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Volume VI, Issue 4

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International Journal of Economics, Commerce and Management United Kingdom Vol. VI, Issue 4, April 2018

Licensed under Creative Common Page 494

http://ijecm.co.uk/ ISSN 2348 0386

THE EFFECT OF JOB ENRICHMENT AND EMPLOYEE

EMPOWERMENT TO ORGANIZATIONAL COMMITMENT

WITH WORK MOTIVATION AS A MEDIATION

Iman Adi Marta

Master’s Programme in Management, Economic and Business Faculty,

Udayana University, Bali, Indonesia

imansastro@gmail.com

Wayan Gede Supartha

Faculty of Economics, Udayana University, Bali, Indonesia

Abstract

The research utilizes the population data of all civil servants with executive position at Regional

Office of the Directorate General of State Assets Management (DJKN) of Bali and Nusa

Tenggara which amounted to 42 people. The data was collected through research instrument in

the form of questionnaire of which contains statement from each indicator of every research

variable, and analysed with Partial Least Square (PLS) technique using Smart PLS Version 3.0

program. According to the result of the Partial Least Square (PLS) analysis, it is known that all

research hypotheses are accepted. The implications of this research are (i) to support the

theoretic concept as well as the previous study results, of which specify that job enrichment and

employee empowerment positively and significantly affect work motivation and organizational

commitment (ii) to become a matter of consideration for the policy makers in formulating policies

for human resources field(iii) and that an organization can improve the effectiveness of job

enrichment and employee empowerment practices while still considering employee workload,

job risks, and the compensation received by employees.

Keywords: Job Enrichment, Employee Empowerment, Work Motivation, Organizational

Commitment

International Journal of Economics, Commerce and Management, United Kingdom

Licensed under Creative Common Page 495

INTRODUCTION

Job enrichment practice as a form of vertical expansion of work, is certainly related to job

analysis. Kaswan (2012: 25) mentions that the job analysis is an analysis process undertaken

by the organization to determine the tasks, obligations, and responsibilities of a job that will

produce an information that determines the job description and job specification. In addition to

being part of the analysis, job enrichment can be viewed as a direct application of job analysis.

When a job is enriched then the job description will change (increase in quality) and then also

change the job specification needed to fill or run a job.

Nanle (2015) states that there is a strong positive relationship of Job Enrichment to

employee motivation, employees respond well to job enrichment and make employees

motivated. Job enrichment provides a variety of skills, job identity, importance in the eyes of

others, responsibilities, challenges, realizing competence, freedom, participation in decision

making, performance feedback from work done, growth and a sense of accomplishment that

encourages internal motivation, and high performance of non-academic staff (Azees and

Abimbola, 2016).

Employee empowerment is a mechanism for empowering employees to make decisions

with the sharing of responsibilities from managers to other employees (Saif and Saleh, 2013).

Employee empowerment is an important contributor to organizational success. This has been

proven in many studies that examine the direct link between employee empowerment of

employee performance, employee job satisfaction, and employee commitment to the

organization (Meyerson, 2012). Employee empowerment can be another strategy for

organizations to satisfy employees with jobs, and increase employee loyalty and commitment to

the organization (Raza et al., 2015). Limpanitgul (2017) argues that employee empowerment as

a powerful predictor variable can be used as a strategy by companies in increasing one's

organizational commitment to the organization.

Argumentation or other consideration of research related to organizational commitment

at DJKN Regional Office of Bali and Nusa Tenggara is the need of research request by DJKN

Head Office, where the research result will be used as material for evaluation and consideration

for the decision makers of human resource management especially in the field of personnel in

organization of the Directorate General of State Assets.

LITERATURE REVIEW

Organizational Commitment

An earlier reviewed by Nzewi et al. (2017), Chen (2008), Neyshabor and Rashidi (2013) explain

the organizational commitment shows how strong relationships and interactions between

© Marta & Supartha

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employees and organizations. Organizational commitment is defined as the worker's

psychological attachment to his organization. Organizational commitment refers to employees'

attachment to their organization and considers organizational goals such as their own goals.

Motivation

According to Robbins & Judge (2015: 127) motivation is defined as a process that explains the

strength (intensity), direction (direction), and persistence (Persistence) a person in an effort to

achieve goals. The power (intensity) describes how hard a person is in business, the force must

be channeled in a direction that gives benefits to the organization, and a persistence dimension

that measures how long a person can sustain his efforts. Motivation is anything (encouragement

or things) that causes or makes a person do something (Golshan et al., 2011).

