Effect of Work Discipline, Compensation, and Motivation on Employee Performance at PT. Main Creation Synthesis

 

Tasya Shafa Nabila1, Herry Krisnandi2, Kumba Digdowiseiso3*

Faculty of Economics and Business, National University, Indonesia1,2,3

Email: [email protected]1, [email protected]2, [email protected]3*

Keywords

 

ABSTRACT

Work Discipline, Compensation, and Motivation.

 

This study aims to investigate the impact of Work Discipline, Compensation, and Motivation on Employee Performance at PT. Main Creation Synthesis, particularly focusing on whether these factors contribute to meeting performance targets. Primary data was collected through a questionnaire distributed to 127 respondents. The data analysis employed inferential analysis using multiple linear regression. The findings of the multiple linear regression analysis revealed that Work Discipline (X1) exhibits a positive and significant impact on employee performance. Similarly, the Compensation variable (X2) positively and significantly influences employee performance, as does Motivation (X3). These results suggest that improvements in work discipline, compensation, and motivation can enhance the performance of employees at PT. Main Creation Synthesis. The implications of this study emphasize the potential for employees at PT. Main Creation Synthesis to enhance their performance by fostering a strong work discipline, providing fair compensation, and promoting motivational factors. The study underscores the importance of addressing these aspects to contribute positively to overall employee performance and, consequently, achieving organizational targets.

 

 

 

INTRODUCTION

Human resources are one of the supporting factors for the company's success. As the main element of the organization, human resources play a very important role in achieving the goals that have been set. Human resources play a very important role, because no matter how great and complex the technology used cannot produce high-efficiency results without human support as an operational service.

The role of human resources develops along with the development of organizations, science and technology. Therefore, the development of human resources in an organization becomes very important, it all starts with discipline. In an organization, human resources are resources that play a very important role compared to other resources. This is because human resources are the most important factor in achieving organizational goals.

The Big Indonesian Dictionary (KBBI) reveals that employees are people who work in an agency (office, company, etc.) by getting an employee or worker's salary. Sugiyono (2015: p.38) revealed that variables are attributes or objects that have variations between one another. Sutrisno (2014: 87) revealed that discipline is an attitude of willingness and willingness of a person to comply with the norms of regulations that apply around him. Work discipline is the attitude of a person who shows obedience, loyalty and order to company rules and prevailing social norms. Work discipline is very important for companies because it will have an impact on a pleasant work atmosphere so that it can increase morale for employees. Unconsciously, the incentives provided by the organization can motivate employees to work as well as possible.

Hasibuan (2017: 9) revealed that management is a science and art that regulates the use of human resources and other resources effectively and efficiently to achieve certain goals. Human resource management is the science and art of managing the relationships and roles of the workforce to be effective and efficient in helping to realize the goals of the company, employees and society. Meanwhile, Sedarmayanti (2017: 3) revealed that human resources are the elaboration of the effective and efficient use of human resources through planning, mobilizing and controlling all values that become human strength to achieve goals.

The Big Dictionary Indonesian states that motivation is a drive that arises in a person consciously or unconsciously in performing certain actions or goals. One of the factors that influence employee motivation is leadership. Leadership is the ability to influence a group to achieve a vision or goal. Leadership is very influential in the life of organizations and groups to achieve common goals.

In this case, the organization plays an important role in producing qualified employees who can contribute optimally. However, in its implementation, there are several obstacles caused by several employees. These obstacles include work discipline, compensation, and work motivation. This obstacle is a very deadly thing that will adversely affect the continuity of the organization.

Erwinsyah (2016) and Handayani (2018) revealed that compensation is one of the factors that directly or indirectly affects the level of employee motivation and performance. Therefore, compensation must receive special attention from agencies so that employee performance is expected to continue to increase (Anwar, 2018; Siregar and Hamdani, 2018).

