Proceedings of 7th Asia-Pacific Business Research Conference 25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0 The Influence of Psychological Types towards Employee Engagement Driver Fawziani Inggrita Agniputri1 and Aurik Gustomo2 In order to compete in the business world, organization or a company must be survive while facing the future turbulence in business environment by improving the employee engagement level. This research tried to find out about the influence of psychological types – which will be focused on Extrovert and Introvert types – towards employee engagement driver. This research was done by assessing and analyzing current situation of employee engagement level in Multinational Consulting Company and PT LEN Industri as the national company. Reliability, validity, multicollonearity, heteroscedecity, normality, factor analysis and multiple linear regression are conducted by SPSS software from the questionnaire data. After analyzing and interpreting the data, there are 4 variables that has been formed such as Employee Motivation, Self Development, Organization Value and Behavior, and Working Environment with Self Development as the significant variable to the employee engagement driver. Keywords: Psychological Types, Extrovert, Introvert, Employee Engagement Driver 1. Introduction For the past several years, human resource was one of non-crucial department that just involved transactional HR activities, which the routine was bookkeeping tasks – for example, changing an employee’s home address or health care provider. In the early 20th Century, HRM’s roles were just a caretaker for the entire company, worked on the employee focus, and also all the records activities. But in the 21st Century, HRM become the strategic partner to calculate the cost effectiveness and responsible in employee development also. (Kavanagh, 2014) Success in these days’ activities that company did was relying on the human capital, inside the company. While, the most common problem that company faced is they consider to takes more resources (time and money) to hire and train people rather then to retain them. Human capital management is about how to make the employee feel engage with the company, so that the company could reduce their replacement cost. In order create that, the HR manager should put the right system with the right treatment toward different kind of job description. Yet, since the company could not give an individual treatment in each employee, then this research will tries to classified the characteristic and find out what jobs or divisions that 1 Fawziani Inggrita Agniputri, School of Business and Management, ITB, Indonesia. Email: fawziani@sbm-itb.ac.id 2 Dr. Aurik Gustomo, S. T., M. T., School of Business and Management, ITB, Indonesia. Email: aurik@sbm-itb.ac.id 1 Proceedings of 7th Asia-Pacific Business Research Conference 25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0 suitable for the employee based on Psychological types (Introvert and Extrovert types) in order to give the right treatment in every division. Then the HR manager could increase the employee engagement rate in the company. 2. Literature Review 2.1 Employee Engagement There are several definitions of employee engagement based on the expert. Robinson et al. (2004) define employee engagement as “a positive attitude held by the employee towards the organization and its value. An engage employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. The organization must work to develop and nurture engagement, which requires a two-way relationship between employer and employee”. Based on AON Hewitt (2013) employee engagement is the psychological and behavioral outcomes, which lead to a better employee performance. Another expert, Macey (2008) defines employee engagement with a series of propositions about (a) psychological state engagement; (b) behavioral management and (c) trait engagement. In general, employee engagement is a psychological and behavioral state which shown by the emotional and rational commitment factors with positive attitude towards the organization and it’s a two-way relationship between the employee and organization. 2.2 Psychological Types From all the kinds of psychology types, this research will just focus on Differentiation Psychology – which explain about the differences between individuals in terms of their ability, intelligences, personality traits and the way they differentiate those factors – and Corporation Psychology which attempt to help the corporation in terms of leadership psychology, recruitment process and placement process of the employee, training strategy, problem solving, and try to increase the employee performance. This research will focus on Extrovert and Introvert types. Actually there is no all-purpose definition of introversion or extroversion; there are not unitary categories, like “curly-haired” or “sixteen-year-old”, in which everyone can agree on who qualifies for inclusion. As Jung (1971) said in his book, Psychological Types, “There is no such thing as pure extrovert or pure introvert. Some a man would be in the lunatic asylum.” This is partly because people are gloriously complex individuals, but also because there are so many different kinds of introverts and extroverts. Yet both types could be classified with the traits that they have in general. 