Effect of Work Motivation and Work Environment on Employee Performance (Study at SSCraft MSME)

Abstract

Batu City is one of the tourist cities in East Java that has many tourist destinations and attractive natural potential, thus encouraging growth in the MSME sector. One of the growing MSMEs is SSCraft, which operates in the production of wooden kitchen utensils. In practice, this MSME faces several obstacles such as an uncomfortable work environment due to noise and production dust, as well as low employee work motivation because some employees treat this job as a side job. These problems have an impact on employee performance that has not been optimal. This study intends to examine work motivation and the work environment that influence employee performance at SSCraft MSME. The method used in this study is a quantitative method with a descriptive approach where data is collected through questionnaires, observations, and interviews with all employees. The results of the study indicate that employee performance is significantly influenced by motivation and the work environment, both partially and simultaneously. This means that the better the work motivation and work environment conditions, the higher the employee performance will be. Therefore, efforts are needed from the MSME to increase the level of work motivation through providing appreciation and improving the work environment to be more comfortable and supportive of production activities.