The Effect of Organizational Leadership, Employee Development, and Performance Management on Employee Engagement

Abstract

Digital era demands a tight competition among organizations, and employee engagement plays pivotal factors in determining the organizational success, especially in the manufacturing companies. This research examines the effect of organizational leadership, employee development, and performance management on employee engagement in the manufacturing sector. Through a comprehensive case study approach, data were collected from several manufacturing companies to analyze the relationships among these key variables. Quantitative approach was applied. Respondents were employees of manufacturing companies in food and beverage, automotive, textile, electronic, and other sectors, recruited using saturation sampling technique. The causal model was applied, and data were analyzed using Structural Equation Modeling, which was operated through SmartPLS. The results of the study demonstrated a positive and significant effect of organizational leadership and performance management on employee engagement. However, training and development were found to have no significant effect on employee engagement.