Main Article Content

Abstract

Purpose: This study aims to empirically analyze the influence of discipline and incentives on employee performance at Perumda Air Minum Kota Makassar (PDAM Makassar). This study seeks to explain the extent to which these two factors contribute to improving employee performance in public service organizations.


Research Method: This study employed a quantitative approach, relying on primary data collected via questionnaires distributed to employees of Perumda Air Minum Kota Makassar. Data analysis was performed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with the assistance of SmartPLS software. The analytical procedure evaluated both the measurement and structural models, followed by a bootstrapping technique to test the direct and simultaneous effects statistically.


Results and Discussion: The results show that discipline has a positive and significant effect on employee performance, indicating the importance of rule compliance and consistent work behavior in improving performance. Conversely, incentives have a positive but insignificant effect, indicating they are not strong enough to encourage improved performance. These findings confirm that non-financial factors, such as discipline, are more decisive in determining performance in public organizations like PDAM.


Implications: This study provides practical guidance for PDAM to maintain and strengthen its work-discipline culture, a key strategy for improving performance. In addition, the company needs to evaluate its incentive system to ensure that it is more relevant, fair, and directly linked to performance achievements.

Keywords

discipline incentives employee performance

Article Details

How to Cite
Kessi, A. M. P., Megawaty, M., & Hendriadi, H. (2026). Discipline and Incentives on Employee Performance. Advances in Human Resource Management Research, 4(1), 28–42. https://doi.org/10.60079/ahrmr.v4i1.740

