ABSTRACT : This study aims to determine the effect of reward and punishment on employee performance with work discipline as an intervening variable. This research is motivated by the low performance of employees, the low appreciation felt by employees, the number of violations committed by employees, the punishment for violations are still low so that the level of employee discipline is low.The research method with a quantitative approach with path analysis. Data collection techniques with questionnaires, observation and interviews. The respondents of this study were 70 employee of Regional Environmental Office Sungai Penuh. The sampling method uses the total sampling method in which the entire population in this study is the research sample. Hypothesis testing was calculated with the IBM Statistical Package for Social Science (SPSS) program version 24.0.The results of this study found that reward has a significant effect on employee work discipline, punishment has a significant effect on employee work discipline, Work discipline has a significant effect on employee performance, reward has a significant effect on employee performance, Punishment has a significant effect on employee performance, reward has no significant effect on performance with work discipline as an intervening and punishment variable significantly influences performance with work discipline as an intervening variable on employees of Regional Environmental Office Sungai Penuh.
KEYWORDS: reward, punishment, work discipline, employee performance.