Analysis of Factors Affecting Employee Engagement in Manufacturing Companies in Batam

Muhammad Donal Mon, Robin Robin, Ferdinand Nainggolan, Nova Sinambela

Abstract


This study aims to determine whether the variables of distributive justice, transformational leadership, training & development, and perceived organisational support affect employee engagement. This research was conducted using a survey method by distributing questionnaires to 500 respondents. The distribution of the questionnaires was carried out in two ways, namely, online via WhatsApp and manually, namely by visiting respondents. The sample of this research is employees who work in manufacturing companies in several industrial areas in Batam city. The industrial areas in question are the Batamindo industrial area, the Executive Batam Center industrial area, the Taiwan Kabil industrial area, and the Bintang industrial area in Tanjung Uncang. The technique used in this research is purposive sampling, which is a technique to determine the sample by using a special selection method to be used for processing properly. The results that have been collected from respondents, the data will be processed using SPSS software. This study indicates that transformational leadership has a positive and significant effect on employee engagement, training & development has a positive and significant effect on employee engagement, distributive justice has no effect on employee engagement, and perceptions of organisational support have no effect on employee engagement


Keywords


Distributive Justice, Leadership, Training & Development, Perceived organisation Support, Employee Behavior, Employee Engagement

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References


Albrecht, S., Breidahl, E., & Marty, A. (2018).Organizational resources, organizational engagement climate, and employee engagement.Career Development International, 23(1), 67–85. https://doi.org/10.1108/CDI-04-2017-0064

Allen, J. A., & Rogelberg, S. G. (2013). Manager-Led Group Meetings: A Context for Promoting Employee Engagement. Group and Organization Management, 38(5), 543–569. https://doi.org/10.1177/1059601113503040

Alvi, A. K., & Abbasi, A. S. (2012).Impact of organizational justice on employee engagement in banking sector of Pakistan.Middle East Journal of Scientific Research, 12(5), 643–649. https://doi.org/10.5829/idosi.mejsr.2012.12.5.1725

Andrew, O. C., & Sofian, S. (2012). Individual Factors and Work Outcomes of Employee Engagement.Procedia - Social and Behavioral Sciences, 40, 498–508. https://doi.org/10.1016/j.sbspro.2012.03.222

Azim, M. T., Fan, L., Uddin, M. A., Abdul Kader Jilani, M. M., & Begum, S. (2019). Linking transformational leadership with employees’ engagement in the creative process.Management Research Review, 42(7), 837–858. https://doi.org/10.1108/MRR-08-2018-0286

Bernardez. (2007). Should we have a Universal Model for HPT. Performance Improvement, 46(9), 9–16. https://doi.org/10.1002/pfi

Bhatnagar, J., & Biswas, S. (2012). The mediator analysis of psychological contract: relationship with employee engagement and organisational commitment. International Journal of Indian Culture and Business Management, 5(6), 644. https://doi.org/10.1504/ijicbm.2012.049340

Biswas, S., Varma, A., & Ramaswami, A. (2013). Linking distributive and procedural justice to employee engagement through social exchange: A field study in India.International Journal of Human Resource Management, 24(8), 1570–1587. https://doi.org/10.1080/09585192.2012.725072

Breevaart, K., Bakker, A., Hetland, J., Demerouti, E., Olsen, O. K., & Espevik, R. (2014).Daily transactional and transformational leadership and daily employee engagement.Journal of Occupational and Organizational Psychology, 87(1), 138–157. https://doi.org/10.1111/joop.12041

Byrne, Z. S., Hayes, T. L., & Holcombe, K. J. (2017).Employee Engagement Using the Federal Employee Viewpoint Survey.Public Personnel Management, 46(4), 368–390. https://doi.org/10.1177/0091026017717242

Castillo, C., & Fernandez, V. (2017).Relationships between the dimensions of organizational justice and students’ satisfaction in university contexts.Intangible Capital, 13(2), 282–301. https://doi.org/10.3926/ic.774

Chen, Y., Friedman, R., & Tony Simons.(2014). Article Information - Home Article Information - Home.Managerial Auditing Journal, 28(2), 2–3.

