PSYCHOLOGICAL EMPOWERMENT AS MODERATING VARIABLE IN THE EFFECT OF EMPOWERING LEADERSHIP ON CREATIVE PROCESS ENGAGEMENT
| Main Authors: | Ramba, Marvita; School of Business and Management - Institut Teknologi Bandung, Febriansyah, Hary; School of Business and Management - Institut Teknologi Bandung |
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| Format: | Article info eJournal |
| Bahasa: | eng |
| Terbitan: |
The Indonesian Journal of Business Administration
, 2022
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| Online Access: |
https://journal.sbm.itb.ac.id/index.php/IJBA/article/view/4075 |
Daftar Isi:
- In order to deal with the changing of the global environment that is occurring quickly, companies must develop strategies to survive and grow. The history of PT X where it has gone through difficult times in 2000-2002 because they faced financial problems, caused the company to lay off most of its employees. In addition to providing positive impacts such as cost reduction, downsizing also causes negative impacts, namely the emergence of responses from surviving employees through attitudes and behaviors that have a negative impact on performance. In addition, this financial problem then caused the company did not recruit for 10 years so that there was a generation gap between employees. This condition raised problems related to differences in views in decision making at PT X. The response toward the downsizing caused senior employees to always felt threatened by their position in the work so they did not want to involve other employees including in the decision making process. Meanwhile, employees who did not have the opportunity to be involved in decision making would have an impact on the lack of engagement with their work.This study aims to identify the relationship between empowering leadership and creative process engagement by using psychological empowerment as a moderator variable. The relationship between the variables in this study was measured using regression tests. The results of data analysis show that there is a significant influence on empowering leadership towards creative process engagement at PT X. The involvement of psychological empowerment as a moderate variable strengthens the relationship between empowering leadership and creative process engagement. Root cause analysis is done using CRT (Current Reality Tree) which shows that the root of the problem is an inappropriate leadership style. Inapropriate leadership style affects the lack of employee opportunities to be involved in the decision making process as well as the lack of employee competency caused by the lack of people development which in the end these problems will lead to lack of employee engagement in the creative process. So the researchers formulated several alternative solutions related to business issues and root causes, namely soft skills training, intimate discussion, day out, family gathering and creating space for creativity.Keywords: Empowering Leadership, Psychologicl Empowerment, Creative Process Engagement