The main issue underlying this research is the suboptimal employee performance caused by weak discipline, an unconducive work environment, and ineffective leadership styles. This research uses a quantitative approach through a survey method by distributing questionnaires to 73 respondents who are employees of LPD Kerobokan. Data were analyzed using the Structural Equation Modeling–Partial Least Squares (SEM-PLS) method. The results of the study show that: (1) Leadership has a positive and significant effect on employee performance; (2) The work environment does not have a significant effect on employee performance; (3) Work discipline has a positive and significant effect on employee performance; (4) Leadership has a positive and significant effect on work discipline; (5) The work environment does not have a significant effect on work discipline; (6) Leadership has a positive and significant indirect effect on employee performance through work discipline; and (7) The work environment does not have a significant indirect effect on employee performance through work discipline. These findings indicate that leadership and work discipline play a crucial role in improving employee performance, while the work environment does not show a significant influence, either directly or indirectly.
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