Issue

Vol 36 No 2 (2021): May

Date Log

Submitted
Mar 4, 2021
Published
May 11, 2021

Copyright

Upon acceptance of an article, authors transfer copyright to the JIEB as part of a journal publishing agreement, but authors still have the right to share their article for personal use, internal institutional use, and for any use permitted under the CC BY-SA license

Open Access

Articles are freely available to the public without any subscription with permitted reuse. For open access articles, permitted third party (re)use is defined by the following Creative Commons user licenses: Creative Commons Attribution (CC BY-SA).

Empathetic Leadership, Job Satisfaction and Intention to Leave among Millennials in a Start-up Industry: Needs’ Satisfaction as a Mediating Variable

https://doi.org/10.22146/jieb.v36i2.1398
Muhammad Cesare Wicaksana Negoro
Amin Wibowo
aminwibowo@ugm.ac.id

Corresponding Author(s) : Amin Wibowo

aminwibowo@ugm.ac.id

Journal of Indonesian Economy and Business, Vol 36 No 2 (2021): May

Abstract

Introduction/Main Objectives: The purpose of this research is to examine the relationship between empathetic leadership and employees' job satisfaction and the intention to leave with needs’ satisfaction as a mediating variable among millennials in a start-up business. The number of millennials will only continue to grow, and by 2025 it is expected that 75% of the global workforce will be millennials. In particular, empathetic leadership will be required to manage and control this generation if the organizations they choose to work for are to be successful, as this generation’s members have different characteristics compared to those of the older generations. Design/methodology/approach: Following a cross-sectional research design, this research collected data from 137 millennial employees of start-up companies in Indonesia. A structural equation modeling technique was used for the data’s analysis. Findings: The results reveal that empathetic leadership has a direct and positive relationship with employees' job satisfaction and has a direct and negative relationship with the intention to leave. Needs’ satisfaction partially mediates these relationships. Originality: This study makes a novel contribution to the existing literature by first providing empirical evidence that among the three dimensions of needs’ satisfaction only the relatedness dimension passed the measurement test in the structural equation modeling. Second, empathetic leadership is proven to increase job satisfaction and reduce the intention to leave among millennials, considering their unique characteristics. Research limitations/implications: The research was conducted during COVID-19 pandemic. Circumstances related to that pandemic might influence the result of this study. It is, therefore suggested to conduct the study again under normal circumstances. Policy and Practical implications: The findings of this study suggest managers should develop an empathetic leadership style in order to better manage the millennials. Leaders can be nurtured, but disciplined efforts have to be invested in their creation.


 

