The Role of the Work Environment in Mediating Work Ethic and Employee Performance at the Regional Finance and Asset Agency of North Sumatra Province

Abstract

This study aims to analyze the influence of work ethic on the performance of employees with the work environment as an intervening variable in the Regional Finance and Assets Agency of North Sumatra Province. This study uses a quantitative approach with a survey method through the distribution of 80 questionnaires to employees as respondents. Sample determination is carried out by purposive sampling technique so that the data obtained is in accordance with the research needs. Data analysis was carried out using path analysis to see the direct and indirect influence between variables. The results of the study show that. Work ethic has a positive and significant effect on the work environment as well as employee performance. The work environment has a positive and significant effect on employee performance. Thus, the work environment acts as an intervening variable that mediates the influence of work ethic on employee performance. The results of this research are expected to be considered for leaders in improving employee performance through instilling a good work ethic, as well as creating a conducive work environment.