The Role of Employee Engagement as Mediation on the Effect of Work Life Balance and Organizational Climate on Employee Performance at PT. Anugerah Agung Alami Bali

Abstract

The success of a company cannot be separated from the good performance of an employee. Goal Setting Theory by Locke and Latham assumes that there is a relationship between goals and a person's performance in the work they are given. There are many factors that can influence employee performance in a company. Work life balance, organizational climate, Employee Engagement have a positive and significant effect on employee performance at PT. Anugerah Agung Alami Bali, explains that there is a unidirectional and meaningful influence, where Work life balance, Organizational Climate, Employee Engagement increases will tend to be followed by an increase in employee performance. This research aims to analyze and explain the direct influence between Work life balance, Climate Organization and employee performance as well as the indirect influence of work life balance, organizational climate on employee performance through the mediation of Employee Engagement. This research is explanatory research using quantitative research methods, carried out at PT Anugerah Agung Alami Bali with total sampling, where the number of samples studied was 85 people. The analysis tools used are SPSS and Smart-PLS. The results of this research are that work life balance can have a positive and significant influence on employee engagement, organizational climate has a significant positive influence on employee engagement, work life balance has a significant positive influence on employee performance, organizational climate has a significant positive influence on employee performance, Employee Engagement has a positive and significant effect on employee performance. Apart from the direct influence, it was also found that indirect influence in the form of Employee Engagement could partially mediate the influence of Work Life Balance on employee performance and Employee Engagement also succeeded in partially mediating Organizational Climate on employee performance. The conclusion of this research is that hypotheses 1 to 7 are accepted. In this research, the factors that have the greatest impact on improving employee performance at PT are also known. Anugerah Agung Alami Bali, so that management can optimize these factors to improve employee performance.