CHARISMATIC LEADERSHIP AND WORK ETHICS ON EMPLOYEE ENGAGEMENT

Every organization would like to have competent, loyal and engaged people, as engaged people are people who have high attachment and involvement to their organization. Without engaged people, high quality and productivity will not be achieved. The objective of this paper is to test the model about the role of charismatic leadership in employee engagement through work ethics. The study was conducted at two Insurance companies with 290 respondents, using questionnaires for data collection and SEM for data analysis. The results showed that charismatic leadership had a direct impact on employee engagement. The findings also showed that work ethics are partial mediators for the relationship between charismatic leadership and employee engagement. Moreover, the study also showed that Say dimension is the highest indicator of employee engagement, and unconventional behavior is the highest indicator of charismatic leadership. These results enhanced the role of leadership, especially charismatic leadership on employee engagement, and work ethics. As the research on work attitude, work ethics and employee engagement are still very limited, it is hoped that this finding can contribute to the organization and management about work ethics and its relationship with charismatic leadership and employee engagement