1. Introduction
Optimization of employee careers is an important thing but is often neglected by companies. If considered wisely, optimizing employee careers will help the company’s continuity and increase employee morale and desire to stay in an organization. Employee career optimization will make their level of involvement also greater. In short, career optimization is a form of excellent and positive appreciation for employees by the company. Indeed, there is no better way to determine what employees need and want than to ask them directly. Our study raised three essential components regarding career optimism: personality, or things that have become crucial characteristics and become an employee’s characteristics. Second is the individual psychological factor, namely career-related goals (e.g., career aspiration, goal drive persistence, goal decidedness). Career aspiration is a particular orientation that contains various reasons and questions why an employee wants to work and his visionary views regarding his career in the future. Career aspiration certainly involves the conditions, aspirations, ambitions, and expectations desired by the employee, then raises significant questions in individuals’ minds about strategies and ways to realize these hopes, initiatives, and ideals.
Several studies have revealed that aspirations affect individual performance to pursue opportunities (Lent & Brown, 2019; Gray & O’Brien, 2007; Wang & Staver, 2001). In social psychology, career aspirations are seen as reflections of self-efficacy and an essential mediator of motivation and career development (Kelidbari et al., 2016; Kassianos et al., 2016). Gottfredson (1981) identifies two components of career aspirations, namely realistic aspirations and idealistic aspirations. Real aspiration means a condition in which a person feels that he does not have to adhere to the past’s fundamental principles and tends to view or represent things as they really are. Idealistic aspirations are usually understood as expressions of a person›s motivation towards attainment, independent from the individual›s chances to realize this goal. A realist is different from an idealist, Idealists tend to not look for shortcomings or flaws, in themselves or others, or systems. A realist, on the other hand, is more able to see these and plan around them, but without getting pessimistic. A realist lives a life that responds to the real world around him/her. Aspirations and goals drive persistence in individual career-guide in setting the desired goals in their careers (Ivers et al., 2012).
Studies on career optimism have been previously studied by Eva et al. (2020). They systematically reviewed empirical work on the antecedents and outcomes of career optimism. highlight opportunities for empirical and theoretical advancement of the field, calling on researchers to draw on theories such as the conservation of resources, broaden and build and psychology of working theories to understand how career optimism develops and influences individuals’ vocational attitudes and behaviours. Further, they called on researchers to improve how they measure career optimism, improve the research designs they adopt, adopt multi-level approaches to understand how career optimism develops, undertake more work on the behavioral outcomes of career optimism, and examine the negative effects of career optimism. They considered individual employees’ psychological aspects such as personality aspects, emotions, capability beliefs, career-related goals and motivations, social and counseling elements, and culture as the career optimism variables (Eva et al., 2020).
Our study adds an organizational theory approach to measuring the complexity of career optimism. We consider that psychological factors or internal factors of the individual are not sufficient as antecedent variables. In line with this, we include various disclosure variables of career optimization from the organizational side (e.g., organizational entrepreneurship commitment, Organizational fairness). We consider that career optimization requires a variety of stimuli, not only from individual character and psychological factors but also impulses from the organization. Organizational entrepreneurship commitment is defined as intense employee involvement, a sense of belonging, and intensive identification of intrapersonal relationships with the organization, characterized by a proactive attitude; both employees and organizations achieve their common goals.
Furthermore, an essential part of organizational entrepreneurship commitment also contains aspects of competitive aggressiveness. Every individual in the organization has an aggressive effort and wants to compete fairly in building a sustainable organization. Of course, to generate such feelings (proactive and aggressiveness in competition), organizations require various approaches that are material and non-material.
Organizational support also plays an equally important role as a positive stimulus to raise the career optimism level in a more positive direction. The study by Cohen-Charash and Spector (2001) has demonstrated that organizational justice plays an essential role in forming attitudes such as satisfaction and commitment and behaviors such as performance, extra-role behavior, and counterproductive behavior. Fairness plays a critical role in the organization because it affects employees’ beliefs, feelings, attitudes, and behavior. Fair treatment leads to higher efficiency and commitment to the organization. On the other hand, employees who face injustice in the organization are generally more likely to leave the organization or work with low efficiency and deviant behavior.
