This document discusses the concept of perceived organizational support and its importance for achieving sustainable competitive advantages through digital transformation. It defines perceived organizational support as an employee's perception of the level of care and assistance provided by their organization. High perceived organizational support is associated with positive employee attitudes and behaviors that can boost organizational performance. The document recommends several tactics organizations can use to enhance perceived support, such as implementing discretionary workforce services, ensuring fair treatment, setting achievable goals and providing rewards and incentives.

1. Role Perceived
Organization Support
Sustainable Competitive
advantages Through
Digital Transformation
Seta A. Wicaksana
Founder and CEO of
www.humanikaconsulting.com and
www.hipotest.co.id

2. Seta A. Wicaksana
0811 19 53 43
wicaksana@humanikaconsulting.com
• Business Psychologist
• Pendiri dan Direktur Humanika Consulting dan hipotest.com
• Anggota Komite Nominasi dan Remunerasi Dewan Komisaris PT Askrindo
• Sekretaris Prodi MM Program Pasca Sarjana Universitas Pancasila
• Dosen Tetap dan Peneliti di Fakultas Psikologi Universitas Pancasila
• Pembina Yayasan Humanika Edukasi Indonesia
• Wakil Ketua Asosiasi Psikologi Forensik Indonesia wilayah DKI
• Penulis Buku: Sobat Way (2016), Industri dan Organisasi: Pendekatan Integratif dalam
menghadapi Perubahan (2020), Human Faktor Engineering: Integratif Desain Manusia
dan Lingkungan Kerja (2021), Psikologi Industri dan Organisasi (2021), Psikologi Umum
(2021), Manajemen Pengembangan Talenta (2021), PIODiagnostik: Pengukuran Psikologi
di Lingkungan Kerja (2021), Transformasi Digital: Perspektif Organisasi, Talenta dan
Budaya Organisasi (2021), Psikologi Pelayanan (2021) dan Psikologi Konsumen (2021).
• Dosen Tidak Tetap di: Program Pasca Sarjana Ekonomi di Univ. Pancasila, STP TRISAKTI,
Fakultas Psikologi Universitas Mercu Buana, STIKOM IMA
• Certified of Assessor Talent Management
• Certified of Human Resources as a Business Partner
• Certified of Risk Professional
• Certified of HR Audit
• Ilmu Ekonomi dan Manajemen (MSDM) S3 Universitas Pancasila
• Fakultas Psikologi S1 dan S2 Universitas Indonesia
• Sekolah ikatan dinas Akademi Sandi Negara

3. Background
• Today, rapidly changing and transforming global markets and technological innovations
have led organizations to transition to a different era.
• To cope with the digital age’s increasingly complex and competitive markets, enterprises
are constantly undergoing digital transformation and beginning to adopt and implement
emerging digital technologies such as big data, cloud computing, and the Internet of
Things to support their operations and strategies.
• This period, which is called the digital age, also means a radical change in the concept of
organizational culture (Sheng et al., 2003; Nambisan et al., 2017). However, it is
important to remember that organizational culture is an important condition for digital
innovations to be adapted to the organization (Tilson et al., 2010; Yoo et al., 2010).
• In other words, it is very important for organizations that experience digital
transformation to adapt their organizational culture to this situation and to continue
their lives. Because organizational culture is shared values shared by individuals and is
one of the most important concepts for the organization in this context (Punnet and
Ricks, 1990).
• Perceived organizational support is very important for agile organizations to provide a
sustainable competitive advantage. Accordingly, the attitudes of the members to
suggest creative ideas and apply them on their own are triggered. This situation enables
them to contribute to organizational performance by increasing their job satisfaction
and organizational commitment, especially agility in digital transformation (Hu et al.,
2018).

4. Sustainable Competitive Advantage
• In today's conditions, it is not enough for businesses to have a competitive
advantage, this situation must also be sustainable. If competitive advantage is
not sustainable, it can be copied by competitors and these advantages can be
lost. Although preserving the competitive advantage of businesses is very
important, it is not easy to achieve this in today's dynamic competitive
environment and to maintain above-normal profit rates.
• The time it takes to undermine competitive advantage eroded by competition
depends on competitors' ability to imitate or respond to innovation (Grant and
Jordan, 2014).
• The shortening of the product life cycles and the copying of the factors that
provide a competitive advantage by the competitors have caused the
competition to become sustainable (Teece, 2010). At this point, having an agile
organizational structure is one of the most important ways to provide a
sustainable competitive advantage (Kidd, 1995).
• Because agile organizations do not allow competitors to copy this power after
gaining a competitive advantage. They make such rapid innovations and agile
actions that their competitive advantage sustainably remains within the
organization (Xu and Koivumäki, 2019).

