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Authentic Leadership, Total Reward And Employee Engagement Case Study

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Authentic Leadership, Total Reward And Employee Engagement Case Study
The Relationship between Authentic Leadership, Total Reward, Employee Engagement and Employee Discretionary Effort

Doctor of Research In Management (DRM)

RESEARCH METHODOLOGY

Lecturer:
Prof. Carol Hooi

Group Assignment by:
Agus Setiawan
Ikin Solihin
Rocky Nagoya
Satya Radjasa
Chapter 1
Introduction
Background to the Study
The global economic condition in the past couple of years has been showing signs of slowing down. Oil & Gas price have been slashed by more than half of what it used to be, commodity price drops and many companies from all industry sectors all around the world are closely looking at running a tight ship policies. On the other hand even though the decline in performance, economic state and tighter market competition, many
…show more content…
As stated by Harvard Business in January 2015, “Authenticity has emerged as the gold standard for leadership”, so this leadership theory will be used in this research.
Even though there have been many numbers of research being done on looking the positive relationship between leadership and total reward to employee engagement (Li, 2015), few studies in Indonesia have been done in looking at how leadership and total reward and how it impacts employee engagement which leads to eventual discretionary effort being shown by highly engaged
…show more content…
Several years later this subject was researched extensively (Walumbwa, Avolio, Gardner, Wernsing, & Peterson, 2008; Wang & Bird, 2011; Wong & Cummings, 2009). Walumbwa et al. (2008) defined authentic leadership as: a pattern of leader behavior that draws upon and promotes both positive psychological capacities and a positive ethical climate, to foster greater self-awareness, an internalized moral perspective, balanced processing of information, and relational transparency on the part of leaders working with followers, fostering positive self-development.
Authentic leaders engage followers in behavior and build up their authentic leadership capabilities. Authentic leaders will build up their followers authentic leadership capabilities, hence they involve in multiplicity. Shuck & Herd (2012) suggest that employees will are pay more attention to meaningfulness of work, authenticity, and social responsibilities. Alok & Israel (2012) found that authentic leadership and employee engagement are related in theory. Wang and Bird, 2011 conduct a more sophisticated study about the relationship between authentic leadership and employee engagement by investigating the principal’s authenticity and teacher’s engagement in three school districts of southeastern state.. The results of study suggest a strong correlation between authentic leadership and employee trust and

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