AHRMR

Article Details

Vol. 6 No. 3 (2026): September

Management Transparency, Achievement Recognition, and Development Opportunities on Job Satisfaction: Role of Psychological Empowerment

https://doi.org/10.35912/ahrmr.v6.n3.p37-56.2026

Abstract

Purpose: This study examines the influence of management transparency, achievement recognition, and development opportunities on the job satisfaction of MSME employees in Surabaya, with psychological empowerment as a mediating variable.

Methodology: A quantitative explanatory approach was employed using an online survey of 100 Micro, Small, and Medium Enterprises (MSME) owners and managers in Surabaya, selected through purposive sampling. Data were analyzed using SEM-PLS with SmartPLS software.

Results: Development opportunities significantly affect job satisfaction, both directly and indirectly, through psychological empowerment. Psychological empowerment also has a significant and positive effect on job satisfaction. Management transparency influences job satisfaction indirectly through psychological empowerment, while achievement recognition has no significant direct or indirect effect.

Conclusions: Psychological empowerment is an important mechanism linking management practices to job satisfaction. Development opportunities emerged as the strongest factor in enhancing employee satisfaction within MSMEs.

Limitations: The cross-sectional design limits the observation of changes over time, and the findings are restricted to the context of Surabaya.

Contributions: This study extends the application of Psychological Empowerment Theory and Maslow Hierarchy of Needs in the MSME setting and provides practical insights for improving employee satisfaction through empowerment-oriented management practices.

Novelty: This study highlights psychological empowerment as a mediator between key managerial factors and job satisfaction in Indonesian MSMEs.

Keywords

Development Opportunities Job Satisfaction Management Practices Management Transparency Performance Recognition

How to Cite

Junaidi, A., Yusuf, M., Budiwaluyo, A., & Astika, Y. (2026). Management Transparency, Achievement Recognition, and Development Opportunities on Job Satisfaction: Role of Psychological Empowerment. Annals of Human Resource Management Research, 6(3), 37–56. https://doi.org/10.35912/ahrmr.v6.n3.p37-56.2026

