REGULATORY-BASED PERFORMANCE MANAGEMENT IN THE PUBLIC SECTOR: EVIDENCE FROM THE INDUSTRIAL DIVISION OF THE BLITAR REGENCY DEPARTMENT OF INDUSTRY AND TRADE

(STUDI KASUS PADA BIDANG INDUSTRI KABUPATEN BLITAR)

Abstract

Management auditing is an important mechanism for evaluating organizational performance and ensuring compliance with applicable regulations in public sector institutions. Nevertheless, empirical evidence regarding the implementation of management audits based on regional government regulations remains limited. This study aims to analyze the implementation of management auditing in evaluating employee performance in the Industrial Division of the Department of Industry and Trade (Disperindag) of Blitar Regency based on Regent Regulation No. 115 of 2022. A descriptive qualitative approach with a case study design was employed. Primary data were collected through observations, semi-structured interviews with the Head of the Industrial Division and the First Expert Industrial Extension Officer, and documentation, while secondary data were obtained from official documents and relevant literature. Data were analyzed using the management audit stages comprising a preliminary survey, management review and testing, advanced audit, and reporting, with findings interpreted through the criteria cause effect framework. The results indicate that employee performance has been implemented in accordance with Regent Regulation No. 115 of 2022 and supported by the consistent application of Standard Operating Procedures (SOPs). The management audit confirms that organizational activities comply with regulatory requirements, strengthen accountability, improve operational effectiveness, and support the achievement of institutional performance objectives. These findings demonstrate that management auditing functions as an effective governance instrument for evaluating employee performance and reinforcing regulatory compliance. The study contributes to the management auditing literature and provides practical insights for improving performance management within regional government institutions.