Employee performance for the company has an important role in determining a policy to determine a decision about human resources in a company. Problems that still arise in the company are the level of employee satisfaction that has not been maximized and employee discipline is still low, even though the company has tried to increase employee satisfaction through various programs such as increasing incentives, creating comfortable working conditions or environments. As much as possible, but the level of employee discipline in the company is still relatively low. small.

Problems that still arise in a company towards employees are low work discipline, compensation, and motivation that will affect employee performance in a company. One of them is the influence of work discipline, compensation, and motivation on employee performance at PT. The main creation synthesis.

In 1992 Blend Advance was founded. Blend started as ProLease, a property consultancy specializing in shopping mall consulting and management. After a few short years, the company's business scope expanded to include office, residential and industrial property management. A big leap came in 1999 when we started our own property development activities, starting with the Square Clover project. The development of the Semanggi Project is an important milestone for us in the property development business. In 2005 Prolease was renamed Blend and began concentrating solely on property development.

From the results of the study, it is known that the work of employees can be known that the quality of employees of PT. The synthesis of the Main Creation has not been said to be ideal because the percentage fluctuates. It also explains that there are some activities that have not been carried out properly as planned. With this, employees have not had good performance, so they have not been able to carry out activities in accordance with predetermined goals and targets. Based on the background of the above problem, the author is interested in conducting research entitled "The Effect of Work Discipline, Compensation and Motivation on Employee Performance at PT. Synthesis of the Ultimate Creation".

METHODS

The research method used in this study is a quantitative descriptive method with the object of research in the form of employee performance which is influenced by work discipline, compensation, and work motivation at PT. Synthesis of the main creations. This study uses three independent variables, namely work discipline (X1), compensation (X2), and work motivation (X3), and one dependent variable, namely employee performance (Y). The data collection technique was carried out through a questionnaire with a Likert scale, and respondents gave scores according to predetermined score guidelines. Primary data is obtained directly from employees of PT. Synthesis of Key Creations through questionnaires. The population of this study is all employees at PT. Main Creation Synthesis, with a sample of 127 employees selected using the slovin method. Data analysis involves quantitative descriptive methods, inferential analysis, and multiple linear regression. Classical assumption tests, F tests, t tests, and validity and reliability tests are also used to ensure the quality of data and research results. The results of this study are expected to provide a deeper understanding of the influence of work discipline, compensation, and work motivation on employee performance at PT. Synthesis of the main creations.

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RESULTS

Test Instruments

In this study, validity tests were conducted on 127 respondents to evaluate the suitability of questionnaire items as research instruments. The results of the validity test, as listed in Table 4.10, showed that all questions on the questionnaire related to work discipline (X1), compensation (X2), motivation (X3), and employee performance (Y) were declared valid, with a Corrected Item Total Correlation value greater than r Table (0.174). For example, for work discipline, questions 1 through 7 have Calculate r values which are 0.519, 0.602, 0.707, 0.580, 0.709, 0.735, and 0.690, respectively.

Furthermore, reliability tests using the Cronbach Alpha method are carried out to assess whether the research instrument can provide precise and consistent measurements. The results of the reliability test, that all variables, namely work discipline (0.769), compensation (0.863), motivation (0.790), and employee performance (0.856), have a Cronbach Alpha value greater than the limit of 0.6. Therefore, all variables can be considered reliable, meeting the necessary reliability requirements. Thus, the entire research instrument can be relied upon to collect accurate and consistent data in measuring work discipline, compensation, motivation, and employee performance.