Cremer, D. (2005). Procedural and distributive justice effects moderated by organizational identification.Journal of Managerial Psychology, 20(1), 4–13. https://doi.org/10.1108/02683940510571603

Devendhiran, S., & Wesley, J. R. (2017). Spirituality at work: enhancing levels of employee engagement. Development and Learning in Organizations, 31(5), 9–13. https://doi.org/10.1108/DLO-08-2016-0070

Downey, S. N., van der Werff, L., Thomas, K. M., & Plaut, V. C. (2015). The role of diversity practices and inclusion in promoting trust and employee engagement.Journal of Applied Social Psychology, 45(1), 35–44. https://doi.org/10.1111/jasp.12273

Gabel-Shemueli, R., Dolan, S., & Suárez Ceretti, A. (2017).Condiciones laborales y compromise entre enfermeras en Uruguay.Academia Revista Latinoamericana de Administracion, 30(1), 59–71. https://doi.org/10.1108/ARLA-02-2016-0049

Ghosh, P., Rai, A., & Sinha, A. (2014). Organizational justice and employee engagement: Exploring the linkage in public sector banks in India. Personnel Review, 43(4), 628–652. https://doi.org/10.1108/PR-08-2013-0148

Hsieh, C. C., & Wang, D. S. (2015). Does supervisor-perceived authentic leadership influence employee work engagement through employee-perceived authentic leadership and employee trust? International Journal of Human Resource Management, 26(18), 2329–2348. https://doi.org/10.1080/09585192.2015.1025234

J., A. (2014). Determinants of employee engagement and their impact on employee performance.International Journal of Productivity and Performance Management, 63(3), 308–323. https://doi.org/10.1108/IJPPM-01-2013-0008

Jilani, E. M. (2015). Contingent Rewards As a Strategy for Influencing Employee Engagement in Manufacturing Companies: Case Study of Williamson Tea Kenya Limited. International Journal of Business and Commerce, 4(5), 20–59. http://search.proquest.com/docview/1681254685?accountid=10297%5Cnhttp://sfx.cranfield.ac.uk/cranfield?url_ver=Z39.88-2004&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&genre=article&sid=ProQ:ProQ:abiglobal&atitle=CONTINGENT+REWARDS+AS+A+STRATEGY+FOR+INFLUENCIN

Jin, M. H., & McDonald, B. (2017). Understanding Employee Engagement in the Public Sector: The Role of Immediate Supervisor, Perceived Organizational Support, and Learning Opportunities. American Review of Public Administration, 47(8), 881–897. https://doi.org/10.1177/0275074016643817

Jogi, R. A., & Srivastava, A. (2015). Determinants of employee engagement in banking sector : A multivariate study in Central Chhattisgarh. Pacific Business Review International, 8(3), 66–70.

Johnson, K. R., Park, S., & Bartlett, K. R. (2018). Perceptions of customer service orientation, training, and employee engagement in Jamaica’s hospitality sector. European Journal of Training and Development, 42(3–4), 191–209. https://doi.org/10.1108/EJTD-11-2017-0094

Jose, G., & Mampilly, S. R. (2015). Relationships Among Perceived Supervisor Support, Psychological Empowerment and Employee Engagement in Indian Workplaces. Journal of Workplace Behavioral Health, 30(3), 231–250. https://doi.org/10.1080/15555240.2015.1047498

Kaur, P. (2018). Mediator Analysis of Job Satisfaction: Relationship between Servant Leadership and Employee Engagement. Metamorphosis: A Journal of Management Research, 17(2), 76–85. https://doi.org/10.1177/0972622518804025

Law, R., Dollard, M. F., Tuckey, M. R., & Dormann, C. (2011).Psychosocial safety climate as a lead indicator of workplace bullying and harassment, job resources, psychological health and employee engagement.Accident Analysis and Prevention, 43(5), 1782–1793. https://doi.org/10.1016/j.aap.2011.04.010

