Work Environment and Compensation as Drivers of Productivity

The Role of Work Discipline as a Mediator

Authors

DOI:

https://doi.org/10.56741/jmsd.v4i02.924


Keywords:

Compensation, Discipline, Productivity, Work Environment

Abstract

The establishment of a company or government institution is inherently guided by specific organizational objectives that require collective and coordinated efforts. Achieving these objectives depends heavily on the competence of human resources, with employee performance often evaluated through their work productivity. Productive employees demonstrate both efficiency and effectiveness in executing their responsibilities. Work productivity is shaped by various internal and external factors, including the work environment, compensation, motivation, and work discipline. This study aims to examine the mediating role of work discipline in the relationship between the work environment and compensation on employee productivity. A quantitative, explanatory research design was employed. The study population comprised all 90 employees of the Department of Public Works, Housing, and Settlement Areas of Bantul Regency. Given the manageable population size, a total sampling (census) technique was used. Data were collected through a structured, self-administered questionnaire and analyzed using multiple linear regression and mediation analysis via the Sobel test, processed with SPSS version 25. The results indicate that both the work environment and compensation have a positive and significant effect on employee productivity. Additionally, these variables significantly influence work discipline, which itself has a significant positive impact on productivity. The analysis also confirms that work discipline significantly mediates the relationship between both the work environment and compensation and work productivity. The findings support all proposed hypotheses, underscoring the critical role of work discipline in enhancing employee performance through conducive work conditions and appropriate compensation.

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Author Biographies

Elis Sujimah, Universitas 'Aisyiyah Yogyakarta

is a final-year undergraduate student in the Bachelor of Management Study Program at 'Aisyiyah University Yogyakarta, Indonesia. She is currently pursuing a concentration in Human Resource Management (HRM), where she has developed a strong interest in workforce development, employee motivation, and organizational performance. As part of her academic journey, Elis is in the process of completing her final project, which involves the publication of a research-based journal article. Her study focuses on strategies for enhancing employee work productivity, aiming to provide practical and evidence-based insights for HR practitioners and organizational leaders. (email: elissujimah02@gmail.com).

Musoli, Universitas 'Aisyiyah Yogyakarta

is a dedicated lecturer at 'Aisyiyah University Yogyakarta, where he specializes in Human Resource Management. With a strong academic background and years of teaching experience, he has been instrumental in delivering core HRM subjects to undergraduate students, shaping future professionals in the field. His teaching areas include topics such as human capital development, talent management, organizational behavior, and strategic HR planning. His scholarly work contributes significantly to the growing body of knowledge in HRM, and he is frequently engaged in collaborative research projects and academic discussions at both national and regional levels. (email: musoli@unisayogya.ac.id).

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Published

2025-04-12

How to Cite

Sujimah, E., & Musoli. (2025). Work Environment and Compensation as Drivers of Productivity: The Role of Work Discipline as a Mediator . Journal of Management Studies and Development, 4(02), 91–104. https://doi.org/10.56741/jmsd.v4i02.924

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