01 Adrian Denar.pmd Farah Jihan Nabilah, Sulastri Irbayuni, Effect of Employee Satisfaction and Employee Discipline on Employee Performance of PT Mediatech Centra Filter Surabaya 3535 Effect of Employee Satisfaction and Employee Discipline on Employee Performance of PT Mediatech Centra Filter Surabaya Farah Jihan Nabilah, Sulastri Irbayuni Department of Management, Faculty of Economics and Business, Pembangunan Nasional “Veteran” University East Java e-mail: farahjihannabilah145@gmail.com Abstract: This study aims to analyze the gain of progress and achieve goals. Companies need to encourage and monitor employee performance to develop their abilities to the potential. This research is quantitative, with the data used being secondary. The decline in the performance of employees in the production department has an impact on the company because it can hinder the company’s filter production, and the company’s production targets are not achieved. Human re- source management’s scope generally discusses human beings’ matters, including employee job satisfaction. Employee job satisfaction is a factor that is considered necessary because it can affect the running of the company as a whole. The satisfaction felt by employees at work indicates that employees have feelings of pleasure in carrying out work duties. Job satisfaction is also a positive attitude of employees towards various situations in the workplace. For organizations, employee job satisfaction must receive attention and fulfilment of this is primarily the task of organizational leaders. For employees, job satisfaction is an individual factor, and a means to achieve work pro- ductivity. So within the scope of human resource management, job satisfaction factors benefit orga- nizations/companies, employees, and even the community. Keywords: employee satisfaction, employee discipline, employee performance INTRODUCTION Human Resources is the most essential asset for an organization or company. The ab- sence of the human element makes the com- pany not run smoothly. The company’s purpose is growth, profit, productivity, and others. Em- ployees and companies are two closely related aspects. The critical role of employees in com- pany activities is to provide improvement and development of the company through employee performance programs. The object of research conducted by the author is at PT Mediatech Centra Filter Surabaya produces various de- signs and types of filters for industrial needs. Human resource management’s scope gen- erally discusses human beings’ matters, includ- ing employee job satisfaction. Employee job satisfaction is a factor that is considered neces- sary because it can affect the running of the company as a whole. The satisfaction felt by employees at work indicates that employees have feelings of pleasure in carrying out work duties. Job satisfaction is also a positive attitude of employees towards various situations in the workplace. For organizations, employee job sat- isfaction must receive attention, and fulfilment of this is primarily the task of organizational leaders. For employees, job satisfaction is an individual factor, and a means to achieve work productivity. So within the scope of human resource management, job satisfaction factors benefit organizations/companies, employees, and even the community (Adianita et al., 2017). Performance in action. The performance action consists of many components and is not a direct result. Performance is individual be- Business and Finance Journal, Volume 6, No. 2, March 2022 36 cause every employee has a different ability to do their job. The performance comes from work performance or actual performance, which means someone has done work performance or actual performance. Performance is the result of a process. According to the behavioral ap- proach to management, performance is the quan- tity or quality of something produced or done by someone who does the job. The company expects high employee performance. The more employees who have high performance, the overall company productivity will increase to survive in global competition. Understanding Employee Performance ac- cording to Moeheriono (2010), employee per- formance or the definition of performance as a result of the performance that can be achieved by a person or group of people in an organiza- tion both qualitatively and quantitatively fol- lowing their respective authorities, duties, and responsibilities. Each to legally accomplish the goals of the organization concerned without violating the law and by morality or ethics. According to Sedarmayanti (2011), performance is a translation of the word performance, which has the meaning as a result of the work of an employee or worker, a management process in which the work result must have concrete evi- dence that can also be measured. Employee performance indicators are job satisfaction, work discipline, and work environment (Mujanah et al, 2020) and (Mardhotillah et al, 2021). According to Hasibuan (2016), job satis- faction is an emotional attitude that is pleasant and loves his job. This attitude is reflected by work morale, discipline, and work performance. Factors that affect employee job satisfaction are the individual factors of the employee himself, salary and workplace facilities, co-workers, and social working conditions. And the indicators of job satisfaction are liking his job, loving his job, work discipline, and work performance. (Ayu, et al., 2019). According to Edy Sutrisno (2016), Work Discipline, namely: A person’s behavior by regu- lations, existing work procedures, or discipline, is attitudes, behavior, and actions that are by the rules of the organization, both written and unwritten. In addition, Bedjo Siswanto, quoted by Lijan Poltak Sinambela (2016), stated work discipline as follows: “Work discipline is an attitude of respect, respect, obedience and obe- dience to applicable regulations, both written and unwritten and able to carry out and does not avoid receiving sanctions if he violates the duties and authorities given to him”. The exist- ence of work discipline will ensure the mainte- nance of order and the smooth implementation of the company’s work to obtain optimal re- sults. As for employees, work discipline impacts a pleasant working atmosphere to increase en- thusiasm in carrying out their work. According to Mangkunegara and Octorent (2015), work discipline can be measured by the following indicators: Punctuality in coming to work, Ac- curacy in returning home, Compliance with applicable regulations, Use of predetermined work uniforms, Responsibilities in doing assign- ments, Carrying out tasks -work assignments to completion every day. (Faviandhani et al. 2018). PT Mediatech Centra Filter Surabaya was founded in 1990 until now. Manufacturing tech- nology and raw materials for various filters are transferred from our Principal in Europe, Ko- rea, and China. At PT Mediatech Centra Filter Surabaya has 40 production employees. Like business entities in general, PT Mediatech Cen- tra Filter Surabaya, in its establishment and its development, cannot be separated from its vi- sion and mission. Vision and Mission of PT Farah Jihan Nabilah, Sulastri Irbayuni, Effect of Employee Satisfaction and Employee Discipline on Employee Performance of PT Mediatech Centra Filter Surabaya 37 CONCEPTUAL FRAMEWORK AND HY- POTHESES Job Satisfaction Job satisfaction or employee satisfaction measures workers’ level of satisfaction with their type of work related to the nature of their job duties, work results achieved, the form of supervision obtained, and a sense of relief and liking for the work they do. Dessler (2000) states that job satisfaction has a role in achiev- ing better productivity and quality standards, avoiding the possibility of building a more stable workforce, and using human resources more efficiently. The research results from McNeese–Smith (1996) showed a relationship between job satis- faction and employee performance. So it can be concluded that job satisfaction positively affects employee performance because work discipline can increase employee productivity for better performance. Then formed the hypothesis: H1: Job Satisfaction has a positive effect on employee performance at PT Mediatech Center Filter. Work Discipline Work discipline is a tool used by managers to communicate with employees so that they are willing to change behavior and increase their awareness and willingness to comply with all company regulations (Rivai, 2011). According to Syamsuddinnor (2013) in Marheno (2016), work discipline can develop employee performance to improve company performance. It can be concluded that work discipline positively affects performance because it can encourage employees to achieve better performance. Then the hypothesis is formed Mediatech Centra Filter Surabaya is to create a good environment with the Go green program by supporting industries for air pollution prob- lems due to the production process. PT Mediatech Centra Filter Surabaya was founded and has run the company since 1990 now. Its primary production is various designs and types of features for the industry. It is divided into Dry Filter (Dust Filter) and Wet Filter (Liquid Filter). As filter media manufacturers, manufac- turing technology and raw materials for various filters are the principal transfers in Europe, Korea, and China. Providing European Stan- dard quality and continuously prioritizing after- sales service to its customers. Filter Materials PT Mediatech Centra Filters Surabaya are Poly- ester (PE), Polypropylene (PP), Dralon or Acrylic (DT), Nomex (NO), Plyhenylene Sulphide (PPS), Teflon or Ptpe (TF), Polymide or P84, Nylon (NL), Fibreglass. The phenomenon that occurs in the pro- duction employees at PT Mediatech Centra Filters Surabaya is the decline in employee performance in the Production section. The decline in employee performance significantly impacts the company because it will hinder its filter production. And not achieving the company’s production targets. The following is the target achievement data from the perfor- mance of production employees at PT Mediatech Centra Filters Surabaya in 2018–2020 and the company’s targets and the employee attendance table produced by PT Mediatech Centra Filters Surabaya. In this study, there are phenomena in companies such as filter production targets that are not by what the company targets per month. With a target of 6000 (six thousand) pcs per month Filter products or 72,000 pcs per year Filter Products. Business and Finance Journal, Volume 6, No. 2, March 2022 38 H2: Work Discipline has a positive effect on employee performance at PT Mediatech Center Filter. Employee Performance Performance is individuals’ effort on their work (Robbins, 2001). Meanwhile, according to Bernandi & Russell (in Riani 2011), performance is a record resulting from the function of a par- ticular job or activity during a specific period. Research Methodology This research is quantitative using a ques- tioner to collect data. Data collection using a saturated sampling technique with a sample of 40 people. The population used in this study were all permanent employees at PT Mediatech Centra in the Production section has as many as 40 people. The data collected using purposive sampling and then analyzed using Partial Least Square (PLS). Results and Discussion Job satisfaction or employee satisfaction measures workers’ level of satisfaction with their type of work related to the nature of their job duties, work results achieved, the form of supervision obtained, and a sense of relief and liking for the work they do. Job satisfaction means feelings of support or unsupport experi- enced by an employee at work. According to Hasibuan (2016), job satisfaction is an emo- tional attitude that is pleasant and loves his job. This attitude is reflected by work morale, disci- pline, and work performance. Factors that af- fect employee job satisfaction are individual factors of the employee himself, salary and workplace facilities, co-workers, and social working conditions. And the indicators of job satisfaction are liking his job, loving his job, work discipline, and work performance. Fac- tors Affecting Job Satisfaction. Five aspects contained in job satisfaction (Levi, 2002), namely: 1. The work itself (work itself), every job re- quires a specific skill by their respective fields. The difficulty of a job and a person’s feeling that his skills are needed in doing the job will increase or decrease job satisfaction. 2. Supervisor (supervision), a good boss is will- ing to respect the work of his subordinates. Supervisors can be considered father/mother/ friend figures and superiors for associates. 3. Co-workers (workers) is a factor related to the relationship between employees with their superiors and other employees, both the same or different types of work. 4. Promotion is a factor related to the presence or absence of opportunities for career ad- vancement while working. 5. Salary/wage is a factor in fulfilling the needs of employees who are considered worthy or not. Indicators of employee job satisfaction According to Harzberg in Mangkunegara (2005) in Ida Ayu Brahmasari (2008), there are 4 indicators of employee job satisfaction: Com- pensation, Working Conditions, Administration system, and company policies, Opportunity to develop. Employee Job Satisfaction Variables According to Mangkunegara (2009), job satisfaction is related to the variables, namely: a. Turnover is higher job satisfaction, is associ- ated with lower employee turnover. Mean- while, dissatisfied employees usually experi- ence higher turnover. b. Work Absence Rate Employees who are dis- satisfied with the company will experience a high level of absenteeism. Farah Jihan Nabilah, Sulastri Irbayuni, Effect of Employee Satisfaction and Employee Discipline on Employee Performance of PT Mediatech Centra Filter Surabaya 39 c. Age with a tendency for older employees to be more satisfied than older employees. This is because older employees are experienced in adjusting to the work environment. While young employees usually have ideal expecta- tions about the world of work, if there is a gap between their expectations and reality, it can cause them to be dissatisfied. d. Employment Level Employees who occupy higher job levels tend to be more satisfied than employees who occupy lower job levels. Employees who have a higher level of work show good work skills and express creative ideas at work. e. Company Organization Size, Company Or- ganization Size can affect employee satisfac- tion. This is because the company’s size is also related to coordination, communication, and employee participation. Work discipline is an attitude and behavior of a person who shows obedience, obedience, loyalty, order, and order to company or organi- zation regulations and applicable social norms. Enforcing work discipline is very important for the company. The existence of work discipline will ensure the maintenance of order and the smooth implementation of the company’s work to obtain optimal results. As for employees, work discipline impacts a pleasant working at- mosphere to increase enthusiasm in carrying out their work. Meanwhile, according to Edy Sutrisno (2016), Work Discipline, namely: A person’s behavior by regulations, existing work procedures, or discipline, is an attitude, behav- ior, and actions that are by the organization’s rules, both written and unwritten. In addition, Bedjo Siswanto, quoted by Lijan Poltak Sinambela (2016), stated work discipline as follows: “Work discipline is an attitude of re- spect, respect, obedience and obedience to ap- plicable regulations, both written and unwritten and able to carry out and does not avoid receiv- ing sanctions if he violates the duties and au- thorities given to him”. The existence of work discipline will ensure the maintenance of order and the smooth implementation of the company’s work to obtain optimal results. As for employees, work discipline impacts a pleas- ant working atmosphere to increase enthusiasm in carrying out their work. According to Mangkunegara and Octorent (2015), work dis- cipline can be measured by the following indi- cators: Punctuality in coming to work, Accu- racy in returning home, Compliance with appli- cable regulations, Use of predetermined work uniforms, Responsibilities in doing assignments, Carrying out tasks -work assignments to comple- tion every day. Work Discipline Goals Discipline can be defined when employees obey, respect, and obey all company regulations and applicable social norms. If the field goes well, the company’s efficiency and effectiveness of employees’ work can increase. According to Sutrisno (2011), the objec- tives of work discipline include: 1. The high sense of employee concern for the achievement of company goals. 2. High enthusiasm and enthusiasm for work and employee initiative to carry out work. 3. The sense of responsibility for employees to carry out their duties as well as possible. 4. The development of a sense of belonging and a high sense of solidarity among employees. 5. Increased work efficiency and productivity of employees. With the goal of work disci- pline, employee work discipline must be en- forced in a company. Without the employees’ support, it is difficult for the company to realize its goals. So, discipline is one of the most critical factors for achieving its goals successfully. Business and Finance Journal, Volume 6, No. 2, March 2022 40 Work Discipline Indicator The following indicators of work discipline in Sinambela (2016) are as follows: 1. Attendance frequency The frequency of attendance is one of the benchmarks to determine employee disci- pline. The higher the frequency of atten- dance or the lower the absenteeism rate, the employee has high work discipline. 2. Awareness level In carrying out their work, employees who are always full of calculation and accuracy have a high level of vigilance towards them- selves and their work. 3. Adherence to work standards In carrying out his work, an employee must comply with all work standards that work rules have set and guidelines so that work accidents do not occur or can be avoided. 4. Obedience to work regulations This is intended for comfort and smooth working. 5. Work ethics Work ethics are needed by every employee in carrying out their work to create a harmo- nious atmosphere and mutual respect be- tween fellow employees. Definition of Employee Performance, Per- formance when associated with performance as a noun (noun), then the notion of performance or performance is the result of work that can be achieved by a person or group of people in a company by their respective authorities and responsibilities to achieve company goals ille- gally, does not violate the law and does not conflict with morals and ethics (Rivai & Basri, 2004; Harsuko 2011). Viewed from the point of view of other experts, performance is the amount of effort that individuals put out on their work (Robbins, 2001). Meanwhile, ac- cording to Bernandi & Russell 2001 (in Riani 2011) performance is a record resulting from the function of a particular job or activity over a certain time. MODELS PLS The PLS output shows that the factor loading value in each indicator is reflected in the path coefficients that appear in each exog- enous and endogenous variable. Then it can also be seen from the amount of R-Square that appears in the endogenous variable. Outer Loadings Test Results (Mean, STDEV, T-Values) �� )DFWRU� /RDGLQJ��2�� 6DPSOH� 0HDQ��0�� 6WDQGDUG� 'HYLDWLRQ� �67'(9�� 6WDQGDUG�(UURU� �67(55�� 7�6WDWLVWLFV� �_2�67(55_�� �;��������.(38$6$1� .(5-$��;��� 0,966748 0,966344 0,007647 0,007647 126,426490 �;��������.(38$6$1� .(5-$��;��� 0,939774 0,938441 0,018381 0,018381 51,127475 �;��������.(38$6$1� .(5-$��;��� 0,948660 0,948327 0,012387 0,012387 76,582662 �;��������',6,3/,1� .(5-$��;��� 0,855815 0,861245 0,017798 0,017798 48,084800 �;��������',6,3/,1� .(5-$��;��� 0,763953 0,753588 0,075508 0,075508 10,117544 �;��������',6,3/,1� .(5-$��;��� 0,737679 0,723902 0,082662 0,082662 8,924076 �;��������.,1(5-$� .$5<$:$1��<�� 0,949750 0,948151 0,018475 0,018475 51,407389 �;��������.,1(5-$� .$5<$:$1��<�� 0,961697 0,959908 0,013628 0,013628 70,568937 �;��������.,1(5-$� .$5<$:$1��<�� 0,941503 0,938566 0,025806 0,025806 36,484233 Farah Jihan Nabilah, Sulastri Irbayuni, Effect of Employee Satisfaction and Employee Discipline on Employee Performance of PT Mediatech Centra Filter Surabaya 41 indicator factors from other variables, so that it can be said that all indicators in this study are valid or have good validity. Test Results Average Variance Extracted (AVE) Based on the table, it can be seen from the validity of the indicators measured from the Factor Loading value it is stated that the valid- ity is sufficient if > 0.5 and the T-statistic value > 1.96 (Z value at = 0.05). The loading factor is the correlation of indicators and variables. If > 0.5, the validity can be fulfilled, and the T- Statistic value > 1.96 is fulfilled its significance. From the table above, the effect of job satisfaction (X1) on employee performance has a positive effect on employee performance (Y) is acceptable, based on path coefficients 0.503109. The T-statistic value is 5.109118 > 1.96 (from the table value Z! = 0, 05). This means that if the company’s job satisfaction towards employees is high, the employee’s per- formance increases, on the other hand, if the satisfaction is low, the employee’s performance decreases and cannot achieve the goals of the company. The company PT Mediatech Centra Filter Surabaya many employees work not ex- tended due to tedious work and the absence of employee career paths, so they do not get job satisfaction. Work Discipline (X1) on Employee Perfor- mance positively affects Employee Performance (Y) acceptable, based on path coefficients 0.375067. T-statistic value 5.034376 > 1.96 (from table value Z! = 0.05) means that a high level of discipline from employees increases performance. Vice versa, low work discipline will result in decreased employee performance. Cross Loading Test Results From the results of cross loading data processing, it is obtained that all the loading factor values for each indicator (shaded) both on job satisfaction (X1), work discipline (X2), and employee performance (Y) variables, show a higher factor loading value than by loading WORK DISCIPLIN E (X2) WORK SATISFACTI ON (X1) EMPLOYEE PERFORMAN CE (Y) (X1.1) 0,777855 0,966748 0,773743 (X1.2) 0,675559 0,939774 0,689598 (X1.3) 0,761016 0,948660 0,798556 (X2.1) 0,855815 0,869002 0,790418 (X2.2) 0,763953 0,430199 0,467838 (X2.3) 0,737679 0,388438 0,452117 (X3.1) 0,750270 0,743421 0,949750 (X3.2) 0,716481 0,796852 0,961697 (X3.3) 0,720339 0,726142 0,941503 AVE WORK DISCIPLINE (X2) 0,620071 WORK SATISFACTION (X1) 0,905911 EMPLOYEE PERFORMANCE (Y) 0,904438 The next measurement model is the Aver- age Variance Extracted (AVE) value, which in- dicates the magnitude of the indicator variance contained by the latent variable. Convergent AVE value greater than 0.5 indicates good ad- equacy of validity for the latent variable. The reflective indicator variable can be seen from the Average variance extracted (AVE) value for each construct (variable). A good model has required if each construct’s AVE value is greater than 0.5. The results of the AVE test for the Job Satisfaction variable (X1) are 0.905911, the Work Discipline variable (X2) is 0.620071, and Business and Finance Journal, Volume 6, No. 2, March 2022 42 Employee Performance (Y) is 0.904438, the three variables show a value of more than 0.5, so overall All variables in this study can be said to have good validity. Composite Reliability Test Results value of 1. The closer the value to 1, the better the correlation. From the table of latent variable correla- tions above, the average correlation value be- tween one variable and another shows the aver- age correlation value. The highest correlation value is between the variable job satisfaction (X1) and employee performance (Y) 0.794895. It can also be stated that among the variables in the research model, the relationship between the variable job satisfaction (X1) and employee performance (Y) shows a stronger connection than the relationship between other variables, this can also be interpreted that in this research model the high and low employee performance is more influenced by the trust variable than the work discipline variable. Inner Model Test Results (Structural Model Testing) Composite Reliability WORK DISCIPLINE (X2) 0,829815 WORK SATISFACTION (X1) 0,966534 EMPLOYEE PERFORMANCE (Y) 0,965976 The value of composite reliability mea- sures the reliability of the construct, a reliable construct. If the composite reliability value is above 0.70, the indicator consistently measures the latent variable. The results of the Composite Reliability test show that the Job Satisfaction variable (X1) is 0.966534, the Work Discipline variable (X2) is 0.829815, and Employee Performance (Y) is 0.965976, the three variables show the Composite Reliability value above 0.70 so that it can be said that all variables in this study are reliable. Test Results of Latent Variable Correlations In PLS, the relationship between variables or constructs can be correlated with one an- other, be it exogenous and endogenous vari- ables or exogenous and exogenous variables, as shown in the table of latent variable correla- tions above. The relationship between one vari- able and another has a maximum correlation Work Discipline (X2) Work Satisfaction (X1) Employee Performance (Y) WORK DISCIPLINE (X2) 1,000000 WORK SATISFACTION (X1) 0,777956 1,000000 EMPLOYEE PERFORMANCE (Y) 0,766464 0,794895 1,000000 R Square WORK DISCIPLINE (X2) WORK SATISFACTION (X1) EMPLOYEE PERFORMANCE (Y) 0,687394 R2 Value = 0,687394. This can be inter- preted that the model can explain the phenom- enon of employee performance influenced by independent variables, including Job Satisfac- tion and Work Discipline, with a variance of 68.73%. In comparison, the remaining 31.27% is explained by other variables outside of this study (besides Job Satisfaction and Discipline). Work). In addition to knowing the value of R2, Goodness of Fit the Goodness of Fit of the research model can be seen from the magnitude of Q2 or Q-Square predictive relevance for the structural model, which is to measure how well the observation values generated by the model Farah Jihan Nabilah, Sulastri Irbayuni, Effect of Employee Satisfaction and Employee Discipline on Employee Performance of PT Mediatech Centra Filter Surabaya 43 and also the parameter estimates are. Q-square value > 0 indicates the model has predictive relevance; conversely, if the value of Q-Square 0 indicates the model lacks predictive relevance. The formula does Q-Square calculation: Q2 = 1 - (1 - R 1 2) (1 - R 2 2) ... (1- R p 2) where R 1 2, R 2 2 ... R p 2 is the R-square of the endog- enous variable in the equation model. The mag- nitude of Q2 has a value with a range of 0 < Q2 < 1, where the closer to 1, the better the model. The quantity of Q2 is equivalent to the coefficient of total determination in path analy- sis. In this study, the value of Q2 is equal to Q2 = 1 - (1 - 0,687394) = 0,687394. From the results of the calculation of Q2 with the results of 0.687394, it can be con- cluded that the research model can be said to meet predictive relevance. Result In connection with the level of discipline in the employees of PT Mediatech Centra Filter Surabaya, in this study, in fact, the employees of PT Mediatech Centra Filter Surabaya is relatively low because many employees still do not comply with company regulations, especially in punctu- ality during working hours, and impact a lack of responsibility for the assigned tasks. This can be caused by a lack of supervision from leaders who direct employees to obey company rules and work in line with the provisions, causing a decrease in employee performance. CONCLUSION Based on the study results, the conclusion is that job satisfaction contributes to the perfor- mance of employees of PT Mediatech Center Filter Surabaya. These results explain that the high or low or good and bad work discipline affects the high and low performance of em- ployees of PT Mediatech Center Filter Surabaya. In addition, Work Discipline contributes to the performance of PT Mediatech Center Filter Surabaya. These results explain that the high or low or good and bad employee work discipline will affect the high and low performance of employees of PT Mediatech Center Filter Surabaya. The suggestion that the author can submit is, in increasing employee job satisfaction, the leadership must always provide company facili- ties that make it easier, such as providing better equipment so that the filter making process can be done more quickly by employees and em- ployees get a feeling of satisfaction when work- ing at PT Mediatech Center Filter. The next suggestion is to enforce em- ployee discipline in a company because it is difficult to achieve its goals without good disci- pline. PT Mediatech Central Surabaya is ex- pected to increase employee discipline by being more assertive in taking action and giving sanc- tions to not disciplined employees. REFERENCES Adianita, A. S., Mujanah, S., & Candraningrat, C. (2017). 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