5. Agile and Digital Transformation
• Organizations adopt agile approaches to improve their perception, learning and response
skills. This means that agile approaches are used not only in the IT department but
throughout the organization. Thanks to this approach, the way organizations are managed
is radically changed (Hesselberg, 2018). Because agile transformation makes an
organization’s way of doing business more flexible.
• For the organization to have an agile mentality, it is very important for the members of the
organization to adopt this situation and to be committed to self-improvement (Levy et al.,
2015). Because for agile transformation to take place successfully, members of the
organization must internalize this situation.
• Organizations have to adapt their employees to the system for digital transformation.
Digital transformation does not only contain a technological transformation. This is a
behavioral change and a radical change in organizational structure depending on the
organizational culture. Organizations should consider the change and development in the
context of digital infrastructure and prepare their employees for it (Hansen et al., 2011).
• Answers to the following questions should be discussed very often (Stalmasekova et al.,
2017):What do we understand when it comes to digitalization and digital transformation?
• What is the current situation?
• What technologies will be implemented?
• Briefly, IT’s integration in Digital transformation with all the functions of the organization
provides important advantages in decision-making and implementation of the organization
(Skog, 2019)

6. Perceived
organizational support
• a concept based on the social exchange theory, was established as a theory and
defines the extent to which an organization is engrossed in its members
(Eisenberger and Peter, 1990).
• Perceived organizational support is similar to organizational commitment in
that it is an individual’s attitude toward the organization, but organizational
commitment is a members' commitment to the organization while the
organizational commitment is, on the contrary, an organization's commitment
to its members (Yang and Kwon, 2015).
• Particularly in agile and digital organizations, organizational members' activities
that contribute to organizational performance and therefore competitive
advantage are the main factors.
• The members who recognize that the organization's support and consideration
are sufficient during their learning, also, are likely to achieve higher
performance in learning and build a more excellent learning organization,
resulting in the facilitation of learning in the organization (Jeong and Lee, 2017).

7. What is perceived organizational support?
• Perceived organizational support is an employee's understanding of the
affirmation and assistance services offered by their organization.
• These supports can be offered in many ways, such as freedom of
creativity in their work or an ample amount of vacation days for health or
leisure.
• Perceived organizational support relies on both how the business treats
each employee and how the employee perceives the support.
• If the company handles and speaks with the employee well, the perceived
organizational support may be favorable. The better perceived
organizational support within an employee base, the happier employees
are with their workplace, managers, and CEO.
• This can encourage them to recommend their workplace and business or
help the business more passionately during their work in digital
transformation to sustainable competitive advantages.

8. Types of perceived
organizational support
Fairness
• An important part of perceived organizational support is your
employees' impression of how much your company values fairness.
• By advocating this value and creating systems for fairness, everyone in
the company feels equal in compensation and workload.
• Managers handle the assignments within their departments so
everyone can feel supported in their equal workloads.
• Fairness can encourage employees who feel stressed by work, as they
know everyone is doing their job and can help.
• Fairness also helps assure employees they're being compensated fairly
for their work, given equal access to assistance tools or funds, and
encouraged in their development.

9. Types of perceived
organizational support
Manager support
• A company can also design specific management support systems for
employees.
• Managers or anyone who views, or reviews work can give employees
both motivation and reassurance that their work is both meaningful
and effective for their positions and the business.
• These employees can then work more effectively because they
understand what their strengths are.
• Managers can also provide support by offering tools or suggestions,
adding flexibility to methods or deadlines, organizing meetings and
recording monthly progress.
• This support can help team members become more productive and
feel more secure in the organization.

10. Types of perceived
organizational support
Job rewards
• Providing proper rewards for extra employee effort can help employees feel
supported in the workplace. For example, if you give compensation, like a
bonus, to an employee for turning in work beyond their KPI level, that
employee feels supported and is more likely to repeat that process in the
future.
• Supporting employees through a reward system can help business managers
maintain high productivity levels and quality efforts from employees.
• Job rewards can also help employees understand the value of their work and
feel more reliably supported.
• If a manager gives the employee something valuable for their extra time, the
employee understands that the company values not only the work they've
completed, but the time it took to accomplish that achievement as well.

