| Summary: | Engaged employees are those who utilized themselves physically, emotionally
and cognitively in their work and are great value to organization. The purpose of this
study was to determine the effect of transformational leadership on employee
engagement in adidas sourcing limited Indonesia. One of hypothesized predictor of
engagement is the presence of compelling management known as transformational
leadership. It was hypothesized that transformational leadership would have an indirect
effect on employee engagement through their positive influence on psychological
climate. Thus, another hypothesized predictor for employee engagement is
psychological climate. The psychological climate have dimension of supportive
management, role clarification, recognition, contribution and challenge which all of
them, in overall, hypothesized have positive effect on employee engagement.
The Multifactor Leadership Questionnaire (MLQ) (Bass&Avalio, 1995) was
used to assess the perception of employees on the transformational leadership
characteristic of adidas sourcing limited Indonesia managers. Brown and Leigh�s (1986)
multi dimension scale was used to assess the employee�s perception on the presence of 5
dimensions of psychological climate. UWES scale was used to assess employee
engagement of adidas sourcing limited Indonesia. The questionnaires received from
employees were analyzed to determine if transformational leadership has significant and
positive effect on psychological climate and employee engagement and whether
psychological climate served a mediator between transformational leadership and
employee engagement.
Paper based questionnaire was distributed to 145 employees and author analyzed
128 valid questionnaires, using Likert scale for measuring the employee�s perception on
the presence of the three examined variables. Used Baron and Kenny (1986) procedures,
the results indicated a significant positive effects of transformational leadership to
psychological climate and employee engagement. Results also indicate a full mediation
of leadership�s effects on employee engagement via Psychological climate. This
mediation relation suggests some of the mechanisms of transformational leadership, and it provides an interesting avenue for future research.
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