The study by Meiyani & Putra (2019) stated that engagement could be formed if an organization’s leader can show genuine interest in the organization and provide clear visibility for employee career development. Various efforts are mandatory for organizations to create a transformation from career optimization to engagement. One of them is personal development. For members of the internal organization, personal development is the principle that will determine whether an employee chooses to stay or leave (engage or disengage) (Lemon & Palenchar, 2018). Therefore, various descriptions in the subject of the introduction purify our research formulation as “How is the role of external stimuli originating from the organization (i.e., organizational entrepreneurship commitment and organizational fairness) in influencing career optimism of employees.
Our study objectively addresses several research questions, including 1). Do organizational entrepreneurship commitment and organizational fairness significantly affect employee engagement mediated by career optimism of an employee; 2). Does the individual psychological stimulus factor such as career optimism provide a driving force for the variable mediation relationship? The purpose of this study is to confirm and analyze the relationship between variables through empirical testing. Our research’s main objective is to complete the body of knowledge, especially in human resources management (organizational entrepreneurship commitment and organizational fairness), career optimism, and its relationship to employee engagement through a combination of psychological theory and managerial theory approach. Therefore, practically and managerially, we believe that organizational entrepreneurship commitment, organizational fairness, and career optimism can be solutions and strategies in dealing with human resource management problems in organizations comprehensively.
2. Literature Review
2.1. Theoretical Background
Organizational theory is a conception, views, reviews, teachings, opinions, and approaches to solving organizational problems so that the organization can achieve the goals and objectives set. Organizational theory is a collection of sciences that discuss more than one person’s systematic cooperation to achieve predetermined goals. (Lewis & Abdul-Hamid, 2006). During its development, history recorded organizational theory until modern times. It experienced relatively rapid growth. For example, the classic organizational theory defines an organization as a structure of relationships, power, goals, roles, and communication that occurs when collaboration. Then the concept of the neo-classical organizational theory emphasizes the psychological and social aspects of employees.
The more activities are carried out by the organization, the more complex the relationships will be. An organizational structure that describes the relationship between groups/ sections is created to solve problems in the organization. It is the process of setting up organizational structures to address the needs of an organization and account for the complexity involved in accomplishing business objectives. What stands out in neo-classical organizational theory is the emphasis on the participation of internal members of the organization in decision making, job enlargement, and providing opportunities for junior members to participate in top management decision-making. Indeed, organizational success is a measure that results from the leader’s success and the people they lead (Meiyani & Putra, 2019). Organizational commitment can be realized if justice in the organization is also manifested. Organizational problems are a lesson in maturing the organization in the future. Many previous learners have widely studied the complexity of organizations’ issues (Mahesh, 1988; Brown et al., 2009) that gave birth to studies which until now are often researched. For example, the relationship between organizational functions in realizing organizational effectiveness, the relationship between human behavior towards the organization, employee engagement, and even the intention to stay at the organization (Mappamiring et al., 2020). Organization means involvement between people, idea ideas, shared perceptions and shared vision and mission to achieve common goals. The relationship between humans within the organization is regulated in Human-Relations Theory; the essence of Human Relations theory explains that human relations are established based on communication and awareness of each other and understanding to provide feedback on both parties’ satisfaction. Human relationships involve persuasive communication that one makes to others in all life areas to create happiness and joy.
2.2. Organizational Entrepreneurship Commitment and Organizational Fairness
Organizational commitment is needed, especially when employees and organizations want to maintain a working relationship between them. Commitment is related to mutual trust between the two parties (organization and employees). Employees with a strong commitment will have the confidence to serve the organization with a high level of loyalty (Zayas-Ortiz et al., 2015; Meyer et al., 2015). A strong emotional bond between employees and organization helps the organization achieve its goals; they will consider themselves part of the organization that is partially responsible for its success; on the other hand, they will also feel a loss of organizational failure. Organizational commitment is in line with the level of employee job satisfaction. Therefore the more satisfied employees are with everything they receive from the company (salary, promotions, supervision, relationships with colleagues, and fun) will encourage them to perform better (Vuong et al., 2020).