Medlin, B., & Green, K. W. (2009).Enhancing performance through goal setting, engagement, and optimism.Industrial Management and Data Systems, 109(7), 943–956. https://doi.org/10.1108/02635570910982292

Menguc, B., Auh, S., Fisher, M., & Haddad, A. (2013). To be engaged or not to be engaged: The antecedents and consequences of service employee engagement. Journal of Business Research, 66(11), 2163–2170. https://doi.org/10.1016/j.jbusres.2012.01.007

Mishra, P. D., Kapse, S., & Bavad, M. D. (2013). Employee Engagement at Banks in Kutch.International Journal of Application or Innovation in Engineering & Management, 2(7), 349–358.

Nasomboon, B. (2014). The Relationship among Leadership Commitment, Organizational Performance, and Employee Engagement.International Business Research, 7(9), 77–90. https://doi.org/10.5539/ibr.v7n9p77

Nijhof, Andre HJ Jeurissen, R. J. (2017). 기사 (Article) 와안내문 (Information) [.The Eletronic Library, 34(1), 1–5.

Obuobisa-Darko, T., & Domfeh, K. A. (2019). Leader behaviour to achieve employee engagement in Ghana: a qualitative study. International Journal of Public Leadership, 15(1), 19–37. https://doi.org/10.1108/ijpl-04-2018-0018

Ram, P., & Prabhakar, G. (2011)..Interdiciplinary Journal of Research in Bussiness, 1(March), 47–61.

Robbins, S. P., & Judge, T. A. (2015). Organizational Behavior ( 16th. In Organizational Behavoiur (Issue organizational behavoir).

Sadeli, J. (2012). The Influence of Leadership, Talent Management, Organizational Culture and Organizational Support on Employee Engagement.International Research Journal of Business Studies, 5(3), 30–50. https://doi.org/10.21632/irjbs.5.3.30-50

Saks, A. M. (2006). Antecedents and consequences of employee engagement.Journal of Managerial Psychology, 21(7), 600–619. https://doi.org/10.1108/02683940610690169

Schaufeli, W. B., & Salanova, M. (2010). How to improve work engagement? In Handbook of Employee Engagement: Perspectives, Issues, Research and Practice (pp. 399–415).

Shantz, A., Alfes, K., Truss, C., & Soane, E. (2013).The role of employee engagement in the relationship between job design and task performance, citizenship and deviant behaviours.International Journal of Human Resource Management, 24(13), 2608–2627. https://doi.org/10.1080/09585192.2012.744334

Sharma, N., & Vinod Singh, K. (2018). Psychological empowerment and employee engagement: Testing the mediating effects of constructive deviance in indian it sector. International Journal of Human Capital and Information Technology Professionals, 9(4), 44–55. https://doi.org/10.4018/IJHCITP.2018100103

Shuck, B., Reio, T. G., & Rocco, T. S. (2011). Employee engagement: An examination of antecedent and outcome variables. Human Resource Development International, 14(4), 427–445. https://doi.org/10.1080/13678868.2011.601587

Tahir, N., Yousafzai, I. K., Yousafzai, I. K., Jan, D. S., & Hashim, M. (2014). The Impact of Training and Development on Employees Performance and Productivity A case study of United Bank Limited Peshawar City, KPK, Pakistan. International Journal of Academic Research in Business and Social Sciences, 4(4), 86–98. https://doi.org/10.6007/ijarbss/v4-i4/756

Teresko, J. (2004). Driving employee engagement.Industry Week, 253(9), 74. https://doi.org/10.1177/2329488414525399

Tomlinson, G. (2010). Building a culture of high employee engagement.Strategic HR Review, 9(3), 25–31. https://doi.org/10.1108/14754391011040046

Xu, J., & Thomas, H. C. (2011). How can leaders achieve high employee engagement.Leadership and Organization Development Journal, 32(4), 399–416. https://doi.org/10.1108/01437731111134661

