Professional Documents
Culture Documents
ALETHEIA UNIVERSITY
MASTER THESIS
:
Graduate StudentSHERWYN A. OMPAD
May, 2015
Title of ThesisThe Mediating Effect of Employees Perceived Organizational
Engagement
Aletheia University
Abstract
This study investigates how ethical leadership increases individuals work
modeled relationships. The questionnaire used in this study was constructed from
previously validated instruments developed for the purpose of this study. SPSS
II
By means of data gathered through paired questionnaires from 92 supervisors
and 276 of their subordinates who are employed by four of the largest real estate
Theoretical, practical and suggestions are discussed at the end of the research.
III
ACKNOWLEDGEMENTS
IV
TABLE OF CONTENTS
ABSTRACT . II
ACKNOWLEDGEMENTS IV
TABLE OF CONTENTS V
LIST OF TABLES .. IX
Engagement ... 15
V
CHAPTER THREE: METHODOLOGY . 21
4.1.1 Reliability . 41
4.1.2 Validity . 41
VI
4.2.1 Mediating Effect .. 44
5.1 Conclusion 50
5.2 Discussion . 52
REFERENCES 57
APPENDIX .. 72
APPENDIX A ..... 72
APPENDIX B .. 76
VII
LIST OF FIGURES
VIII
LIST OF TABLES
IX
CHAPTER ONE
INTRODUCTION
turbulent and unpredictable which has led to economic downturns that have
occurred over the past years. Much of the blame for these unfortunate events were
due to unethical acts of behavior and decision making (Kacmar, Andrews, Harris,
& Tepper, 2013). This has resulted into firms raising important questions about
the role of leadership in shaping ethical conduct since leaders decision making
are embedded on ethical principles (Yukl, 2002) and they usually set up group
norms which motivates work unit to avoid unethical behavior (Mayer, Aquino,
Greenbaum, & Kuenzi, 2012; Brown and Trevino, 2006; Brown, Trevino, &
Harrison, 2005).
1
decision-making (p. 120). Research on ethical leadership have demonstrated its
Kacmar et al., 2013) as well as other prosocial behaviors (Mayer, Kuenzi, &
Greenbaum, 2010; Piccolo, Greenbaum, Den Hartog, & Folger, 2010; Walumbwa
and Schaubroeck 2009) including the harmful effects that would occur if ethical
leadership is absent (Mayer et al. 2010). However, researchers have noted the
process on how ethical leadership affects outcomes (Brown & Trevino, 2006;
Mayer et al. 2010; Kacmar et al. 2013). This research aims to fill in this gap and
ethical leadership creates a work environment free of politics which suits well in
2
activities that are not approved by formal authority, thus interfering the goals of
Politics is the exercise of power for the purpose of acquiring ones intended
Recently, much attention has been given to the negative effects caused by
individuals behavior not approved by the organization and the extent to which
employees view political activities as pervasive at work. Most of the research has
associated with OCB (e.g., Rosen, Chang, Johnson, Levy, 2009), whereas other
studies have found that POP is positively associated with OCB (e.g., Maslyn and
Fedor 1998) or unrelated to OCB (e.g., Cropanzano et al. 1997). Research done
by Kacmar et al. 2013 have suggested that perceived organizational politics (POP)
3
leadership-work engagement relationship. Since high levels of work engagement
can have positive outcomes for both employees and organizations (Kirkpatrick,
engagement and understand how to bring out the best from organizations
employees.
While we believe that high (low) ethical leadership will lead to low (high)
perceived organizational politics, the strength of this effect will differ amongst
and Deci 2005; Van den Broeck, Vansteenkiste, De Witte, & Lens, 2008). They
Ryan, 1985) postulates three innate psychological needs (needs for autonomy,
flourish which energizes, directs, and sustains their behaviors (Gagne & Deci,
2005). They are assumed to directly enhance psychological and physical well-
being (Deci & Ryan, 2008); and the degree to which people are able to satisfy
their basic psychological needs as they pursue and attain their valued outcomes
will likely affect their work behavior. This research seeks to test how an
4
1.2 Purposes of the Study
Basing from the above background and motivation, this study focuses on
the effects of ethical leadership, POP and need satisfaction in the workplace.