The theory of motivation by Herzberg found several factors causing employee job dissatisfaction; among others, those originating from extrinsic factors (i.e., company policy and administration, supervision, interpersonal relations, and working conditions) Ewen, 1964; Gawel, 1997; DeShields Jr et al., 2005; Milliman et al., 2018; Wilms et al., 2019). This study implies that fair treatment and organizational justice (distributive and procedural) are categorized as policy and organizational factors. Interactional justice is classified as a factor of interpersonal relations and is the fundamental reason for creating satisfaction or dissatisfaction. In the concept of ideal human resource management, the element of justice is a principle that plays an essential role in realizing positive performance and engagement to build a better and optimal organization (Meiyani & Putra, 2019; Ramlawati & Putra, 2018). Employee job satisfaction is a collage that bridges the role of reward on work involvement (Brown, 2014). A statement can be made that the antecedent of engagement comes from a feeling of satisfaction at work. In career matters, an employee’s preference for their career is if their profession is considered to inspire them (Chawla et al., 2017). Job is not always in the form of making money to fulfill all the wants and needs of life, but beyond that -the role of a person’s profession and career must also provide essential inspiration in life (Hulkko-Nyman et al., 2012).
Meiyani and Putra (2019) described that organization fairness, a concept that has a meaning that represents employees’ feelings. Several studies such as Arfah and Putra (2019), Meiyani and Putra (2019), Lambert et al. (2019), and Kim and Chung (2019) have proven that fair treatment is closely related to work behavior and higher performance, and job satisfaction. Research conducted by El Hachem and De Giovanni (2019), Raja et al., (2018), and Heffron (2018) stated that procedural and distributive justice have an impact on performance and job satisfaction. Other studies have shown that individuals will display performance and commitment levels, work quality, individual trust levels, and employee attitudes if they are satisfied with fair decision making. Some of the other factors that affect employee performance are organizational culture, motivation, job satisfaction, and work commitment. The relationship between satisfaction and performance following expectations occurs based on the idea that with good performance, employees will get positive rewards such as promotions, incentives, etc. (Arfah & Putra, 2019). The findings are contradictory to Bono & Judge (2003) states that job satisfaction and performance are only a form of correlation, but it is not found that job satisfaction can improve performance.
2.4. Employee Engagement
The term employee engagement was first coined by William Kahn in 1990, which until now remains a reference as a grand theory. By definition, engagement means using organizational members to be involved in their job roles both physically, cognitively, and emotionally. Kahn also explained that physical, cognitive, and emotional behavior are indicators to measure employee engagement (Kahn, 1990). Organizational commitment and awareness of each organization’s element are one of the main factors for optimal employee engagement. Of course, this is not easy, it takes seriousness and a vision for a leader’s foresight to achieve this. Making changes certainly requires a lot of money; the process to achieve optimal and targeted employee engagement requires precise and careful calculations and sufficient budget availability, requiring the organization to provide new competencies to all management members. Empowerment and engagement mean striving for or changing conditions that were previously considered less acceptable. From a management perspective, engagement occurs after empowerment is realized (Almulhim, 2020). Management must get out of their comfort zone through competency development so that management goals can be achieved. It requires the organization to develop and describe a new compelling base of management strengths (Klagge, 1998). Referring to studies suggested by Meiyani and Putra (2019) and Scott et al. (2018), engagement could be formed if an organization’s leader can show genuine interest in the organization and can provide clear visibility for employee career development. Besides, the realization of a professional management atmosphere, apart from coming from a wise leader’s role, cooperation between teams is also another fundamental thing that must be implemented to create employee management (Buil et al., 2019; Jena et al., 2018). Employee engagement has emerged as a way for an organization to measure the results of the investment they have spent on human resource development (Vu, 2020). Employee engagement issues are at the center of substantial attention. Employee involvement has a positive impact on the organization because disengaged problems or the absence of employee involvement can lead to lack of productivity, reduced productivity, which means eliminating future opportunities for profit and employee reputation. Therefore, the description in the literature review and the previous study provides a complete picture of the hypotheses to be developed in this study, including:
H1: Through a direct relationship, career optimism has a positive and significant effect on employee engagement.
H2: Through direct relationship organizational fairness has a positive and significant effect on career optimism.
H3: Through direct relationship organizational fairness has a positive and significant effect on employee engagement. H4: Through a direct relationship, organizational entre preneurship commitment has a positive and significant effect on career optimism
H5: Through a direct relationship, organizational entre preneurship commitment has a positive and significant effect on employee engagement
H6: If mediated by career optimism, organizational fairness has a positive and significant effect on employee engagement.