Yuan, L., Zhang, L., & Tu, Y. (2018).When a leader is seen as too humble: A curvilinear mediation model linking leader humility to employee creative process engagement.Leadership and Organization Development Journal, 39(4), 468–481. https://doi.org/10.1108/LODJ-03-2017-0056

ZAINOL, S. S. B., HUSSIN, S. binti M., & OTHMAN, M. S. binti.(2016). Determinants of Employee Engagement in Hotel Industry in Malaysia.A Theoretical Model.International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(3), 1–9. https://doi.org/10.6007/ijarafms/v6-i3/2146

Albrecht, S., Breidahl, E., & Marty, A. (2018).Organizational resources, organizational engagement climate, and employee engagement.Career Development International, 23(1), 67–85. https://doi.org/10.1108/CDI-04-2017-0064

Allen, J. A., & Rogelberg, S. G. (2013). Manager-Led Group Meetings: A Context for Promoting Employee Engagement. Group and Organization Management, 38(5), 543–569. https://doi.org/10.1177/1059601113503040

Alvi, A. K., & Abbasi, A. S. (2012).Impact of organizational justice on employee engagement in banking sector of Pakistan.Middle East Journal of Scientific Research, 12(5), 643–649. https://doi.org/10.5829/idosi.mejsr.2012.12.5.1725

Andrew, O. C., & Sofian, S. (2012). Individual Factors and Work Outcomes of Employee Engagement.Procedia - Social and Behavioral Sciences, 40, 498–508. https://doi.org/10.1016/j.sbspro.2012.03.222

Azim, M. T., Fan, L., Uddin, M. A., Abdul Kader Jilani, M. M., & Begum, S. (2019). Linking transformational leadership with employees’ engagement in the creative process.Management Research Review, 42(7), 837–858. https://doi.org/10.1108/MRR-08-2018-0286

Bernardez. (2007). Should we have a Universal Model for HPT. Performance Improvement, 46(9), 9–16. https://doi.org/10.1002/pfi

Bhatnagar, J., & Biswas, S. (2012). The mediator analysis of psychological contract: relationship with employee engagement and organisational commitment. International Journal of Indian Culture and Business Management, 5(6), 644. https://doi.org/10.1504/ijicbm.2012.049340

Biswas, S., Varma, A., & Ramaswami, A. (2013). Linking distributive and procedural justice to employee engagement through social exchange: A field study in India.International Journal of Human Resource Management, 24(8), 1570–1587. https://doi.org/10.1080/09585192.2012.725072

Breevaart, K., Bakker, A., Hetland, J., Demerouti, E., Olsen, O. K., & Espevik, R. (2014).Daily transactional and transformational leadership and daily employee engagement.Journal of Occupational and Organizational Psychology, 87(1), 138–157. https://doi.org/10.1111/joop.12041

Byrne, Z. S., Hayes, T. L., & Holcombe, K. J. (2017).Employee Engagement Using the Federal Employee Viewpoint Survey.Public Personnel Management, 46(4), 368–390. https://doi.org/10.1177/0091026017717242

Castillo, C., & Fernandez, V. (2017).Relationships between the dimensions of organizational justice and students’ satisfaction in university contexts.Intangible Capital, 13(2), 282–301. https://doi.org/10.3926/ic.774

Chen, Y., Friedman, R., & Tony Simons.(2014). Article Information - Home Article Information - Home.Managerial Auditing Journal, 28(2), 2–3.

