THE INFLUENCE OF FLEXIBLE WORKING SYSTEM TO EMPLOYEE ENGAGEMENT WITH TRANSFORMATIONAL LEADERSHIP AS MODERATING VARIABLE (CASE STUDY AT MILLENNIAL AND Z GENERATION AT THE SECRETARIAT OF DJKN)

• Main Author: Rizky Setyoningtyas, Prinindia
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/85872
• Institution: Institut Teknologi Bandung

The necessity for bureaucratic reforms and digital transformation, emphasized by the COVID-19 pandemic, led the Ministry of Finance to implement a flexible working system. This initiative, formalized through Ministerial Regulation (KMK) 416/2023, applies to all units within the Ministry, including the Directorate General of State Assets Management (DJKN). The regulation aims to enhance productivity, performance, and employee engagement across the Ministry while ensuring the continuity of its operations. A mixed-methods research design was employed. The population for this study consists of employees at the Secretariat of the Directorate General of State Assets Management, specifically targeting Millennials and Generation Z. A total of 93 employees participated in and completed the survey. The quantitative component utilized questionnaires to gather numerical data on flexible working systems, transformational leadership, and their impact on employee engagement. The qualitative component involved interviews with key organizational figures to provide a deeper understanding of the complexities and dynamics of flexible working environments. For data analysis, moderated regression analysis (MRA) was used to examine the relationship between flexible working systems and employee engagement, and how transformational leadership moderates this relationship. The results indicate a significant positive influence of the flexible working system on employee engagement, particularly among Millennials and Generation Z. These younger employees, who constitute a significant portion of the DJKN workforce, showed higher levels of engagement and satisfaction with flexible working system. Furthermore, the study found that transformational leadership significantly enhances the effectiveness of flexible working systems. Leaders who exhibit transformational qualities, such as inspiring and motivating their team members, were able to amplify the positive effects of flexible working system on employee engagement.