H7: If mediated by career optimism, organizational entrepreneurship commitment has a positive and significant effect on employee engagement.
3. Research Methods and Materials
3.1. Samples Criteria
This study involved 200 lecturers in Indonesia consisting of 113 women and 87 men in various university statuses (private and public) selected through a purposive random sampling method. In terms of age, 106 respondents aged between 34–41 years, 32 respondents aged between 26–33 years and over 48 years, and respondents between the 41–48 years age category were 30 respondents. Based on the demographics of marital status, 170 respondents are married, and 30 respondents are single. The highest education status of respondents is 80% with a doctoral degree. The level of lecturer status is 15%, have national lecturer registration number but not yet having an academic position (Non-JF), 43% (assistant professor), 42% (associate professor).
3.2. Measurement
Data collection in this study uses a questionnaire; approximately 60% of the questionnaires were offline in which the questionnaires were distributed in Makassar City, Indonesia. The rest, as much as 40% of the questionnaires were online questionnaires to collect data on respondents outside the province of South Sulawesi. The survey is distributed to several social media groups of researchers and lecturers in Indonesia. The survey contains twenty-four questions consisting of several constructs for measuring variables. For example, the career optimism (CO) variable is divided into three items (i.e., personality, career-related goals, and contextual support). The organizational entrepreneurship commitment (OEC) variable is divided into two items (i.e., proactive and competitive aggressiveness), the organizational fairness (OF) variable has one item (i.e. procedural fairness construct), and the employee engagement variable is divided into four items (i.e., personal feeling and belief, organizational atmosphere and leadership, equipment and support, and management and team. Regarding the measurement of variables and constructs, we have described in Table 1. The weight of the answer measurement uses the Likert scale (1 = strongly disagree, 2 = disagree, 3 = disagree, 4 = neutral, 5 = somewhat agree, 6 = agree, 7 = totally agree). This study focuses on research patterns from the perspective of broaden-built theory and organizational theory so that the survey structure follows the pattern of the two theories. Apart from that, the approach of this study uses a PLS-SEM-based quantitative analysis method. Measurement of variables uses two approaches: direct relationships and mediation relationships, which we specifically illustrated in the conceptual framework in Figure 1.
Table 1: Operational Variable Measurement
Figure 1: Conceptual Framework
The variable measurement stage goes through several stages, namely testing the construct validity of items (e.g., Personality, Career Related Goals, Contextual Support, Proactive, Competitive Aggressiveness, Procedural Fairness, Individual feeling and belief, Organizational Atmosphere and leadership, Equipment and support, Management and Team) using SPSS. We also used SPSS to measure the normality of the variables with the Kolmogorov-Smirnov method. The normality test results show that the data is normally distributed (Asymp. sig > 0.12). The second stage of testing measures the outer model on SmartPLS, i.e., loading factor> 0.60 (Fornell & Larcker, 1981; Hair et al., 2014); inner-model testing (i.e. Cronbach alpha, composite reliability, and Average Variance Extracted (AVE) provided that each test value is > 0.60) (Bentler & Bonett, 1980); measurement of goodness of fit model by evaluating data testing criteria, i.e., Standardized Root Mean Square Residual and Normed Fit Index (SRMR < 0.80, NFI > 0.90) (Henseler, et al., 2016) ). d_ULS and d_G with the criteria original value (saturated model > estimated model). Then test the coefficient of determination and F-test (R-Square and F-test). The final research testing stage is hypothesis testing using the constant bootstrapping method with chi-square (n = 200).
4. Results and Discussion
4.1. Statistical Result
Table 2 describes the frequency distribution of the answers to the survey of 200 respondents, wherein-the career optimism variable with items and constructs – personality, career-related goals and contextual support -with a frequency distribution of respondents’ answers between 5.55–6.21 (with a tendency to somewhat-agree to strongly-agree); organizational entrepreneurship commitment (OEC) variable -with items and constructs -proactive and competitive aggressiveness -with a frequency distribution of respondents’ answers between 5.73–6.01 (somewhat-agree to agree), variable organizational fairness (OF) -with the item and construct -procedural fairness-with a frequency distribution of respondents’ answers between 4, 53–5.09 (neutral to somewhat-agree); employee engagement (EE) variable with items and constructs -individual feeling and belief, organizational atmosphere and leadership, equipment and support, and management and team -with a frequency distribution of respondents’ answers from 4.85 to 5.92 (neutral to agree). The value of standard deviation and standard error also shows minimal values. The estimated standard in measuring the perception of respondents’ answers is valuable and has an excellent meaning.
