Mediation of Organizational Commitment: The Relationship Between Employee Empowerment and Employee Performance
1I Gusti Ayu Panca Dewi, 2Isti Fadah, 3Novy Fitria
1Post Graduate Doctoral, Faculty of Economics and Business, Universitas Jember, Jawa Timur, Indonesia
2Faculty of Economics and Business, Universitas Jember, Jawa Timur, Indonesia
3Faculty of Economics and Business, Institut Teknologi dan Bisnis Widya Gama Lumajang, Jawa Timur, Indonesia
https://doi.org/10.47191/jefms/v7-i10-52
ABSTRACT:
This study aims to analyze the effect of employee empowerment on employee productivity by considering the mediating role of organizational commitment. Employee empowerment is widely acknowledged as a crucial approach that enhances employee motivation, engagement, and performance. In addition, organizational commitment also contributes significantly to enhanced efficiency. This research was conducted at Fitness Plus Denpasar City using quantitative methods and involving 60 respondents through the census technique. Data was gathered through a survey and evaluated using the PLS technique. The results showed that employee empowerment has a notable and beneficial impact on the dedication and productivity of employees. However, organizational commitment has no significant effect on employee performance and does not act as a go-between when it comes to the correlation between empowering workers and their productivity. These results indicate that employee performance improvement occurs directly through employee empowerment without the mediating role of organizational commitment. This research provides important implications for organizational management to focus more on employee empowerment strategies to improve performance without relying too much on organizational commitment as a mediating factor. Future research is recommended to expand the scope of variables and use a longitudinal approach to dig deeper into the long-term effects of employee empowerment.
KEYWORDS:
employee empowerment, employee performance, organizational commitment
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