Cremer, D. (2005). Procedural and distributive justice effects moderated by organizational identification.Journal of Managerial Psychology, 20(1), 4–13. https://doi.org/10.1108/02683940510571603

Devendhiran, S., & Wesley, J. R. (2017). Spirituality at work: enhancing levels of employee engagement. Development and Learning in Organizations, 31(5), 9–13. https://doi.org/10.1108/DLO-08-2016-0070

Downey, S. N., van der Werff, L., Thomas, K. M., & Plaut, V. C. (2015). The role of diversity practices and inclusion in promoting trust and employee engagement.Journal of Applied Social Psychology, 45(1), 35–44. https://doi.org/10.1111/jasp.12273

Gabel-Shemueli, R., Dolan, S., & Suárez Ceretti, A. (2017).Condiciones laborales y compromise entre enfermeras en Uruguay.Academia Revista Latinoamericana de Administracion, 30(1), 59–71. https://doi.org/10.1108/ARLA-02-2016-0049

Ghosh, P., Rai, A., & Sinha, A. (2014). Organizational justice and employee engagement: Exploring the linkage in public sector banks in India. Personnel Review, 43(4), 628–652. https://doi.org/10.1108/PR-08-2013-0148

Hsieh, C. C., & Wang, D. S. (2015). Does supervisor-perceived authentic leadership influence employee work engagement through employee-perceived authentic leadership and employee trust? International Journal of Human Resource Management, 26(18), 2329–2348. https://doi.org/10.1080/09585192.2015.1025234

J., A. (2014). Determinants of employee engagement and their impact on employee performance.International Journal of Productivity and Performance Management, 63(3), 308–323. https://doi.org/10.1108/IJPPM-01-2013-0008

Jilani, E. M. (2015). Contingent Rewards As a Strategy for Influencing Employee Engagement in Manufacturing Companies: Case Study of Williamson Tea Kenya Limited. International Journal of Business and Commerce, 4(5), 20–59. http://search.proquest.com/docview/1681254685?accountid=10297%5Cnhttp://sfx.cranfield.ac.uk/cranfield?url_ver=Z39.88-2004&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&genre=article&sid=ProQ:ProQ:abiglobal&atitle=CONTINGENT+REWARDS+AS+A+STRATEGY+FOR+INFLUENCIN

Jin, M. H., & McDonald, B. (2017). Understanding Employee Engagement in the Public Sector: The Role of Immediate Supervisor, Perceived Organizational Support, and Learning Opportunities. American Review of Public Administration, 47(8), 881–897. https://doi.org/10.1177/0275074016643817

Jogi, R. A., & Srivastava, A. (2015). Determinants of employee engagement in banking sector : A multivariate study in Central Chhattisgarh. Pacific Business Review International, 8(3), 66–70.

Johnson, K. R., Park, S., & Bartlett, K. R. (2018). Perceptions of customer service orientation, training, and employee engagement in Jamaica’s hospitality sector. European Journal of Training and Development, 42(3–4), 191–209. https://doi.org/10.1108/EJTD-11-2017-0094

Jose, G., & Mampilly, S. R. (2015). Relationships Among Perceived Supervisor Support, Psychological Empowerment and Employee Engagement in Indian Workplaces. Journal of Workplace Behavioral Health, 30(3), 231–250. https://doi.org/10.1080/15555240.2015.1047498

Kaur, P. (2018). Mediator Analysis of Job Satisfaction: Relationship between Servant Leadership and Employee Engagement. Metamorphosis: A Journal of Management Research, 17(2), 76–85. https://doi.org/10.1177/0972622518804025

Law, R., Dollard, M. F., Tuckey, M. R., & Dormann, C. (2011).Psychosocial safety climate as a lead indicator of workplace bullying and harassment, job resources, psychological health and employee engagement.Accident Analysis and Prevention, 43(5), 1782–1793. https://doi.org/10.1016/j.aap.2011.04.010

Medlin, B., & Green, K. W. (2009).Enhancing performance through goal setting, engagement, and optimism.Industrial Management and Data Systems, 109(7), 943–956. https://doi.org/10.1108/02635570910982292

Menguc, B., Auh, S., Fisher, M., & Haddad, A. (2013). To be engaged or not to be engaged: The antecedents and consequences of service employee engagement. Journal of Business Research, 66(11), 2163–2170. https://doi.org/10.1016/j.jbusres.2012.01.007

Mishra, P. D., Kapse, S., & Bavad, M. D. (2013). Employee Engagement at Banks in Kutch.International Journal of Application or Innovation in Engineering & Management, 2(7), 349–358.

