DefinePK

Abstract

The reason behind this study was to examine the effects of reward and punishment on employee performance, moderated by work motivation. Considered the data collected from 155 employees of PT. MOA, the relationships among these variables are analysed by using Partial Least Squares Structural Equation Modeling (PLS-SEM). The study found that the reward and punishment do affect work motivation and thereby determine the performance of the employees. Findings revealed that rewards increase both motivation and performance while punishment decreases motivation but is not directly related to decreased performance. The research adds to the knowledge base of human resource management practices and presents managerial recommendations for organizations interested in improving their employees’ performance.