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PREDICTING EMPLOYEES’ HAPPINESS AND INNOVATIVENESS THROUGH THE LENS OF

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Nguyễn Gia Hào

Academic year: 2023

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The main title of the research project is Predicting Employees' Happiness and Innovativeness through the lens of Internal CSR Practices. The research also plans to examine the most important dimension of internal CSR practices in relation to employee happiness and employee innovation.

Introduction

  • Overview
  • Background of Study
  • Problem Definition
  • Research Questions
  • Research Objectives
  • Scope of the Research
  • Significance of the Research
  • Outline of the Study
  • Chapter Summary

2021) discussed the impact of internal CSR towards employees. 2021) discussed the impact of CSR on employee happiness. The most important dimension of CSR in relation to employees' happiness and innovativeness will be discovered and analyzed.

Literature Review

Introduction

The Concept of Internal CSR

This highlights the importance of long-term business success and for organizations to achieve long-term viability. This is outlined in the United Nations Convention on the Rights of the Child and the Universal Declaration of Human Rights.

The Seven Core Dimension of Internal CSR

  • Employment Stability
  • Working Environment
  • Skills Development
  • Work-life Balance
  • Workplace Diversity
  • Tangible Employee Involvement
  • Empowerment

The organizations will be able to increase the potential of the employees if they would provide the employees with a stable job. Organizations need to strike a balance between empowering their employees and ensuring that employees are happy with their work.

The Concept of Employees’ happiness and Employees’ innovativeness

  • Employees’ happiness
  • Employees’ innovativeness

Pride is the feeling of honor; it is when the employee is proud to work in the organization (Dahiya . & Rangnekar, 2018). Firstly, a happy employee is more likely to express their opinions, this is due to the fact that happy employees feel their opinion is valued and they will have the chance to express themselves and contribute to the organization (Dahiya , 2021). A diverse organization can help provide different innovative ideas that can bring a fresh perspective to the organization.

This is because the employees will think in the customer's point of view and introduce a new perspective for the organization. Innovative minds are more likely to come up with ideas and products that can improve the organization and help the organization create better products (Konuk, 2019).

Review of Relevant Models

  • Carroll’s Pyramid of Corporate Social Responsibility
  • Corporate Social Responsibility – Universal Model
  • Eudaimonic Activity Model
  • Use Innovativeness Model

28 environment, society, organization or others, as it is the obligation of the organization to strive for justice, fairness and justice. This is where organizations give back to the community and donate to others that align with the organization's goals. The research believes that the environment will influence the organization's stakeholders and decision-makers.

Based on the environment, the organization will be able to assimilate their beliefs into the organization using the CSR framework. These values ​​will then turn into assumptions that can help the organization make the strategic decision to pursue.

Figure 2.2 Universal CSR Model
Figure 2.2 Universal CSR Model

Past Theoretical Frameworks

Similarly, Al-bdour et al. 2010), a research was done by Mory, Wirtz and Göttel (2015) which studied the relationship between internal CSR and organizational commitment. The study also found that internal CSR has a significant positive relationship with employees' normative organizational commitment. Regarding the relationship between affective organizational commitment and normative organizational commitment, affective organizational commitment has a mediating effect on normative organizational commitment.

The study found that instrumental CSR has a potentially positive impact on the satisfaction of basic needs of hotel employees. On the other hand, voluntary CSR has a significant positive impact on the self-esteem of hotel employees.

Conceptual Framework

Hypotheses Development

  • Internal CSR and Employees’ happiness
  • Internal CSR and Employees’ innovativeness
  • Employees’ happiness and Employees’ innovativeness

The research also shows that ESRB promotes innovative power in companies and can be the catalyst for non-innovative organizations to start innovation. The study thus concluded that there is a positive relationship between CSR and innovative capacity, with organizations that invest in research and development having a competitive advantage. The research was conducted in Malaysia and studied the impact of happiness on innovativeness and engagement.

