The Influence of Rewards and Punishments on Employee Motivation at the Koperasi Konsumen Karyawan Keluarga Besar

The current era is usually referred to as the era of modernization, Human Resources (HR) is an important component for the success of any organization or business. Therefore, this research identifies the effect of Reward and Punishment on employee motivation at the Petrokimia Gresik Large Family Employee Consumer Cooperative. (K3PG). This research method is quantitative by determining the sample using the slovin formula, totaling 53 respondents and distributing questionnaires with the Google Form. The analysis technique used is (PLS). The study's findings lead to the conclusion that work motivation is influenced by both reward and punishment. The findings of this study exhibit parallels with the research done by Tien Danarti Mesra (2020), which demonstrates a considerable impact of the reward variable (X1) on motivation (Y). Additionally, Dudu Badrudi (2019) asserts that punishment has a good and tangible influence on work motivation.


INTRODUCTION
In today's era, Human Resources (HR) is an important component of the success of any organization or business.According to Samprastyo, Irbayuni, and Rini (2021), Human Resources is a substance whose existence functions and plays a strategic role in influencing the sustainability of a company or agency.Especially in this modern era, employee discipline at work is very important for the organization, among others in building the accuracy of members in working and utilizing time.If an employee is disciplined in his work, there is no doubt that the employee's work performance will increase every day, because he knows how to estimate the time used correctly.
An organization is a group of people who consciously and continuously work together to achieve a goal or goal (Dewi & Hazmanan 2019).In addition to the organization itself, leadership is needed which is the focus of attention for some people, because if there is none, it becomes difficult for leaders in the organization to achieve organizational goals.Every organization immediately put things together and developed new management strategies, including HR management.Some of the key items that make up the HRM function include evaluating employee performance to identify HR skills, and rewarding and punishing them to encourage and motivate them to be more engaged and productive.
Employee performance must be maintained at its best level because it is an important asset.People work for encouragement, for example, to meet daily needs.Usually meet with yourself or your family.One way is to increase work motivation.Motivation is the driving force for work.Motivation is very important because it is the thing that causes, channels and supports human behavior and makes us want to work hard and be enthusiastic to achieve optimal results.(Hasibuan, 2018).A person's performance can be influenced by the strength of his motivation.
Rewards are awards received by employees for the work done.In management practice, rewards are used as a means to increase employee motivation.Reward systems are important because they facilitate the achievement of desired results and motivate employees to meet and exceed their work goals.(Merchant & Stede in Kentjana & Nainggolan, 2018).Providing timely compensation or rewards gives self-satisfaction to employees at work D. Ayu M., Irbayuni (2022).The presence of gifts increases passion and morale.When employees feel passion and enthusiasm, employees are automatically motivated to be more productive and do their best.This has a very positive impact on the company because good employees can contribute to achieving company goals.
Apart from awards, another factor that affects membership is the sanctions that can be imposed on officials who are negligent at work.Because member activities can affect organizational performance, it can be assumed that imposing sanctions on these members will make them more productive and prevent them from repeating the same mistakes at work (Panekenan, et, al., 2020).Besides being able to increase productivity, punishment can also discipline and motivate members, this punishment is very useful in educating and motivating members to improve discipline and ensure members comply with all existing rules in the organization.
Motivation is the power that stokes someone's interest in their job and encourages them to collaborate with others, apply their best efforts, and accomplish the desired fulfillment (Dewi & Hazmanan, 2019).Motivating workers is the key to igniting their enthusiasm for their job, inspiring them to collaborate successfully, and inspiring them to put all of their efforts into achieving the desired satisfaction.This research was conducted because of a phenomenon that occurred in the Koperasi Konsumen Karyawan Keluarga Besar Petrokimia Gresik (K3PG).This phenomenon is an incident of K3PG employees who are still late and ignore attendance.Based on attendance data of K3PG employees in 7 sections/fields, it shows that in 1 month there were 1509 delays.In addition, several employees ignored attendance 103 times.
From these results, it appears that employee motivation is still not optimal.Attendance is very important because it can affect the duties of other employees.The quantification of a company's success cannot be just determined by the count of personnel present inside the office premises.Nevertheless, a substantial attendance percentage serves as an indicator of workers' motivation towards their job.Rewarding and punishing employees can increase their motivation at work.