Keywords

empathetic leadership, needs’ satisfaction, job satisfaction, intention to leave, millennials, start-up industry
Negoro, M. C. W., & Wibowo, A. (2021). Empathetic Leadership, Job Satisfaction and Intention to Leave among Millennials in a Start-up Industry: Needs’ Satisfaction as a Mediating Variable. Journal of Indonesian Economy and Business, 36(2), 136-154. https://doi.org/10.22146/jieb.v36i2.1398
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX
References
  1. Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T
  2. Ali, N. (2009). Factors Affecting Overall Job Satisfaction and Turnover Intention. Journal of Management Science, 2: 239-252.
  3. Avolio, B. J., & Hannah, S. T. (2019). An enduring leadership myth. Organizational Dynamics, 100730. https://doi.org/10.1016/j.orgdyn.2019.08.002
  4. Axelrod, R. (2009). The evolution of cooperation (Revision). Basic Book.
  5. Barclay, D., Higgins, C., & Thompson, R. (1995). The Partial Least Squares (PLS) Approach to Causal Modeling: Personal Computer Adoption and Use as an Illustration. Technology Studies, 2(2), 285–324.
  6. Bass, B. M. (1990). From transactional to transformational leadership: Learning to share the vision. Organizational Dynamics, (Winter): 19-31.
  7. Baumeister, R. F., & Leary, M. R. (1995). The need to belong: Desire for interpersonal attachments as a fundamental human motivation. In Psychological Bulletin (Vol. 117, Issue 3, pp. 497–529). American Psychological Association. https://doi.org/10.1037/0033-2909.117.3.497
  8. Bennis, W. (2007). The challenges of leadership in the modern world: Introduction to the special Issue. American Psychologist, 62(1), 2–5. https://doi.org/10.1037/0003-066X.62.1.2
  9. Blomme, R. J., Van Rheede, A., & Tromp, D. M. (2010). Work-Family Conflict as a Cause for Turnover Intentions in the Hospitality Industry. Tourism and Hospitality Research, 10(4), 269–285. https://doi.org/10.1057/thr.2010.15
  10. Bolland, E., & Lopes, C. (2014). Generations and Works. Palgrave MacMillan.
  11. Bono, J. E., Foldes, H. J., Vinson, G., & Muros, J. P. (2007). Workplace Emotions: The Role of Supervision and Leadership. Journal of Applied Psychology, 92(5), 1357–1367. https://doi.org/10.1037/0021-9010.92.5.1357
  12. Bowles, S., & Gintis, H. (2011). A cooperative species: Human reciprocity and its evolution. Princeton University Press.
  13. Brower, H. H., Schoorman, F. D., & Tan, H. H. (2000). A model of relational leadership: The integration of trust and leader–member exchange. The Leadership Quarterly, 11(2), 227–250. https://doi.org/10.1016/S1048-9843(00)00040-0
  14. Cammann, C., Fichman, M., Jenkins, G. D., & Klesh, J. (1983). Michigan Organizational Assessment Questionnaire. In S. E. Seashore, E. E. Lawler, P. H. Mirvis, & C. Cammann (Eds.), Assessing Organizational Change: A Guide to Methods, Measures, and Practices (pp. 71–138). Wiley-Interscience.
  15. Cardador, M. T., Dane, E., & Pratt, M. G. (2011). Linking calling orientations to organizational attachment via organizational instrumentality. Journal of Vocational Behavior, 79(2), 367–378. https://doi.org/10.1016/j.jvb.2011.03.009
  16. Chou, S. Y. (2012) Millennials in the Workplace: A Conceptual Analysis of Millennials' Leadership and Followership Styles. International Journal of Human Resource Studies, May 2(2) DOI: 10.5296/ijhrs.v2i2.1568
  17. Chiesa, A., & Serretti, A. (2011). Mindfulness based cognitive therapy for psychiatric disorders: A systematic review and meta-analysis. Psychiatry Research, 187(3), 441–453. https://doi.org/10.1016/j.psychres.2010.08.011
  18. Chopra-McGowan, A. (2019). What Startup Employees Can Teach the Rest of Us About Work. https://hbr.org/2019/06/what-startup-employees-can-teach-the-rest-of-us-about-work