Download Citation

Endnote/Zotero/Mendeley (RIS) BibTeX

References

  1. Aggarwal, S. (2024). Impact of dimensions of organisational culture on employee satisfaction and performance level in select organisations. IIMB Management Review, 36(3), 230-238. https://doi.org/10.1016/j.iimb.2024.07.001
  2. Ajmal, M., Islam, A., Islam, Z., & Javeed, A. (2024). Unravelling the path to organizational commitment: The mediating role of perceived organizational support and the moderating role of career stages in high-performance work systems. Global Business Review, 1-28. https://doi.org/10.1177/09721509241301148
  3. Badriyah, N. F., Lazuarni, S., & Kurniawan, M. (2025). Analysis of employee empowerment and career development on employee job satisfaction at the public works, bina marga, and spatial planning department of Palembang City. JENIUS (Jurnal Ilmiah Manajemen Sumber Daya Manusia), 8(3), 385-394. https://doi.org/10.32493/jjsdm.v8i3.48477
  4. Bradler, C., Dur, R., Neckermann, S., & Non, A. (2016). Employee recognition and performance: A field experiment. Management Science, 62(11), 3085-3099. https://doi.org/10.1287/mnsc.2015.2291
  5. Brun, J.-P., & Dugas, N. (2008). An analysis of employee recognition: Perspectives on human resources practices. The International Journal of Human Resource Management, 19(4), 716-730. https://doi.org/10.1080/09585190801953723
  6. Darmadi, D., Prasetiyani, D., Pratama, G. D., & Suwanto, S. (2026). Leadership and job stress among non-civil servants: Job satisfaction mediation and employment status moderation. Annals of Human Resource Management Research, 6(2), 1-17. https://doi.org/10.35912/ahrmr.v6i2.3790
  7. Deepak. (2024). Psychological empowerment and job satisfaction: A comprehensive review. MANTHAN: Journal of Commerce and Management, 11(1), 148-165. https://doi.org/10.17492/jpi.manthan.v11i1.1112408
  8. Elrehail, H., Harazneh, I., Abuhjeeleh, M., Alzghoul, A., Alnajdawi, S., & Ibrahim, H. M. H. (2020). Employee satisfaction, human resource management practices and competitive advantage. European Journal of Management and Business Economics, 29(2), 125-149. https://doi.org/10.1108/EJMBE-01-2019-0001
  9. Erfan, M., & Bakri, M. (2025). Analysis of employee development strategies to improve skills and motivation in the company. Advances in Management & Financial Reporting, 3(3), 729-745. https://doi.org/10.60079/amfr.v3i3.602
  10. Fan, X., Zhao, S., Zhang, X., & Meng, L. (2023). The Impact of improving employee psychological empowerment and job performance based on deep learning and artificial intelligence. Journal of Organizational and End User Computing, 35(3), 1-14. https://doi.org/10.4018/JOEUC.321639
  11. Figueiredo, E., Margaça, C., García, J. C. S., & Ribeiro, C. (2025). The contribution of reward systems in the work context: A systematic review of the literature and directions for future research. Journal of the Knowledge Economy, 16(5), 16525-16559. https://doi.org/10.1007/s13132-024-02492-w
  12. Fitri, S., Putra, R. A., & Muhlisah Lubis. (2026). The impact of green HRM, leadership, innovation, and psychological climate on business sustainability. Annals of Human Resource Management Research, 6(1), 409-425. https://doi.org/10.35912/ahrmr.v6i1.3830
  13. Gazi, Md. A. I., Yusof, M. F., Islam, Md. A., Amin, M. Bin, & Senathirajah, A. R. bin S. (2024). Analyzing the impact of employee job satisfaction on their job behavior in the industrial setting: An analysis from the perspective of job performance. Journal of Open Innovation: Technology, Market, and Complexity, 10(4), 1-16. https://doi.org/10.1016/j.joitmc.2024.100427
  14. Guo, K. (2022). The relationship between ethical leadership and employee job satisfaction: The mediating role of media richness and perceived organizational transparency. Frontiers in Psychology, 13, 1-13. https://doi.org/10.3389/fpsyg.2022.885515
  15. Hafnidah, N., Gustomo, A., Prasetio, E. A., & Abdurrahman, A. (2025). Leadership succession and its impact on organizational resilience: A contingency perspective in engineering firms. Project Leadership and Society, 6, 1-18. https://doi.org/10.1016/j.plas.2025.100192
  16. Hair, J. F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2011). An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the Academy of Marketing Science, 40(3), 414-433. https://doi.org/10.1007/S11747-011-0261-6
  17. Hosen, S., Hamzah, S. R., Arif Ismail, I., Noormi Alias, S., Faiq Abd Aziz, M., & Rahman, M. M. (2024). Training & development, career development, and organizational commitment as the predictor of work performance. Heliyon, 10(1), 1-13. https://doi.org/10.1016/j.heliyon.2023.e23903
  18. Iddrisu, I. (2025). Understanding the nexus between organizational culture and trust: The mediating roles of communication, leadership, and employee relationships. Sustainable Futures, 9, 1-14. https://doi.org/10.1016/j.sftr.2025.100555
