Abstract
Employee performance is an important factor for a company to achieve objectives, gain competitive advantage and finally winning the competition. Even for a company which has been established for more than 20 years, employee performance still becomes challenge. A good relationship between leader and member is one of the key factors to improve employee performance. A company needs to ensure that employees give their best performance and meet the expectation. The purpose of this study is to develop model to improve employee performance with high quality of Leader-Member Exchange (LMX) and Perceived Organizational Support (POS) which mediates by work engagement. Data were collected from 100 respondents of permanent employees in a teak furniture manufacturing company in Semarang, Central Java Province, Indonesia. The method used to analyze the hypotheses was Partial Least Square (PLS). This study concludes that positive workplace which contains Leader-Member Exchange (LMX), Perceived Organizational Support (POS), and Work Engagement, have a positive and significant influences on Employee Performance. Work Engagement also found has influence effect on mediating between LMX and POS with Employee Performance.
Highlights
Current business situation required all companies to compete more than ever in order to survive and come as winner in the competition
Based on the research gap and explanation above, this study aims to analyze the strategic role of positive workplace environment factors namely Leader-Member Exchange (LMX) and Perceived Organizational Support (POS) in improving employee performance by considering Work Engagement as mediating variable
This research produces a comprehensive model that Leader-Member Exchange (LMX), Perceived Organizational Support (POS) and Work Engagement are the determinants for maintaining the sustainability of employee performance
Summary
Current business situation required all companies to compete more than ever in order to survive and come as winner in the competition. Human is the most important resource that should be well managed and maintained in the first place. It all started from recruitment process and continues with people development program like training, coaching and mentoring to ensure their competencies always meet the latest requirements. Talent management and succession plan part of strategies implemented by many organizations to guarantee business continuity. All of these good programs and strategies will be evaporated if not well monitored, evaluated and continuously improved. If companies aim to gain competitive advantage, employee performance is the key factor to achieve it (Brhane & Zewdie, 2018; Indriastuti & Fachrunnisa, 2021)
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