The Effect of Organizational Change on Enhancing Government Employee Performance

Abstract

Bureaucratic simplification is one of the focuses of the 5 Priorities of the Advanced Indonesian Cabinet under the leadership of President Joko Widodo and Ma'ruf Amin for the 2019-2024 period. The bureaucratic simplification stage consists of three stages, namely simplifying the organizational structure to 2 levels, equalizing administrative/structural positions into functional positions, and adjusting the work system. The bureaucratic simplification is expected to create a dynamic, agile, and professional bureaucracy in supporting public service performance and can have a positive impact on employee performance. However, after the implementation of this policy, several reactions needed to be in line with expectations, especially in terms of employee job satisfaction. In this study, bureaucratic simplification is described by an organizational change in the government sector, with a research locus at The Ministry of Industry of The Republic of Indonesia. The purpose of the study was to determine the effect of organizational change on employee performance through job satisfaction. Data collection was carried out by questionnaire using Google form. The questionnaire results were processed using Structural Equation Modeling Partial Least Square (SEM-PLS) using SmartPLS 4.0 software. The results of this study indicate that organizational change has a direct effect on job satisfaction. Job satisfaction has a direct effect on employee performance. However, organizational change has no direct effect on organizational performance. Organizational change can affect employee performance through the mediation of job satisfaction. Keywords: Bureaucratic simplification, employee performance, job satisfaction, organizational change, SEM-PLS.