International Journal of Application on Economics and Business (IJAEB)

Volume 1, Issue 1, 2023. ISSN: 2987-1972

The Effect of Employee Empowerment and Work

Environment on Organizational Commitment and
Their Impact on Employee Performance

Angelica Caroline Dwiputri¹ Oey Hannes Widjaja1*

Hadi Cahyadi2 Henryanto Wijaya2
1
Management Department, Faculty of Economics and Business, Universitas Tarumanagara, Jakarta, Indonesia
2
Accounting Department, Faculty of Economics and Business, Universitas Tarumanagara, Jakarta, Indonesia
*
Corresponding author. Email: [email protected]

Submitted: May 2022, Revised: October 2022, Accepted: February 2023

ABSTRACT
This research was triggered by educational institutions in Indonesia that are not widely known by
people out there. Education is a very common need and demand in children's lives. The purpose of
education is to guide all the natural forces that exist in these children, so that they as humans and as
members of society can achieve the highest safety and happiness. Education is also a conscious effort
to prepare for the role of students in the future through guidance activities, such as counseling,
education, and/or training. This study uses Structural Equation Modeling (SEM) to perform data
analysis. The research sample consisted of 100 employees in private schools in North Jakarta. The
results show that we must pay attention to the empowerment, environment, commitment and
performance of employees who work in the field of education so that the future of the nation's
children can be better than now.

Keywords: Education, Employee Empowerment, Work Environment, Organizational Commitment,

Employee Performance.

1. INTRODUCTION

As is known, the quality of education in Indonesia is decreasing day by day. This is reflected in
the quality of teachers, educational institutions, and students. Teachers naturally harbor expectations
that they cannot give their students. In fact, current teachers are incompetent. Many people become
teachers because they are not accepted in other subjects and lack money. Except for the old teachers
who have devoted themselves to teaching for many years. In addition to the experience of teaching
students, they also have extensive experience in the subjects they teach, not to mention the issue of
teacher salaries. If this phenomenon continues and continues, education in Indonesia will soon be
destroyed, because many experienced teachers will retire.
The facilities and infrastructure of educational institutions are also a factor in the decline and
decline of education in Indonesia, especially for people in underdeveloped areas. However, for the
inhabitants of these underdeveloped countries, the most important thing is that applied science is
practically used in life and work. Like most students in general, including teachers and schools, there
are many problems that prevent them from studying normally.
Therefore, we must also look at how to empower employees and the work environment of
workers in the education industry. Empowerment is a theory of further development of the theory of
participatory management. Participation is a process carried out by organizations to provide
opportunities for employees to play a role in making decisions about their work. Empowerment has a
broader meaning than participation, and this understanding has evolved over time with the addition
and development of theories of management and organizational behavior.

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International Journal of Application on Economics and Business (IJAEB)
Volume 1, Issue 1, 2023. ISSN: 2987-1972

This study will examine the effect of employee empowerment and work environment on
organizational commitment and its impact on employee performance in private schools in North
Jakarta
(Ki Hajar Dewantara: Father of National Education of the Republic of Indonesia) defines
education as a very common need and demand in children's lives. The purpose of education is to
guide all the natural forces that exist in these children, so that they as humans and as members of
society can achieve the highest safety and happiness. Education is also a conscious effort to prepare
for the role of students in the future through guidance activities, such as counseling, education, and/or
training.
In this study used 4 variables, namely employee empowerment, work environment,
organizational commitment and employee performance.
Mulyadi [1] stating that: “Employee empowerment is a trend of human capital management in
future organizations”. According to Sutrisno [2] “The work environment is the overall work facilities
and infrastructure around employees who are doing work that can affect the implementation of work”.
Organizational commitment is a feeling of psychological and physical attachment or attachment to the
organization where he works or the organization, of which he is a member [3]. Employee
Performance is an employee's strong belief in accepting the values and goals of the organization,
staying in the organization, and achieving organizational goals.

1.1. Hypothesis Development

1.1.1. Employee Empowerment and Organizational Commitment

Good employee empowerment will be able to make employees committed to the work they do
and be responsible for all the decisions they take according to Meyerson and Dewenttick [4] in a study
entitled Effect of Empowerment on Employees Performance.
H1a: Employee Empowerment (X1) has a positive effect on organizational commitment
organizational commitment (Z).

1.1.2. Work Environment and Organizational Commitment

The state of the work environment certainly plays an important role in the quality of employee
job satisfaction results. Maximum satisfaction will be achieved if the work environment is quite
comfortable and communication is smooth. On the other hand, if the work environment is
uncomfortable and full of chaos and unfair competition, it can lead to employee burnout and
ultimately reduce job satisfaction. Working in a good, harmonious and dynamic environment certainly
makes employees feel safe and comfortable at work.
H1b: Work Environment (X2) has a positive effect on Organizational Commitment (Z).