2.2.1 Introvert Types One of the great developmental psychologists of the twentieth century, Kagan (2004), classified both types of extrovert and introvert into low and high reactive classification. Kagan choose those measures because he believes it is to be controlled by a potent organ inside the brain called the Amygdala. 2 Proceedings of 7th Asia-Pacific Business Research Conference 25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0 The amygdala is located deep in the limbic system, an ancient brain network found even in primitive animals like mice and rats. This network – sometimes called the “emotional brain” – underlies many of the basic instincts we share with these animals, such as appetite, sex drives and fear. The low-reactive (which define as an extrovert) they had nervous systems that were unmoved by novelty. By those kinds of nervous systems, extrovert tends to tackle assignment quickly. They make fast (sometime rash) decisions, and are comfortable multitasking and risk-taking. They enjoy “the thrill of the chase” for rewards like money and status. Extrovert think out loud and on their feet; they prefer talking to listening, rarely find themselves at a loss for words, and occasionally blurt out things they never meant to say. They are comfortable with conflict, but not with solitude (Cain, 2012) With those kinds of characteristics, the jobs that suitable for extrovert are Marketing, Arts, Counseling, Teaching, Artist, Advertising, Communication Director, Designer, Musician, Sales Manager, Psychologist, Public Relations, Human resource Administrator, Management Consultant, Journalist, Traveler, Investigator, Secretary and many more job which outside world connections are needed. 2.2.2 Extrovert Types According to Carl (1971), introverts are drawn to the inner world of thought and feeling. They may have strong social skills and enjoy parties and business meetings, but after a while they need some solitude because that is the way they recharge their batteries - by being alone. The word Introvert is not a synonym for hermit or misanthrope; they just only connect with several people. Nor are introverts necessarily shy. Shyness is the fear of social disapproval or humiliation, while introversion is a preference for environments that are not overstimulating. The shy person is afraid to speak up, while introvert is simply overstimulated – but to the outside world, the two appear to be the same. For very different reasons, shy and introverted people might choose to spend their days in behind-the-scenes pursuits like inventing, or researching, or in leadership positions the execute with quite competence (Cain, 2012) Introverts more prefer to devote their social energies to close friends, colleagues, and family. They listen more than they talk, think before they speak, and often feel as if they express themselves better in writing than in conversation. They tend to dislike conflict and have a horror of small talk, but will enjoy a deep conversation. With those kinds of characteristic, the jobs that suitable for Introvert are Accountant, Banker, Manager-Government, Mathematician, Office Manager, Engineer, Counselor, Business Manager, Architect, Researcher, Supervisor, Football Manager, Translator, Chef, Composer, Corrections Officer, Detective, Law Enforcement, Financial Analyst or Manager, Auditor, Bookkeeper, 3 Proceedings of 7th Asia-Pacific Business Research Conference 25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0 Education Administrator and many more job that idea and critical thinking are needed. Based on the research as an influential psychologist, Funder (2010), the basis of these differences between extrovert and introvert might be found in a brain structure called the Ascending Reticular Activating System (ARAS). The ARAS is a part of brain stem that has connections leading up to cerebral cortex and other parts of the brain. The brain has excitatory mechanism that causes us to feel awake, alert, and energetic – “aroused,” in the parlance of psychologists. The ARAS functioned differently in introverts and extroverts: introverts have wide-open information channels, causing them to be flooded with stimulation and over-aroused – doesn’t produce anxiety that much as the sense that they can’t think straight which makes them had enough and would like to have a solitude time in home, while extroverts have tighter channels, making them prone to under-arousal – something like cabin fever which makes them feel itchy, restless, and sluggish, like they need to get out of the house already. (Cain, 2012) 3. Model and Methodology This research use synthesis of employee engagement theory from Mercer (2007) as the dependent variable and employee engagement driver from Development Dimensions International (DDI, 2007) as the independent variable, while Mayers-Briggs Types Indicator (2009) is used for psychological types (Extrovert and Introvert) theory as the control variable. In the figure 1 below shows the conceptual model of this research after it was combined. DDI (Employee Engagement Driver) = Independent Variable Mercer (Employee Engagement Level) = Dependent Variable