  19. Cornelis, I., Van Hiel, A., De Cremer, D., & Mayer, D. M. (2013). When leaders choose to be fair: Follower belongingness needs and leader empathy influences leaders’ adherence to procedural fairness rules. Journal of Experimental Social Psychology, 49(4), 605–613. https://doi.org/10.1016/j.jesp.2013.02.016
  20. Deci, E. L., Ryan, R. M., Gagné, M., Leone, D. R., Usunov, J., & Kornazheva, B. P. (2001). Need satisfaction, motivation, and well-being in the work organizations of a former eastern bloc country: A cross-cultural study of self-determination. Personality and Social Psychology Bulletin, 27(8), 930–942. https://doi.org/10.1177/0146167201278002
  21. Di Gulio, J. V. (2014). Are leaders born or made? PSM310 Leadership and Business Acumen. https://www.researchgate.net/publication/270684591_Are_leaders_born_or_made
  22. Dulebohn, J. H., Bommer, W. H., Liden, R. C., Brouer, R. L., & Ferris, G. R. (2012). A Meta-Analysis of Antecedents and Consequences of Leader-Member Exchange: Integrating the Past With an Eye Toward the Future. Journal of Management, 38(6), 1715–1759. https://doi.org/10.1177/0149206311415280
  23. Dunbar, R., Barrett, L., & Lycett, J. (2005). Evolutionary psychology: A beginner’s guide (Oneworld).
  24. Edmondson, A. C., & Lei, Z. (2014). Psychological Safety: The History, Renaissance, and Future of an Interpersonal Construct. Annual Review of Organizational Psychology and Organizational Behavior, 1(1), 23–43. https://doi.org/10.1146/annurev-orgpsych-031413-091305
  25. Ertas, N. (2015). Turnover Intentions and Work Motivations of Millennial Employees in Federal Service. Public Personnel Management, 44(3), 401–423. https://doi.org/10.1177/0091026015588193
  26. Ferri-Reed, J. (2014). Are Millennials Employees Changing How Managers Manage? The Journal for Quality and Participation, 37(2), 15–35.
  27. Firth, L., Mellor, D. J., Moore, K. A., & Loquet, C. (2004). How can managers reduce employee intention to quit? Journal of Managerial Psychology, 19(2), 170–187. https://doi.org/10.1108/02683940410526127
  28. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.2307/3151312
  29. Gallup. (2016). How Millennials Want to Work and Live Purpose. Gallup.Inc, 23. www.gallup.com/contact
  30. Geertshuis, S. A., Morrison, R. L., & Cooper-Thomas, H. D. (2015). It’s not what you say, it’s the way that you say it: The mediating effect of upward influencing communications on the relationship between leader-member exchange and performance ratings. International Journal of Business Communication, 52(2), 228–245. https://doi.org/10.1177/2329488415572784
  31. Gilet, A. L., Mella, N., Studer, J., Griihn, D., & Labouvie-Vief, G. (2013). Assessing dispositional empathy in Adults: A french validation of the interpersonal reactivity index (IRI). Canadian Journal of Behavioural Science, 45(1), 42–48. https://doi.org/10.1037/a0030425
  32. Gilmer, B. (1974). Industrial Psychology. McGraw Hill Book Company.
  33. Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate Data Analysis (5th ed.). Prentice-Hall International, Inc.
  34. Hanson-Rasmussen, N. J., & Lauver, K. J. (2018). Environmental responsibility: millennial values and cultural dimensions. Journal of Global Responsibility, 9(1), 6–20. https://doi.org/10.1108/jgr-06-2017-0039
  35. Hughes, D. (2015). Will millennials ruin the workplace? Statesman Journal. https://www.statesmanjournal.com/story/opinion/columnists/dick-hughes/2015/11/14/millennials-ruin-workplace/75767920/
  36. Hulland, J. (1999). Use of Partial Least Squares (PLS) in Strategic Management Research: A Review of Four Recent Studies. Strategic Management Journal, 20(2), 195–204.
  37. Ilies, R., Arvey, R. D., & Bouchard, T. J. (2006). Darwinism, behavioral genetics, and organizational behavior: A review and agenda for future research. Journal of Organizational Behavior, 27(2), 121–141. https://doi.org/10.1002/job.351
  38. Kaifi, B. A., Nafei, W. A., Khanfar, N. M., & Kaifi, M. M. (2012). A multi-generational workforce:
  39. managing and understanding millennials. International Journal of Business & Management,
