Abstract

The purpose of this study is to explain the effect of abusive supervision on employee silence with perceptions of organizational politics and organizational justice as mediator. The population of this study was all employees of a developing textile and garment company in the Semarang District. The sampling method used a multi-stage random sampling with a sample of 199 respondents. Methods of data collection used observation, interviews and questionnaires that were measured using a Likert scale. Methods of analysis of this study used the software of WarpPLS 6.0. The results show that abusive supervision and perceptions of organizational politics have a positive effect on employee silence. abusive supervision has a positive effect on perceptions of organizational politics, but abusive supervision has a negative effect on organizational justice. In addition, organizational justice has a negative effect on employee silence. Perceptions of organizational politics and organizational justice as a partial mediating role on the effect of abusive supervision on employee silence. Suggestions for the company that the company can reduce the high of employee silence with giving treatment employees fairly and supervisor should improve its supervision system.

Highlights

  • The last few years, in Indonesia, demand increased in the capital market investments

  • This study aims to test empirically that the selection of stocks with the method of cluster approach can produce an optimal portfolio that has good diversified and good performance

  • Jensen Index This method is based on the concept of the securities market line which is the line that connects the market portfolio with a risk-free investment opportunity (Halim, 2005). This index shows the difference between the actual return rate with the retrieved portfolio with the level of return expectations if the portfolio is on the capital market line

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Summary

Introduction

The last few years, in Indonesia, demand increased in the capital market investments. This is because the capital markets bring together two interests, i.e., the party that excess funds and those who need funds (Mirah & Wijaya, 2013). Yulianto et al (2016) states that companies that give priority to profits and seeking increased investment will pay dividends, but the dividend payment it can be obtained from detained nor profit from debt (investors). Companies that produce a high and stable profit will get a positive response from investors, and investors are willing to pay its share price higher. That the capital markets have a function as the most allowed to imprint the party capital for the excess funds. The investment could be in the form of financial assets such as stocks, bonds, or mutual funds (Pardosi & Wijayanto, 2015)

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