Work Environment Drives Employee Performance at PLN Manokwari, Study Finds
A 2023 study published in the International Journal of Advanced Technology and Social Sciences shows that the non-physical work environment plays a decisive role in shaping employee performance at PT PLN (Persero) UP3 Manokwari. The research was conducted by Yolanda Holle, S.E., M.Si., of Universitas Papua, together with Theresia M. Pareira from the West Papua Provincial Office of Transmigration and Manpower, and Andoyo Supriyantono from Universitas Papua.
The findings reveal that harmonious communication, supportive leadership, and positive workplace relationships directly improve employee performance. Physical conditions such as lighting and workspace layout influence performance indirectly, while occupational safety and health programs show no direct effect on performance outcomes. These results are important for state-owned enterprises and public utilities that rely on high workforce productivity to deliver essential services.
Electricity Services Require Strong Human Performance
PT PLN (Persero) is Indonesia’s state electricity company, responsible for delivering power to communities across the country. In operational units such as UP3 Manokwari, employees work in environments that require strict safety standards and technical precision. The nature of electricity services carries potential hazards, making safety and coordination critical.
At the same time, employee morale and communication quality affect how effectively teams respond to technical challenges and customer needs. The study highlights that performance is not shaped by infrastructure alone, but also by the psychological and social climate inside the organization.
Census-Based Quantitative Study
The researchers used a quantitative descriptive method with a census sampling technique. All 68 employees of PT PLN UP3 Manokwari participated in the study. Data were collected through interviews, observations, and company documents.
The research measured five main variables:
-Physical work environment
-Non-physical work environment
-Occupational safety
-Occupational health
-Employee performance
Data were analyzed using Partial Least Squares (PLS), a statistical method designed to examine relationships between multiple variables.
Validity and reliability tests confirmed that the research model was statistically sound. Composite reliability and Cronbach’s alpha scores exceeded 0.7 for all variables, indicating consistent and dependable measurement.
Employee Performance Rated High
Overall employee performance at PT PLN UP3 Manokwari was categorized as high, with an average score of 4.10 on a five-point scale.
Performance indicators assessed included:
-Honesty
-Compliance with rules
-Leadership
-Responsibility
-Coordination
-Achievement of work targets
-Attendance discipline
-Problem-solving ability
-Innovation and initiative
Employees demonstrated strong discipline, motivation, and commitment to organizational goals.
Non-Physical Environment Has Direct Impact
The most significant finding of the study concerns the non-physical work environment. This includes communication quality, openness between superiors and subordinates, teamwork, and opportunities to express opinions.
The statistical model shows:
Non-physical work environment → Employee performance
-Path coefficient: 0.819
-P-value: 0.000 (highly significant)
This means communication climate and workplace relationships have a strong and direct influence on performance.
Yolanda Holle of Universitas Papua explains that open and reciprocal communication fosters trust and enthusiasm. Employees who feel heard and respected are more motivated to achieve targets and maintain discipline.
Physical Environment Influences Indirectly
The physical work environment—lighting, air circulation, workspace cleanliness, safety facilities, and layout—was also rated high, with an average score of 3.76.
However, its influence on performance is indirect. The physical environment affects the non-physical environment, which in turn shapes performance.
For example:
Physical environment → Non-physical environment
-Path coefficient: 0.407
-P-value: 0.002
A comfortable and orderly physical space improves mood and reduces stress, encouraging better communication and teamwork.
Occupational Safety and Health Do Not Directly Affect Performance
Occupational safety (average score 3.96) and occupational health (average score 3.88) were also rated high. Employees are enrolled in social security programs, equipped with personal protective equipment, and supported by clean facilities and health monitoring.
However, the statistical results show that occupational safety and health do not directly influence employee performance levels.
Instead, safety and health factors are interconnected:
Occupational health → Occupational safety
-Path coefficient: 0.800
-P-value: 0.000
This indicates that a healthy workforce strengthens safety awareness and compliance, but these factors alone do not directly raise measurable performance indicators such as productivity or initiative.
Model Explains 83 Percent of Performance
The overall model shows an R-squared value of 0.83. This means 83 percent of employee performance variation is explained by the combined influence of physical environment, non-physical environment, occupational safety, and occupational health. Only 17 percent is influenced by other factors outside the study.
This high explanatory power underscores the importance of organizational climate in state-owned enterprises.
Implications for Public Utilities and HR Management
The study provides practical insights for managers in public service companies:
-Strengthen communication culture and leadership transparency.
-Maintain a clean and comfortable physical environment.
-Continue implementing safety and health standards, even if they do not directly affect performance metrics.
For policymakers overseeing state-owned enterprises, the findings emphasize that productivity improvements require attention to social interaction and organizational psychology, not just infrastructure investment.
Yolanda Holle and her colleagues suggest that future research explore wage levels and compensation structures as additional determinants of employee performance.
Author Profile
Their collaborative research focuses on workplace management, employee performance, and organizational development in public institutions.

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