The Effect of Empowering Leadership on Intrinsic Motivation: The Role of Psychological Empowerment as a Mediation

Abstract

Closeness and compatibility between leaders and subordinates significantly affect the comfort of work, which results in employee performance. Through satisfaction in working, it can create employee engagement, which can contribute to improving employee performance. This study aims to determine the effect of leader-member exchange and personal supervisor fit on employee performance mediated by work engagement on Syariah Bank employees in the Special Region of Yogyakarta. The sample in this study amounted to 132 employees using purposive sampling techniques whose data collection uses cross-sectional analysis with the level of analysis of individual samples. This research uses Structural Equation Modeling (SEM) to analyze the data. The results showed that the leader-member exchange and person supervisor fit had a positive effect on work engagement, and work engagement had a positive impact on employee performance. Also, this study demonstrates that work engagement is able to mediate the positive influence of leader-member exchange and person supervisor fit on employee performance. For this reason, it can be said that work engagement is an antecedent that shapes employee performance, which is preceded by leader-member exchange and person supervisor fit.

Systematic Literature Review: Empower Leadership and Role Intrinsic Motivation as a Mediation Variable in Improving Employee Performance

“…Empower Leadership is a leadership style with a process of influencing employees in the form of motivational support, development support, and independence to employees. According to (Utami & Zakiy, 2020), Empower Leadership is a leader's behavior that affects employee performance by providing autonomy support and development support to employees. Furthermore, Amundsen and Martinsen in (Utami & Zakiy, 2020) identify eight parts of behavior that form the basis of a leader in Empower Leadership, namely: delegating tasks or work, building coordination and sharing information, encouraging employee self-initiative, providing support for focus on objectives, provide support, inspire, set an example, and guide employees.…”

“…Several studies on Empower Leadership related to Intrinsic Motivation include (Utami & Zakiy, 2020); Motivation is an aspect that plays an important role in one's performance. With Motivation, a person's behavior at work will increase.…”

“…The research (Ryan RM & Deci EL, 2002) in (Utami & Zakiy, 2020) used two basic theories of Intrinsic Motivation, namely Cognitive Evaluation Theory (CET) and Self Determination Theory (SDT). Cognitive Evaluation Theory (CET) is a theory of social context factors that result in the variability of Intrinsic Motivation and interpersonal structures, such as appreciation, communication, and feedback (Chae et al 2017).…”

“…Empower Leadership behavior will motivate individuals intrinsically motivated to work on tasks, characterized by finding interest in their work and having a tendency to seek new things and challenges to develop and train their capacities while exploring interests and learning. (Ryan RM & Deci EL, 2002) Research conducted by (Utami & Zakiy, 2020) shows that Empower Leadership has a positive and significant effect on Intrinsic Motivation. These results indicate that the higher the level of Leadership in food Empower Leadership, the higher the Intrinsic Motivation of employees.…”