Psychological Empowerment Link Using Employee Performance and Organizational Commitment on the Generation Gap: PLS-MGA Analysis

NURSHAHIRA  IBRAHIM; Nur Izzaty  Mohamad; Farah Ayuni  Farinordin; Umi Hamidaton Mohd Soffian  Lee; Azman  Ismail

NURSHAHIRA IBRAHIM Universiti Teknologi MARA
Nur Izzaty Mohamad Universiti Sains Malaysia
Farah Ayuni Farinordin Universiti Teknologi MARA
Umi Hamidaton Mohd Soffian Lee Universiti Sains Islam Malaysia
Azman Ismail Suleyman Demirel University in Turkiye

Keywords: generation gap, psychological empowerment, employees’ performance, organization commitment, SmartPLS

Abstract

The generation gap is critical, especially when employees do not agree about some terms that affect their completion of tasks. This issue is debated in organizations, causing incompatibilities between human resource management and development structures. Hence, these constraints led this study to measure the differences shown by generations X and Y, and how they impact the relationship between psychological empowerment, employee performance, and organizational commitment. This research used questionnaires and in-depth interviews as the main procedures for collecting and obtaining data—196 items of data were received from the Malaysian Islamic Finance Agency. SmartPLS software was used to test the research hypotheses and the differences between the two groups are Gen X and Y (PLS-MGA). The results of the PLS-MGA test confirmed that, in the relationship of psychological empowerment and job performance alone, it was found there was a generational difference between X and Y (p-value < 0.05). However, while running the hypothesis test (using the bootstrapping test), it was found that both hypotheses are acceptable, which shows the relationship between psychological empowerment and job performance based on two different groups, namely Gen Y = t-statistic (10.961) and Gen X = t-statistic (11.993). Thus, H1 is supported. Meanwhile, the relationship between psychological empowerment and organizational commitment is based on two different groups, namely Gen Y = t-statistic (8.675) and Gen X = t-statistic (8.349), which means H2 is also supported. Consequently, it is hoped that the findings of this study will serve as essential guidance for employers in both the public and private sectors. Human resource management teams can use the findings to understand the natural complexity of psychological empowerment constructs in realizing the challenges and difficulties in predicting organizational goals, in terms of job performance and organizational commitment.

Author Biographies

NURSHAHIRA IBRAHIM, Universiti Teknologi MARA

Ibrahim, Nurshahira, a senior lecturer at the Academy of Contemporary Islamic Studies, located in Pahang, Malaysia. He obtained his PhD in Islamic Civilization (Man- agement) in 2019 from Hadhari Islamic Institute, Universiti Kebangsaan Malay- sia, located in Selangor, Malaysia. His research interests include human resource management and development, organizational behavior, management philosophy, leadership, Islamic management, and psychology. He has published articles in aca- demic and peer-reviewed journals.

Author’s contact detail: Address: Academy of Contemporary Islamic Studies, Uni- versiti Teknologi MARA Pahang, Malaysia; phone number: +60103571105; Email: shahiraibrahim@uitm.edu.my

Nur Izzaty Mohamad, Universiti Sains Malaysia

Mohamad, Nur Izzaty, is a senior lecturer at the School of Humanities, Universiti Sains Malaysia, located in Penang, Malaysia. She earned her PhD in Islamic Civilization (Management) in 2020 from the Institute of Islam Hadhari, Universiti Kebang- saan Malaysia, located in Selangor, Malaysia. Her research interests include human resource management and development, organizational behavior, management philosophy, leadership and Islamic management. She has published articles in aca- demic and peer-reviewed journals.

Author’s contact detail: Address: School of Humanities, Universiti Sains Malay- sia, 11800 USM Penang, Malaysia; phone number: +600174406610; Email: izzaty@usm.my

Farah Ayuni Farinordin, Universiti Teknologi MARA

Farinordin, Farah Ayuni, is a senior lecturer at the Faculty of Applied Sciences, UiTM Pahang Branch, Jengka Campus, Malaysia. She obtained her PhD in Zoology in 2019 from Faculty of Science and Technology, Universiti Kebangsaan Malaysia, Selangor, Malaysia. Her research interests include wildlife biodiversity, ichthyol- ogy, and fish ecology. She has published articles in academic and peer-reviewed journals.

Author’s contact detail: Address: Faculty of Applied Sciences, Universiti Teknologi MARA Pahang, Malaysia; phone number: +60132041512; Email: farahayuni2506@ uitm.edu.my

Umi Hamidaton Mohd Soffian Lee, Universiti Sains Islam Malaysia

Mohd Soffian Lee, Umi Hamidaton, is a Senior Lecturer at Universiti Sains Islam Ma- laysia (USIM). She is a graduate of bachelor’s and master’s degrees from Universiti Sains Islam Antarabangsa Malaysia (UIAM) in the field of Social Science (Public Administration) and obtained a doctorate degree from Universiti Kebangsaan Ma- laysia (UKM) in the field of Islamic Civilization (Corporate Administration). Her research interest focus on the area of management, halal industry, organizational behavior and Islamic philanthropy. She has now been involved in numbers of re- search grants at university and international level. She has successfully published a book on leadership practice as well as being active in writing articles, research papers, chapters in books and popular writing.

Author’s contact detail: Address: Fakulti Ekonomi & Muamalat, Universiti Sains Islam Malaysia (USIM); phone number: 012-6776851; Email: umihamidaton@ usim.edu.my

Azman Ismail, Suleyman Demirel University in Turkiye

Ismail, Azman, is a professor at Suleyman Demirel University in Turkiye. He earned his PhD in Business from Murdoch University in Australia in 2005. His research in- terests include human resource management and development, organizational be- havior, and leadership. He has published articles in academic and peer-reviewed journals.

Author’s contact detail: Address: Faculty of Economics & Administrative Scienc- es, Suleyman Demirel University, Turkey; Email: azisma08@gmail.com

References

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