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Classical Assumption Test

Normality Test

The normality test aims to check whether in a regression model the dependent variable, the independent variable or both are normally distributed or not. The normality test in this study was used by looking at the normal probability plot that compares the cumulative distribution of actual data with the cumulative distribution of normal data. The results of the study were then compared with the value of the crisis. Guidelines in taking significant (sig) > α = 0.05 then the data is normally distributed, otherwise if significant (sig) < α = 0.05 then it is not normally distributed. as follows:

Table 1. Normality Test Results

One-Sample Kolmogorov-Smirnov Test

 

Unstandardized Residual

N

 

127

Normal Parametersa,b

Mean

,0000000

 

Std. Deviation

2,85689495

Most Extreme Differences

Absolute

,067

 

Positive

,052

 

Negative

-,067

Test Statistics

 

,067

Asymp. Sig. (2-tailed)

 

,200c,d

Source: processed data SPSS 23

Based on table 4.12 of the test results above, it can be seen that the value of Asymp. Sig (2-tailed) of 0.200 which means that the regression model of the dependent variable and the independent variable in this study the data is normally distributed because of the significance of 0.200 > 0.05.

Multicollinearity Test

The multicollinearity test aims to test regression models by looking for correlations between independent variables. The consequence of multicholinerity is that the correlation coefficient is not certain and the error becomes very large. If the tolerance value > 0.1 and the VIF value > 10, then it can be concluded that there is multicollinearity between independent variables in the regression model. As follows in table 2 can be known the results:

 

Table 2. Multicollinearity Test Results

Coefficientsa

 

 

Type

Collinearity Statistics

Tolerance

VIF

1

Work Discipline (X1)

,649

1,540

 

Compensation (X2)

,716

1,397

 

Motivation (X3)

,601

1,665

Source: processed data SPSS 23

 

Based on the test results of Table 4.13 above, it can be seen that the independent variable, namely Work Discipline, has a Variance Inflation Factor (VIF) value of 1,540 < 10 and a tolerance value of 0.649 > 0.1, and Compensation has a Variance Inflation Factor (VIF) value of 1,397 < 10 and a tolerance value of 0.716 > 0.1, and so does  Motivation has a Variance Inflation Factor (VIF) value of 1.665 < 10 and a tolerance value of 0.601 > 0.1. So it can be concluded that the regression model does not occur multicollinearity.

AutoCorrelation Test

The test method uses an autocorrelation test using Durbin Watson (DW). Decision making in the Durbin Watson test if there is a strong relationship between the data then autocorrelation occurs. A good regression model is regression that is free from autocorrelation, to detect autocorrelation is to use the Durbin Watson (DW) method. The comparison results will produce a conclusion if du < d < 4-dU, meaning no autocorrelation occurs, if d < dL or d > 4-dL, it means autocorrelation occurs and if 4-dU < d < 4-dL, it means doubtful autocorrelation occurs or there is no conclusion. In autocorrelation testing, the authors used 50tatistic Durbin Watson (DW).

 

Table 3. Autocorrelation Test Results

Model Summaryb

 

Type

 

R

 

R Square

Adjusted R Square

Std. Error of the Estimate

Durbin-Watson

1

.690a

,476

,463

2,892

1,835

Source: processed data SPSS 23

 

Based on the table of Durbin Watson values of 1.835 to detect the presence or absence of autocorrelation, Durbin Watson testing was carried out from the number of independent variables 3 (K = 4), then obtained a dL value of 1.662 and a dU value of 1.758 with the following conditions:

dU < dW < 4 – dU

1,758 < 1,835 < 4 – 1,662

1,758 < 1,835 < 2,226

From this explanation, it can be concluded that there is no autocorrelation in the linear regression of this study.

Heteroscedasticity Test

To find the test results from the heteroscedasticity test results, it can be concluded from several existing conclusions from the following: if heteroscedasticity does not occur, the regression model is good if the significance value > 0.05. Heteroscedasticity occurs, if the significance value < 0.05. To determine whether there is heteroscedasticity with the Glejser Test, namely by progressing independent variables to the value of Absolute Residual or Abs RES. The results of the heteroscedasticity test can be seen in Table 4. next:

 

Table 4. Heteroscedasticity Test Results

Coefficientsa

 

Type

Unstandardized Coefficients

Standardized Coefficients

 

 

 

t

 

 

 

Sig.