Engagement
Work Engagement
organizational politics.
how ethical leadership affect employees outcomes (Brown and Trevino 2006;
Mayer et al. 2010; Kacmar et al. 2013). But to date, only few empirical studies
5
have extended this concern. We propose that POP will serve as a potential
mechanism on how ethical leadership affects work engagement. This research will
ethical leadership and work behavioral outcomes (Mayer et al., 2010; Kacmar et
This study also applies self-determination theory (Deci & Ryan, 1985) to
in need satisfaction will less (more) likely experience POP in the organization. By
6
CHAPTER 2
LITERATURE REVIEW
Social learning theory (Bandura 1977) posits that individuals learn through
values, and attitudes displayed by the role model. In order for one to become an
eligible and effective role model, they should be legitimate, attractive and credible
(Brown et al. 2005). Specifically, social learning happens when people pay
attention to some of these role models and encode their behavior in such a way
which leads to the imitation of the behaviors they have observed. As people
persons behavior would likely continue if the consequences of such behavior are
rewarding. Thus, behavior has been reinforced (Bandura & Ross, 1961).
the position they hold in the company and the power that comes with the position.
to assign work-related task and power of information that leaders hold about the
attention has also been given towards a leaders ethical behavior because it is vital
7
organization (Piccolo et al. 2010, Den Hartog & Belschak, 2012). Wherein,
behavior and values by integrating these into their own identity (Brown et al.
units standards for acceptable behavior are formed which makes them less likely
and their emphasis on integrity, trust and shared values are imitated by the
followers and reinforced into their own self-concept (Brown et al. 2005). To date,
numerous research has shown how ethical leadership affect followers attitudes
and work behaviors such as inspiring high levels of commitment and trust and
fostering desirable behaviors among followers (Brown et al. 2005; Den Hartog
and De Hoogh 2009; Kalshoven, Den Hartog, & De Hoogh, 2011(a) (b); Piccolo
et al. 2010). Empirical studies have also shown a positive relationship between
behaviors (Cyril & Girindra, 2009; Kacmar, Bachrach, Harris, & Zivnuska, 2011)
and in turn affect their motivation, attitudes and behaviors (Shamir, House, &
Arthur, 1993). Ethical leaders exude desirable behaviors which include acting
fairly, promoting and rewarding ethical behavior, showing concern towards their
actions (Brown et al. 2005; De Hoogh and Den Hartog 2008; Kalshoven et al.
2011; Trevino, Brown, & Hartman, 2003). By doing so, subordinates look up to
their leader as their role model who motivates them to go the extra mile and do
meaning and value in their job which transcends into an increase of productive
behaviors such as increased motivation, effort and productivity. With these ideas,
2006; Schaufeli and Bakker 2004). Vigor is defined as feeling high levels of
energy and resilience while working, putting effort to ones work and being
meaning, finding inspiration and pride, and being strongly involved in one's work.
9
work, whereby time passes quickly and having difficulties detaching oneself from
Den Hartog & Belschak, 2012 have found evidence in this relationship and
suggested that when employees perceive their direct supervisors as ethical, they
relevant to the ethical leadership process (Den Hartog & Belschak, 2012), leaders
are able enhance their dedication and willingness to invest effort even when things
are difficult (Mauno, Kinnunen, & Ruokolainen, 2007; Piccolo et al. 2010). Thus,
we suggest that (at least part of) the impact of ethical leaders on followers comes
meaningfulness of their work, sharing power, showing fairness, care, and concern
(Brown & Trevino, 2006; Mayer et al. 2010; Kacmar et al. 2013). Drawing from
social learning theory, this research explains how ethical leaders can encourage
and support work environments free of politics (Brown & Trevino, 2006).
perceptions of reality rather than objective reality (Ferris, Perrewe, & Douglas,
2002). Indeed, there is empirical evidence suggesting that perceived reality is the
be accomplished, most of the research has focused upon the dark side (Ferris
and King, 1991) of political behaviors, which are behaviors not approved by the
organization and aims to secure ones intended outcomes. Thus, this research
In the work environment, leaders are considered ethical when decisions are
made for altruistic instead for selfish reasons (Brown et al. 2005). When leaders
are ethical, they make fair decisions and allocate resources objectively.
Particularly, ethical leaders feel uncomfortable when making decisions that are
not based on established policies since they are aware that making unethical
decisions may cause harm to those affected by it (Kacmar et al. 2013). In the same
way, they possess norms and policies that value and reward ethical conduct and
holds members accountable for their actions and uses punishments accordingly.