Reward
reward is very effective to improve one's performance.Official Manik (2019) Meanwhile, giving rewards to employees increases their motivation and performance.The purpose of giving rewards or awards is to increase and strengthen the results of higher quality performance and positive behavior in carrying out the tasks assigned by the manager.
In the management concept, reward is a means to increase employee motivation.Organizations that reward employees improve their performance and encourage loyalty.Rewards are also intended to motivate people to be more willing to improve or improve the achievements achieved.

Punishment
Punishment (punishment) is a way to direct a behavior so that it is by generally accepted behavior (Maludin Panjahitan 2018).Sanctions can deter behavior if applied effectively, but should only be used after careful and objective consideration of all relevant aspects of the situation.In this case, penalties are imposed if the person behaves undesirably or if the affected person does not react or behave as expected.
From Siagian's theory ( 2006) in Hanifah's thesis (2020) there are 4 indicators, namely: 1. Efforts to Minimize Mistakes That Will Occur, 2. There Are More Severe Penalties If The Same Mistake Is Made, 3. Punishments Are Given With Explanations, 4. Punishments Given Immediately After Evidence of Irregularities.

Work motivation
Work motivation is a factor that is often alluded to and is made the main focus of leaders within the organization, whether done openly or covertly Putri, Iryanti (2022).Motivation will not appear in a person if the stimulus is not felt, if motivation increases then the person can use it to achieve goals.Motivation is a very important subject for leaders because they must be able to influence the Human Resources (HR) within the scope of the organization they lead so that they can fulfill both personal goals and can be driven together to achieve organizational goals (Tien D.M 2020 ).By using incentives and penalties, it is necessary to uphold and increase the caliber and motivation of workers.Organizational units may focus on the most crucial factor, namely attending to the requirements of their workers, to increase effective performance Dudu Badrudin (2019).To meet their needs, it is necessary to reward or compensate to motivate employees.Compensation management is very important to motivate employees to do their best.

METHODOLOGY
A quantitative approach is used in this research.This research was conducted at the Koperasi Konsumen Karyawan Keluarga Besar Petrokimia Gresik (K3PG).In this investigation, a measuring scale called the ordinal measurement scale was utilized to obtain quantitative data.The population taken in this study is K3PG permanent employees.The population in this study were all 113 employees of the Koperasi Konsumen Karyawan Keluarga Besar Petrokimia Gresik (K3PG).The sampling technique in this study used probability sampling.According to Sugiyono in Novika et al ( 2022), probability sampling is a sampling method that offers each member or component of the population an equal chance to be chosen as a sample.Random sampling is used in this investigation, according to Syaputra (2022), random sampling is a method with a smaller margin of error and smaller variance in relative efficiency.Sampling uses the Slovin formula (Sugiyono, 2018: 87) as a sample determination tool.The coefficient of each indicator, denoted by the magnitude above the arrows connecting variables and path indicators (path coefficients), can be utilized to ascertain the factor loading value for each indicator.This information is visually presented in the provided PLS output image.Moreover, it can be shown that the size of the R-Square precisely aligns with the realm of endogenous variables, which are the things that influence work motivation.

Outer Model (Model of Measurement and Validity of Indicators)
The measuring model for this research includes both endogenous variables, such as Work Motivation (Y), and exogenous variables with reflecting indicators, such as Reward (X1) and Punishment (X2).Given that all indicators in this modeling are reflective, the output of the outer loading table is utilized to assess the validity of one of the indicators by examining the amount of the factor loading value.The Factor Loading Value of the variable to the indicator, which can be found in the table above, is used to determine the validity of the indicators.If it is larger than 0.5 or the T-Statistic value is greater than 1.96 (Z value at = 0.05), it is considered that the indicators have adequate validity.When the correlation between indicators and variables, or factor loading, is larger than 0.5 and the T-Statistic value is greater than 1.96, the validity and significance are both deemed to be satisfied, respectively.
According to the outer loading table above, every reflection indicator for the Reward (X1), Punishment (X2), and Work Motivation (Y) variables has a factor loading (original sample) larger than 0.50 and/or significance (T-Score).
The statistic exceeds the value of Z = 0.05 (5%) = 1.96, indicating that all estimates for the indicators have been satisfied.Validity that is convergent or strong.All loading factor values for each indicator (shaded) in the Reward (X1), Punishment (X2), and Work Motivation (Y) variables, as determined by the results of cross-loading data processing, have a loading factor value that is greater than the loading index other variable factors, indicating that all indicators in this study meet or have good validity.