B

Std. Error

Beta

1

(Constant)

7,813

1,505

 

5,190

,000

 

Work Discipline (X1)

-,111

,053

-,220

-2,083

,039

 

Compensation (X2)

-,021

,048

-,045

-,446

,657

 

Motivation (X3)

-,071

,066

-,118

-1,070

,287

Source: processed data SPSS 23

Based on the results of the heteroscedasticity test above, it can be seen that each value of independent variables, namely work discipline (X1), compensation (X2), motivation (X3) with the glacier model obtained significant results greater than 0.05, so this research data did not occur heteroscedasticity so that this research can be continued.

Model Due Diligence

Test F

Hypothesis testing using the F test or commonly called the Analysis Of Variance (ANOVA) can be done by looking at the significant level or by comparing F count and F table. To get the results of the statistical test F has a conclusion in the result that is a significance of 0.05. The decision-making criterion in the F test if the probability with a sig value of < 0.05 then H0 is rejected, means that it has a positive and significant effect. If the probability with a sig value of > 0.05 then H0 is accepted, meaning that it has no positive and significant effect. The following results of the f test can be seen in table 5. as follows:

Table 5. F Test Results

ANOVAa

Type

Sum of Squares

Df

Mean Square

F

Sig.

1

Regression

933,702

3

311,234

37,225

,000b

 

Residuals

1028,393

123

8,361

 

Total

1962,094

126

 

Source: processed data SPSS 23

Based on table 4.16 shows a calculated F value of 37.225 with a significant value of 0.000. Based on these data, the sig value < 0.05, it can be said to be sigifikan and feasible to be used in research based on the sig value obtained that the variables of work discipline, compensation, and motivation can explain any changes in the value of employee performance variables because they have a significant influence.

Test Coefficient of Determination (R2)

The coefficient of determination basically calculates how far the model's capacity to clarify the diversity of dependent variables is. The consequences of the coefficient of determination (R2) test are as follows:

 

Table 6. Coefficient of Determination Test Results

Model Summaryb

 

 

Type

 

 

R

 

 

R Square

Adjusted R Square

Std. Error of the Estimate

 

 

Durbin-Watson

1

.690a

,476

,463

2,892

1,835

Source: processed data SPSS 23

The result of the calculation in the Adjust R.Square (R2) value in the table can be obtained the number of determinant coefficients R2 = 0.463 or 46.3%. This means making the ability of independent variables consisting of work discipline, compensation, and motivation explain the dependent variable, namely employee performance at PT. The synthesis of Main Creation amounted to 46.3%, the rest (100% - 46.3% = 53.7%) was influenced by other variables that were not studied in this study.

Test t

The partial test (t-test) is used to show how much influence an independent variable consisting of work discipline, compensation, and motivation in explaining the independent variable, namely employee performance at PT. Synthesis of the main creations. According to the results of the calculation of the value of t-count and its significance is known as follows:

 

Table 7. Test Results t

Coefficientsa

 

 

Type

Unstandardized Coefficients

Standardized Coefficients

 

 

t

 

 

Sig.

B

Std. Error

Beta

1

(Constant)

5,660

2,411

 

2,348

,020

 

Work Discipline (X1)

,282

,085

,267

3,301

,001

 

Compensation (X2)

,312

,076

,316

4,096

,000

 

Motivation (X3)

,331

,106

,262

3,115

,002

Source: processed data SPSS 23

The impact of each factor of work discipline, compensation, and motivation on employee performance:

1.     H1: work discipline has a positive and significant effect on employee performance.

Based on the results of the T test in the table, it can be explained that the influence of work discipline variables on employee performance as seen from the calculated t value of 3.301 with a sig value of 0.001 < 0.05, therefore it can be concluded that work discipline has a positive and significant effect on employee performance.

2.     H2: Compensation has a positive and significant effect on employee performance.

Based on the results of the t test results in the table, it is explained where the effect of compensation variables on employee performance as seen from the calculated t value of 4.096 and the sig value of 0.000 < 0.05, therefore it can be concluded that compensation has a positive and significant effect on employee performance.

