Optimize The Workplace Spirituality And Employee Loyalty To Achieve Operational Excellence Through Employee Engagement : Study In Pt Cipta Kridatama Site Mifa
Author: Irham M Amin, Abdul Rahman Lubis, and Teuku Roli Ilhamsyah Putra, Indonesia.
Abstract:This study examines the effect of the workplace spirituality and employee loyalty on operational excellence through employee engagement. The population of this research is the employees of PT. Cipta Kridatama Site Mifa, located in Aceh Barat, Indonesia, amounted to 802 people. The sample was determined with stratified random sampling technique and provided as much as 267 respondents. The research model is analyzed using Structural Equation Modeling (SEM). The result shows that workplace spirituality affects operational excellence, employee loyalty affects operational excellence, workplace spirituality affects employee engagement, employee loyalty affects employee employee engagement, employee engagement affects operational excellence, employee engagement partially mediates the relationship of the workplace spirituality to operational excellence, and employee engagement does not mediate the effect of employee loyalty to operational excellence. The work engangement stands as the partial mediation variabel proves that the work engangement is still an important mediator in strengthening the management model and this can be a consideration for practical managers to improve the operational excellence. The novelty lies in the discussions of the workplace spirituality that is able to influence other variables, which is still rarely discussed and updated in the scope of management research. These findings contribute to the renewal of the causality theories and are useful as a basis for the development of advanced research models. The limitation of the study lies in the number of variables and scope of object. The result test figured provides some recommendations.