Role of Work Engagement in Mediating the Effect of Leader Member Exchange on Employee Performance (Empirical Study at Government Agency in Indonesia)

ABSTRACT : Employee performance is an important aspect that must be considered, because employee performance is the result of work controlled by individual employees and can contribute to the success of the organization in achieving its goals. This study aims to analyze the effect of LMX and work engagement on employee performance, the effect of LMX on work engagement and the role of work engagement in mediating the influence of LMX on the employee performance. The number of respondents used was 89 employees using the saturated sample method. Data collection was carried out by interviewing, distributing questionnaires and observations. The data analysis technique used is path analysis and single test. The results of the analysis show that LMX has a significant positive effect on employee performance and work engagement, work engagement has a significant positive effect on employee performance and work engagement partially mediates the effect of LMX on employee performance. The implications in this study provide evidence that work engagement has an important role because it can strengthen the influence of LMX in organizations to improve employee performance.
KEYWORDS: leader member exchange, work engagement, employee performance