Company management practices and employee welfare: empirical evidence from a local enterprise in Indonesia

Abstract

This study examined the association between company management practices and employee welfare at a local enterprise in Indonesia. Methods: A quantitative cross-sectional survey was conducted among 110 employees selected from a population of 151. Data were collected using structured questionnaires and analyzed using descriptive statistics, Pearson correlation, and simple linear regression. Company management practices were positively and significantly associated with employee welfare (B = 0.257, t = 5.484, p < 0.001). The correlation indicated a moderate positive relationship (R = 0.467), with management practices explaining approximately 21.8% of the variance in employee welfare. Better management practices are associated with higher employee welfare. These findings highlight the importance of strengthening organizational management while recognizing that employee welfare is also shaped by factors beyond the management practices examined.