Job Enrichment

Aninkan (2014) argues that Job enrichment provides more employee opportunities, autonomy

and feedback, as well as giving them more responsibilities that require decision making, such as

job scheduling, determining work methods and quality. Job enrichment also improves self-

actualization, self-control and self-esteem of the workers, therefore job enrichment within an

organization must be managed well and correctly to ensure the role of employees in the process

of making a decision within the organization (Saleem et al., 2012) .

Employee Empowerment

Employee empowerment is a mechanism for empowering employees to make decisions with

the sharing of responsibilities from managers to other employees (Saif and Saleh, 2013).

According to Meng et al. (2015) the concept of empowerment is essentially giving members of

the organization the responsibility and authority to carry out their work so that they feel

psychologically "own" their work.

Conceptual Framework

The conceptual framework of this research is based on the incorporation, development, and

modification of some of the concepts, theories, and empirical studies. The grand theory used in

this study refers to three dimensional of organizational commitment by Allen and Meyer (1990),

i.e. affective commitment, continuance commitment, and normative commitment. Based on the

literatur review, there is a direct relationship between job enrichment, employee empowerment,

work motivation, and organizational commitment. Employee empowerment is believed to have

an impact on organizational commitment therefore examining the role of work motivation to

International Journal of Economics, Commerce and Management, United Kingdom

Licensed under Creative Common Page 497

support the strong effect of the job enrichment is essential as it can affect the workload of

employees, job risks, and compensation. The purpose of this study is to analyze the effect of job

enrichment and employee empowerment on organizational commitment with work motivation as

mediation variable on civil servants with executive positions in the Regional Office of the

Directorate General of State Assets Management of Bali and Nusa Tenggara.

Figure 1. Conceptual Framework

Hypotheses

Job Enrichment to Organizational Commitment

Research conducted by Nzewi et al. (2017) to employees in the beer industry mentions that

there is a positive and significant relationship between job enrichment and organizational

commitment. Specifically, it says that there is a significant positive relationship between work

autonomy (freedom in organizing work) and affective commitment of employees within the

company. The results indicate that when employee jobs are enriched, their level of commitment

will increase positively and will ultimately increase their productivity levels within the

organization.

H1: Job enrichment has a positive and significant effect on organizational commitment.

Job Enrichment to Work Motivation

Research conducted by Nanle (2015) on employees and teachers at the University in Nigeria

also shows that there is a positive relationship and strong effect of Job Enrichment mechanism

on employee motivation. Employees and teachers at the University of Nigeria respond positively

to the Job Enrichment mechanism imposed by management. Job enrichment mechanisms are

Job Enrichment

(X1) H1 (+)

H5 (+)

H6 (+)

H2 (+)

Organizational

Commitment

Work Motivation

H7 (+)

H4 (+)

H3 (+)

Employee

Empowerment

© Marta & Supartha

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able to overcome the main problems of boredom and boredom that exists on employees and

teachers at the University of Nigeria.

H2: Job Enrichment has a positive and significant effect on work motivation.

Employee Empowerment to Organizational Commitment

Insan et al. (2013) states that employee empowerment gives a significant effect on

organizational commitment. Furthermore, Insan et al. (2013) states that employee

empowerment variable can not necessarily effect (no direct effect) to job satisfaction, but there

is indirect effect between employee empowerment to employee job satisfaction through

organizational commitment.

H3: Employee empowerment has a positive and significant effect on organizational commitment.

Employee Empowerment to Work Motivation

Meng et al. (2015) mentions that intrinsic motivation has a dominant role in seeing an effect of

empowerment, intrinsic motivation refers more to factors that encourage someone to do

something that comes from within a person as an example of pleasure and interest in work.

H4: Employee empowerment has a positive and significant effect on work motivation.

Work Motivation to Organizational Commitment

Work motivation leads to a higher organizational commitment of an individual (Sohail et al.,

2014). The study was conducted on workers working in the education sector in Pakistan. The

results also mentioned that work motivation also has a positive effect on employee job

satisfaction working in education sector in Pakistan.

H5: Work motivation has a positive and significant effect on organizational commitment.

The Role of Work Motivation in Mediating The Effect of Job Enrichment to Organizational

Commitment

High employee motivation directly affects employees' commitment to the organization (Imran et

al., 2017). Imran et al. (2017) mentions that employee motivation affects organizational

commitment. A motivated employee increases a person's commitment to the organization and

tends to lower the sense of wanting to get out of the organization. The results confirm that a

precise and correct combination of organizational motivation and commitment can prevent the

emergence of a sense of desire for the members.