Table 2: Descriptive Result
In line with the explanation in Table 2, it can be assumed that the career optimism factor with the perspective of psychological theory provides the most dominant contribution to the formation of employee engagement attitudes and behavior. The organizational entrepreneurship commitment factor also positively responds to individual attitudes to form commitment and employee engagement. Conversely, organizational fairness with procedural fairness items with the perception of the least respondent’s answers, namely between neutral to somewhat agree, assumes that the job satisfaction factor formed by organizational fairness for respondents feels minimal.
The results of statistical testing as illustrated in Table 3 regarding the classical assumption test show that all indicators/items composing variables are declared valid and reliable and have met the test requirements, for example, the value of Cronbach Alpha > 0.6, Composite Reliability = CR > 0.6, AVE > 0.6 (Hair et al., 2014). For example, for the career optimism (CO) variable, personality is the most dominant item in shaping the CO variable; for the organizational entrepreneurship commitment (OEC) variable, proactive and competitive aggressiveness gave an enormous Cronbach alpha contribution, namely 0.908 or 90.8% to the OEC variable; for the organizational fairness variable, procedural fairness variable contributed by 0.927 or 92.7% to OF; for the employee engagement (EE) variable in terms of Cronbach’s alpha value, all items contributed > 0.60 (individual feeling and belief (0.906 or 90.6%), organizational atmosphere and leadership (0.763 or 76.3%), equipment and support (0.789 or 78.9%), management and team (0.921 or 92, 1%)).
Table 3: Analysis Results
Furthermore, in testing the feasibility of the model, the SRMR value was 0.071 < 0.80, d_ULS 10.592 > 10.527, d_G value 6.167 > 6.155, NFI value 0.618 < 0.90. and chi-square 199,862. The inner-model testing, such as R-Square, shows the relationship between the career optimism (CO) variable as a mediating variable on employee engagement (EE) as the dependent variable of 0.924 or 92.4%. Partial testing (F-Test), variable career optimism (CO = 2.741, sig < 0.05) and Organizational fairness (OF = 1.837, sig < 0.05).
The regression test results using the PLS structural equation modeling method, presented in Table 4, confirm that the seven hypotheses reveal that all relationships’ have a positive and significant effect (p <0.01) either directly or indirectly. Through a direct connection, the career optimism variable on employee engagement has a dominant impact on relationships. Meanwhile, through the mediation relationship, organizational entrepreneurship commitment to employee engagement mediated by the career optimism variable also has a significant influence. Therefore, the research questions asked (See. Section I) state whether the mediation rather than the optimism variable will improve the relationship between variables? The answer is that the career optimism variable is proven to have a positive effect directly and increase the antecedent impact on other variables if the career optimism variable mediates it.
Table 4: PLS-SEM Result
4.2. Discussion
We have empirically demonstrated the factors that make employee engagement more optimal. Career optimism plays a vital role because it comes from the individual’s internal psychology; It is proven that both through direct and mediation / indirect relationships, career optimism contributes well and increases the influence between the variables it mediates. We carry out several constructs regarding personality and career optimism psychology (i.e., Extraversion, Conscience, Openness to Experience, Career Aspiration, Goal Drive persistence, Service Motivation). The extraversion dimension means the individual’s ability to socialize with other individuals in the area where they work. Socializing is a basic need for every human being; it can be said that humans are social creatures. Unique imperfections require humans to meet and cover each other’s shortcomings through social action. The office or workplace is the second home, and even many activities are carried out outside the home. Therefore, the critical role of extraversion in supporting one’s performance is developing personal and group talents, ideas, interests, and life goals. Building good relationships with colleagues is as important as making the organization more sustainable or making a person better in the professional world. Indeed, one’s appraisal performance factor assesses intellectual intelligence and emotional intelligence, and individual skills in groups. Work pressure and high career demands in the higher education sector at universities in Indonesia demand careful attention to the teaching staff/lecturers’ roles in various aspects. Therefore, different intelligence types must always be possessed, one of which is emotional intelligence through extraversion.
