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

Downloads

Download data is not yet available.

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

References

Appelbaum, S.H., Karasek, R., Lapointe, F., & Quelch, K. (2014). Employee empowerment: factors affecting the consequent success or failure – part 1 industrial and commercial training; Guilsborough, 47(1), 23-30.
Asia Pacific Food industry (APFI).(2017). Going chemically and microbiologically into Food Safety, Eastern Media Pte Ltd, November/December: 1 – 76.
Chhabra, B., & Raina, R. L. (2008). Leadership competencies in the ‘knowledge – driven – context’, 52 – 63. Available from https://www.researchgate.net/publication/308032261_Leadership_Competencies_in_Knowledge-Driven-Context [Accessed on 2 November 2017]
Cierniak-Emerych, A., Piwowar-Sulej, K. (2017. Employee empowerment - terminological and practical perspective in Poland. Oeconomia Copernicana; Torun 8(2, June), 301-316.
Conger, J. A., & Kanungo, R. N. (1988). The empowerment process: Integrating theory and practice. Academy of Management. The Academy of Management Review, 13(3), 472 - 482.
Dess, G., McNamara, G., and Eisner, A. (2016). Strategic management : text and cases, Eighth Edition.
Fadal, S. (2004). Employee empowerment as a business optimization technique: Utilizing continuous training and development, participation rights and decision making authority. Argosy University/Orange County, [ProQuest Dissertations Publishing], 2004. 3116954, 1 – 166.
Fiermonte, R. V., Bruning, K. (2005). The value of human capital: supporting empowerment strategies allied academies international conference. academy of organizational culture, communications and conflict. Proceedings; Arden 10(1), 29-36.
Frost, J. (2017). How to interpret the f-test of overall significance in regression analysis. Available from http://statisticsbyjim.com/regression/interpret-f-test-overall-significance-regression/ [Accessed 6 April 2018]
Fuller, G. W. (2006). New food product development: from concept to marketplace, boca raton: crc press, book review, Journal of Product Innovation Management, 23:197–199
Hermawan, A. (2005). Analyzing variations in employee empowerment in Indonesia, 1- 443. Available from https://scholar.google.com/citations?user=bGDog2YAAAAJ&hl=en. [Accessed 1 October 2017]
Hidayat, S. (2016). Manufacturing industry Indonesia contributes to 18.1% to GDP, Indonesia Investments, February 23. Available from https://www.indonesia-investments.com/id/news/todays-headlines/manufacturing-industry-indonesia-contributes-18.1-to-gdp/item6527 [Accessed on 1 October 2017]
Hofstede Insight. (2018). Country comparison what about Indonesia, Available from https://www.hofstede-insights.com/country-comparison/indonesia,the-uk,the-usa/ [Accessed on 9 May 2018]
Hsbc.com (2017). FMCG industry in Indonesia: opportunities and challenges, January 20. Available from http://www.business.hsbc.co.id/en-gb/id/article/fmcg-industry-in-indonesia [Accessed on 2 October 2017]
Ivancevich, J., M., Konopaske, R., Matteson, M., T. (2014). Organizational behavior and management, Tenth Edition, 1 – 650.
Johennesse, L. C.; Chou, T. K. (2017). Employee perceptions of talent management effectiveness on retention global business and management research; Boca Raton, 9(3), 46-58.
Lakshminarasimha, A. (2017). A concept note on the relationship between empowerment, collaboration and selected outcomes in a supply chain IUP. Journal of Supply Chain Management; Hyderabad , 14(3; Sep), 26-48.
Maimako, L. B., & Bambale, A. J., PhD. (2016). Human resource management practices and employee job satisfaction in kano state owned universities: A conceptual model. Journal of Marketing and Management, 7(2), 1-16.
Michael Page. (2016). Southeast asia salary & employment outlook, 2016, October 29. Available from https://www.michaelpage.co.id/about-us/media-releases/opportunities-abound-employees-indonesia. [Accessed on 5 October 2017]
Michael Page. (2015). Employee intentions report Indonesia, 2015. Available from https://www.michaelpage.co.id/sites/michaelpage.co.id/files/2015_IDMP_EMPLOYEE_INTENTIONS_FINAL.pdf [Accessed on 20 April 2018]
Morgan, J. (2015). What type of company do you work for? Engaged, empowered, enabled or experiential? Forbes, December 22. Available from https://www.forbes.com/sites/jacobmorgan/2015/12/22/what-type-of-company-do-you-work-for-engaged-empowered-enabled-or-experiential/#6456a3362f37 [Accessed on 4 January 2018]
PR Newswire Asia, HR Asia announces Indonesia's best companies to work for in Asia. (2017, May 22). Available from https://search.proquest.com/docview/1900757246?accountid=31562. [Accessed on 2 December 2017]
Psomas, E. L., & Fotopoulos, C. V. (2010). Total quality management practices and results in food companies. International Journal of Productivity and Performance Management, 59(7), 668-687. Available from: doi:10.1108/17410401011075657 [Accessed on 3 March 2018]
Saray, H., Patache, L., Ceran, M. B. (2017). Effects of employee empowerment as a part of innovation management. economics, management and financial markets; Woodside, 12( 2, June), 88-96.
Schafer, R. (2014). Cleaning up on standard procedures. Snack Food & Wholesale Bakery, 103(3), 54-56.
Utami, T. L. W., Indarti, N., Sitalaksmi, S., & Makodian, N. (2017). The effect of knowledge sources on innovation capabilities among restaurants and café businesses in Indonesia. Journal of Indonesian Economy and Business: JIEB., 32(1), 33-50.
Widjaja, D. C., Suhud, J., D., Santoso, J. (2014). Pengaruh employee empowerment terhadap service quality di Indonesian Restaurant. Jurnal Hospitality dan Manajemen Jasa, 2 (2), 1 – 15.

Downloads

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

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. Copyright @2017. This is an open-access article distributed under the terms of the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License (http://creativecommons.org/licenses/by-nc-sa/4.0/) which permits unrestricted non-commercial used, distribution and reproduction in any medium