RESPONSIBLE PERFORMANCE MANAGEMENT AND EMPLOYEE PERFORMANCE: THE MEDIATING ROLE OF WORK ENGAGEMENT IN A PUBLIC SOCIAL SECURITY INSTITUTION

Abstract

This study examines the effect of responsible performance management on employee performance, 
with work engagement as a mediating variable, in the context of BPJS Ketenagakerjaan Northern 
Sumatra Regional Office. Grounded in Social Exchange Theory, the study proposes that responsible 
performance management — operationalized through fair target setting, transparency, constructive 
appraisal interviews, developmental feedback, recognition, capability development, and 
organizational support — improves employee performance directly and indirectly through work 
engagement. A quantitative explanatory design was applied using a structured Likert-scale 
questionnaire distributed online. Preliminary data were collected from 29 respondents. The 
measurement model demonstrated strong reliability (RPM: α=0.960; WE: α=0.925; EP: α=0.966) and 
acceptable convergent validity (AVE: RPM=0.570, WE=0.663, EP=0.738). Path analysis results indicate 
that responsible performance management significantly affects both work engagement (β=0.515, 
p<0.001) and employee performance (r=0.489, p=0.007). Work engagement significantly predicts 
employee performance (β=0.617), and the indirect effect through work engagement (β=0.318) 
accounts for 81.5% of the total effect, indicating full mediation. The full model explains 51.2% of 
variance in employee performance. Findings extend the responsible and sustainable HRM literature 
into the public social security context and suggest that performance systems should be designed to be 
fair, developmental, and engagement-oriented.