Aldieri, Bruno and Vinci (2020) addressed the relationship between innovativeness and individuals' well-being. Innovativeness and happiness are thus driving forces that promote entrepreneurial initiative and intellectual property (Usai, Orlando & Mazzoleni stated that hedonic happiness and eudemonic happiness have a significant positive relationship with employees' innovativeness.

Chapter Summary

Methodology

  • Introduction
  • Research Design
    • Quantitative Research
    • Descriptive Study
  • Data Collection Methods
    • Primary Data
    • Secondary Data
  • Sampling Design
    • Target Population
    • Sampling Size
    • Sampling Elements
    • Sampling Technique
  • Research Instrument
    • Questionnaire Design
    • Pilot Test
  • Construct Measurement
    • Scale Measurement
    • Origin of Construct
  • Data Processing
    • Questionnaire Checking
    • Data Editing
    • Data Coding
    • Data Testing
    • Data Cleaning
  • Data Analysis
    • Descriptive Analysis
    • Internal Reliability Test
    • Pearson Correlation Matrix
    • Collinearity Assessment
    • Linear Regression
  • Chapter Summary

These questions can be further analyzed in the study, such as finding out the gender difference in the results. In this case, the questionnaires will be given to different people for the purpose of the survey. The definition of the target group will thus directly determine whether the respondents are qualified for the survey (Lavrakas, 2008).

It is thus important for the research to fulfill the criteria of the Central Limit Theorem. A clearer picture of the demographic data and a better understanding of the respondents will be discovered with the help of this analysis.

Table 3.1 Pilot Test
Table 3.1 Pilot Test

Data Analysis

Introduction

Frequency Analysis

  • Gender
  • Age
  • Ethnicity
  • Marital Status
  • Highest Education Level
  • Year(s) working with current organization
  • Job Position

As shown in the frequency table and pie chart above, the majority of respondents are Chinese in a number of respondents. Almost half of the respondents currently have a bachelor's/professional degree and or equivalent with a frequency of 150 respondents (49.18%). The bar chart and frequency table above represent how long respondents have worked at their current organization.

The pie chart and frequency table above shows that 139 respondents (45.57%) are working at a non-managerial level. 66 respondents (21.64%) are currently lower management level employees, while 55 respondents (18.03%) are currently in a higher management position.

Table 4.2 Frequency Table for Age
Table 4.2 Frequency Table for Age

Descriptive Analysis

  • Abbreviation Representation
  • Construct Analysis

The mean and the median of all the constructs are between 5 and 6, this means the mean and midpoint of the constructs are somewhat similar and agree. Standard deviation explains that the constructs deviate about one to two points from the mean, this means that the data is less favorable for strongly disagree and strongly disagree. Excess kurtosis measures whether the data is flatter or steeper than the normal bell-shaped curve where a positive number indicates a higher histogram and a negative number indicates a flatter histogram (Bao, 2013).

Positive skewness is when the data is shifted to the left side, while negative skewness is when the right side of the histogram is more common (Bao, 2013). All constructs are negative in asymmetry, which means that the data is more spread on the right side (I agree).

Measurement Model Analysis

  • Factor Loading
  • Reliability and Internal Consistency
  • Convergent Validity
  • Discriminant Validity

The reliability and internal consistency of the research can be done using the Cronbach Alpha, rho_A and composite reliability. All the constructs in the table have a score above 0.8, so they are reliable constructs. Convergent validity explains the closeness of the construct to other measures in the same construct.

Average Variance Extracted (AVE) can be used to test the convergent validity of constructs. This indicates that the constructs are highly correlated with their indicators compared to other constructs of the model (Fornell & Larcker, 1981), indicating good discriminant validity (Hair et al., 2017).

Table 4.11 Fornell and Larcker Criterion Table
Table 4.11 Fornell and Larcker Criterion Table

Structural Model Assessment

  • Collinearity Assessment
  • Pearson Correlation
  • Path Coefficient Assessment

In this sense, the dimensions of internal CSR practices and the variables employee happiness and innovation capacity of employees are used. The correlation between the factors must be positive, because there is a positive relationship between the variables (Sekaran and Bougie, 2013). The correlation between the dependent variables and the dimensions of internal CSR practices can paint a picture of the most important factor.