  40. (24), 88-93
  41. Karim, A., Mardhotillah, N. F., & Samadi, M. I. (2019). Ethical leadership transforms into ethnic: Exploring new leaders’s style of Indonesia. Journal of Leadership in Organizations, 1(2), 146–157. https://doi.org/https://doi.org/10.22146/jlo.44625
  42. Kelloway, E. K., Gottlieb, B. H., & Barham, L. (1999). The source, nature, and direction of work and family conflict: A longitudinal investigation. In Journal of Occupational Health Psychology (Vol. 4, Issue 4, pp. 337–346). https://doi.org/10.1037/1076-8998.4.4.337
  43. King, K. A. (2017). The talent climate: Creating an organisational context supportive of sustainable talent development through implementation of a strong talent system. Journal of Organizational Effectiveness, 4(4), 298–314. https://doi.org/10.1108/JOEPP-03-2017-0023
  44. Kock, N., Mayfield, M., Mayfield, J. R., Sexton, S., & De La Garza, L. M. (2018). Empathetic Leadership: How Leader Emotional Support and Understanding Influences Follower Performance. Journal of Leadership and Organizational Studies, 26(2), 217–236. https://doi.org/10.1177/1548051818806290
  45. Landrum, S. (2018). Millennials Are Happiest When They Feel Connected to Their Co-Workersle. https://www.forbes.com/sites/sarahlandrum/2018/01/19/millennials-are-happiest-when-they-feel-connected-to-their-co-workers/#6886e8d3a2fd
  46. Lee Smith, S., & Kelloway, E. K. (2016). Respect in the workplace: an evaluation of a short online intervention program. Journal of Organizational Effectiveness, 3(4), 395–410. https://doi.org/10.1108/JOEPP-02-2016-0008
  47. Lloyd, K. J., Boer, D., & Voelpel, S. C. (2015). From listening to leading: Toward an understanding of supervisor listening within the framework of leader-member exchange theory. International Journal of Business Communication, 54(4), 431–451. https://doi.org/10.1177/2329488415572778
  48. Locke, E. A. (1976). The Nature and Causes of Job Satisfaction. In M. D. Dunnette (Ed.), Handbook of Industrial and Organizational Psychology (pp. 1297–1343).
  49. Long, C. S., & Thean, L. Y. (2011). Relationship between Leadership Style, job Satisfaction and Employee's Turnover: A Literature Review. ResearchJournal of Business Management, 5 (3): 91-100.
  50. Madlock, P. E. (2008). The Link Between Leadership Style, Communicator Competence, and Employee Satisfaction. The Journal of Business Communication (1973), 45(1), 61–78. https://doi.org/10.1177/0021943607309351
  51. Mahan, T., Nelms, D., Bearden, C., & Pearce, B. (2019). Retention report. https://info.workinstitute.com/hubfs/2019 Retention Report/Work Institute 2019 Retention Report final-1.pdf
  52. Martin, G. (2005). Managing People in Changing Contexts. Edinburgh Business School. https://www.ebsglobal.net/EBS/media/EBS/PDFs/Managing-People-Changing-Contexts-Course-Taster.pdf
  53. Maslach, C., & Leiter, M. P. (2016). Burnout. Encyclopedia of Mental Health: Second Edition, 222–227. https://doi.org/10.1016/B978-0-12-397045-9.00149-X
  54. Mayfield, M., & Mayfield, J. (2015). The effects of leader motivating language use on employee decision making. International Journal of Business Communication, 53(4), 465–484. https://doi.org/10.1177/2329488415572787
  55. Mchugh, M., & Brennan, S. (1992). Organization Development and Total Stress Management. Leadership & Organization Development Journal, 13(1), 17–32.
  56. McClelland, D.C., & Burnham, D. H. (1976). Power is the Great Motivator. Harvard Business Review, 54, 100-110
  57. Messick, D. M. (2005). On the Psychological Exchange Between Leaders and Followers. In D. M. Messick & R. M. Kramer (Eds.), The Psychology of Leadership (pp. 83–98). Lawrence Erlbaum Associates.
  58. Millennials in the workplace. (2017). ELI Learning Solutions. https://www.eliinc.com/everything-need-know-millennials-workplace-infographic/