Nasomboon, B. (2014). The Relationship among Leadership Commitment, Organizational Performance, and Employee Engagement.International Business Research, 7(9), 77–90. https://doi.org/10.5539/ibr.v7n9p77

Nijhof, Andre HJ Jeurissen, R. J. (2017). 기사 (Article) 와안내문 (Information) [.The Eletronic Library, 34(1), 1–5.

Obuobisa-Darko, T., & Domfeh, K. A. (2019). Leader behaviour to achieve employee engagement in Ghana: a qualitative study. International Journal of Public Leadership, 15(1), 19–37. https://doi.org/10.1108/ijpl-04-2018-0018

Ram, P., & Prabhakar, G. (2011)..Interdiciplinary Journal of Research in Bussiness, 1(March), 47–61.

Robbins, S. P., & Judge, T. A. (2015). Organizational Behavior ( 16th. In Organizational Behavoiur (Issue organizational behavoir).

Sadeli, J. (2012). The Influence of Leadership, Talent Management, Organizational Culture and Organizational Support on Employee Engagement.International Research Journal of Business Studies, 5(3), 30–50. https://doi.org/10.21632/irjbs.5.3.30-50

Saks, A. M. (2006). Antecedents and consequences of employee engagement.Journal of Managerial Psychology, 21(7), 600–619. https://doi.org/10.1108/02683940610690169

Schaufeli, W. B., & Salanova, M. (2010). How to improve work engagement? In Handbook of Employee Engagement: Perspectives, Issues, Research and Practice (pp. 399–415).

Shantz, A., Alfes, K., Truss, C., & Soane, E. (2013).The role of employee engagement in the relationship between job design and task performance, citizenship and deviant behaviours.International Journal of Human Resource Management, 24(13), 2608–2627. https://doi.org/10.1080/09585192.2012.744334

Sharma, N., & Vinod Singh, K. (2018). Psychological empowerment and employee engagement: Testing the mediating effects of constructive deviance in indian it sector. International Journal of Human Capital and Information Technology Professionals, 9(4), 44–55. https://doi.org/10.4018/IJHCITP.2018100103

Shuck, B., Reio, T. G., & Rocco, T. S. (2011). Employee engagement: An examination of antecedent and outcome variables. Human Resource Development International, 14(4), 427–445. https://doi.org/10.1080/13678868.2011.601587

Tahir, N., Yousafzai, I. K., Yousafzai, I. K., Jan, D. S., & Hashim, M. (2014). The Impact of Training and Development on Employees Performance and Productivity A case study of United Bank Limited Peshawar City, KPK, Pakistan. International Journal of Academic Research in Business and Social Sciences, 4(4), 86–98. https://doi.org/10.6007/ijarbss/v4-i4/756

Teresko, J. (2004). Driving employee engagement.Industry Week, 253(9), 74. https://doi.org/10.1177/2329488414525399

Tomlinson, G. (2010). Building a culture of high employee engagement.Strategic HR Review, 9(3), 25–31. https://doi.org/10.1108/14754391011040046

Xu, J., & Thomas, H. C. (2011). How can leaders achieve high employee engagement.Leadership and Organization Development Journal, 32(4), 399–416. https://doi.org/10.1108/01437731111134661

Yuan, L., Zhang, L., & Tu, Y. (2018).When a leader is seen as too humble: A curvilinear mediation model linking leader humility to employee creative process engagement.Leadership and Organization Development Journal, 39(4), 468–481. https://doi.org/10.1108/LODJ-03-2017-0056

ZAINOL, S. S. B., HUSSIN, S. binti M., & OTHMAN, M. S. binti.(2016). Determinants of Employee Engagement in Hotel Industry in Malaysia.A Theoretical Model.International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(3), 1–9. https://doi.org/10.6007/ijarafms/v6-i3/2146




DOI: https://doi.org/10.24198/jaab.v4i2.34052

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