THE
INFLUENCE OF PSYCHOLOGICAL SAFETY, TRANSFORMATIONAL
LEADERSHIP
ON EMPLOYEE ENGAGEMENT OF THE COMPANY THROUGH
THE
MEANING OF WORK
Ika Prihartati1, Ervin Agung Priambodo2,
Anandha Budiantoro3 �
Universitas Tanri Abeng,
Jakarta, Indonesia
�[email protected]1, [email protected]2, [email protected]3
ABSTRACT
The success of organizational goals can be achieved effectively when
supported by employees who have a deep commitment to the organization. Strong
Employee Engagement will drive motivation, enhance productivity, foster
harmonious relationships, and provide significant benefits to both parties.
This research aims to understand and analyze the influence of psychological
safety and transformational leadership on employee engagement through work
meaning. The research methodology used a quantitative descriptive approach.
Data collection was done through a questionnaire that assessed employee
behaviors in the workplace, their interpretations, and interactions as leaders
or subordinates in the organizational context. This study was conducted at PT
Bio Farma (Persero) in Bandung, involving 253 respondents. Path analysis was
used to evaluate hypotheses based on data collected from a 46-statement
questionnaire. The results of this research indicate that good Psychological
Safety, effective Transformational Leadership, and the presence of meaning in
work (Work Meaning) play crucial roles in enhancing Employee Engagement at PT
Bio Farma. Specifically, Psychological Safety and Work Meaning have the most
significant direct impact on the level of employee engagement, each accounting
for 65% and 60%, respectively. The findings of this research have important
implications for companies looking to enhance employee engagement by focusing
on psychological safety and promoting a transformational leadership style that
facilitates meaningful work for employees.
Keywords: psychological safety, transformational Leadership, meaning of work,
employee engagement.
Corresponding Author: �Ika Prihartati
E-mail: �[email protected]
INTRODUCTION
The current disruption barrier for organizations in
the present era of technological development is velocity, which compels
organizations to adapt and change business models to remain competitive and
relevant. Employees as a capital asset for the company refers to the view that
employees are a valuable resource that contributes to the success of the
Organization. According to research, this approach is based on the belief that
people are not only costs to be handled but also the primary source of
creativity, innovation, and competitiveness (Becker, 2018).
Bio Farma is a state-owned corporation that
manufactures life science goods to increase the quality of life for the nation,
the state, and the world. Of course, employee involvement is critical to
attaining organizational objectives. Bio Farma was designated as the holding
company in the midst of holding the pharmaceutical business, and this is a
challenging matter in managing human resources; in addition to business demands
and merging four holding entities, this is a challenge.
The stress measurement findings for 2021-2022 show an
increase in stress levels from an average of 14,656 to 15,745. This stress
evaluation focuses on items that cause distress reactions rather than
employees' stress reactions in response to workplace demands. The second
phenomenon is related to employee disciplinary reports in 2022, stating that
the lateness rate reaches 36%; employee attendance awareness is also
illustrated by the presence of employees who do not take attendance as much as
13%, with the reason consisting of two possibilities, the first being that the
employee forgot to take attendance, or the employee is not aware of taking
attendance. Another phenomenon is that employee turnover and leave without pay
have increased in the last five years, even though the percentage is only 0.1%;
in comparison, nearly no one has resigned or taken leave in the previous ten
years. Another phenomenon is the presence of complaint report data related to
employee utilization, work productivity, job inequality, demotivation
tendencies, team distrust, or behaviour leaving the workplace; this reflects other symptoms related to
indications of employee engagement that should be investigated.
The phenomena above
are likely influenced by factors such as the economic situation and
post-pandemic adaptation to COVID-19, the implementation of holdingization in
which business demands change and new policies are implemented, and other
factors that require further investigation. According to research, this
phenomenon can be associated with indications of a decrease in employee energy
and mental resilience while working (vigour), a decrease in participation, a
sense of employee enthusiasm in work (dedication), and a decrease in concentration
or pleasure in work (absorption), and they are dimensions of Employee
Engagement (Juliantara et al., 2020).
Employee engagement
is a behaviour exhibited by employees or persons during their work in which these individuals are committed to
their work and company by contributing to presenting themselves fully with a
sense of duty to achieve organizational goals (Muis et al., 2018). Engage is defined by a sense of pride, passion,
satisfaction, and actively inventing to advance in the firm (Patro, 2013).
Psychological safety is one aspect of the strategy to
increase employee engagement (Retnowati et al.,
2023). The condition in which individuals or employees feel
psychologically safe in their environment to express opinions, convey ideas, be
themselves, and interact openly without feeling threatened, intimidated, afraid of punishment,
afraid of persecution, being wrong, or experiencing other negative sentiments (Rahmat, 2021).
