The effect of rewards and punishments on employee performance at rural banks in Palembang City

Authors

  • Nugraha Adhi Pradhana Sriwijaya University, Palembang, Indonesia
  • Marlina Widiyanti Sriwijaya University, Palembang, Indonesia
  • Muhammad Yusuf Sriwijaya University, Palembang, Indonesia
  • Wita Farla WK Sriwijaya University, Palembang, Indonesia

Keywords:

Reward, Punishment, Employee Performance

Abstract

This study aims to analyze the effect of reward and punishment systems on employee performance at Rural Banks (BPR) in Palembang City. Reward and punishment are management strategies used to motivate employees, maintain discipline, and improve work quality. This research uses quantitative methods with primary data collection through questionnaires filled out by 136 respondents from the marketing department at BPR. The data were analyzed using multiple linear regression to evaluate the relationship between the independent variables (reward and punishment) and the dependent variable (employee performance). The results showed that reward and punishment have a significant influence on employee performance, with a coefficient of determination of 58.5%. Reward contributes positively with a regression coefficient of 0.378, which indicates that providing fair and appropriate rewards increases employee motivation and work results. Punishment also has a positive contribution with a regression coefficient of 0.288, which indicates that the application of clear and consistent sanctions can improve discipline and work productivity. This research contributes to BPR management in designing effective reward and punishment-based policies to create a productive work environment and increase employee job satisfaction.

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Published

2024-11-28

How to Cite

Pradhana, N. A., Widiyanti, M., Yusuf, M., & Wita Farla, W. K. (2024). The effect of rewards and punishments on employee performance at rural banks in Palembang City. International Journal of Economic Perspectives, 18(11), 2774–2782. Retrieved from http://ijeponline.org/index.php/journal/article/view/751

Issue

Vol. 18 No. 11 (2024)

Section

Peer Review Articles
Copyright & Licensing

Copyright (c) 2024 Nugraha Adhi Pradhana, Marlina Widiyanti, Muhammad Yusuf, Wita Farla WK

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