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Original Research

SERVANT LEADERSHIP, MOTIVATION AND MORAL HAZARD

YUNINA RESMI PRANANTA 1, S MARTONO 2, SUWITO EKO PRAMONO 3, and ARIEF YULIANTO 4.

Vol 19, No 01 ( 2024 )   |  DOI: 10.5281/zenodo.10623343   |   Author Affiliation: Education Management Study Program, Semarang State University, Indonesia 1,2,3,4.   |   Licensing: CC 4.0   |   Pg no: 1333-1346   |   Published on: 31-01-2024

Abstract

This research aims to investigate the impact of servant leadership and motivation on the level of moral hazard in the work environment. In the context of education in Indonesia, especially in the teaching sector, this phenomenon is connected with stewardship theory. Even though Eastern culture emphasizes employee obedience to superiors, there is still moral hazard behaviour among teachers. This study attempts to provide an in-depth understanding of how servant leadership and motivation can be used to reduce the risk of moral hazard. The research method used was quantitative, involving 400 teachers in Wonosobo Regency. The results of the analysis show that servant leadership and motivation positively and significantly influence moral hazard. Servant leadership, with its focus on service, creates an ethical and responsible work environment, while motivation acts as a protective factor, reducing unethical behaviour or fraud. From the perspective of agency theory, it is explained that the conflict of interest between the agent (teacher) and the principal (principal school) raises the problem of moral hazard. Teachers tend to carry out moral hazard actions because of extrinsic and intrinsic incentives, as well as the responsibility placed on the school principal. In conclusion, this research makes an important contribution to understanding and handling the risk of moral hazard in the educational context in Indonesia by emphasizing the positive role of servant leadership and motivation as a solution to creating an ethical and responsible work environment. This is relevant in improving the quality of learning, academic achievement and the integrity of the education system as a whole.


Keywords

Moral Hazard, Motivation, Indonesian Education, Servant leadership.