H6: Work motivation mediates the effect of job enrichment on organizational commitment.

International Journal of Economics, Commerce and Management, United Kingdom

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The Role of Work Motivation in Mediating The Effects of Employee Empowerment to

Organizational Commitment

Zhang and Bartol (2010) stated that empowerment (psychological empowerment) has a positive

effect on the motivation of employees of technology companies in China. Kim et al. (2013)

states that employee empowerment has a motivational (motivational effect) effect on

organizational commitment. This has been demonstrated in the research of Kim et al. (2013)

proving that employee empowerment has an impact on organizational commitment of

employees of luxury hotel restaurants in Korea.

H7: Work motivation mediates the effect of employee empowerment on organizational

commitment.

RESEARCH METHOD

Data collected through research instrument in the form of questionnaire. The statements on the

questionnaire were measured using a Likert scale of 1 to 5 scale. The sample of this study

amounted to 42 people using a saturated sample technique where the total population is used

as the number of samples to be used in the study. The questionnaires were distributed to 42

respondents with the position of executors in Kanwil DJKN Bali and Nusa Tenggara. The

questionnaire used contains questions about each variable using a Likert scale of 1-5

(1=strongly disagree, 5=strongly agree) (Sugiyono, 2014).

Organizational commitment was measured by a three-dimensional scale (affective,

normative, and continuance). It contained 7 items that were developed by Allen and Meyer

(1990). Motivation was measured through the Multidimensional Work Motivation Scale (MWMS)

developed by Gagne et.al, (2014). It consisted of five dimension (i.e., amotivation, external

regulations, introjected regulations, identified regulations, and intrinsic motivation) broken down

into 5 items. Employee empowerment was measured through the psychological empowerment

with the 5 items, which was originally developed and validated by Spreitzer (1995). Job

enrichment was measured by five dimensions (skill variety, task iedentity, task significance,

autonomy, and feedback) introduced by Hackman & Oldham (1976).

Table 1. Variable Measurement

Variable Dimension Indicator Reference

Job Enrichment

(X1)

Skill variety Use of different types of

skills (X1.1)

Nzewi et al., 2017, Sanda et al., 2015

Task identity Task completion (X1.2)

Sanda et al., 2015 Task

significance

Significance of work

result (X1.3)

© Marta & Supartha

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Autonomy

Freedom in managing

work (X1.4)

Nzewi et al., 2017, Sanda et al., 2015,

Benna et al., 2017, Han et al., 2016 Decision-making (X1.5)

Job responsibilities

(X1.6)

Feedback

Performance evaluation

by the organization

(X1.7)

Sanda et al., 2015, Benna et al., 2017

Employee

Empowerment

(X2)

Meaning The meaning of a job

(X2.1)

Raub & Robert, 2012, Wei et al., 2015,

Drake et al., 2007, Hanaysha, 2016,

Zhang & Bartol, 2010, Competence

Confidence in ability

(X2.2)

Impact

Opinion and suggestion

by employees (X2.3)

Kim et al., 2011, Limpanitgul 2017,

Zhang & Bartol, 2010

The influence and

contribution of

employees (X2.4)

Raub & Robert, 2012, Drake et al.,

2007, Humborstad & Perry, 2011,

Limpanitgul 2017, Zhang & Bartol,

2010,

Employee involvement

(X2.5)

Kim et al., 2011, Limpanitgul, 2017,

Zhang & Bartol, 2010

Work Motivation

(Y1)

Intrinsic

Work comfortability

(Y1.1)

Gagne et al., 2015, Wei et al., 2015,

Meng et al., 2015 Spirit at work (Y1.2)

Extrinsic

Employee rights (Y1.3)

Gagne et al., 2015,

Job promotion (Y1.4)

Performance

assessment (Y1.5)

Organizational

Commitment

(Y2)

Affective

Employee career (Y2.1)

Nzewi et al., 2017, Weng et al., 2010,

Insan et al., 2013, Conrinus, 2012,

Han et al., 2016, Joo & Park, 2009

Emotional ties between

employees and

organization (Y2.2)

Nzewi et al., 2017, Beng et al., 2012,

Weng et al., 2010, Insan et al., 2013,

Raub & Robert, 2012, Kim et al., 2011,

Hanaysha, 2016, Humborstad & Perry,

2011, Liao & Hsieh, 2017,

Reputation of the

organization (Y2.3)

Nzewi et al., 2017

Continuance Employee needs (Y2.4) Weng et al., 2010, Conrinus, 2012,

Compensation (Y2.5) Weng et al., 2010, Insan et al., 2013

Normative

Employee obligations to

remain within the

organization (Y2.6)

Weng et al., 2010, Conrinus, 2012,

Organizational needs

(Y2.7)

Weng et al., 2010, Insan et al., 2013,

Table 1...