11. What contributes to perceived
organizational support?
• Meta-analytic research on perceived organizational support thus far has
focused on assessing factors that are merely associated with POS, not on
strategies for improving it or on examining whether improving it affects
outcomes like performance and turnover.
• These factors fall into four categories:
• (a) treatment by organizational members,
• (b) employee-organization relationship quality,
• (c) HR practices, and
• (d) job conditions.
• In general, organizational support theory argues that factors under the
organization’s control are more likely to be associated with perceived
organizational support, because those factors are voluntary, rather than
compulsory; if the organization chooses to be supportive (or not), then it is
more meaningful and reflects intent (Eisenberger et al., 1997).

12. The 8 Tactics for Enhancing perceived
organizational support
Implement supportive workforce
services that are discretionary—
“Don't just do the things you are
required to do.”
Be fair and equitable in the
making, monitoring and
enforcement of all management
practices.
Set achievable goals and reward
proportionately.
Offer individualized benefits—
“Learn and provide the type of
support your workers and
workforce needs.”
Support supervisors so they will
foster POS in their subordinates.
Train subordinates to be
supportive.
Promote strong social networks.
Begin organizational support prior
to the start of employment

13. How to implement perceived
organizational support in the workplace

14. How to implement perceived
organizational support in the workplace
2. Create management surveys
• Another way you can improve your perceived organizational
support is by creating surveys focused on management.
• Surveys and feedback specifically concerning managers can
help you improve both your methods of leadership and the
quality of work you produce.
• Try to ask direct questions about your management leadership,
the types of support you've offered, and what has helped your
staff feel supported.
• Changing management directly can help solve organizational
support issues more quickly than seeking to change the entire
business at once.

15. How to implement perceived
organizational support in the
workplace
3. Provide employee incentives
• Employees feel appreciated when they're given incentives
for superior work or additional time spent doing their job.
• When you provide incentives to your employees for all their
supplemental work, like extra assignments, feedback, and
surveys, this can help them understand how much the
organization values their time and input.
• A generous incentive may also help improve the work they
produce for the business.
• When each of your employees improves productivity and
quality, it helps you and your company reach goals.

16. Perceived Organizational Support
© University of Delaware, 1984
Listed below and on the next several pages are statements that represent possible opinions that YOU may have
about working at _____. Please indicate the degree of your agreement or disagreement with each statement
by filling in the circle on your answer sheet that best represents your point of view about ____. Please choose
from the following answers:
0 1 2 3 4 5 6
Strongly
Disagree
Moderatel
y Disagree
Slightly
Disagree
Neither
Agree nor
Disagree
Slightly
Agree
Moderatel
y Agree
Strongly
Agree
1. The organization values my contribution to its well-being.
3. The organization fails to appreciate any extra effort from me. (R)
7. The organization would ignore any complaint from me. (R)
9. The organization really cares about my well-being.
17. Even if I did the best job possible, the organization would fail to notice. (R)
21. The organization cares about my general satisfaction at work.
23. The organization shows very little concern for me. (R)
27. The organization takes pride in my accomplishments at work.

17. Takeaways
• Perceived organizational support is associated with (a) lower burnout, stress,
intentions to leave, and turnover and (b) higher job satisfaction,
organizational commitment, job performance, and citizenship behaviors.
• Perceived organizational support has a moderating role in the relationship
between digital and agile transformation and sustainable competitive
advantage.
• When the perceived organizational support moderator variable is added to
the research model, the agile transformation and digital transformation
arguments come to the fore.
• There is little evidence as to what actually causes POS but the strongest
potential influences for high Perceived organizational support are people-
oriented leadership; fair procedures, outcomes, and treatment; a culture
that does not include organizational politics; fulfillment of explicit or implicit
promises or obligations to employees; developmental experiences;
autonomy; and opportunities to participate in decision making.
• Practitioners or researchers who would like to assess Perceived
organizational support should consider one of the many versions of the
Survey of Perceived Organizational Support (e.g., Eisenberger, Fasolo, &
Davis-LaMastro, 1990; Eisenberger et al., 1986).

18. References
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• Eisenberger, R., Fasolo, P., & Davis-Lamastro, V. (1990). Perceived organizational support and employee
diligence, commitment, and innovation. Journal of applied psychology, 75(1), 51.
https://doi.org/10.1037/0021-9010.75.1.51
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