11
In contrast, unethical leaders tend to circumvent established rules and
regulations as they pursue their own self-interest which violates the organizations
happens, leaders are conveying a message that political behaviors are acceptable
(Kacmar et al. 2013). Thus low levels of ethical leadership would lead to increased
levels of POP.
behavior in the workplace so when they recognize that leaders decide and behave
in such a way that benefits themselves over the organization and others,
employees construe these actions as political and thus influences them to also feel
12
interactions are usually seen as interdependent and contingent on the actions of
in exchange for organizational rewards (e.g promotion, bonus, job security). For
(Sheth, 1996), and suppliers (Perrone, Zaheer, & McEvily, 2003). These distinct
are likely to match goodwill and helpfulness toward the party with whom they
this type of relationship is not clearly specified and remain informal. Under this
task performance and extra role behaviors (Kacmar et al. 2013). Further, they trust
that their hard work and effort will remain reciprocated by the organization
(Molm, Takahashi, & Peterson, 2000; Moorman and Byrne 2005). With this
13
2.2.1 POP towards Work Engagement
When work environments are highly political, leaders or organizations fail
nepotism and retaliation motives (Rusbult, Campbell, & Price, 1990; Kacmar et
al. 2013). Thus, employees perceiving high politics in the organization tend to
weakly associate their effort and the job they put into their work with the
& Levy, 2009). Higher politics in the organization will cause employees to feel
exchange relationship (Chang, Rosen, & Levy, 2009; Kacmar et al. 2013).
employees withdrawing their time and effort from their job. Since the
2009; Kacmar et al. 2013). Thus, individuals working under these conditions tend
to reciprocate in a negative manner (Cropanzano and Mitchell 2005) and are likely
14
2.2.2 Mediating Effect of POP
Basing from social learning theory (Bandura, 1977) and social exchange
theory (Blau, 1964) as guides, this research suggest that employees seek an ethical
2011; Dadhich and Bhal 2008; Mayer, Greenbaum, Bardes, & Salvador, 2009;
Neubert, Carlson, Kacmar, & Chonko, 2009; Kacmar et al., 2013), very little
favorable outcomes such as work engagement. We suggest that POP may provide
employees in an open and just way, as well as having certain traits such as
work due to an increase in POP. In a similar way, when leaders behave ethically,
15
act as role models may infuse a work environment with ethics and stable
principles. This would result to a decrease of POP in the organization since they
propose that
H4: POP mediates the relationship between Ethical Leadership and Employees
Work Engagement
Deci, 2005; Van den Broeck, Vansteenkiste, De Witte, & Lens, 2008). This theory
posits that individuals have three innate psychological needs; need for
competence, autonomy, and relatedness (Deci & Ryan, 1985; Ryan & Deci,
2000). The need for competence relates to a persons need to successfully and
optimally meet challenging tasks and the capability to acquire desired outcomes;
the need for autonomy relates to a persons need to experience ones initiation of
own actions, freedom of choice and volition; the need for relatedness relates to
ones need for establishing a sense of mutual respect and reliance with others
(Deci & Ryan, 2000). This research leads not to the assessment of need strength
16
but instead to the assessment of need satisfaction. Baard, Deci & Ryan, (2004)
provides the necessary nutriments for human growth and development (Ryan,
1995) Just as plants need water and sunshine to grow and flower, the satisfaction
(Ryan, 1995).
relationship with security of attachment (La Guardia, Ryan, Couchman & Deci,
2004). In the workplace, it is found that leaders are the most influential when it
since they fulfill employees psychological needs through positive role modeling,
satisfying employees needs. Thus, this research considers leaders as one of the
impetus which leads to employees need satisfaction. In the same way, the concept
(Schreurs & van Emmerik, Broeck & Guenter, 2014) such as their workplace.
17
functioning (Gagn & Deci, 2005). In the workplace where employees socialize
and integrate with each other, are likely to engage in activities deemed capable
and imperative for them. As such, these would satisfy the needs for autonomy and
competence. It is also undeniable that employees not only align with oneself at
work but also align themselves with others which satisfies their need for
relatedness (Schreurs et al. 2014). Therefore, we can consider that there are
et al. 2014) such as security, trust, learning, communicating, bonding and helping
(Ilgen, Hollenbeck, Johnson, & Jundt, 2005) which are evident in a workplace
setting.