References

  1. Alam, M. B., & Kamal, I. A. (2024). Reviewing the effectiveness of reward and punishment in improving employee performance in Jabodetabek. Indonesian Journal of Multidisciplinary Science, 3(6). https://doi.org/10.55324/ijoms.v3i6.843
  2. Alkandi, I. G., Khan, M. A., Fallatah, M., Alabdulhadi, A., Alanizan, S., & Alharbi, J. (2023). The impact of incentive and reward systems on employee performance in the Saudi primary, secondary, and tertiary industrial sectors: A mediating influence of employee job satisfaction. Sustainability, 15(4), 3415.
  3. Amin, G. (2021). Women at Work: How Organization Manage Career Women Performance at Manufacturing in Jababeka–Bekasi. Jurnal Manajemen. https://doi.org/10.25170/jm.v17i1.850
  4. Anakpo, G., Nqwayibana, Z., & Mishi, S. (2023). The impact of work-from-home on employee performance and productivity: a systematic review. Sustainability, 15(5), 4529. https://doi.org/10.3390/su15054529
  5. Ángeles López-Cabarcos, M., Vázquez-Rodríguez, P., & Quiñoá-Piñeiro, L. M. (2022). An approach to employees’ job performance through work environmental variables and leadership behaviours. Journal of Business Research, 140, 361–369. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.11.006
  6. Ayu, D. K., & Sinaulan, J. H. (2018). Pengaruh insentif dan disiplin kerja terhadap kinerja karyawan pada PT Bintang Satoe Doea. Jurnal Ekonomi, 20(3), 373–382. https://doi.org/10.37721/je.v20i3.484
  7. Bahasoan, S., & Baharuddin, I. (2023). Work Discipline, Work Motivation and Employee Performance. Advances in Human Resource Management Research, 1(2 SE-Articles). https://doi.org/10.60079/ahrmr.v1i2.92
  8. Bahmani-OSKooee, M., & Feinberg, B. (2022). The Effect Of Work Discipline On Employee Job Satisfaction With Incentives As An Intervening Variable (Case Study On Medical Doctor And Nurses In Wisconsin City Area). Medalion Journal: Medical Research, Nursing, Health, and Midwife Participation, 3(4), 149–154. https://doi.org/10.59733/medalion.v3i4.65
  9. Brück, C., Knauer, T., Meier, H., & Schwering, A. (2021). Self-set salaries and creativity. Journal of Business Economics, 91(1), 91–121. https://doi.org/10.1007/s11573-020-00985-z
  10. Christin, L., Destiana, N. S., Sari, D. P., & Anggiani, S. (2022). Pengaruh keseimbangan kehidupan kerja terhadap kinerja wanita karir yang dimediasi kelelahan kerja dan dimoderasi dukungan organisasi dan dukungan keluarga. Business Management Journal, 18(1), 75–84. https://doi.org/10.30813/bmj.v18i1.3074
  11. Fayaz, I., & Gulzar, F. (2025). Thrive, don’t survive: building work-life balance with family support, grit and self-efficacy. IIMT Journal of Management, 2(1), 114–138. https://doi.org/10.1108/iimtjm-05-2024-0057
  12. HA, I. (2023). The Impact of Work Environment and Competence on Employee Performance. Advances in Human Resource Management Research, 1(2 SE-Articles). https://doi.org/10.60079/ahrmr.v1i2.88
  13. Ida Aryati Istiatin, Y. Y. (2017). Pengaruh Insentif, Disiplin Kerja, dan Komunikasi Terhadap Kinerja Karyawan Bagian Sewing PT. Pelita Tomangmas Karanganyar. Jurnal Akuntansi dan Pajak, 18(01 SE-Articles). https://www.jurnal.stie-aas.ac.id/index.php/jap/article/view/92
  14. Indrayani, I., Nurhatisyah, N., Damsar, D., & Wibisono, C. (2024). How does millennial employee job satisfaction affect performance? Higher Education, Skills and Work-Based Learning, 14(1), 22–40. https://doi.org/10.1108/heswbl-01-2023-0004
  15. Iptian, R., Zamroni, Z., & Efendi, R. (2020). The effect of work discipline and compensation on employee performance. International Journal of Multicultural and Multireligious Understanding, 7(8), 145–152. https://doi.org/10.18415/IJMMU.V7I8.1812
  16. Isa, M., & Indrayati, N. (2023). The role of work–life balance as mediation of the effect of work–family conflict on employee performance. SA Journal of Human Resource Management, 21, 1910. https://doi.org/10.4102/sajhrm.v21i0.1910
  17. Izzah, N., & Septi Nugraheni. (2024). Impact of Work Discipline and Work Motivation on Employee Performance at Warehouse PT Shopee International Indonesia Branch, Bekasi. Sinergi International Journal of Management and Business, 2(1 SE-Articles), 1–10. https://doi.org/10.61194/ijmb.v2i1.121
  18. Kamselem, K. M., Nuhu, M. S., Lawal, K. A. A., Liman, A. M., & Abdullahi, M. S. (2022). Testing the nexus between reward system, job condition and employee retention through intervening role of employee engagement among nursing staff. Arab Gulf Journal of Scientific Research, 40(1), 34–53. https://doi.org/10.1108/AGJSR-05-2022-0061
  19. Manzoor, F., Wei, L., & Asif, M. (2021). Intrinsic rewards and employee’s performance with the mediating mechanism of employee’s motivation. Frontiers in Psychology, 12, 563070. https://doi.org/10.3389/fpsyg.2021.563070