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ANALYSIS AND RESULTS

Based on age characteristics, respondents are dominated by employees with age category 41

s.d. 50 years as many as 15 people (35.70%). Most of the respondents viewed from the

characteristics of gender are male is dominant as many as 31 people (73,81%). The majority of

respondents who are civil servants with the position of executors in Kanwil DJKN Bali and Nusa

Tenggara have married or married status as many as 37 people (88.10%). It can be stated that

from a total of 42 respondents, most of them have bachelor degree as many as 28 people or

equal to 66.67% of total respondents. Based on years of service, the majority of those who have

a working period of 0 - 5 years are 6 (14.29%), 6 to 10 years of work are 7 (16.67%), 11 to 15

years of service are 5 (11, 90%), the working period of 16 - 20 years as many as 9 people

(21.43%).

Goodness of fit structural model in inner model is tested using predictive value -

relevance (Q2). Predictive - relevance (Q2) for structural model measures how well observation

value is generated by model and also parameter estimation. The R2 value of each endogenous

variable in this study can be seen in Table 2.

Table 2. R-Square

Endogenous Variable R-Square

Work Motivation (Y1) 0,865

Organizational Commitment (Y2) 0,924

To measure how well the observation value is generated by the model and also the parameter

estimation, it is necessary to calculate Q-square as follows:

Q² = 1 – (1 – R1²) (1 – R2²).....(1 - Rp²)

Q² = 1 – (1 – 0,924) (1 – 0,865) = 0,9897

Q² = 0,9897

Q-square has a score with a range of 0 and 1, where if the value is close to 1, it means that the

model is good. The calculation results obtained value of Q-square is 0.9897, so it can be

concluded that the model has a good predictive relevance.

The results obtained on hypothesis testing showed that four hypotheses had positive

and significant effect. The test results shown at Table 3.

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Table 3. Hypothesis Testing Result

Independent Variable Dependent Variable Path Coefficients t-statistic Result

Job Enrichment (X1) Organizational Commitment (Y2) 0,329 3,287 significant

Job Enrichment (X1) Work Motivation (Y1) 0,535 4,312 significant

Employee Empowerment (X2) Organizational Commitment(Y2) 0,277 2,357 significant

Employee Empowerment (X2) Work Motivation (Y1) 0,425 3,188 significant

Work Motivation (Y1) Organizational Commitment (Y2) 0,392 2,986 significant

Direct effect of job enrichment to organizational commitment with value 0,329 and t-statistic

3,287. Direct effect of job enrichment on work motivation with value 0,535 and t-statistic 4,312.

direct effect of employee empowerment to organizational commitment with value 0,277 and t-

statistic 2,357. Direct effect of employee empowerment on work motivation with value 0,425 and

t-statistic 3,188. direct effect of work motivation to organizational commitment with value 0,392

and t-statistic 2,986. From these results can be seen that all hypotheses have a significant value

greater than the value of t table. (0.05> 1.960). Thus, it can be stated that all hypotheses of

direct effect are significant which means that all hypotheses are accepted.

The indirect effects test through corporate image and customer satisfaction as mediation

variables, are presented in Table 4.

Table 4. Indirect Effects

Variable Path Coefficients t-statistic Result

Job Enrichment (X1) > Work Motivation

(Y1) > Organizational Commitment (Y2)

0,210

2,554

Significant

Employee Empowerment (X2) > Work

Motivation (Y1) > Organizational

Commitment (Y2)

0,166 2,079 Significant

Hypothesis testing with PLS approach resulted coefficient path indirect effect of job enrichment

to organizational commitment through work motivation (as mediation variable) with value 0,210

and t-statistic 2,554. Indirect effect of employee empowerment on organizational commitment

through work motivation (as mediation variable) with value 0,166 and t-statistic 2,079. From

these results can be seen that all hypotheses have a significant value greater than the value of t

table. (0.05> 1.960). Thus it can be stated that all hypotheses of indirect effect are significant

which means that all hypotheses are accepted.