with the satisfaction of the remaining other two needs, such that all three are
used the three needs to form a composite score of general need satisfaction (Deci,
Ryan, Gagne, Leone, Usunov & Kornazheva, 2001; Lian, Ferris, & Brown, 2012;
Witte, Van den Broeck, 2007). This research adheres to this approach and
18
2.3.1 Moderating Effect of Need Satisfaction towards Ethical
importance to intrinsic values, they emit a natural desire to actualize, develop and
(Vansteenkiste et al., 2007; Vanstinkeeste & Ryan, 2013). If these factors are
functioning (Deci & Ryan, 2000; Van den Broeck et al., 2008). On the contrary
low satisfaction of any of the needs hamper growth (Vanstinkeeste & Ryan,
2013). This tells us that individuals who achieved more psychological need
satisfaction feel better about themselves (e.g., higher self-esteem) and their lives
in general (e.g., life satisfaction; Deci et al., 2001) (Vanstinkeeste & Ryan, 2013).
need satisfaction can improve the effects of ethical leadership towards POP in the
19
predisposes them to have a better appreciation of the effects of ethicality emitted
POP will be affected when employees have varying levels of need satisfaction.
Specifically, when employees with high need satisfaction under the supervision
of ethical leaders will perceive a much more lower POP in the workplace
compared those having low need satisfaction. With this, this research
hypothesizes:
20
CHAPTER THREE
METHODOLOGY
this chapter. Moreover, the participants and procedures, measures, and analysis
This study aims to examine the relationship between ethical leadership and
mechanism which affects this relationship. In addition, this study proposes that
H2 Perceived H3
Ethical Leadership Organizational Work Engagement
Politics
H5
Need Satisfaction
H1
21
As depicted in figure 3-1, the hypothesis of the study are as follows:
Politics
Engagement
either be done. Self- administered questionnaires may involve online, postal, and
structured interview. In this study, delivery and collection questionnaire was used.
22
3.3 Methodological Approach
Deductive approach studies existing theories that are later applied realistically
designed to answer the research questions developed in this study basing from
better understanding of a subject and describes in detail the problem area of the
research. On the other hand, quantitative research gathers data in the form of
numbers which quantifies the data and generalizes results formed from the sample
analysis is statistical.
23
of a Likert scale. Data collected from the sample will be statistically analyzed
using Statistical Package for the Social Science (SPSS) software which can
politics and need satisfaction. Supervisors are asked to rate their subordinates
work engagement. There were 276 pairs of questionnaires returned, including 276
done in two ways with the use of primary data or secondary data. In this research,
primary data are collected using a questionnaire which collects information about
needs more attention to avoid bias. To do this, the researcher gathered the
organizations list of employees names and their respective sales team. Then,
24
researcher chose the first 4 to 6 subordinates and their immediate supervisor from
different sales team. Three hundred pairs of questionnaires were distributed to the
participants finish answering all of the questions, the participants put the
questionnaire back to the envelope, sealed it and given back to the researcher.
The Philippines was chosen for gathering the sample selection. There are
at least 18 real estate industries in the Philippines whose projects range from
experienced a prolific year in the real estate industry. This has been connected
with the countrys stable economic growth, low interest rates and increasing home
investment of Overseas Filipino Workers which drove the steady demand in the
local property market. Along with the continuous growth of foreign investment,
expatriate workers have combined to shape the property boom that is changing
the skyline not only in the metropolis but also in provincial cities as well.
The population of interest in this study are those real estate agents and their
corresponding supervisors who work in the top four real estate industries in the
25
Philippines. These industries were chosen based on their performance and total
The first real estate developer in the country is Ayala Land Inc., which
launched 67 projects worth a total of P90-billion in 2012 and netted P6.6 billion
in profit last 2013. It is considered the largest property developer in the country.
developer. The second largest real estate developer is SM Land, Inc. that gained
one of the only three Philippine corporations included in Forbes Asias 200 Best
under a Billion list which honored 200 exceptional small and mid-sized
positive net income, and are publicly traded. The third largest real estate developer
builder of residential condos in terms of units completed in 2010 and those that
will be completed between 2011 and 2016. Lastly, the fourth largest real estate
Magazine cited Robinsons Land Corp. (RLC) as the best managed company in
Asia based on a 2012 real estate poll of 130 leading equity analysts from major
26
investment houses in the Asia Pacific region. Its property portfolio, its top
3.6 Participants
in Cebu City. Completed data were obtained from 276 subordinates and 92 their
analysis, the number of members in a group should be more than four people, and
that 60% of the group members should answer the survey. In this research, an
individual analysis will be conducted since only three subordinates responded per
group. Secondly, only 33% of the members answered the survey thus, the
responses from the participants does not necessarily represent the group as a
necessarily exhibit the same leadership style to all members of the group but
effectively applies their own style of leadership to the right situation (Hersey &
are male; 93% had a bachelor degree, 7% percent had master degree. The average
age of subordinates is 27 years old (SD= 3.71); the average tenure of subordinates
27
in the organization is 23 months (SD=1.17), with the minimum tenure of 6 months
and maximum tenure of 96 months; and the average tenure of subordinates work
with their current immediate supervisor is 19 months (SD=0.98), with the min.