Second, the factor conscientiousness emphasizes prudence in acting; a high level of self-discipline, persistence, achievement-oriented, and trustworthiness are the cores that are emphasized in the conscientiousness construct. Indeed, as a professional, the organization demands a high level of conscientiousness as part of its work appraisal. Individuals who have an adequate level of conscientiousness will impact personal interest in engaging in their organization. Conscientiousness can also be interpreted as the extent of the individual’s love for responding to the work he receives and doing each task optimally and adequately. Third, openness to experience -this psychological dimension of personality classifies individuals based on their interest in new things and their desire to know and learn new things. These positive characteristics illustrate individuals’ tendency to be more creative, imaginative, innovative, and visionary. Fourth, career aspiration -anyone will have an orientation towards the desired career goals under the desired conditions or expectations. Therefore, the importance of sources of aspiration and inspiration in a career is also a fundamental reason for having a professional career. Career aspirations can come through the immediate environment or the characters he wants to adopt out there. Fifth, goal drive persistence, related to career goals, must also be in line with personal goals in pursuing his career. An optimistic attitude and a goal-oriented focus are described in the theory of Locus of control. However, various personal-psychological approaches must also be supported by service motivations (i.e., something rational in the form of material). Our study results also prove that apart from internal factors (career optimism), external factors originating from the organization have a positive influence on individual optimization in a career.
Organizational fairness is a factor that is equally important to create and optimize employee engagement levels. The form of procedural justice that the organization promises to employees certainly gives employees high hopes to determine whether an employee chooses to stay or leave from where they work. The importance of reward and punishment has become a topic of research among HRM scholar who makes a positive contribution. Likewise, the career path process that the organization promises to employees and transparency in the employee performance appraisal provides clear evidence that external factors originating from the organization have a real impact both in research and managerial implications. The organizational entrepreneurship commitment factor is also why many employees measure their satisfaction level while working in an organization. The organizational commitment that is oriented towards the concept of entrepreneurship means an organization whose orientation rests on three main things (e.g., the organization’s strategy in overcoming competitor strategies—the organization’s ability to introduce ideas through a technology and creativity approach. The organization uses the latest technology to support every employee’s work for the smooth running of the job and its realization (vision and mission of the organization). Therefore, internal support must also be fully supported (organizational factor) through optimal, effective, and targeted utilization and allocation of company resources to achieve job satisfaction, loyalty, and employee engagement.
5. Conclusions
The results of hypothesis testing in our study confirm that the psychological theory approaches to personality and organizational theory are closely related. Therefore, this study positively contributes to human resource management to balance the psychological and organizational aspects. This is in line with what is emphasized in Broaden-Built Theory, which states that a person’s positive emotions will influence—the tendency for individuals to think broadly and openly every step to (way) to determine every decision. We also add that consistency and a positive attitude in a career trigger a person’s career optimization in a better and more positive direction. Various studies have suggested that companies’ importance of external stimuli is to engage employees (Bühner, 1997; Carignani, 2000; Werner, 2000; Belout & Gauvreau, 2004). However, we can conclude that the external stimulus factor is not the main guarantee that a person will stay in the organization or even engage. Internal factors and individual encouragement are needed to see the organization as a place to work and generate money to meet daily life needs alone. More than that, the organization or workplace is a place for self-actualization and developing ideas, creativity, and a better and more dignified personality. Our study’s criticism emphasizes the importance of constructs and internal motivation for a person to think broadly, open-minded, and visionary. Besides, the implications of a job for someone in their social environment have a tremendous impact on their daily lives, such as social degree and social meaning. Therefore, the essence of positivist individual-psychological aspects of being possessed by every person in their career is an aspect that distinguishes employees from each other in terms of capacity, quality, and integrity.
Theoretical & managerial implication: Theoretically, in the body of knowledge, organizational factors cannot be separated from individual psychology’s role. It is an exciting thing to give to scholars at universities, especially teaching materials to students. The individual-soft-skill aspects (i.e., extraversion, conscience, openness to experience, career aspiration, goal drive persistence, service motivation) are strongly emphasized and needed to compete and survive in the job market today and in the future. Furthermore, it becomes a valuable concern for managers and employees to unite the vision in the psychological and organizational aspects.
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