ABSTRACT: This paper discusses the causal relationship between work environment and work motivation on employee performance, with work discipline as an intervening variable. The researcher proposes a new concept and wants to explain the role of work discipline as an intervening variable. Analysis using the structural equation model on 72 respondents taken using the saturated sampling method, from the population of employees of PT. Surabaya Akr Land Company in the city of Surabaya. The findings show that the proposed concept is accepted, and the results of the analysis show that work discipline is a good intervening variable and makes a positive contribution to the relationship between work environment and work motivation with work discipline. Research also proves that the work environment, work motivation and work discipline have a positive influence and contributed to employee performance, and work motivation has a dominant influence on work discipline.

KEYWORDS: -work environment, work motivation, work discipline, employee performance