The Effect of the Absence of Rewards and the Presence of Punishment on the Work Productivity of PT Haleyora Powerindo Employees Assigned to PT Bank Sumut Head Office Medan

Abstract

This study aims to analyze the effect of reward and punishment on the work productivity of PT Haleyora Powerindo employees assigned to PT Bank Sumut Head Office Medan. The study employed a quantitative research method using reliability analysis, classical assumption tests, and multiple linear regression analysis. The results produced the following regression equation: Y = 4.820 + 0.292X₁ + 0.596X₂ + e, indicating that reward (X₁) and punishment (X₂) have a positive effect on employee work productivity. Partially, the reward variable has a significant effect on work productivity, as evidenced by a t-value of 3.051, which is greater than the t-table value of 1.989. Likewise, the punishment variable also shows a significant effect on work productivity, with a t-value of 6.121, exceeding the t-table value of 1.989. Simultaneously, both variables were proven to have a significant effect on employee work productivity, as indicated by the F-value of 32.893, which is greater than the F-table value of 3.11. Therefore, the research hypothesis is accepted. The contribution of reward and punishment to employee work productivity is 44.8%, while the remaining 55.2% is influenced by other factors not examined in this study. These findings indicate that the implementation of reward and punishment systems plays an important role in improving employee productivity.