  20. Mbukwana, V. L., & Ayandibu, A. O. (2023). Impact of performance incentives on employees’ performance in a university in KwaZulu-Natal. SA Journal of Human Resource Management, 21, 1–11. https://doi.org/10.4102/sajhrm.v21i0.2114
  21. Mirza, S., Butt, S., Raiz, M., & Ashraf, T. (2025). Is Anything Impossible? Building the Balance between Home and Work and Employee Performance: Mediating Effect of Family-Work Balance. Research Journal for Social Affairs, 3(2), 285–298. https://doi.org/10.71317/rjsa.003.02.0149
  22. Nadi, M. A. B., & Karunia, M. N. (2023). The effect of discipline and motivation on employee performance with incentives as a moderator variable (at the Class I Railway Engineering Center for the Central Java Region). Jurnal Bisnis Strategi, 32(1), 112–121. https://doi.org/10.14710/jbs.32.1.112-121
  23. Nenobais, M., Sofiati, N. A., Ismail, G. D., Sudaryo, Y., Alfarisi, A. S., Luntungan, I. I. P., & Sumawidjaya, R. N. (2025). The Influence of Work Discipline and Incentives on Employee Performance at PT YXZ Tex. Dinasti International Journal of Education Management And Social Science, 6(5 SE-Articles), 4258–4274. https://doi.org/10.38035/dijemss.v6i5.5097
  24. Nwinyokpugi, P. N., & Robbinson, R. E. (2019). Discipline management strategies and compliance success in the Rivers State civil service. American Journal of Humanities and Social Science Research (AJHSSR), 3(1), 104–116.
  25. Pranitasari, D., & Aprillia Rizky. (2023). Optimizing Job Satisfaction: A Comprehensive Analysis of Work Discipline, Compensation, and Motivational Factors. Journal of Ecoment Global, 8(3 SE-Articles), 131–146. https://doi.org/10.36982/jeg.v8i3.3639
  26. Purnamasari, W. R., Kambaraa, R., & Haryadi, D. (2023). Aspects of improving employee performance. Enrichment: Journal of Management, 12(6), 4685–4691. https://doi.org/10.35335/enrichment.v12i6.1163
  27. Qalati, S. A., Zafar, Z., Fan, M., Limón, M. L. S., & Khaskheli, M. B. (2022). Employee performance under transformational leadership and organizational citizenship behavior: A mediated model. Heliyon, 8(11). https://doi.org/10.1016/j.heliyon.2022.e11374
  28. Riwukore, J. R., Susanto, Y., Pilkandis, J., & Habaora, F. (2021). Analysis of employee performance in the Department of Education and Culture, Lubuklinggau City. Asia Pacific Journal of Management and Education, 4(2), 95–109. https://doi.org/10.32535/APJME.V4I2.1149
  29. Santoso, A. B., & Sendouw, M. C. (2024). The Influence of Work Incentives and Discipline on Employee Performance at PT. Penta Artha Impression. Implikasi: Jurnal Manajemen Sumber Daya Manusia, 2(1), 27–33. https://doi.org/10.56457/implikasi.v2i1.566
  30. Saputri, A. D., Handayani, S., & DP, M. K. (2021). Pengaruh Disiplin Kerja dan Pemberian Insentif terhadap Kinerja Karyawan PT Putra Karisma Palembang. Jurnal Nasional Manajemen Pemasaran & SDM, 2(1), 25–42. https://doi.org/10.47747/JNMPSDM.V2I1.211
  31. Sarah, H., & Sjahri, E. (2023). The Influence of Work Culture and Work Discipline on Employee Performance at Advent Hospital Medan. International Journal of Science, Technology & Management, 4(5), 1340–1350. https://doi.org/10.46729/ijstm.v4i5.926
  32. Setyorini, D. M., Shodiqoh, A., Naufalani, N. A., Saputra, D., Pribadi, H. C., & Qomariah, N. (2023). Relationship between family support and work family balance in career women. Journal of Economics, Finance and Management Studies, 6(2), 219–224. https://doi.org/10.47191/jefms/v6-i2-42
  33. Shofiyah, A. G. N., Yendra, Y., & Marihi, L. O. (2025). Competence, Work Environment and Work Discipline on Employee Performance. Advances in Human Resource Management Research, 3(1 SE-Articles), 30–43. https://doi.org/10.60079/ahrmr.v3i1.323
  34. Songyanan, E. M. C., & Kasbuntoro, K. (2024). Driving Excellence: The Effect of Work Discipline and Incentive Programs on Employee Performance. Human Capital and Organizations, 2(1), 13–23. https://doi.org/10.58777/hco.v2i1.272
  35. Thahir, B. A., & Lestariningsih, M. (2024). The Effect of Compensation and Work Discipline on Employee Performance Through Work Motivation As An Intervening Variable. 25(1), 1090–1105.
  36. Velghe, C., McIlquham‐Schmidt, A., Celik, P., Storme, M., & De Spiegelaere, S. (2024). PROTOCOL: Employee work motivation, effort, and performance under a merit pay system: A systematic review. Campbell Systematic Reviews, 20(4), e70001. https://doi.org/10.61194/ijmb.v2i1.121
  37. Wulandari, D., Cahyono, Y., & Zakiah, Z. (2025). The Influence of Motivation and Work Discipline on Employee Performance at PT. Quarta Medika Indonesia, Tangerang Regency. Journal of Industrial Engineering & Management Research, 6(4 SE-Articles), 61–69. https://doi.org/10.7777/jiemar.v6i3.605