Employee Engagement Fail to Boost the Relationship Between Learning Organization and Financial Performance

Abstract

This research paper sets out to investigate the gaps in hospitality industry issues and facts in Surabaya, Indonesia. In order to substantiate future studies about employee engagement. Learning Organization constructed by seventh dimension DLOQ as measurement (continuous learning, inquiry and dialogue, collaboration and team learning, empower people, create systems, connect the organization, strategic leadership) to influence Employee Engagement with three constructs (Physical, Cognitive and Emotional) and Financial Performance with six constructs (ROA, ROE, Sales Growth, Net Profit, Market Share, Profit Growth). This research was trying to investigate the gap between hospitality industry issues and facts, also investigate the relationship of Employee Engagement as an intervening variable between Learning Organization and Financial Performance supported by Organizational Psychology and Organizational Behavior Theories. Therefore, this research trying to empirically and practically contributions for future managerial implication. The study conducted 50 full-service dining restaurant company as unit analysis in Surabaya, Indonesia. Using a questionnaire as an instrument of the measurements were 241 questionnaire collected. The result of this research Learning Organization has partially and directly influence Employee Engagement and Financial Performance supported by Organizational Psychology and Organizational Behavior Theories.