Human Resource Management and Work Environment: Effects on Employee Performance via Job Satisfaction

Abstrak

Purpose: This study examines the influence of human resource management and the work environment on employee performance, and tests whether job satisfaction mediates these relationships, at the Development Planning, Research, and Development Agency of Mojokerto City.

Methodology: A quantitative, cross-sectional, census design was used, surveying all 65 employees of the agency and analyzing the data with Partial Least Squares Structural Equation Modeling to test seven hypothesized direct and indirect paths.

Results: The work environment had a positive and significant effect on both performance (p=0.006) and job satisfaction (p=0.000), whereas human resource management had a positive but non-significant effect on performance (p=0.007) and satisfaction (p=0.060). Job satisfaction had a positive but non-significant
effect on performance (p=0.148), and the exploratory paths for work culture and motivation through work discipline were likewise positive but non-significant.

Conclusions: The work environment is the strongest and most consistent driver of both performance and satisfaction in this agency, while human resource management and job satisfaction alone are insufficient to significantly elevate performance without complementary organizational support.

Limitations: The census design within one local government agency, the modest sample of 65 respondents, and the crosssectional data limit generalizability and causal strength.

Contributions: The study offers localized, Partial Least Squares Structural Equation Modeling (PLS-SEM)-based evidence on Human Resource Management (HRM) performance satisfaction linkages within an Indonesian regional planning agency, informing
more targeted workforce policy in similar public sector settings.