The Effects of Organizational Culture and Leadership Style toward Employee Engagement and Their Impacts toward Employee Loyalty

Abstract

The concept of employee engagement has been discussed by many of HRD practitioners lately because it is believed to have positive impacts toward performance, work attitude and work behavior. Although empirical studies have attracted interests from many researchers, researches on this topic were still limitedly done in western countries. This research which was done in Indonesia in hotel sector was expected to provide support toward research model on employee engagement in Asian context. This research was aimed to find out whether organizational culture and leadership style are included as factors which affect employee engagement and if employee engagement is a mediating factor for organizational culture and leadership style toward employee's loyalty. Research data was gained from 102 respondents by means of structured questioner. Through multiple regression test and two-stage least squares analysis, a hypothesis that organizational culture and leadership style have effects toward employee engagement were supported in this research. Employee engagement has also been found to significantly affect loyalty. Besides that, the role of employee engagement as a mediating variable for the effect of organizational culture and leadership style toward loyalty also has been proved in this research