Table Average variance extracted (AVE) AVE WORK MOTIVATION (Y)
0,700319 PUNISHMENT (X2) 0,650799 REWARD (X1) 0,589840 The Average Variance Extracted (AVE) value, which quantifies the extent to which the latent variables capture the variance of their respective indicators, is used in this measurement model.A strong level of validity for latent variables is shown when the convergent Average Variance Extracted (AVE) values exceed 0.5.The use of average variance extracted (AVE) values for each construct (variable) may serve as a means to find reflecting indicator variables.In order to ensure that the Average Variance Extracted (AVE) value of each construct exceeds 0.5, it is essential to use a robust model.
In general, the variables examined in this research demonstrate robust validity, as seen by the AVE test results.Specifically, the Reward variable (X1) exhibits a value of 0.589840, the Punishment variable (X2) demonstrates a value of 0.650799, and the Work Motivation variable (Y) displays a value of 0.700319.Notably, all of these values above the threshold of 0.5, indicating high validity.According to the composite reliability value, which gauges construct dependability, the indicator is stated to be consistent in measuring the hidden variables if the composite reliability value is more than 0.70.
The Composite Reliability test results show that the Reward variable (X1) is 0.895636, the Punishment variable (X2) is 0.878880, and the Work Motivation variable (Y) is 0.920916.These three variables each have a Composite Reliability value above 0.70, making it 0. 879291, meaning that all of the variables in this study can be regarded as reliable.

Table Latent Variable Correlations WORK MOTIVATION (Y) PUNISHMENT (X2) REWARD (X1) WORK MOTIVATION (Y)
1,000000 PUNISHMENT (X2) 0,566643 1,000000 REWARD (X1) 0,790286 0,602954 1,000000 Based on the provided table of latent variable correlations, it is seen that in the Partial Least Squares (PLS) framework, correlations may exist between exogenous and endogenous variables, as well as between exogenous and exogenous variables.These correlations serve to elucidate the relationships between the variables or components.The maximum correlation coefficient between two variables is 1, and as the coefficient approaches 1, the strength of the link increases.
The average correlation value between one variable and the other variables provides a moderate correlation value, according to the table above of latent variable correlations.Finding Reward variables (X1) and Work Motivation (Y) to have the greatest correlation value of 0.790286, it can be argued that these two variables have a stronger association than the other variables in the study model.This study model may also be understood to demonstrate that the reward variable has a greater impact on work motivation than the punishment variable when compared to the connection between other factors.

Inner Model (Structural Model Testing)
Examining the R-Square value, a goodness-of-fit model test, is used to assess the structural model.The R-square on the equation between latent variables shows the inner model testing.The value of R2 indicates how well the endogenous (dependent/bound) variables can be explained by the exogenous (independent/independent) variables in the model.The coefficient of determination (R2 value) is 0.637318.The current framework may be used to provide insight into the concept of work motivation, which is impacted by autonomous elements such as rewards and punishments, accounting for a variance of 63.73%.The remaining 36.27% is attributed to additional variables outside the scope of this study, excluding reward and punishment.
The Q2 magnitude, also known as Q-Square predictive relevance, is a measure used to assess the quality of observations and parameter estimates in structural models.It may be used to evaluate the Goodness of Fit of the research model, in addition to considering the value of R2.When the Q-Square value exceeds zero, the model is seen to possess predictive relevance.Conversely, if the value falls below zero, the model is regarded as having diminished predictive relevance.The formula is used to calculate the q-Square calculation: Q2 = 1 -( 1 -R12 ) ( 1 -R22 ) ... ( 1-Rp2 ) The variables R12, R22, ..., and Rp2 represent the endogenous R-square variables in the equation model.The range of Q2 is bounded by 0 and 1, with values closer to 1 indicating a higher level of model performance.The quantity referred to as Q2 in this context is analogous to the cumulative coefficient of determination in route analysis.
Based on the computed value of 0.637318 obtained from the Q2 calculations, it can be inferred that the research model exhibits feasibility in terms of its ability to achieve predictive relevance.