  19. Imam, S. F., Riyanto, S., Santoso, S., & Ramli, Y. (2025). Analyzing the influence of leadership, learning, and empowerment on public sector performance: Combining PLS-SEM with SVM and k-NN approach. Social Sciences & Humanities Open, 12, 1-12. https://doi.org/10.1016/j.ssaho.2025.102086
  20. Jonneli, H. H., Winarno, A., & Saragih, R. (2024). Enhancing employee performance in logistic companies: The influence of competency development and remuneration with job satisfaction as a mediating factor. International Journal of Social Science and Human Research, 7(9), 7253-7262. https://doi.org/10.47191/ijsshr/v7-i09-59
  21. Karatepe, O. M., & Olugbade, O. A. (2017). The effects of work social support and career adaptability on career satisfaction and turnover intentions. Journal of Management & Organization, 23(3), 337-355. https://doi.org/10.1017/jmo.2016.12
  22. Král, P., & Schnackenberg, A. (2024). Organizational responses to transparency determinants. Management Decision, 62(13), 309-331. https://doi.org/10.1108/MD-07-2023-1244
  23. Kurniawati, N. I. (2024). Sinergic Working Congruence dalam Upaya Peningkatan Employee Engagement pada Karyawan Lulusan Pendidikan Tinggi Vokasi (Doctoral dissertation). Universitas Diponegoro, Semarang.
  24. Lestari, D., & Utami, K. S. (2024). The influence of positive organisational culture on employee retention at UMKM Bakpia Lanank Jogja. Inisiatif: Jurnal Ekonomi, Akuntansi dan Manajemen, 3(3), 358-365. https://doi.org/10.30640/inisiatif.v3i3.2782
  25. Lestari, L. P., Walian Maimun Al Qadiri, Imam Buchori, Nurhakim, & Tri Pangkat Soesiawan. (2024). Meningkatkan kepuasan kerja karyawan UMKM melalui penerapan program kompensasi dan insentif yang adil dan transparan. Idea Abdimas Journal, 2(2), 75-81.
  26. Liang, Z., Suntrayuth, S., Sun, X., & Su, J. (2023). Positive verbal rewards, creative self-efficacy, and creative behavior: A perspective of cognitive appraisal theory. Behavioral Sciences, 13(3), 1-15. https://doi.org/10.3390/bs13030229
  27. Maslow, A. H. (1962). Toward a Psychology of Being. New Jersey: Start Publishing LLC.
  28. Mathew, J., & Nair, S. (2022). Psychological empowerment and job satisfaction: A meta-analytic review. Vision: The Journal of Business Perspective, 26(4), 431-440. https://doi.org/10.1177/0972262921994350
  29. Muhardani, Adam, M., & Faisal. (2020). Effects of compensation, recognition, and career development opportunities on work satisfaction: Mediating role of work engagement. East African Scholars Journal of Economics, Business and Management, 3(3), 251-257. https://doi.org/10.36349/EASJEBM.2020.v03i03.008
  30. Ndiango, S., Gabriel, D., & Changalima, I. A. (2024). Give me my flowers before I die! Linking employee recognition, job satisfaction and employee retention in logistics companies: A multigroup analysis. Social Sciences & Humanities Open, 10, 1-11. https://doi.org/10.1016/j.ssaho.2024.101053
  31. Nugroho, S. D., Riyanto, A., & Silitonga, P. (2026). Customer focus and organisational culture increasing work life balance moderated by supportive management. Annals of Human Resource Management Research, 6(1), 271-285. https://doi.org/10.35912/ahrmr.v6i1.3502
  32. Nuryanti, B. L., Putri, W. D., & Masharyono. (2020). Effect of training and empowerment in improving job satisfaction. 3rd Global Conference on Business, Management, and Entrepreneurship (GCBME), 265-268. https://doi.org/10.2991/aebmr.k.200131.057
  33. Oh, S., & Roh, S.-C. (2022). Intrinsic motivation for work activities is associated with empathy: Investigating the indirect relationship between intrinsic motivation for work activities and social support through empathy and prosocial behavior. Personality and Individual Differences, 189. https://doi.org/10.1016/j.paid.2021.111487
  34. Pratiwi, B. A., & Djemain, S. (2023). Job satisfaction: Motivation, empowerment, compensation, and transformational leadership impact. Academia Open, 9(2), 6-14. https://doi.org/10.21070/acopen.9.2024.5590
  35. Purwanti, H., & Yuliati, A. (2022). The influence of accountability, transparency, and human resource competence on the financial performance of MSMEs in Kediri Regency. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 6(3), 207-224. https://doi.org/10.31955/mea.v6i3.2355
  36. Puspitasari, D. (2024). Laporan Akhir Magang dan Studi Independen Bersertifikat sebagai Pendamping UMKM di Dinas Koperasi Usaha Kecil dan Menengah dan Perdagangan Kota Surabaya. Surabaya: Universitas Pembangunan Nasional “Veteran” Jawa Timur.
