Impact of Organizational Structure, Leadership Style and Job Characteristics in Linking Psychological Empowerment among Indonesian Bank Employees

Abstract

The main objective of the current study is to examine the factors affecting the psychological empowerment (PE) of Indonesian bank managers. In particular, the aim of this research is to investigate the effect of organization structure (OS), transformational leadership (TL) and job characteristics (JC) on the psychological empowerment of bank employees. A total of 350 questionnaires were distributed by randomly selecting bank managers in Indonesia through cluster sampling. PLS-SEM was used to analyze the hypotheses. The path coefficient results showed a positive and statistically significant relationship between OS, TL, JC, and PE. The proposed model is of vital importance when providing guidelines for employee development. Organizational policymakers and practitioners can adopt these recommendations to improve their organization.