LAUSR

Directorate of Traffic of the Regional Police D.I. Yogyakarta as part of the Indonesian Republic Police (Polri) institution also experiences problems related to the performance of police members as well as the Polri institution in general. The problems which relate to the police performance are influenced by various factors such as low compensation and as a result low motivation in the work environment of Directorate of Traffic of the Regional Police D.I. Yogyakarta. Therefore, the objective of this study is to empirically test and prove the effect of the work environment and compensation on work motivation and police performance of Directorate of Traffic of the Regional Police D.I. Yogyakarta, Indonesia. This study used a survey method for collecting data. By using proportional stratified random sampling, 143 members of Directorate of Traffic of the Regional Police D.I. Yogyakarta were selected as the respondents. The results of this study indicate that work environment has a positive effect on work motivation, police performance as well as compensation on work motivation and police performance. In addition, work motivation has a positive effect on police performance. Thus, this study concludes that work motivation mediates the effect of work environment and compensation on police performance.