This study aims to examine the effect of perceived favoritism and absence of punishment on employee productivity decline at GraPARI Telkomsel Mataram. Employee productivity is a critical factor in determining organizational performance, particularly in service-based industries where employee behavior directly influences service quality and customer satisfaction. However, internal organizational factors such as perceived unfairness and weak disciplinary enforcement may contribute to productivity decline. This research uses a quantitative causal approach with a census sampling technique involving 50 employees as respondents. Data were collected through structured questionnaires and analyzed using multiple linear regression analysis. The validity, reliability, and classical assumption tests were conducted to ensure the robustness of the model. The results of the partial analysis indicate that perceived favoritism has no significant effect on employee productivity decline. In contrast, absence of punishment has a positive and significant effect on employee productivity decline. These findings suggest that weak disciplinary enforcement is a more dominant factor influencing productivity decline compared to perceived favoritism. Therefore, strengthening organizational discipline systems is essential to maintain employee productivity in service organizations.
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