V2I10P71

The Effect of Work Motivation and Work Discipline on Employee Performance with Job Satisfaction as an Intervening Variable in the Mother & Child Care Division of Pt. Philips Industries Batam

Suryadi^1*

Abstract

This study aims to analyze the direct and indirect influence of Work Motivation and Work Discipline on Employee Performance, with Job Satisfaction acting as a crucial mediating variable. The research setting is the Mother & Child Care Division of PT. Philips Industries Batam, a high-demand manufacturing environment where optimal employee performance, precision, and efficiency are paramount, yet initial observations revealed performance challenges stemming from fluctuations in motivation and instances of indiscipline. Employing a quantitative approach, the study utilized a sample of 96 employees selected through Simple Random Sampling from a population of 126, with data collected via a questionnaire using a five-point Likert scale. The data analysis was conducted using Partial Least Squares-Structural Equation Modeling (PLS-SEM) via Smart PLS 4.0. The measurement model demonstrated excellent validity (AVE > 0.50) and reliability (Composite Reliability > 0.70). All hypotheses were empirically supported, showing that Work Motivation and Work Discipline have a significant and positive direct effect on both Job Satisfaction and Employee Performance. Most importantly, the results confirmed that Job Satisfaction significantly mediates the relationship, indicating that the effects of Work Motivation and Work Discipline on performance are positively reinforced when employees feel satisfied with their work. These findings underscore the strategic importance of job satisfaction management through consistent discipline and enhanced motivation as a mechanism to drive and sustain optimal employee performance in the high-stakes manufacturing environment.

Keywords:

Work Motivation; Work Discipline; Job Satisfaction; Employee Performance; PLS-SEM