The population and Civil Registry Office of Denpasar City does not have enough vital information in the service administration population. However, there are phenomenon decline satisfaction in the community and complaints related to slowness of service as well as data input errors that indicate poor employee performance, Government Employees with Work Agreements (PPPK). This study aims to analyze the influence of competence and work environment on employee performance through work discipline as a mediating variable. The population in this study was all PPPK employees, totaling 75 people, with a saturated sampling method (census). Data collection was conducted using a questionnaire and analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The results of the study found that competence and work environment have a positive but insignificant effect on employee performance directly. However, competence and work environment have a positive and significant effect on work discipline. Work discipline has a positive and significant effect on employee performance. An important finding in this study is that work discipline is proven to fully mediate the influence of competence and work environment on employee performance. It implies that technical competence and physical facilities will only improve performance if they successfully shape employee discipline behavior.
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