Increase performance productivity

Oct 13, 2025 by talynt.org 55 views

The Effect of Giving Incentives and Performance Productivity on Improvement of Work Performance: Study at PTPN IV Medan

Introduction

Human resources are the backbone of any organization, and their performance is crucial for achieving company goals. However, many companies face challenges related to employee performance, which can hinder their progress and success. In this context, it is essential for companies to develop effective strategies to improve work performance, and two approaches that can be taken are through the provision of incentives and increased work productivity. This study aims to analyze the effect of providing incentives and performance productivity on improving work performance at PTPN IV Medan, a state-owned enterprise in Indonesia.

Background of the Study

PTPN IV Medan is a state-owned enterprise that plays a significant role in the development of the region. However, like many other companies, PTPN IV Medan faces challenges related to employee performance, which can affect its overall performance and success. In this context, the company needs to develop effective strategies to improve work performance, and one of the approaches that can be taken is through the provision of incentives and increased work productivity. This study aims to analyze the effect of providing incentives and performance productivity on improving work performance at PTPN IV Medan.

Methodology

This study uses a quantitative research approach with an associative design. The research sample consisted of 76 respondents selected using a probability sampling technique based on the Slovin formula. Primary data was obtained through the distribution of questionnaires directly, while secondary data was obtained through literature studies. The data analysis methods used include testing validity, reliability, classical assumption testing, and multiple linear regression and hypothesis testing.

Results

The results of this study showed that the variable incentives (X1) and performance productivity (X2) partially and simultaneously had a significant influence on improving work performance in PTPN IV Medan. The coefficient of determination (R) was 0.847, which indicates a strong relationship between the variable provision of incentives and performance productivity to improved work performance. The Adjusted R Square value was 0.710, which indicates that these two variables contribute 71.0% to improvement of work performance, while the other 29.0% are influenced by other variables that are not discussed in this study.

Discussion

Providing appropriate incentives can motivate employees to work harder and more efficiently. Incentives can be in the form of bonuses, awards, or recognition that provide extra encouragement for employees to achieve work targets. When employees feel valued, they tend to show better performance, which in turn contributes to the achievement of company goals. On the other hand, performance productivity reflects how effective employees are in carrying out their duties and responsibilities. Increasing performance productivity can be achieved in various ways, such as training, skills development, and improvement of work facilities. When employees are given adequate training and the tools needed to complete their work, they can work more efficiently, which contribute directly to improvement of work performance.

Conclusion

The results of this study provide important insights for company managers and leaders about the need to implement an integrated strategy in improving employee performance. By understanding the effect of providing incentives and performance productivity, companies can design programs that support employee needs and expectations. This is expected not only to improve individual performance but also encourage the company's overall growth and sustainability. Thus, companies such as PTPN IV Medan can use these findings to create a conducive work environment and motivate employees, so that they can achieve better and sustainable results in the future.

Recommendations

Based on the findings of this study, the following recommendations are made:

Provide incentives: Companies should provide incentives to motivate employees to work harder and more efficiently. Incentives can be in the form of bonuses, awards, or recognition that provide extra encouragement for employees to achieve work targets.
Increase performance productivity: Companies should increase performance productivity by providing adequate training and the tools needed to complete work. This can be achieved through training, skills development, and improvement of work facilities.
Implement an integrated strategy: Companies should implement an integrated strategy in improving employee performance. This can be achieved by understanding the effect of providing incentives and performance productivity and designing programs that support employee needs and expectations.
Create a conducive work environment: Companies should create a conducive work environment that motivates employees to work harder and more efficiently. This can be achieved by providing a comfortable and safe working environment, as well as opportunities for growth and development.

Limitations of the Study

This study has several limitations, including:

Sample size: The sample size of this study was limited to 76 respondents, which may not be representative of the entire population.
Data collection method: The data collection method used in this study was through questionnaires, which may not be the most effective method for collecting data.
Data analysis method: The data analysis method used in this study was multiple linear regression and hypothesis testing, which may not be the most effective method for analyzing data.

Future Research Directions

Future research should focus on the following areas:

Investigating the effect of other variables: Future research should investigate the effect of other variables, such as employee engagement, job satisfaction, and organizational commitment, on work performance.
Developing a more effective data collection method: Future research should develop a more effective data collection method, such as using a combination of questionnaires and interviews.
Using a more advanced data analysis method: Future research should use a more advanced data analysis method, such as structural equation modeling, to analyze data.

