In this comprehensive investigation, we delve into the multifaceted impact of delayed performance allowances and the sanctions associated with performance allowance reduction on the collective performance of employees within the Inspectorate of East Java Province. The study aims to shed light on the intricate dynamics of incentive structures and sanctions within the context of government inspection agencies. An in-depth exploration is conducted to understand how these factors interplay and influence the overall effectiveness of the workforce. Moreover, the research goes beyond mere correlation by delving into the mediating role of work motivation in this complex relationship. By examining the extent to which work motivation acts as a mediating variable, the study seeks to unravel the underlying mechanisms that connect incentive structures, sanctions, and employee performance. This nuanced approach allows for a more comprehensive understanding of the interwoven factors that shape employee behavior and performance within the specific organizational framework of the Inspectorate of East Java Province. Ultimately, the findings of this research endeavor are poised to provide valuable insights for organizational leaders, policymakers, and practitioners, offering informed perspectives on optimizing incentive systems and mitigating the potential negative impacts of performance-related sanctions in the pursuit of enhanced employee performance in government inspection contexts.
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