Employee Empowerment in the Decision-Making Process: Evidence from the Food and Beverage Industry in Indonesia

Authors

  • Michelle Yit School of Business Management, Institute Technology Bandung
  • Yuniros Bangun School of Business Management, Institute Technology Bandung

DOI:

https://doi.org/10.12695/jmt.2020.19.1.5

Keywords:

Employee empowerment, food industry, Indonesia

Abstract

Abstract. A study was conducted to investigate the employee empowerment in decision-making process in food and beverage (F&B) industry in Indonesia. The rise of educated middle class population and increase of consumer trends has compelled the F&B manufactures to make new innovations. The employment situation showed that organizations have difficulty retaining talents. Employee empowerment is closely related to decision making where the superior shares authority with the employee. A conceptual model was built where the leader, employee, leader and employee relation and organizational tools profiles were measured on employees' level of involvement on types of decisions in a food and beverage factory. Nine decision making questions common in food factories were selected and validated. A quantitative survey was conducted with 203 respondents'. Using multiple regression analysis, the overall model of each leader, employee, leader and employee relation, and organizational tools proved significant and positively predicting decision making and innovation. In addition, seniority position and level also showed significance. F&B manufacturers should use employee empowerment as a key strategy to stay competitive, build an innovative culture,and retaintalented employees.

Keywords: Employee empowerment, decision making, innovation, food industry, Indonesia


Abstrak. Studi dilakukan untuk meneliti pemberdayaan pegawai dalam pengambilan keputusan pada industi makanan dan minuman di Indonesia. Peningkatan populasi kelas menengah yang terdidik dan peningkatan tren konsumer telah mempercepat langkah manufaktur makanan dan minuman untuk berinovasi dalam produk baru. Situasi kekaryawanan di Indonesia menunjukkan kesulitan perusahaan dalam mempertahankan pegawai. Pemberdayaan karyawan berhubungan erat dengan pengambilan keputusan dimana pengusaha atau manajer membagi kekuasaan kepada karyawan. Model konspetual dibuatdimana profil pimpinan, profil karyawan, alat organisasi, hubungan karyawan dan pimpinan, diukur berdasarkan tingkat keterlibatan karyawan dalampengambilan keputusan. Sembilan keputusan terkait pabrik makanan dan minuman dipilih dan divalidasi. Survey kuantitatif dilakukan secara nasional terhadap 203 responden. Dari hasil analisa multiple regression, model keseluruhan pada karyawan, pimpinan, alat organisasi, serta hubungan pimpinan dan karyawan, terbukti valid. Posisi serta level dari pimpinan perusahaan ke responden juga mempengaruhi perberdayaan karyawan. Manufaktur makanan dan minuman direkomendasikan untuk menggunakan pemberdayaan karyawan sebagai strategi kunciuntuk tetap kompetitif, membangun budaya inovasi, dan mempertahankan karyawan bertalenta.


Kata kunci: pemberdayaan karyawan, pengambilan keputusan, inovasi, makan dan minuman, Indonesia

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Author Biographies

Michelle Yit, School of Business Management, Institute Technology Bandung

Head of Overseas Operations, PT Arasains

Yuniros Bangun, School of Business Management, Institute Technology Bandung

Yuni is an Associate Professor at the School of Business and Management, Institut Teknologi Bandung (SBM ITB). Before joining SBM in 2004, Yuni worked in business and was also well a management consultant. She began her career as a management trainer and management consultant with IPPM (Institut Pendidikan dan Pembinaan Manajemen) in 1981. She has subsequently been responsible for courses in Operation Management, in Organizational Behavior Courses , Marketing courses and as well as in Problem Solving and Decision Making courses (Minaut) and Business Strategy.
In 1991, she had an opportunity to apply her interest in general management practices by joining a business corporation in Jakarta. She gained experience in a push pull strategic business unit to support corporate objectives through the implementation of corporate strategy-business strategy and human capital initiatives. She as also given the opportunity to initiate a month’s advanced management program of directors at all levels with University of California – Berkeley in US, to link all strategic business units to corporate objectives.
After receiving her Master’s degree, she continued in business practice by joining a medium sized bank in implementing its branch banking development. Her career gave her extensive business experience from business development, corporate strategy, linking both to human capital practices.
She her business experience culminated with her position as a VP of Human Capital in 2003 after which she start joined the staff at SBM ITB at 2004. Yuni has responsibility with Organizational Behavior, Leadership and Management Practices, Strategic Change Management courses for undergraduates and People In Organization, Business Leadership and Human Capital Management for graduate classes. She is also involved in Doctoral degree classes in Advanced Organizational Behavior/Behavioral Science. Her interests in business and management research cover: business strategy and human capital, corporate culture, organizational capability, and organizational health index at organizational level. Within her research group she has interests in the learning impact of Emotional Intelligence on business and individual performance.
She is currently doing research in identifying the elements of organizational capability, organizational health index and leadership at an organizational level. She is also doing research in identifying elements of Emotional Intelligence and its impact on performance in an Indonesian context.

Academic Degree

Doctor of Management and Business, Bogor Agricultural Institute (IPB) (Indonesia), 2011
Master of Business Administration – major in Finance, Oklahoma City University (USA), 1994
Food Technologist, Bogor Agricultural Institute (IPB) (Indonesia), 1981

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Submitted

2020-04-05

Accepted

2020-05-08

Published

2020-05-11

How to Cite

Yit, M., & Bangun, Y. (2020). Employee Empowerment in the Decision-Making Process: Evidence from the Food and Beverage Industry in Indonesia. Jurnal Manajemen Teknologi, 19(1), 80–99. https://doi.org/10.12695/jmt.2020.19.1.5

Issue

Vol. 19 No. 1 (2020)

Section

Articles

License

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