  59. Mind Share Partners’ Mental Health at Work 2019 Report. (2019). Mind Share Partners. https://www.mindsharepartners.org/download-2019report
  60. Murphy, M. (2018). The Top Thing That Millennials Want From You Is Absolutely Free. https://www.forbes.com/sites/markmurphy/2018/11/11/the-top-thing-that-millennials-want-from-you-is-absolutely-free/#79523bc6c352
  61. Negoro, M. C. W. (2020). The Effect of Empathetic Leadership to Employee Job Satisfaction and the Mediating Role of Employee Need Satisfaction: A Study of Indonesian Millennials in the Start-up Industry. Bachelor Thesis, Universitas Gadjah Mada.
  62. Owens, B. P., & Hekman, D. R. (2016). How does leader humility influence team performance? Exploring the mechanisms of contagion and collective promotion focus. Academy of Management Journal, 59(3), 1088–1111. https://doi.org/10.5465/amj.2013.0660.
  63. Purnomo, H., Karim, A., Rahmatullah, A. S., & Sudrajat, S. (2020). Principals’ personality, leadership, teachers’ job satisfaction and students’ achievement. International Journal of Psychosocial Rehabilitation, 24(08), 4581–4596. https://doi.org/10.37200/IJPR/V24I8/PR280475.
  64. PWC. (2011). Millennials at work: Reshaping the workplace. Pricewaterhouse Coopers International Limited (PwCIL), 1–28.
  65. Qodriah, S. L., Hartati, W., & Karim, A. (2019). Self-leadership and career success: Motivation of college lecturers. Journal of Leadership in Organizations, 1(2), 79–95.
  66. Rahn, D. L., Jawahar, I. M., Scrimpshire, A. J., & Stone, T. (2016). Are leaders defined by followers? Role of follower’s ILT and the mediating influence of LMX on follower outcomes. Journal of Organizational Effectiveness, 3(1), 43–69. https://doi.org/10.1108/JOEPP-04-2015-0016
  67. Reb, J., Narayanan, J., & Chaturvedi, S. (2012). Leading Mindfully: Two Studies on the Influence of Supervisor Trait Mindfulness on Employee Well-Being and Performance. Mindfulness, 5(1), 36–45. https://doi.org/10.1007/s12671-012-0144-z
  68. Ryan, R. M., & Deci, E. L. (2000). Self-determination theory. Development of Self-Determination Through the Life-Course, 55(1), 47–54. https://doi.org/10.1007/978-94-024-1042-6_4
  69. Ryan, R. M., & Deci, E. L. (2002). Overview of self-determination theory: An organismic-dialectical perspective. In Handbook of self-determination research. (pp. 3–33). University of Rochester Press.
  70. Ryan, R. M., Sheldon, K. M., Kasser, T., & Deci, E. L. (1996). All Goals Were Not Created Equal: An Organizational Perspective on the Nature of Goals and Their Regulation, in P.M. Gollwitzer & J. A. Bargh (eds), The Psychology of Action: Linking Motivational and Cognition to Behavior (pp. 7-26). New York, NY: Goilford
  71. Smith, T.J. and Nichols, T. (2015). Understanding the Millennial Generation. Journal of Business Diversity, Vol. 15(1)
  72. Stevenson, A. (Ed.). (2010). Oxford Dictionary of English (Third). Oxford University Press.
  73. Utomo, W. P. (2019). Indonesia Millennial Report 2019. IDN Research Institute, 01, 61. https://www.idntimes.com/indonesiamillennialreport2019
  74. Van Breukelen, W., Schyns, B., & le Blanc, P. (2006). Leader-Member Exchange Theory and Research: Accomplishments and Future Challenges. Leadership, 2(3), 295–316. https://doi.org/10.1177/1742715006066023
  75. Williams, R. (2017). The New Startup Attire: Just Be You. https://www.forbes.com/sites/rodneywilliams/2017/03/30/the-new-startup-attire-just-be-you/#22e6f96c64b2
  76. Wong, M., Gardiner, E., Lang, W., & Coulon, L. (2008). Generational differences in personality and motivation: Do they exist and what are the implications for the workplace? Journal of Managerial Psychology, 23(8), 878–890. https://doi.org/10.1108/02683940810904376
  77. Zhu, Y. (2012). A review of job satisfaction. Asian Social Science, 9(1), 293–298. https://doi.org/10.5539/ass.v9n1p293
Read More
Author biographies is not available.
Download this PDF file
PDF
Statistic
Read Counter : 1956 Download : 2168