1.1.3. Employee Empowerment and Employee Performance

A similar study was conducted by Ni Putu Apri Suandayani [5] entitled "The Effect of
Empowerment on Work Productivity on Employees of UD Budi Mega in Ambengan Village,
Sukasada District". The dimensions of empowerment used in this study are leadership, trust,
competence, and self-determination. Data collection methods using questionnaires, documentation,
and interviews. The data analysis technique used is descriptive analysis, and simple linear regression
analysis. The results of the analysis show that employee empowerment has a positive and significant
effect on increasing work productivity of employees.
H2a: Employee Empowerment (X1) has a positive effect on employee performance. (Y).

1.1.4. Work Environment and Employee Performance

Identifying and creating a good work environment will greatly determine the success of
achieving the company's organizational goals and being able to provide good service to employees.

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International Journal of Application on Economics and Business (IJAEB)
Volume 1, Issue 1, 2023. ISSN: 2987-1972

Conversely, if the work environment is not good, it will reduce morale and decrease employee
efficiency and performance.
H2b: Work Environment (X2) has a positive effect on Employee Performance (Y).

1.1.5. Organizational Commitment and Employee Performance

Commitment is basically a person's willingness to remind himself and show loyalty to the
organization because he feels himself involved in organizational activities. Furthermore, based on the
conception of thought above, it is interesting to conduct a study in one company related to
organizational commitment and its effect on employee performance. Organizational commitment
itself is interesting to study because it affects the continuity of the company.
H2c: Organizational Commitment (Z) has a positive effect on Employee Performance (Y).

2. RESEARCH MODEL AND METHOD

2.1. Research Model

The research model that can be built from the formulation of the five hypotheses discussed in the
previous section is as follows.

Figure 1. Research Model

Source: Research (2022)

Information:
EE = Employee Empowerment
WE = Work Environment
OC = Organizational Commitment
EP = Employee Performance

2.2. Research Methods

2.2.1. Research Paradigm

The research method that will be used is quantitative. Quantitative research is a type of research
that produces findings that can be achieved (obtained) by using statistical procedures or other means
of quantification (measurement). The quantitative approach focuses on the symptoms that have certain
characteristics in human life which he calls variables. In a quantitative approach, the nature of the
relationship between variables is analyzed using an objective theory [6]. Likert scale is designed to
see how strongly respondents agree or disagree with statements on a five-point likert scale [7].
Convergent validity can be measured by looking at the AVE value and the loading factor in each
indicator. According to Ghozali [8] for research in the early stages of developing a measurement scale
for the loading value of 0.5 until 0.6, it is considered sufficient. The expected AVE value is greater
than 0.5 [9].

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International Journal of Application on Economics and Business (IJAEB)
Volume 1, Issue 1, 2023. ISSN: 2987-1972

2.2.2. Population and Sample

The population of this study are employees who work in private schools in the North Jakarta
area. The population of the research to be conducted is 133 people with an error rate of 5%.

𝚴
𝓷=
𝟏 + 𝚴 . 𝓮𝟐
𝟏𝟑𝟑
𝓷=
𝟏 + 𝟏𝟑𝟑 𝒙 𝟎. 𝟎𝟓𝟐
𝓷 = 𝟗𝟗, 𝟖𝟏 = 𝟏𝟎𝟎

So, in this study, the number of samples determined was 99.81 which was rounded up to 100
people. Respondents in this study were employees who worked in private schools, especially in the
North Jakarta area.

2.2.3. Data Collection and Analysis

Data was collected using a questionnaire distributed online. From the collected respondents, a
pre-test was conducted on 30 respondents to test the validity and reliability, and 100 respondents were
involved in the actual statistical test. The data was processed using Structural Equation Modeling
(SEM) with a significance level of 5%.

3. RESULTS AND DISCUSSION

3.1. Respondents’ Profile

Gender. It can be seen that female respondents were 71 people with a percentage of 71% and
male respondents were 29 people with a percentage of 29%.
Age. The number of respondents who participated in this study were 100 people. respondents
aged under 20 years as many as 4 people with a percentage of 4%, ages 21-30 years as many as 46
people with a percentage of 46%, ages 31-40 years as many as 41 people with a percentage of 41%,
ages 41-50 years as many as 7 people with a percentage of 7 % and over the age of 50 years only 2
people with a percentage of 2%.
Last Education. It can be seen that there are 2 people whose last education is below high school
with a percentage of 2%, as many as 17 high school graduates equivalent with a percentage of 17%,
as many as 4 graduates of D1/D2/D3 with a percentage of 4%, as many as 63 people who graduate
from S1 with the percentage of 63%, and as many as 14 graduates S1/S3 (Post-Graduate) with a
percentage of 14%.
Length of Work. There are 22 people who work for less than 3 years with a percentage of 3%,
as many as 21 people who work for 3-5 years with a percentage of 21%, as many as 31 people who
work 31% long, as many as 15 people who work 9-11 years with a percentage of 15%, and as many as
11 people who worked for more than 11 years with a percentage of 11%.
Employee Status. Based on data collection, there are 14 interns with a percentage of 14%, as
many as 28 permanent workers with a percentage of 28%, as many as 58 contract workers with a
percentage of 58%.