supervisors are male; 90% percent had a bachelor degree, 9% percent had master
degree, and 1% had a PhD degree. The average supervisors age is 31 years old
(SD=1.20), with 24 months and 84 months for minimum and maximum tenure,
respectively.
28
1 year and less 165 60%
Tenure with Immediate 2 - 3 years 92 33%
Supervisor 4 years and more 19 7%
Total 276 100%
29
3.7 Operational Definition and Measurement Tools
fairness on their treatment towards their employees which forms the cornerstones
of ethical leadership. In addition, Trevio and Brown (2004) proposed that ethical
leadership, in its true sense, promotes ethical conduct through practice and
decisions and action.. The items describe several different aspects of ethical
30
format (1= strongly disagree, 6=strongly agree) their degree of agreement to the
items. The higher the score means that subordinates rated their supervisors as
ethical. Cronbachs alpha for this variable is =.990. This variable has normal
31
Table 3-2 Means and standard deviation for ethical leadership
Standard
Variable Statements Mean
Deviation
He/ She shows a strong concern for ethical
3.8406 1.69168
and moral values
talk)
32
He/ She is fair and objective when
evaluating members performance and 3.7754 1.66250
providing rewards.
Table 3-2 depicts that generally respondents regard their leaders as being
2002).
(POPS) was developed by Kacmar & Carlson, 1997. The scale consisted of 15
for each of these factors, respectively, are: People in this organization attempt to
quiet than to fight the system, and When it comes to pay raise and promotion
33
decisions, policies are irrelevant. Participants were required to rate on a 5-point
the items. The higher the score means that subordinates perception of politics is
high. Cronbachs alpha for this variable is =.867. This variable has normal
Table 3-3 Means and standard deviation for perceived organizational politics
Standard
Variable Statements Mean
Deviation
34
It is safer to think what you are told than to
3.0580 .98916
make up your own mind.
from 2.3406 3.0906. Generally, this suggests that respondents perceive less
psychological needs that are assumed to be innate and universal. According to the
35
theory, these needs--the needs for competence, autonomy, and relatedness-- must
Ryan, Gagne, Leone, Usunov, Kornazheva, 2001. The scale consisted of 21 items
Participants answered items such as I feel like I can make a lot of inputs to
deciding how my job gets done, I really like the people I work with, I feel very
the items. High score means that subordinates have high need satisfaction at work.
Cronbachs alpha for this variable is =.901. This variable has normal distribution
Standard
Variable Statements Mean
Deviation
I feel like I can make a lot of inputs to
6.0145 .92233
deciding how my job gets done
NEED SATISFACTION
36
I consider the people I work with to be my
6.1014 .89272
friends.
I have been able to learn interesting new
6.3225 .92304
skills on my job.
When I am at work, I dont have to be
5.9130 1.17228
told what to do.
Most days I feel a sense of
6.0725 .86245
accomplishment from working.
My feelings are taken into consideration
5.8478 1.07129
at work.
On my job I get much of a chance to show
5.8152 .96780
how capable I am.
People at work care about me. 6.0000 .94580
There are many people at work that I am
5.9601 1.08303
close to.
I feel like I can pretty much be myself at
5.9565 1.05050
work.
The people I work with seem to like me
5.5761 1.06413
much.
When I am working I often feel very
5.8841 .83620
capable.
There is much opportunity for me to
decide for myself how to go about my 6.0109 .83768
work.
People at work are pretty friendly towards
6.1449 .93069
me.
Source: Researcher
Table 3-4 depicts that the need satisfaction of respondents range from 5.5761
subordinates job engagement which consisted of 8 items using The Utrecht Work
(2004). Supervisor answered items such as He/she get carried away when he/she
is working, He/she feels happy when he/she is working intensely. One of the
items from this scale was removed with the reason that supervisors are unable to
rate about the feeling of subordinates when they get up in the morning. For
instance, When he/she gets up in the morning, he/she feels going to work.
