The Effect of Work Stress And Work Environment On Employee Performance Through Work Motivation as a Mediation Variable in Village Credit Institutions (LPD) In East Denpasar District

Purpose:The study investigates the effects of work stress and the work environment on employee performance through work motivation in Village Credit Institutions (LPD) in East Denpasar. Methodology:The population comprised 123 employees across five LPDs. Respondents were selected using purposive sampling, questionnaires were used for data collection, and SEM-PLS was applied for analysis. Findings:Work stress had significant negative effects on performance and motivation. The work environment significantly improved motivation but had a positive, insignificant direct effect on performance. Motivation positively affected performance and significantly mediated both stress–performance and environment–performance relationships.Implication:Management should reduce workplace stress and strengthen environmental support and employee motivation.