of reward and punishment on employee performance. The results showed that reward has a positive and significant effect on employee performance, while punishment has a positive but insignificant effect. Simultaneously, reward and punishment have a significant influence on employee performance. This finding shows that giving the right reward is more effective in increasing productivity than punishment. Therefore, UMKM Gulung Janebora is advised to optimise the reward system to improve employee motivation and performance

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