The Role of Performance Appraisal and Work–Life Balance on Work Engagement: The Mediating Effect of Job Security in Malaysia’s Oil and Gas Industry

This study investigates the relationship between performance appraisal and work–life balance with the level of work engagement among employees in the oil and gas industry in Malaysia, using job security to as a mediating variable. The study is based on Social Exchange Theory (SET), which suggests that employees will return positive responses to positive actions from their organisation, including greater employee engagement in return for treatment with fairness in appraisal systems and work–life practices. A quantitative approach with cross sectional research design was used and structured questionnaire was administered to the employees of one of the big oil and gas organisations in Malaysia. A total of 236 usable responses were obtained and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) in the program of SmartPLS 4. The research framework includes direct relationship between the performance appraisal and work engagement and between work–life balance and work engagement, and the mediation role of job security in the above relationships. The results showed that performance appraisal and work–life balance had significant impacts on work engagement, with job security having the highest positive impact on engagement. The results of mediation analysis also showed that job security plays a significant role in mediating the relationships between HR practices and employee engagement. They found that such practices were interpreted as signals of stability and support at the organisation, from which employees responded with emotional, cognitive and physical investment. These results support the theory of Social Exchange Theory (SET), which states that HR practices are seen as 'signals' for stability and support in the organisation, which employees interpret and reciprocate through emotional, cognitive and physical investment. In practice, the study points to the need for clear evaluation systems, supportive working–life policies and communication about job security to help maintain engagement in a turbulent industrial landscape. The study adds to the theoretical and practical knowledge of the mechanism of employee engagement in high-risk sectors.

Performance appraisal, Work-life balance, Job security, Work engagement, Malaysia, Oil and gas industry

1. Aguinis, H., & Burgi-Tian, J. (2022). Measuring performance and performance management effectiveness. Annual Review of Organizational Psychology and Organizational Behavior, 9, 357–385. [Google Scholar] [Crossref]

2. Albrecht, S. L., & Marty, A. (2022). Personality, self-efficacy and job resources and their associations with employee engagement, affective commitment and turnover intentions. International Journal of Human Resource Management, 33(3), 657–684. [Google Scholar] [Crossref]

3. Allen, T. D., & Martin, A. (2023). The work–family interface: A review and directions for future research. Journal of Management, 49(2), 447–478. [Google Scholar] [Crossref]

4. Bakker, A. B., & Demerouti, E. (2023). Job demands–resources theory: Taking stock and looking forward. Journal of Occupational Health Psychology, 28(1), 1–15. [Google Scholar] [Crossref]

5. Blau, P. M. (1964). Exchange and power in social life. Wiley. [Google Scholar] [Crossref]

6. DeNisi, A. S., & Murphy, K. R. (2022). Performance appraisal and performance management: 100 years of progress? Journal of Applied Psychology, 107(4), 546–567. [Google Scholar] [Crossref]

7. De Witte, H., Pienaar, J., & De Cuyper, N. (2022). Review of 30 years of longitudinal studies on the association between job insecurity and health and well-being. European Journal of Work and Organizational Psychology, 31(1), 1–15. [Google Scholar] [Crossref]

8. Department of Statistics Malaysia (DOSM). (2025). Labour force and workplace well-being statistics report. Government of Malaysia. [Google Scholar] [Crossref]

9. Haar, J. M., Russo, M., Suñe, A., & Ollier-Malaterre, A. (2022). Outcomes of work–life balance on job satisfaction, life satisfaction and mental health: A study across seven cultures. Journal of Vocational Behavior, 134, 103689. [Google Scholar] [Crossref]

10. Kim, S., Park, S., & Lee, J. (2022). Fairness in performance appraisal and employee engagement: The mediating role of trust. Human Resource Development Quarterly, 33(2), 145–162. [Google Scholar] [Crossref]

11. Kossek, E. E., & Perrigino, M. B. (2022). Work–life balance and well-being: A review and extension of theory and research. Academy of Management Annals, 16(2), 473–517. [Google Scholar] [Crossref]

12. PETRONAS. (2024). Sustainability report. Petroliam Nasional Berhad. [Google Scholar] [Crossref]

13. Saks, A. M. (2022). Caring human resources management and employee engagement. Human Resource Management Review, 32(3), 100835. [Google Scholar] [Crossref]

14. Schaufeli, W. B. (2022). Work engagement: What do we know and where do we go? Romanian Journal of Applied Psychology, 24(1), 3–12. [Google Scholar] [Crossref]

15. Shoss, M. K., Jiang, L., & Probst, T. M. (2023). Bending without breaking: A two-study examination of employee resilience in the face of job insecurity. Journal of Occupational Health Psychology, 28(2), 145–160. [Google Scholar] [Crossref]

16. Sverke, M., Hellgren, J., & Näswall, K. (2023). Job insecurity: A meta-analytic review of consequences and moderators. Work & Stress, 37(1), 1–27. [Google Scholar] [Crossref]

• An Empirical Study of Patio Pacific Resort Boracay: Exploring the Impact of Its Workplace Culture on Employee Retention
• Formulation and Evaluation of Herbal Lipstick with Anti-Oxidant and Skin Lightening Effects
• Administrative Staff Training Methods and Job Performance in Nnamdi Azikiwe University Awka, Anambra State Nigeria