The higher the score indicates high work engagement of the employee rated by
his/her immediate supervisor. Cronbachs alpha for this variable is =.950. This
variable has normal distribution with skewness = -.919 and kurtosis =-.090.
Standard
Variable Statements Mean
Deviation
I feel like I can make a lot of inputs to
4.6304 1.18828
deciding how my job gets done
WORK ENGAGEMENT
38
Table 3-5 suggests that employees work engagement range from 4.3913
No. of
Variable Questionnaire Author
Items
Yukl, Mahsud,
Ethical Ethical Leadership
15 Hassan, Prussia,
Leadership Questionnaire (ELQ)
2011
Perceived Perceptions of
Kacmar & Carlson,
Organizational Organizational Politics 15
1997
Politics Scale (POPS)
Deci, Ryan, Gagne,
Need Satisfaction Need Satisfaction Scale 21 Leone, Usunov,
Kornazheva, 2001
The Utrecht Work
Work Engagement Scale & Schaufeli and
8
Engagement Well-Being Survey Bakker, 2004
(UWES)
CMV could happen which creates false internal consistency when answering
some general sources of CMV, for example Common rate effects, Common scale
formats, Common scale anchors and so on. To avoid these biases, this research
used different scale formats (7 point scales, 6 points scales, and 5 points scales),
with different anchor points (extremely, always, never, not a bit, moderately,
39
Furthermore, Harman's single factor were used to see the significance of CMV in
this research.
Harman's single factor test was conducted to see if the majority of the
variance can be explained by a single factor. In this research, factors account for
30.52% of total variance. Since the first factor does not account for the majority
of the variance, a substantial amount of common method variance does not appear
40
CHAPTER FOUR
In this chapter, several types of reliability and validity tests were used and
followed by correlation and model fit test of variables. Furthermore, each of the
hypotheses was examined. Analysis table and figures are also shown in this
chapter.
4.1.1 Reliability
coefficient alpha (Churchill, 1979; Nunnaly, 1978) which should be greater than
0.7 to examine the reliability of all factors. In this study Cronbachs coefficient
alpha of factors ranges from 0.867 to 0.990 which means all measurements have
significant reliability.
4.1.2 Validity
whether the findings are really about what they appear to be about. This involves
basis of the data collected (Wallen & Fraenkel, 2001). Patten (2004) identifies
some principles to improve the validity. These are to use a broader sample of
41
content instead of a narrow one, to emphasize important material and lastly, to
write questions to measure the appropriate skill. These principles were applied
when writing the survey questionnaire. Validity was considered in this study by
negatively related with Work Engagement and Need Satisfaction. Lastly, Need
Mitchell and Ambrose (2007) found that subordinates tenure work with
organizational politics, thus, there is a need to control these two variables during
the analysis.
42
Table 4-1 Reliability and correlation of all factors
Mean SD 1 2 3 4 5 6
Control Variable
1. Tenure in Organization 1.98 1.17
2. Tenure with Supervisor 1.59 .981 .794**
Independent Variable
3. Ethical Leadership 3.83 1.61 .133* .215** (.990)
Dependent Variable
4. Work Engagement 4.57 1.09 .066 .101 .298** (.950)
Mediating Variable
5. Perceived Organizational Politics 2.82 .650 .017 -.119* -.703** -.317** (.867)
Moderating Variable
6. Need Satisfaction 5.85 .606 .018 .046 .008 .327** -.233** (.901)
Source: Researcher
Note: (1) Pearson Correlation (r)**. Correlation is significant at the 0.01 level (2-tailed)
(2) Pearson Correlation (r)*. Correlation is significant at the 0.05 level (2-tailed)
(3) Cronbachs alpha is shown in the parenthesis
43
4.2 Hypothesis Testing
To test for mediating effect, four steps are needed. Step one, shows that
the causal variable Ethical Leadership is correlated with the outcome variable
Work Engagement. Step two, shows that the causal variable Ethical
Leadership is correlated with the mediator POP. Step three, shows that the
mediator POP affects the outcome variable Work Engagement. And step four,
Table 4-5 shows in model M1, that the relationship between Ethical
hypothesis H1 is accepted.
