Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


Psychological Contract, Financial Incentive Employee Empowerment in Organizational Citizenship Behaviour and its Implications in Employee Engagement in Private Education in Bandung City

Author(s): Windry Setyaning Warsito, Mohammad Benny Alexandri, Herwan Abdul Muhyi, Rivani

Education is an important factor in the development of human resources where the teacher influences the quality of the education process. The attachment that arises between the teacher and the school as an organization determines the achievement of the vision and mission of the school. There are still a number of teachers in private vocational schools in Bandung who do not have performance-based employment contracts, the number of teachers with honorary and non-civil servant status, uncertainty in career paths, and incentives/rewards inconsistently give rise to doubts about the commitment of schools as organizations thus determining the extent of engagement that arises between teachers and schools. In this study, researchers tested knowing how "Psychological Contracts, Financial Incentives, Employee Empowerment in Organizational Behavior and its implications in Employee Engagement in Private Schools in the City of Bandung. Testing in this study uses partial least square (PLS) data analysis with data processing using the help of the XLSTAT program. The population in this study was 1,198 honorary teachers of private vocational schools in Bandung with a total sample of 93 honorary teachers of private vocational teachers in Bandung, taking samples using a purposive sampling method with calculations using the Slovin formula. The results of the study indicate that psychological contracts have a positive and significant influence in forming employee empowerment and have positive implications on employee engagement while financial incentives have an insignificant influence on forming employee empowerment and have implications on employee engagement.

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