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DISCUSSION AND CONCLUSION

Direct effect of job enrichment to organizational commitment with value 0,329 and t-statistic

3,287. From these results it can be seen that t-statistics greater than 1,960 (t table), so it can be

concluded that H1 mentioning job enrichment have positive and significant effect on

organizational commitment accepted. This reflects that the existence of job enrichment

practices in the DJKN Regional Office of Bali and Nusa Tenggara is able to increase

organizational commitment to every civil servant with an executive position in the Regional

Office of DGS Bali and Nusa Tenggara. This study is supported by research conducted by

Nzewi et al. (2017) to employees in the beer industry also mentions that there is a positive and

significant relationship between job enrichment and organizational commitment. Specifically, it

says that there is a significant positive relationship between work autonomy (freedom in

organizing work) and affective commitment of employees within the company.

Direct effect of job enrichment on work motivation with value 0,535 and t-statistic 4,312.

From these results it can be seen that t-statistics are greater than 1,960 (t-tables), so it is

concluded that H2 is accepted. This reflects that the existence of job enrichment practices in

DJKN Regional Office Bali and Nusa Tenggara able to increase work motivation in every civil

servant with the position of executor in Regional Office DJKN Bali and Nusa Tenggara. The

results of this study support and in line with the results of previous research by Davoudi (2013)

which states that Job Enrichment as one of the managerial efforts in motivating employees by

giving them sufficient opportunities to organize, plan and use all the capabilities possessed.

Direct influence of employee empowerment towards organizational commitment with

value 0,277 and t-statistic 2,357. From these results it can be seen that t-statistics greater than

1,960 (t table), so it is concluded that H3 accepted. This shows that the existence of

empowerment (employee empowerment) in employees can increase organizational

commitment of these employees in the organization. That is, if an employee is empowered by

the organization then it will increase the organizational commitment of the employee. The

results of this study support and are in line with previous research results by Hanaysha (2016)

on employees of state universities in North Malaysia who stated that there is a significant

positive influence between employee empowerment on organizational commitment. Insan et al.

(2013) states that employee empowerment gives a significant effect on organizational

commitment. Furthermore, Insan et al. (2013) states that employee empowerment variable can

not necessarily influence (no direct effect) to job satisfaction, but there is indirect influence

between employee empowerment on employee job satisfaction through organizational

commitment.

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LIMITATIONS AND FUTURE RESEARCH

Generally, there are three limitation has to be acknowledged. First, this study, in measuring

organizational commitment, is not fully using all indicators in the performance assessment. The

assessment of the performance of civil servants within the Ministry of Finance encompasses 2

aspects: 1) assessment of employee performance targets (SKP) measured by quantitative

targets with 40% weight 2) behavioral assessments measured 360 degrees (by superiors,

subordinates, and co-workers). Therefore, further research is expected to fully accommodate all

indicators on the performance assessment of both SKP and behavioral assessment in

measuring organizational commitment of civil servants in the Ministry of Finance. This is

believed, because the indicators on the performance appraisal of the employee is able to fully

illustrate the organizational commitment of civil servants in the Ministry of Finance in this case at

Regional Office of the Directorate General of State Assets Management of Bali and Nusa

Tenggara.

Second, this research only focus on employees in one organizational unit within the

Ministry of Finance, so this study does not conduct comparative studies with employees in other

organizational units that in fact differ from the compensation aspect. Therefore, further research

is expected to conduct comparative studies between employees in one organizational unit with

other organizational units in the Ministry of Finance.

Third, this research hasn’t been able to provide integrated solution to increase

organizational commitment of employees at Regional Office of the Directorate General of State

Assets Management of Bali and Nusa Tenggara. This is caused by the limitations of time and

research variables, where time in this research is quite short and variable in this research only

use job enrichment, employee empowerment, work motivation and organizational commitment.

Other variables outside the model are still possible to be one predictor variable to organizational

commitment.

IMPLICATIONS

The implications of this research are (i) to support the theoretic concept as well as the previous

study results, of which specify that job enrichment and employee empowerment positively and

significantly influence work motivation and organizational commitment (ii) to become a matter of

consideration for the policy makers in formulating policies for human resources field (iii) and that

an organization can improve the effectiveness of job enrichment and employee empowerment

practices while still considering employee workload, job risks, and the compensation received

by employees.

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