Leadership is one of
several factors that exist and is a significant factor in encouraging employee
engagement (Firm, 2012). Transformational
Leadership is a leadership style that promotes transformation, has charisma,
conveys vision, motivates or encourages followers to finish work swiftly, and
makes necessary innovations or changes for the good of the Organization.
The fact is that
every employee has goals and
fundamental reasons for working. Meaning of work is an individual's attitude or
perspective toward work, where the individual interprets his work as something
that is his belief or belief about work, whether as a means to earn money or
needs only, looking for a career or a particular position, or developing
self-potential to the highest meaning, where work is interpreted as something
bigger than just money, whose impact is beneficial or suitable for the public (Anshori, 2013).
To achieve practical organizational goals, the
management of employees as a company asset is viewed as very important, where
the psychological aspects of workplace safety and transformational Leadership
are factors in employee behaviour toward their Organization (Saputro, 2021). In contrast, internal factors of employees as
individuals view the meaning of work in the context of a relationship with
employee engagement.
According to research, every Organization and leader
strives to promote employee engagement, which significantly impacts
organizational productivity and performance (Manmeet Kaur &
Poh, 2022). Employees who experience psychological safety
exhibit excellent behaviour in offering their voices or thoughts. Ultimately,
these employees' voices promote their jobs on their own, reflecting the employee's
attachment to the Organization (Ge, 2020). Other previous researchers showed a positive direct
effect of Psychological Safety on Employee Engagement (Platania et al., 2022). Transformational Leadership has a direct positive
relationship with Employee Engagement (Thanh & Quang,
2022), (Mat et al., 2019). Other findings show that Transformational Leadership
significantly influences Employee Engagement mediated by Psychological Safety (Xu et al., 2022), and Transformational Leadership significantly
influences Employee Engagement mediated by the Meaning of Work (Handayani &
Pitoyo, 2018).
From the phenomenon, literature review, and previous
research findings, my empirical evidence suggests the existence of both direct
and indirect positive influences of Psychological Safety and Transformational
Leadership on Employee Engagement, mediated by the Meaning of Work. Based on
the background mentioned above, the objective of this research is to understand
and analyze the influence of psychological safety and transformational
leadership on employee engagement through work meaning. Therefore, the benefits
of this research are to provide insights to PT Bio Farma regarding the factors
that affect employee engagement. Additionally, this research can help leaders
and managers at PT Bio Farma understand the importance of transformational
leadership and psychological safety in motivating employees. Furthermore, this
study contributes to academic knowledge by exploring the relationships between
psychological safety, transformational leadership, work meaning, and employee
engagement.
METHOD
This study uses a quantitative approach where
descriptive analysis is used to describe the data as it is and then processed
using statistical techniques. Questionnaires were distributed online for 14
working days to PT Bio Farma (Persero) employees, consisting of 4
representative sections for each variable studied with a total of 46 questions.
Respondents were asked to answer by actual behaviour conditions at work, which
were presented with five
alternative answers for each list of questions asked. The results of the
responses obtained were 253 employees from PT Bio Farma (Persero) Bandung Area.
The data obtained is
checked for reliability, validity and normal distribution. If it meets the
requirements, we can use the analysis technique. In this study, I used path analysis, where technical analysis examines
the direct and indirect effects of the variables to hypothesize the effect of
the treatment on these variables through the SPSS program.
RESULTS AND DISCUSSION
The overall results
of the research information obtained from the 253 respondents show the
classification of the average arithmetic rating category presented into a
continuum line with a suitable category (range: 3.40 � 4.50): responses for the
Psychological Safety variable where the total score is 14575, and the average
value is 4.10, for the Transformational Leadership variable with a total
overall score of 11810, and an average value of 3.87, for the Employee
Engagement variable with an overall total score of 10493, and an average value
of 4.13 and for the variable Meaning of Work with an overall total score of
9258, and an average value of 3.64.
Results of Path
Analysis Path Model 1a. The influence of Psychological Safety and
Transformational Leadership on the Meaning of Work can be seen in Table 1:
Table 1. Path Coefficient Model
1a
|
Variable |
Coefficient path |
t |
value |
Rsquare |
1-R-Square |
|
X1→X3 |
0.377 |
5.452 |
0.000 |
0.302 |
0.698 |
|
X2→X3 |
0.224 |
3.239 |
0.001 |
Source: data
processing, spss application
The
total influence value (R-Square) or the contribution of the Psychological
Safety and Transformational Leadership variables to the Meaning of Work is
0.302 or 30.2%. In contrast, the remainder, 69.8%, is the influence of other
factors outside the two independent variables.