  37. Qing, M., Asif, M., Hussain, A., & Jameel, A. (2020). Exploring the impact of ethical leadership on job satisfaction and organizational commitment in public sector organizations: The mediating role of psychological empowerment. Review of Managerial Science, 14(6), 1405-1432. https://doi.org/10.1007/s11846-019-00340-9
  38. Rai, S. S., & Koodamara, N. K. (2025). How does trust in leader influences organizational commitment? A test of a moderated mediation model. Acta Psychologica, 257, 1-18. https://doi.org/10.1016/j.actpsy.2025.105092
  39. Ranta, M., & Ylinen, M. (2024). Employee benefits and company performance: Evidence from a high-dimensional machine learning model. Management Accounting Research, 64, 1-15. https://doi.org/10.1016/j.mar.2023.100876
  40. Rodríguez, J. V. R. (2024). Gallup© 2024 Report “State of the Global Workplace.” Linkedin. Retrieved from https://www.linkedin.com/pulse/gallup-2024-report-state-global-workplace-ramos-rodr%C3%ADguez-a1rmf
  41. Rumble, J. N., & Irani, T. (2016). Opening the doors to agriculture: The effect of transparent communication on attitude. Journal of Applied Communications, 100(2), 57-72. https://doi.org/10.4148/1051-0834.1030
  42. Santos, S., Augusto, L., Ferreira, S., Espírito Santo, P., & Vasconcelos, M. (2023). Recommendations for internal communication to strengthen the employer brand: A systematic literature review. Administrative Sciences, 13(10), 1-15. https://doi.org/10.3390/admsci13100223
  43. Saptaria, L., Setyawan, W. H., Erwanto, D., Buniarto, E. A., & Limantara, A. D. (2026). Sustainable leadership and green innovation: The role of green HRM in Indonesian export MSMEs. Annals of Human Resource Management Research, 6(2), 33-51. https://doi.org/10.35912/ahrmr.v6i2.3725
  44. Saputra, J. A. (2025). Karakteristik UMKM dalam Manajemen Perekonomian. Retrieved from https://www.studocu.id/id/document/universitas-terbuka/manajemen/diskusi-7-manajemen/113148888
  45. Schweiger, G. (2024). Honneth’s Theory of recognition and material poverty. Social Sciences, 13(9), 1-16. https://doi.org/10.3390/socsci13090441
  46. Shiri, R., El-Metwally, A., Sallinen, M., Pöyry, M., Härmä, M., & Toppinen-Tanner, S. (2023). The role of continuing professional training or development in maintaining current employment: A systematic review. Healthcare, 11(21), 1-17. https://doi.org/10.3390/healthcare11212900
  47. Sopiansyah, S., Ruliana, T., & Indrawati, A. (2026). Leadership style, community participation, and development success: The mediating role of village apparatus capacity. Annals of Human Resource Management Research, 6(1), 129-143. https://doi.org/10.35912/ahrmr.v6i1.3628
  48. Spreitzer, G. M. (1995). An empirical test of a comprehensive model of intrapersonal empowerment in the workplace. American Journal of Community Psychology, 23(5), 601-629. https://doi.org/10.1007/BF02506984
  49. Sun, M., Yahiaoui, D., Murtaza, G., & Pereira, V. (2026). Employee voice in the Chinese context: A systematic review and future perspectives. Multinational Business Review, 34(1), 91-115. https://doi.org/10.1108/MBR-10-2024-0189
  50. Tetik, N. (2016). The effects of psychological empowerment on job satisfaction and job performance of tourist guides. International Journal of Academic Research in Business and Social Sciences, 6(2), 221-239. https://doi.org/10.6007/IJARBSS/v6-i2/2026
  51. Victoria, A. O. (2022). SAP study finds 91 percent of SMEs experience labour instability. ANTARA: Kantor Berita Indonesia. Retrieved from https://www.antaranews.com/berita/2830369/studi-sap-temukan-91-persen-ukm-alami-ketidakstabilan-tenaga-kerja
  52. Wenzel, A.-K., Krause, T. A., & Vogel, D. (2019). Making performance pay work: The impact of transparency, participation, and fairness on controlling perception and intrinsic motivation. Review of Public Personnel Administration, 39(2), 232-255. https://doi.org/10.1177/0734371X17715502
  53. Ye, P., Liu, L., & Tan, J. (2022). Influence of leadership empowering behavior on employee innovation behavior: The moderating effect of personal development support. Frontiers in Psychology, 13, 1-15. https://doi.org/10.3389/fpsyg.2022.1022377
  54. Yonavilbia, E. (2025). East Java SME agency holds meeting to synchronise MSME training policies. IP: InfoPublik. Retrieved from https://kominfo.jatimprov.go.id/berita/diskop-ukm-jatim-gelar-rapat-sinkronisasi-kebijakan-pelatihan-umkm

Authors

1 Ahmad Junaidi
Institut Ilmu Sosial dan Manajemen STIAMI, Jakarta, Indonesia
2 Muhammad Yusuf
Institut Ilmu Sosial dan Manajemen STIAMI, Jakarta, Indonesia
3 Agus Budiwaluyo
Institut Ilmu Sosial dan Manajemen STIAMI, Jakarta, Indonesia
4 Yuly Astika
Institut Ilmu Sosial dan Manajemen STIAMI, Jakarta, Indonesia

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Downloads

View PDF

Statistics

Downloads

Download data is not yet available.

Issue

Vol. 6 No. 3 (2026): September
Section: Articles
WhatsApp Instagram Facebook LinkedIn Email