3.     H3: Motivation has a positive and significant effect on employee performance Based on the results of the T test in the table, it can be explained that the influence of motivation variables on employee performance as seen from the calculated t value of 3.115 with a sig value of 0.002 < 0.05, therefore it can be interpreted that motivation has a positive and significant effect on employee performance.

Discussion

The Effect of Work Discipline on the Performance of PT. Synthesis of the Main Creations

Based on the results of the study above, the hypothesis  test (t test) shows that work discipline (X1) affects  employee performance (Y) by 0.267 which means that if  work discipline increases, employee performance will increase by 2.67% > t table 1.978 with a significant level of 0.001 < 0.05 when it is explained that   work discipline  has a positive and significant effect on employee performance. This shows  that work discipline has a great effort in influencing consumers in order to achieve the goals of companies that seek to increase purchases of company products. The results of respondents' answers to the questionnaire given by the author with indicators of providing information, that most agree with work discipline so that it has a positive and significant effect on employee performance.

The Effect of Compensation on the Performance of PT. Synthesis of the Main Creations

Based on the results of the study above, the hypothesis test (t-test) shows  that compensation (X2) affects  employee performance (Y) by 0.316 which means that if compensation increases, employee performance   will increase by 3.16%. And the results of the t test show that t count > t table, namely the value of t count 4.096 > t table 1.978 with a significant level of 0.000 < 0.05, it can be explained that compensation has a positive and significant effect on employee performance. This shows that compensation has a great effort in influencing consumers in order to achieve the company's goals that seek to increase consumer confidence in the company's products. The results of respondents' answers to the questionnaire given by the author showed that most respondents agreed to compensation so that it had a positive and significant effect on employee performance.

The Effect of Motivation on the Performance of PT. Synthesis of the Main Creations

Based on the results of the study above, the hypothesis test (t test) shows that  motivation (X3) affects  employee performance (Y) by 0.262 which means that if motivation  increases  , employee performance will increase by 2.62%. And the results of the t test show that t count > t table, namely the value of t count 3.115 > t table 1.978 with a significant level of 0.002 < 0.05, it can be explained that motivation has a positive and significant effect on employee performance. This shows that motivation has a great effort in influencing consumers in order to achieve the company's goals that strive to increase consumer confidence in the company's products. The results of respondents' answers to the questionnaire given by the author showed that most respondents agreed on motivation so that it had a positive and significant effect on employee performance. Meanwhile, the results of this study are not in line with research (Abdullah, 2018) which says that motivation has a significant negative effect on employee performance, in research it is stated that motivation has a negative and significant influence on employee performance.

 

CONCLUSION

Based on the results of research and discussion on the influence of work discipline, compensation, and motivation on employee performance at PT. Main Creation Synthesis, it was found that the results of the hypothesis test showed a positive and significant influence of these three factors on employee performance. First, work discipline has proven to have a positive and significant effect, indicating that the implementation of work discipline at PT. The synthesis of Main Creations is appropriate and has a positive impact on employee performance. Furthermore, the results of the hypothesis test on compensation factors also indicate a positive and significant influence on employee performance, confirming that the compensation policy in the company is appropriate and affects employee performance positively. Finally, motivation is also proven to have a positive and significant influence on employee performance, illustrating that efforts to increase motivation at PT. The Key Creation Synthesis has been precise and has succeeded in positively influencing employee performance. Overall, the results of this study show that work discipline, compensation, and motivation have an important role in improving employee performance at PT. Synthesis of the main creations.

 

Acknowledgment

This article is a part of joint research and publication between Faculty of Economics and Business, Universitas Nasional, Jakarta and Faculty of Business, Economics, and Social Development, Universiti Malaysia Terengganu.

 

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Copyright holder:

Tasya Shafa Nabila, Herry Krisnandi, Kumba Digdowiseiso (2024)

 

First publication rights:

International Journal of Social Service and Research (IJSSR)

 

This article is licensed under:

 

 

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