3.2. Research Instruments

The research instrument is a survey conducted online and using an Interval scale (1 = strongly
disagree; 5 = strongly agree). The following is a list of indicators used to measure each variable:

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International Journal of Application on Economics and Business (IJAEB)
Volume 1, Issue 1, 2023. ISSN: 2987-1972

Table 1. Research Variables and Indicators

No Variable Indicator
Employee Empowerment Desire, Confidence, Credibility,
1
Khan in Arifin et. al. (2014) [10] Accountability, Communication
Work Environment Physical work environment,
2
Sedarmanyati (2011) [11] non-physical work environment
Affective Commitment,
Robbins and Judge's Organizational Commitment
3 Continuing Commitment,
(2013) [12]
Normative Commitment
External Environment, Internal
Employee Performance Mathis & Jackson in Donni
4 Environment, Internal
Juni Priansa (2014) [13]
Employees

3.3. Validity and Reliability Test (Pre-Test)

According to Sekaran and Bougie [7] The conditions for the validity test must meet the following
criteria:
1. Average Variance Extracted (AVE) of all variables must be more than 0.5 [14].
2. The value of the outer loading of each indicator must be more than 0.6.
3. Discriminant Validity is obtained by calculating the root of the correlation value of each variable
which must be greater than the cross squared correlation of that variable compared to other
research variables.

Table 2. Convergent Validity Analysis

Variable Indicator Loading Factor CR AVE
EE1 0.786
EE2 0.626
EE3 0.815
EE4 0.712
EE5 0.743
Employee
EE6 0.794 0.938 0.610
Empowerment
EE7 0.784
EE8 0.796
EE9 0.781
EE10 0.788
EE11 0.732
WE1 0.762
WE2 0.797
WE3 0.798
Work Environment 0.913 0.638
WE4 0.826
WE5 0.832
WE6 0.770
OC1 0.777
OC2 0.821
Organizational OC3 0.782
0.913 0.637
Commitment OC4 0.786
OC5 0.760
OC6 0.861
EP1 0.781
Employee EP2 0.755
0.904 0.580
Performance EP3 0.812
EP4 0.818

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International Journal of Application on Economics and Business (IJAEB)
Volume 1, Issue 1, 2023. ISSN: 2987-1972

EP5 0.794
EP6 0.723
Source: Results of data processing for this research

From Table 2 it can be seen that all the variables of this study are eligible and valid.

Table 3. Discriminant Validity

CR AVE EE WE OC EP
EE 0.938 0.610 0.744 0.710 0.761 0.762
WE 0.913 0.638 0.772 0.719 0.798
OC 0.913 0.637 0.784 0.799
EP 0.904 0.580 0.781
Source: Results of data processing for this research

Discriminant validity is obtained if each construct (square root of AVE) is greater than the correlation
between constructs and other constructs. From Table 3 above, it can be seen that the numbers in bold
and red indicate the value of discriminant validity, but the variable is not greater than the correlation
between constructs and is declared valid.

Table 4. Pre-Test Reliability Analysis

Variable Cronbach’s Alpha Reliable / Unreliable
Employee Empowerment 0.927 Reliable
Work Environment 0.886 Reliable
Organizational Commitment 0.886 Reliable
Employee Performance 0.872 Reliable
Source: Results of data processing for this research

Table 4 shows that all variables are declared reliable because they have a Crobach Alpha value >
0.7 [7]. The actual research results also show that the research data used are valid and reliable.

4. CONCLUCIONS

Based on the results of data processing and analysis that has been carried out, the following
conclusions can be drawn, namely:
1. Employee Empowerment can be used to positively predict Organizational Commitment to Private
Schools in North Jakarta.
2. Work Environment can be used to predict positively Organizational Commitment to Private
Schools in North Jakarta.
3. Employee Empowerment can be used to positively predict Employee Performance at Private
Schools in North Jakarta.
4. Work environment can be used to positively predict employee performance in private schools in
North Jakarta.
5. Organizational Commitment can be used to positively predict Employee Performance in Private
Schools in North Jakarta.

GRATITUDE

My gratitude goes to Universitas Tarumanagara, especially the Faculty of Economics and

Business which has provided the opportunity for me to conduct and publish the results of this research.
I would also like to thank the reviewers from this journal who have provided valuable input to
improve the quality of the presentation of my research results. My appreciation also goes to the

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International Journal of Application on Economics and Business (IJAEB)
Volume 1, Issue 1, 2023. ISSN: 2987-1972

respondents (private employees in North Jakarta) who have taken the time to fill out my research
questionnaire and other parties who have helped me complete and publish this research.

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[4] G. Meyerson and B. Dewettinck, “In a study entitled Effect of Empowerment on Employees
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