PSYCHOLOGICAL EMPOWERMENT AS MODERATING VARIABLE IN THE EFFECT OF EMPOWERING LEADERSHIP ON CREATIVE PROCESS ENGAGEMENT

• Main Author: Ramba, Marvita
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/41333
• Institution: Institut Teknologi Bandung

PT X is a company engaged in the field of design, development and manufacture of aircrafts and helicopters for civil and military. To face the the rapid changes in the global environment, companies must develop strategies to be able to survive and grow. The company history that had gone through difficult times in the year of 2000-2002 the company faced financial problems that caused the company had 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. The largest number of employees aged 25-35 while the second largest number aged 55-60 years who are employees who had been through a period where the company did downsizing. 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 aimed to identify the relationship between empowering leadership and creative process engagement by using psychological empowerment as a moderating variable. Empowering leadership is measured using the dimensions of enhance meaning, promote participation and express confidence. Creative process engagement variables are measured using the problem identification and idea generation dimension. Meanwhile, psychological empowerment variables are measured using the dimensions of meaning and competence. In addition this research also tried to provide solutions related to business issues. The relationship between the variables in this study was measured using a regression and correlation test. The data analysis result used regression represented that there was a significant influence of empowering leadership on creative process engagement at PT X. The psychological empowerement involvement as a moderating variable strengthened the relationship between empowering leadership and creative process engagement. Correlation test results between the dimensions of each variable represented: first, the relationship between dimensions in the empowering leadership variable and creative process engagement where the dimensions of promoting participation and express confidence had a significant relationship to problem identification and idea generation at PT X. Second, the relationship between dimensions empowering leadership, psychological empowerment and creative process engagement represented that the dimensions of promoting participation and competence had a significant relationship, the dimensions of express confidence and meaning had a significant relationship, meaning had a significant relationship with problem identification and idea generation, and meaning also had a relationship with problem identification and idea generation at PT X. Root cause analysis was carried out using CRT (Current Reality Tree) which indicated that the root of the problem was 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.