Figure 1. Path
Diagram The Influence of Psychological Safety
and
Transformational Leadership on the Meaning of Work
From Figure 1, each variable's direct influence can be
calculated (X1) the Psychological Safety variable has a direct
effect of 14.2%, and (X2) the Transformational Leadership variable
has a direct effect of 5% on the Meaning of the Work Variable.
Path Analysis Path Model 1b. The influence of
Psychological Safety and Transformational Leadership on Employee Engagement can
be seen in Table 2:
Table
2. Path Coeficience model 1b
|
Variable |
Coefficient
path |
t |
value |
Rsquare |
1-R-Square |
|
X1→Y |
0.657 |
12.638 |
0.000 |
0.605 |
0.395 |
|
X2→Y |
0.170 |
3.279 |
0.001 |
Source:
data processing, spss application
Table 2 shows that the total value of influence (R-Square)
or the contribution of the Psychological Safety and Transformational Leadership
variables to employee engagement is 0.605 or 60.5%. In comparison, the
remaining 39.5% is the influence of other factors outside the two independent
variables.
Figure
2. Path Diagram The Influence of Psychological Safety and
Transformational
Leadership on the Employee Engagement
Figure 2 shows that the (X1) Psychological
Safety variable has a direct effect of 43.2%, and the (X2)
Transformational Leadership variable has a direct effect of 2.9% on the
Employee Engagement variable.
Path
Analysis Path Model 2. The influence of the Meaning of Work on Employee Engagement
can be seen in Table 3 :
Table 3. The Influence
of Meaning of Work on the Employee Engagement
|
Variable |
Coefficient
path |
t |
p-value |
R-Square |
1-R-Square |
|
X3→Y |
0.609 |
12.194 |
0.000 |
0.371 |
0.629 |
Source:
data processing, spss application
Table
3 shows that the total influence (R-Square) or the contribution of the Meaning
of Work variable on Employee Engagement is 0.371 or 37.1%. In comparison, the
remaining 62.9% is the influence of other factors outside the independent
variable.
Figure 3. Path Diagram The
Influence Meaning of Work on Employee Engagement
The
Meaning of Work variable has a direct effect of 60% on Employee Engagement.
Because this study uses intervening variables to test
mediating or intervening variables, it can be done with the Sobel Test (z) (Abu-Bader & Jones,
2021). This test tests the strength of the indirect
influence of variables X1 and X2 on Y through X3 so that it will be known
whether a variable can intervene or influence the independent variable on the
dependent variable (desired). Where the z value must be more than > 1.96, it
can be concluded that the hypothesis is accepted.
Figure 4. Framework
a.
H1:
Psychological Safety directly affects Employee Engagement at PT Bio Farma
(Persero). This is in line with the research of (Mat et al., 2019); (Platania et al., 2022) and (Ge, 2020).
b.
H2:
Where transformational Leadership has a positive direct influence on employee
engagement at PT bio Farma (Persero) is in line with research by (Manmeet Kaur & Poh
2022) (Xu et al., 2022), (Thanh & Quang,
2022), (Mat et al., 2019).
c.
H3:
found that Psychological safety has a positive effect on employee engagement
through the Meaning of Work, meaning that Meaning of Work can be a suitable
medium of intervention in increasing Employee Engagement with similar opinions
in research by (Handayani &
Pitoyo, 2018).
d.
H4:
found that Transformational Leadership positively affects employee engagement
through the Meaning of Work. Transformational Leadership is one factor in
employee behaviour towards the Organization, meaning that interference or
better Employee Meaning of Work will increase Employee engagement (Zaw & Takahashi,
2022) (Handayani &
Pitoyo, 2018).
e.
H5:
found that Meaning of Work has a direct positive effect on Employee Engagement,
in line with research (이영찬 & 단상청, 2018).
CONCLUSION
Thus, the results of this study provide
empirical evidence that better Psychological Safety will increase Employee
Engagement at PT Bio Farma (Persero), and better transformational Leadership
will significantly affect efforts to increase employee engagement. Meaning of
Work can be a suitable mediation for companies to condition the Psychological
Safety of Employees or apply a Transformational leadership style to increase
Employee Engagement. It has been proved that the better employees understand
their work, the higher employee engagement with the Organization. Psychological
Safety and Work Meaning have the highest direct influence on Employee
Engagement at PT Bio Farma, with 65% and 60%, respectively.
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