Title:
THE ROLE OF WORK ENGAGEMENT AND GOVERNANCE IN IMPROVING EMPLOYEE PERFORMANCE AND ITS IMPACT ONORGANIZATIONAL PERFORMANCE : STUDY IN RURAL BANKS

Authors:
*Fauzan, Said Musnadi and Faisal ,Indonesia

Abstract:
This study aims to examine the role of work engagement and governance in improving employee performance and its impact on organizational performance. The research object was the rural banks (in Indonesia are called BPR) in the cities of Banda Aceh and Aceh Besar, Indonesia. The research population comprised 212 employees of the four BPRs in the cities of Banda Aceh and Aceh Besar. The sample taken with stratified random sampling method, as much as 136 employees. Data were analyzed using Structural Equation Modeling (SEM). The results of the research found that, direct testing shows that work engagement and corporate governance affect employee performance and organizational performance. The results of the research found that, direct testing shows that, work engagement and corporate governance affect employee performance and organizational performance; employee performance also significantly affects organizational performance, and; Employee performance mediates significantly on the effect of work engagement and corporate governance on organizational performance. In this research model it is also found that employee performance functions as a partial mediator. All of these findings contributed to the formation of a model for improving the performance of BPR banks in the cities of Banda Aceh and Aceh Besar. Further researchers can develop this finding model by adding variables such as corporate citizenship behavior and employee empowerment to find out more about how big a role it plays in the formation of BPR Bank performance.