44
Lastly, in model M4, the regression analysis show us that through POP,
45
4.2.2 Moderating Effect
has taken suggestions from Baron and Kenny (1986) hierarchical regression
(a) predictors should have a unique effect on the dependent variable, (b) both
should be computed between each predictor and each moderator, and (d) the
statistically significant, over and above the variance explained by the main
hypothesis that the predictive effect of the interaction term will differ
used to determine the relationship between Ethical Leadership and POP. The
= -700, p < 0.001). In the second model, M2, we put ethical leadership and
47
Source: Researcher
Figure 4-1 Interaction of Ethical Leadership and Need Satisfaction
Figure 4-1 suggests that low ethical leadership will still experience high levels
when employees are under the supervision of ethical leaders, they experience
leadership towards POP are greater when employees are high in need
48
4.3 Summary of Hypothesis Result
Engagement
49
CHAPTER FIVE
this study will be presented. In addition, we will discuss the limitations of this
5.1 Conclusion
social learning theory (Bandura 1977) and social exchange theory (Blau
leaders as unethical may lead them to decrease their engagement at work due
50
(increase) perceptions of organizational politics. Finally, ethical leadership
has been found to yield positive outcomes for organizations (Brown and
Trevino 2006; Kacmar et al., 2013). However, our study also supports finding
by Kacmar et al., 2013 which indicated that these outcomes occur by reducing
The results of the study also demonstrated the positive impact that an
who have high levels of need satisfaction view much more lower political
environments when faced with ethical leaders compared those with low need
(Schreurs et al., 2014). Thus, the positive effects of ethical leadership will be
well-being and behavioral adjustment (Reis, Sheldon, Gable, Roscoe & Ryan,
2000; Sheldon, Ryan & Reis, 1996; Veronneau, Koestner, & Abela, 2005)
and accompanied with the experience of positive emotions states (Reis et al.
2000; Sheldon et al. 1996) explains its moderating effect towards ethical
51
need satisfaction in aiding employees to achieve optimal function in their
workplace.
This study also provides theoretical and empirical support for POP as
with reducing POP in the workplace. Ethical leaders serve as important role
models who set and reinforce the behavioral norms that help to establish and
5.2 Discussion
previous theoretical and empirical research efforts and found that when
et al., 2013 that POP not only serves as an explanatory mechanism between
52
engagement. In doing so, we can contend that work engagement may also be
personal resources; Bakker et al., 2008; Van den Broeck et al., 2013).
propositions of self-determination theory (Deci & Ryan, 2000) that high need
(Schreurs et al., 2014). Thus, when employees who have higher need
53
However, when employees who have low need satisfaction can lead to an
design (Van den Broeck et al., 2008), supervisory support (Deci et al., 2001;
foster need satisfaction which can improve the effects of ethical leadership
towards POP which in turn impacts their engagement at work. This can be
have a clear view of themselves, and create a culture in the group which is
deemed best for everyone. They must behave and exude reliability by holding
54
themselves to a high ethical standard. Thus, monitoring the ethical and
leaders to be ethical sets the tone which help minimizes POP in their
who manage their employees by examining how relevant they regard ethics
in the workplace to ensure that employees are guided by individuals with right
work.
evidence that expectations differ regarding the way managers in the public
versus private sector should perform their jobs. Thus, it is unclear whether
these results are generalizable to the public sector. Future research exploring
55
gender differences and the role of politics perceptions in the public sector is
towards POP since, employees might later on in the long run employees may
consciously realize that Machiavellian leaders fake their ethical values and
56
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APPENDIX A
Very Often
Sometimes
Always
Rarely
Never
1. a
At my work, I am bursting with energy. 1 2 3 4 5 6
.
2. b
At my job, I am strong and vigorous. 1 2 3 4 5 6
.
3. c
I feel happy when I am working intensely. 1 2 3 4 5 6
.
4. d
My job inspires me. 1 2 3 4 5 6
.
5. e
I am enthusiastic about my job. 1 2 3 4 5 6
.
6. f
I am proud on the work that I do. 1 2 3 4 5 6
.
7. g
I get carried away when I am working. 1 2 3 4 5 6
.
8. h
I am immersed in my work. 1 2 3 4 5 6
.
9. When
i I wake up in the morning, I feel like
1 2 3 4 5 6
going
. to work.
72
PART 3: SITUATIONS IN THE WORKPLACE
Mildly Agree
Disagree
Disagree
Strongly
Strongly
Encircle the number to which you think the item is true for you.
Neutral
Mildly
Agree
People in this organization attempt to build themselves up by
1. 1 2 3 4 5
tearing others down.