MBTI (Psychological Types: Extrovert & Introvert = Control Variable DDI MBTI Mercer Figure 1: New Conceptual Model 4 Proceedings of 7th Asia-Pacific Business Research Conference 25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0 The scope for this research is the employee of Multinational Consulting Company and PT LEN Industri as the national company. There are two major data that uses in this research such as (1) Secondary data, which is collected by journals, books, websites and other literature and (2) Primary data, which is collected through questionnaire. The questionnaire consist of 50 questions, with 30 questions for employee engagement level using likert scale, while the rest of 20 questions indicate the psychological types using yes/no questions. In the processing data, this research conducting several analysis such as reliability, validity, multicolonearity, heteroscedecity, normality, factor analysis and multiple linear regression by using SPSS statistical software from IBM company. The data will be analyzed and interpreted after the processing data was done. This research tried to analyze about the influence of psychological types (in terms of Extrovert and Introvert types) toward employee engagement driver in both national and multinational company. There are 200 questionnaires that has been spread to PT LEN Industri and; Multinational Consulting Company and 179 questionnaires were returns. The total amount of respondent from both Multinational Consulting Company and PT LEN Industri are ±400. This research using stratified random sampling questionnaire technique. Stratified random sampling is a type of probability sampling technique where there is a strata within the population. With this stratified random sampling, all the employees have the same probability to be chosen as a respondent. Slovin’s formula will be use to determine the sample required: n = Sample number n = N / (1+Ne2) N = Total population E = error tolerance Based on Slovin’s formula, the sample needed would be: n = 400 / [1+ {400 x (0.05)2}] n = 178 samples This research uses 95% level of confidence, which give a 5% error tolerance. After the calculation the number of samples that needed from the total population of Multinational Consulting Company and PT LEN Industri is 178 employees. 4. The Findings There are four new factors that resulted by factor analysis test. In the Table 1. Rotated Component Matrix below shows the entire factor. 5 Proceedings of 7th Asia-Pacific Business Research Conference 25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0 Table 1: Rotated Component Matrix By analyzing varimax rotated component matrix in the table above, it shows that X3, X4, X9, X14, X15, and X16 are in the group 1; X1, X8, X10, and X13 are in the group 2; X2, X11, and X12 are in the group 3; X5, X6, and X7 are in the group 4. From those variables, the new name is given to the each group; Employee Motivation, Self Development, Organizational Value and Behavior and Work Environment respectively. After calculating the factor analysis, multiple linear regression is conducted with two different types of data such as Introvert types data and Extrovert types data. In the table 2 below shows the result for Introvert Types data. Table 2. Multiple Linear Regression for Introvert Types 6 Proceedings of 7th Asia-Pacific Business Research Conference 25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0 From multiple linear regression analysis for Introvert respondent above, factor 1 (Employee Motivation), 2 (Self Development), 3 Organizational Value and Behavior, and 4 (Working Environment) are the new driver factor that will affecting the employee engagement with the final equation is: Y = 0.248 + 0.003X1 + 0.547X2 + 0.179X3 + 0.244X4 Where: Y = Employee Engagement Level X1 = Employee Motivation Factor X2 = Self Development Factor X3 = Organization Value and Behavior Factor X4 = Work Environment Factor From Table 2: It shows that Self Development factor has the highest score then the other factor and the score of sig. are less then 0.05, which means that Self Development factor significantly affecting the Introvert employee engagement. In the table 3 below shows the result for Extrovert Types data Table 3: Multiple Linear Regression for Extrovert Types From multiple linear regression analysis for Introvert respondent above, the final equation is: Y = 1.154 + 0.035X1 + 0.406X2 + 0.086X3 + 0.162X4 Where: Y = Employee Engagement Level X1 = Employee Motivation Factor X2 = Self Development X3 = Organization Value and Behavior X4 = Work Environment From Table 3. It shows that Self Development factor still has the highest score then the other factor and the score of sig. are less then 0.05, which means that Self Development factor significantly affecting the Extrovert employee engagement. After calculating the factor analysis and the multiple linear regressions, it concludes that there are 4 factors that affecting the employee engagement, which are Employee Motivation, Self Development, Organizational Value and Behavior, and Working Environment. For the summary analysis the hypotheses are: 7 Proceedings of 7th Asia-Pacific Business Research Conference 25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0 H0: Recruitment using Mayers-Briggs Type Indicator (MBTI) will affect the employee engagement level. Hi: Recruitment using Mayers-Briggs Type Indicator (MBTI) is not affecting the employee engagement level. The H0 will be accepted if the total average of employee engagement level in Multinational Consulting Company has greater score than PT LEN Industri and H0 will be rejected if the total average of employee engagement level in Multinational Consulting Company has fewer score than PT LEN Industri. In the figure 2 below shows the employee engagement in Multinational Consulting Company as multinational company and PT LEN Industri as national company. Employee Engagement Advocate 3.59 Committe d 3.62 Motivated PT LEN Industri Multinational Consulting Company 3.26 Satisfied 3.59 1 2 3 4 5 Figure 2: Employee Engagement of Both Multinational Consulting Company and PT LEN Industri From the obtained data above, Multinational Consulting Company has a higher score in all factors of employee engagement level than PT LEN Industri with scale out of 5. Multinational Consulting Company has 3.59 score for Satisfied variable, 3.26 score for Motivated variable, 3.62 for Committed variable, and 3.59 score for Advocate variable. The highest score is 3.62 for Committed variable. While PT LEN Industri has 3.17 score for Satisfied variable, 2.99 score for Motivated variable, 3.33 score for Committed variable, and 3.37 for Advocate variable with the highest score is belong to Advocate with score 3.37. In the table 4.7 below shows the Unstandardized Coefficient B form both extrovert and introvert types. 8 Proceedings of 7th Asia-Pacific Business Research Conference 25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0 Unstandardized Coefficient B Working Environment 0.197 0.249 Organization Value and Behavior Extrovert Types 0.095 0.168 Introvert Types 0.419 0.48 Self Development Employee Motivation 0.065 0.042 0 0.1 0.2 0.3 0.4 0.5 0.6 Figure 3: Unstandardized Coefficient B From the figure above, it shows that the Self Development factor has the highest score for both Introvert and Extrovert type with 0.480 and 0.419 repetitively. It means that if the Self Development increased 1000 points, then the employee engagement will increase 480 point for Introvert and 419 points for Extrovert types. From that analysis, it concludes that even when the same treatment (Self Development Factor) is given to Introvert and Extrovert type, the result will be different. Based on Csikszentmihalyi (1996), the more creative people tended to be socially poised introverts. But this doesn’t mean that introverts are always more creative than extroverts. The do suggest that in a group of people who have been extremely creative throughout their lifetimes, it is likely to find a lot of introverts (Cain, 2012) In the other side, Employee Motivation has the least score with 0.042 for Introvert types and 0.065 for Extrovert types. It means that if the Employee Motivation increases 1000 points, then the employee engagement will just increase for 42 points for Introvert and 65 points for Extrovert types. In the figure 3 below shows the Employee Motivation factor graph. 9 Proceedings of 7th Asia-Pacific Business Research Conference 25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0 Employee Motivation 3.03 3.26 3.07 3.41 2.98 3.41 3.05 3.37 Training Values ideas and… Shares Information Compliment PT LEN Industri Multinational Consulting Company 2.46 2.85 3.02 3.31 Form of Praise Staff Promotion 0 1 2 3 4 Figure 4: Employee Motivation Factors Employee Motivation is the most significant factor that has five factors affecting employee engagement. In the figure 4 above Shares Information and Values Ideas and Request has the highest score with 3.41 out of 5 for Multinational Consulting Company, and Values Ideas and Request factor also becomes the highest score for PT LEN Industri. For both company, Form of Praise has the lowest score with 2.85 for Multinational Consulting Company and 2.46 for PT LEN Industri. It shows that both company did not concern enough with the form of praise that given to the employee as a rewards. In the figure 2 below shows the Self Development factor graph. Self Development Involved in goal setting 3.23 3.41 Working Period 3.38 3.47 Value of Beliefs 3.38 3.49 PT LEN Industri 3.4 3.59 Skills and Interest 1 2 3 4 5 Figure 5: Self Development Self Development has four factors affecting employee engagement. In the figure 5 above Skills and Interest has the highest score with 3.59 out of 5 for Multinational Consulting Company, which shows that the employee feel suitable to work with their skills and interest, while Values of Beliefs factor becomes the highest score 3.38 for PT LEN Industri, which indicate that the 10 Proceedings of 7th Asia-Pacific Business Research Conference 25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0 employee could work conformable with what they beliefs. In this Group the entire factor has a similar score for both company. In the figure 3 below shows the Organizational Value and Behavior graph. Organizational Value and Behavior 3.41 3.59 Improve Job Quality Values suggestions and request PT LEN Industri 3.38 3.48 Multinational Consultant Company 3.08 3.32 Bonus 1 2 3 4 5 Figure 6: Organizational Value and Behavior Factor Organizational Value and Behavior has four factors affecting employee engagement. In the figure 6 above Improve Job Quality has the highest score for both companies with 3.59 out of 5 for Multinational Consulting Company and 3.41 out of 5 for PT LEN Industri with “Supervisor mendorong saya berpendapat untuk bisa meningkatkan kualitas bekerja” statement. It indicates that the supervisor could support the employee to improve their quality. In the table 4.18 below shows the variable statement in Organizational Value and Behavior. Working Environment Relation (High-movement) 3.38 3.48 Working Condition 2 3.22 3.41 PT LEN Industri Multinational Consultant Company 3.08 3.32 Working Condition 1 1 2 3 4 5 Figure 7: Working Environment Factor Working Environment has three factors affecting employee engagement. In the figure 7 above Relation (High-Movement) has the highest score for both Multinational Consulting Company and PT LEN Industri with 3.48 and 3.38 out of 5 respectively. It shows that the employee needs to be connecting with 11 Proceedings of 7th Asia-Pacific Business Research Conference 25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0 each other. In Working Environment there is no significant differences for both company. 5. Summary and Conclusion This research concludes several points such as: PT LEN Industri has the average score 3.22 out of 5 for employee engagement level and Multinational Consulting Company has the average score 3.59 out of 5 for employee engagement level. Since the Multinational Consulting Company has greater score than PT LEN Industri, it concludes that H0 is accepted which means recruitment using MBTI is affecting the employee engagement level in the organization. It shows there is correlation between psychological types and employee engagement level in the company There are 4 variables that has been formed after done the factor analysis such as Employee Motivation, Self Development, Organization Value and Behavior, and Work Environment, as the new factor that significantly affecting the employee engagement level. The most significant factor that affecting the employee engagement level is Self Development, followed by Working Environment, Organization Value and Behavior, and Employee Motivation. Form the multiple linear regression equation of employee engagement, the psychological types affecting or contribute 13.9% to the employee engagement, both in Introvert types and Extrovert types. Both in Introvert type and Extrovert type, Self Development become the highest variable that affecting the employee engagement level, with 54.7% for Introvert type and 40.6% for Extrovert type. It concludes even when the same treatment is given to Introvert and Extrovert type, the result will be different. It concludes that the more creative people tended to be socially poised introverts. Self Development is formed by four independent variables which are Skills and Interest, Salary Amount, Value of Beliefs and Working Period with the average score References Cain, Susan. 2012. Quite: The Power of Introverts in a World That Can’t Stop Talking. Penguin Group, Inc. London, England. Csikszentmihalyi, Mihaly. (1996). Creativity: Flow and the Psychology of Discovery and Invention. Harper Perennial. 65-68. New York. DDI. 2007. Employee Engagement: The Key To Realizing Competitive Advantage. Development Dimensions International, Inc. MMV. Retrieved on March 15, 2014 on www.ddiworld.com Funder, Davud C. (2010). The Personality Puzzle. Norton. New York. Ghozali, Imam. 2006. Aplikasi Analisis Multivariate Dengan Program SPSS. Semarang: Badan Penerbit Universitas Diponegoro. 12 Proceedings of 7th Asia-Pacific Business Research Conference 25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0 Hewitt, AON. 2013. Trends in Global Employee Engagement Highlights. Retrieved on February 17, 2014 on www.aonhewitt.com. Isabel Myers et al. 1998. MBTI Manual: A Guide to the Development and Use of the Myers-Briggs Type Indicator, 3rd ed., 2nd printing. Palo Alto, CA: Consulting Psychology Press. Jung, Carl, G. 1971. Psychological Types. Princeton University Press. Princeton. Kagan, Jerome., Snidman, N. 2004. The Long Shadow of Temperament. MA: Harvard University Press. Cambridge. Kavanagh, Michael J., Mohan, Thite., 2014. Human Resource Information Systems. State University of New York. Albany, USA. Macey, William H., Scheider, B. 2008. Industrial and Organizational Psychology. University of Maryland. Maryland. Macey, William H., Schneider, B., Barbera, Karen M.,Young, Scott A. 2009. Employee Engagement. New Jersey: Wiley-Blackwell. Mercer. 2007. Engaging Employees to Drive Business. Retrieved on July 5, 2014 from www.mercer.com MBTI. 2009. Myers-Briggs Types Indicator. CPP, Inc. Retrieved on May 20, 2014 on www.cpp.com Saklofske, D. H., Kostura, D. D. 1990. Extraversion – Introversion and Intelligence. Personality and Individual Differences, 11, 547-551. Apendix, Research Questionnaire Appendix A. Reliability Test Appendix B. Validity Test 13 Proceedings of 7th Asia-Pacific Business Research Conference 25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0 Appendix C. Factor Analysis Appendix D. Heteroscedecity Test Appendix D. Normality Test 14