Conclusion

In conclusion, this study provides important insights into the effect of providing incentives and performance productivity on improving work performance at PTPN IV Medan. The results of this study show that providing incentives and increasing performance productivity can have a significant influence on improving work performance. Therefore, companies should implement an integrated strategy in improving employee performance, which includes providing incentives and increasing performance productivity. By doing so, companies can create a conducive work environment and motivate employees to work harder and more efficiently, which can lead to better and sustainable results in the future.
Frequently Asked Questions (FAQs) about the Effect of Incentives and Performance Productivity on Work Performance Improvement

Q: What is the main objective of this study?

A: The main objective of this study is to analyze the effect of providing incentives and performance productivity on improving work performance at PTPN IV Medan.

Q: What is the research methodology used in this study?

A: This study uses a quantitative research approach with an associative design. The research sample consisted of 76 respondents selected using a probability sampling technique based on the Slovin formula. Primary data was obtained through the distribution of questionnaires directly, while secondary data was obtained through literature studies.

Q: What are the findings of this study?

A: The findings of this study show that the variable incentives (X1) and performance productivity (X2) partially and simultaneously had a significant influence on improving work performance in PTPN IV Medan. The coefficient of determination (R) was 0.847, which indicates a strong relationship between the variable provision of incentives and performance productivity to improved work performance.

Q: What are the implications of this study?

A: The implications of this study are that providing incentives and increasing performance productivity can have a significant influence on improving work performance. Therefore, companies should implement an integrated strategy in improving employee performance, which includes providing incentives and increasing performance productivity.

Q: What are the limitations of this study?

A: This study has several limitations, including:

Sample size: The sample size of this study was limited to 76 respondents, which may not be representative of the entire population.
Data collection method: The data collection method used in this study was through questionnaires, which may not be the most effective method for collecting data.
Data analysis method: The data analysis method used in this study was multiple linear regression and hypothesis testing, which may not be the most effective method for analyzing data.

Q: What are the recommendations of this study?

A: Based on the findings of this study, the following recommendations are made:

Provide incentives: Companies should provide incentives to motivate employees to work harder and more efficiently. Incentives can be in the form of bonuses, awards, or recognition that provide extra encouragement for employees to achieve work targets.
Increase performance productivity: Companies should increase performance productivity by providing adequate training and the tools needed to complete work. This can be achieved through training, skills development, and improvement of work facilities.
Implement an integrated strategy: Companies should implement an integrated strategy in improving employee performance. This can be achieved by understanding the effect of providing incentives and performance productivity and designing programs that support employee needs and expectations.
Create a conducive work environment: Companies should create a conducive work environment that motivates employees to work harder and more efficiently. This can be achieved by providing a comfortable and safe working environment, as well as opportunities for growth and development.

Q: What are the future research directions?

A: Future research should focus on the following areas:

Investigating the effect of other variables: Future research should investigate the effect of other variables, such as employee engagement, job satisfaction, and organizational commitment, on work performance.
Developing a more effective data collection method: Future research should develop a more effective data collection method, such as using a combination of questionnaires and interviews.
Using a more advanced data analysis method: Future research should use a more advanced data analysis method, such as structural equation modeling, to analyze data.

Q: What are the practical implications of this study?

A: The practical implications of this study are that companies can use the findings of this study to create a conducive work environment and motivate employees to work harder and more efficiently. This can lead to better and sustainable results in the future.

Q: What are the theoretical implications of this study?

A: The theoretical implications of this study are that it contributes to the existing body of knowledge on the effect of incentives and performance productivity on work performance. It also provides a framework for understanding the relationship between incentives, performance productivity, and work performance.

Q: What are the limitations of the practical implications of this study?

A: The limitations of the practical implications of this study are that they may not be generalizable to other companies or industries. Additionally, the practical implications of this study may be influenced by the specific context of PTPN IV Medan.

Q: What are the limitations of the theoretical implications of this study?

A: The limitations of the theoretical implications of this study are that they may not be generalizable to other contexts or industries. Additionally, the theoretical implications of this study may be influenced by the specific research design and methodology used in this study.