Hypothesis Testing
Furthermore, testing the hypothesis using the results of the internal model coefficients and the results of the t-statistics in the following table.

Effect of Reward on Work Motivation
The results of the research that has been done, the reward variable show that it has a significant positive effect on work motivation.This shows that the rewards given succeeded in encouraging the employees of the Koperasi Konsumen Karyawan Keluarga Besar Petrokimia Gresik (K3PG) to be motivated at work.This research is also supported by the results of research from Mesra (2020), Pradnayani, Rahmawati, Suci (2020), Azwar, Meutia, Ketut Budiastra (2022) The results obtained from this study are that the reward variable (X1) has a significant effect on the motivational variable ( Y).
Based on the outer model on the results of the original sample (O) data processing, there is the highest value of 0.834219 at X1.3, the data shows that "Bonuses given by the company increase morale at work".So it can be concluded that employees have motivation in working influenced by bonuses given by the company.Because bonuses for employees increase along with the size of the company.The bonuses given to employees of the Koperasi Konsumen Karyawan Keluarga Besar Petrokimia Gresik (K3PG) are not the same as one another.This depends on the performance of each employee.
In addition, a different indicator, namely promotion (X1.6) with a value of 0.796915 reads "The company provides equal opportunities for employees to be promoted to a higher position".The promotion of this position depends on the needs of the company.Employees who get promotion opportunities can be seen from how much their contribution is in supporting the progress of the company.With this promotion, it can motivate people to work more enthusiastically and be more loyal to the company.

Effect of Punishment on Work Motivation
The results of the research that has been done, the reward variable show that it has a significant positive effect on work motivation.This shows that the punishment given succeeded in encouraging the Koperasi Konsumen Karyawan Keluarga Besar Petrokimia Gresik (K3PG) to be motivated to work.This research is also supported by the research results from the statement above which can be strengthened by research and data processing conducted by Badrudi (2019), Mentang (2021), Pradnayani, Rahmawati, andSuci (2020).
Stating that punishment has a positive and real effect on work motivation.
Judging from the outer model on the results of the original sample (O) data processing there is the highest value of 0.886294 in X2.3, this data shows that the punishment is given with a clear explanation.The Koperasi Konsumen Karyawan Keluarga Besar Petrokimia Gresik (K3PG) already has rules and restrictions that have been conveyed to employees since the day they were hired.This is a form of prevention efforts from the company to prevent negligence and it is hoped that employees will be more motivated at work.
Apart from that, a different indicator, namely (X2.2) with a value of 0.796915 reads "There are more severe penalties if the same mistake is made".Every violation committed by the employees of the Koperasi Konsumen Karyawan Keluarga Besar Petrokimia Gresik (K3PG) has received fair sanctions depending on how many fatal mistakes the employee has made.The lightest sanction (punishment) is in the form of a warning to employees immediately after an error occurs.Sanctions can also be made with salary deductions if you make the same mistake.

CONCLUSIONS AND RECOMMENDATIONS
Based on the results that have been tested using PLS analysis to test the effect of reward and punishment on employee motivation at the Koperasi Konsumen Karyawan Keluarga Besar Petrokimia Gresik (K3PG), it can be concluded that as follows: A good reward can increase work motivation.The higher the reward given, the higher the work motivation of the employees of the Koperasi Konsumen Karyawan Keluarga Besar Petrokimia Gresik (K3PG).The highest indicator is the bonus given by the company to increase morale at work, this can affect employee motivation.
Good punishment can increase work motivation.The higher the punishment given, the higher the work motivation of the employees of the Koperasi Konsumen Karyawan Keluarga Besar Petrokimia Gresik (K3PG).The highest indicator is the punishment given with a clear explanation, this can affect employee motivation.

FURTHER STUDY
For further research, other factors not included in this study that affect work motivation such as work environment, organizational culture, etc. can be added.

Figure 1
Figure 1 Outer Model with Factor Loading, Path Cofficient and R-Square

Table Path Coefficients (Mean, STDEV, T-Values, P-Values)
From the table above it can be concluded that the hypothesis states: