Arasy Alimudin, Agus Sukoco, Angga Adi Prebawa, Iswachyu Dhaniarti, Z.Z.Z. Hartono
Employee's discipline is an essential factor in achieving corporate objectives, however numerous managers are not able to adapt ideal leadership behaviour, reward and punishment to improve employee's discipline. Based on present study analysis, reward and punishment have a positive and significant impact towards the non-physical environment which could be seen from the positive result of coefficient value which is around 0.2165 with T-statistics more than 1.96 around 2.059. It can be concluded that punishment influences non-physical environment since it affects psychological condition of the employee. Besides, reward and punishment also play important role in improving employee discipline. Fair treatment of the manager in regard to reward and punishment depicts manager's ability to be objective in enforcing corporate regulations. The present condition creates a comfortable and stable environment for the employee in performing their duty. Non-physical working environment is based on four indicators which are: monitoring, working environment, reward and fair treatment. The indicators mentioned above influence positive and significant impacts toward work discipline. Corporate managers need to consider psychological characters of the employee in implementing reward and punishment scheme as the improvement to enhance discipline of the employee. © IEOM Society International.
Narotama University, Surabaya, Indonesia; Universitas Airlangga, Surabaya, Indonesia; PGRI Adi Buana University, Surabaya, Indonesia
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