The mean and standard deviation of the dimension of internal CSR practices are shown, where the standard deviation does not deviate much from the mean. Since the results are satisfactory, all the constructs of Internal CSR are statistically significant at an alpha value of 0.05.

Table 4.13 Correlation Matrix of Construct
Table 4.13 Correlation Matrix of Construct

Linear Regression Assessment

  • Dimensions of Internal CSR practices and Employees’ Happiness
  • Dimensions of Internal CSR and Employees’ Innovativeness
  • Employees’ Happiness and Employees’ Innovativeness

Thus, it is possible to create a model for the dimensions of internal social responsibility and employee satisfaction. Thus, the linear regression model shows that WD (workplace diversity) is the most important dimension of employee happiness, followed by E, WLB, WE and SD. Thus, the linear regression model shows that E (empowerment) is the most important dimension of employee innovation, followed by ES, WE and WLB.

According to the linear regression model above, it can be concluded that at an alpha value of 0.05, both the constant (0.000) and H (0.000) are statistically significant. In this way, the model for the dimensions of internal CSR and the innovative power of employees can be drawn up.

Table 4.16 Linear Regression Table for Dimensions of Internal CSR practices and  Employees’ Innovativeness
Table 4.16 Linear Regression Table for Dimensions of Internal CSR practices and Employees’ Innovativeness

Testing of Hypotheses

This result is similar to the linear regression model at 4.5.3 where there is a significant positive relationship between variables.

Concluding Framework

Chapter Summary

Discussion and Conclusion

Introduction

Discussion on Findings

  • Discussion on Internal CSR practices and Employees’ Happiness
  • Discussion on Internal CSR practices and Employees’ Innovativeness
  • Discussion on Employees’ Happiness and Employees’ Innovativeness

Similarly, Espasandín-Bustelo, Ganaza-Vargas and Diaz-Carrion (2021) stated that internal CSR practices can increase employee happiness. This includes employee concern and behavior. 2021) asserted that instrumental CSR has a slight positive relationship with hedonic happiness and voluntary CSR has a significant positive relationship with eudaemonic happiness. According to the research results, internal CSR practices have a significant positive relationship with employee innovation at a p-value of 0.000.

The research found that skill development, diversity in the workplace and tangible employee involvement are not significant internal CSR practices to increase employee innovation. 0.002) in chapter 4, the results show that there is a significant positive correlation between employees' happiness and employees' innovativeness.

Managerial Implication

83 Organizations should also provide employees with stable employment and ensure that employees are not fired due to increased innovation. In addition, organizations should ensure a valid work-life balance where employees can spend time with their loved ones (Alegre & Pasamar, 2017). Organizations should focus on increasing employee satisfaction as this could increase organizational innovation.

A high level of comfort can lead to employee loyalty and commitment to the organization. This means that once an organization provides employees with adequate skills development training, they will be able to deliver innovative ideas to the organization.

Limitations of Research

Recommendations for Future Research

Conclusion

International Journal of Diversity in Organizations, Communities & Nations Understanding employee responses to COVID-19: a behavioral CSR perspective”, Management Research: Journal of the Iberoamerican Academy of Management, Vol. The relationship between internal corporate social responsibility and organizational commitment in the banking sector in Jordan. Do hotel employees really care about corporate social responsibility (CSR): A happiness approach to employee innovation.

Internal corporate social responsibility and. organizational creativity: An empirical study of Vietnamese SMEs. Relationships between perceived role of ethics and social responsibility, internal corporate social responsibility and organizational commitment i.

Gambar

Figure 2.1 Carroll’s Pyramid of CSR
Figure 2.2 Universal CSR Model
Figure 2.3 Model of Happiness
Figure 2.4 Innovativeness Model
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