It is safer to think what you are told than to make up your own
9. 1 2 3 4 5
mind.
Promotions around here are not valued much because how they
15. 1 2 3 4 5
are determined is so political.
73
PART 4: MY IMMEDIATE SUPERVISOR
Strongly Agree
Slightly Agree
Moderately
Moderately
Encircle the number that best represents the behavior that
Disagree
Disagree
Disagree
Strongly
Slightly
your immediate supervisor is most likely to exhibit
Agree
1. He/a She shows a strong concern for ethical and moral
1 2 3 4 5 6
values
.
2. He/b She communicates clear ethical standards for team
1 2 3 4 5 6
members.
.
3. He/c She sets an example of ethical behavior in his/ her
1 2 3 4 5 6
decisions
. and actions
4. d
He/ She is honest and can be trusted to tell the truth. 1 2 3 4 5 6
.
5. He/e She keeps his/ her actions consistent with his/her
1 2 3 4 5 6
stated
. values (walks the talk)
6. He/f She is fair and unbiased when assigning tasks to
1 2 3 4 5 6
members.
.
7. He/g She can be trusted to carry out promises and
1 2 3 4 5 6
commitments.
.
8. He/h She insists on doing what is fair and ethical even
1 2 3 4 5 6
when
. it is not easy.
9. He/i She acknowledges mistakes and takes responsibility
1 2 3 4 5 6
for
. them.
10. He/
j She regards honesty and integrity as important
1 2 3 4 5 6
personal
. values.
11. He/
k She sets an example of dedication and self-sacrifice
1 2 3 4 5 6
for
. the organization.
12. He/
l She opposes the use of unethical practices to
1 2 3 4 5 6
increase
. performance.
13. He/
m She is fair and objective when evaluating members
1 2 3 4 5 6
performance
. and providing rewards.
14. He/
n She puts the needs of others above his/her own self-
1 2 3 4 5 6
interest.
.
15. He/
o She holds members accountable for using ethical
1 2 3 4 5 6
practices
. in their work.
74
PART 5: WHEN I AM AT WORK
Strongly Agree
Encircle the number that best represents your feelings
Undecided
Somewhat
Somewhat
towards work.
Disagree
Disagree
Disagree
Strongly
Agree
Agree
1. I feel
a like I can make a lot of inputs to deciding how my
1 2 3 4 5 6 7
job
. gets done.
2. b
I really like the people I work with. 1 2 3 4 5 6 7
.
3. c
I feel very competent when I am at work. 1 2 3 4 5 6 7
.
4. d
People at work tell me I am good at what I do. 1 2 3 4 5 6 7
.
5. e
I dont feel pressured at work. 1 2 3 4 5 6 7
.
6. f
I get along with people at work. 1 2 3 4 5 6 7
.
7. I try
g pretty much not to keep to myself when I am at
1 2 3 4 5 6 7
work.
.
8. h
I am free to express my ideas and opinions on the job. 1 2 3 4 5 6 7
.
9. i
I consider the people I work with to be my friends. 1 2 3 4 5 6 7
.
10. I have
j been able to learn interesting new skills on my
1 2 3 4 5 6 7
job.
.
11. k
When I am at work, I dont have to be told what to do. 1 2 3 4 5 6 7
.
12. Most
l days I feel a sense of accomplishment from
1 2 3 4 5 6 7
working.
.
13. m
My feelings are taken into consideration at work. 1 2 3 4 5 6 7
.
14. Onn my job I get much of a chance to show how capable
1 2 3 4 5 6 7
I am.
.
15. o
People at work care about me. 1 2 3 4 5 6 7
.
16. p
There are many people at work that I am close to. 1 2 3 4 5 6 7
.
17. q
I feel like I can pretty much be myself at work. 1 2 3 4 5 6 7
.
18. r
The people I work with seem to like me much. 1 2 3 4 5 6 7
.
19. s
When I am working I often feel very capable. 1 2 3 4 5 6 7
.
20. There
t is much opportunity for me to decide for myself
1 2 3 4 5 6 7
how
. to go about my work.
21. u
People at work are pretty friendly towards me. 1 2 3 4 5 6 7
.
75
APPENDIX B
Always
Rarely
Never
Often
Often
Some
times
work.
76
Subordinate 2: _____________
Always
Rarely
Never
Often
Often
Some
times
subordinates behavior towards his/ her
Very
work.
Subordinate 3: _____________
Always
Rarely
Never
Often
Often
Some
times
77