How the Organizational Change and Organizational Culture Effected

to the Employees’ Performance?

Widya Parimita

and Hania Aminah

Faculty of Economics, Universitas Negeri Jakarta, Jakarta-Indonesia

Keywords: Organizational Chaneg, Organizational Culture, Employees’ Performace

Abstract: The purpose of this study is: to find out 1) Description of organizational change, organizational culture and

performance of PT X employees, 2) Effect of organizational changes on the employees’ performance, 3)

Effect of organizational culture on the employees’ performance, 4) Models Organizational change research

and organizational culture can predict the employees’ performance. The technique of collecting data using

survey methods is by distributing questionnaires which are then processed with the SPSS 25 program. This

study using descriptive and explanatory analysis. The results of the regression show that there is a positive

and significant influence between organizational changes on employee performance, and also there is a

positive and significant influence between organizational culture on employee performance, and for

research models of organizational change and organizational culture can predict the employees’

performance that organizational change and organizational culture can predict significantly the performance

of employees.

1 INTRODUCTION

The success of an organization in running its

business depends on the ability of human resources

to manage the resources owned by the company.

Human resources are one of the key factors in

economic reform namely, how to create qualified

and skillful Human Resources (HR) and highly

competitive in today's global competition (Utami et

al., 2017). The performance of an employee

determines how the success of an organization in

achieving its goals. Employees become executors of

various policies and operational activities in an

organization. All forms of resources owned by the

organization will not be able to run optimally if it is

not supported by the performance of employees who

are qualified in their fields. Ferlan (2016: 1058)

strengthens this argument by stating that

organizations and employees are a unit that has a

relationship and must be balanced.

Every organization will always strive to improve

employee performance, with the hope that

organizational goals are achieved. The performance

of an employee plays an important role for an

organization, because the performance of each

employee is a contribution to the achievement of the

performance of each organizational function and in

turn the performance of organizational functions

contributes to the achievement of an organization or

company (Utami et al., 2017: 205). PT X is a

company engaged in supplying household goods.

From the results of observations made by

researchers, in the last 3 years there have been

organizational changes 2 times in the organizational

structure of PT X. From these changes it is thought

to have an impact on the decline in employee

performance.

This organizational change has been planned and

aims to find the most appropriate form of

organization so that it can support the achievement

of organizational goals. In addition, according to

Ferlan (2016: 1065) an organization can only

survive if it can make changes. When organizational

changes occur, all employees must be ensured that

they have enough information. This is intended so

that employees can be better prepared to deal with

these changes. Employees must be informed of

changes in the organization before they occur so that

they can prepare themselves physically and

emotionally (Karanja, 2015: 239). Besides

organizational change, organizational values become

Parimita, W. and Aminah, H.

How the Organizational Change and Organizational Culture Effected to the Employees’ Performance?.

DOI: 10.5220/0009507708330838

In Proceedings of the 1st Unimed International Conference on Economics Education and Social Science (UNICEES 2018), pages 833-838

ISBN: 978-989-758-432-9

833

a culture inherent in the organization, where

organizational culture plays an important role in

achieving organizational goals. Utami et al. (2017:

207) said that organizational culture plays an

important role in achieving an organizational goal

because organizational culture is a way of working

quality and is based on meaningful values and

provides motivation and inspiration to work better.

Thus, organizations that have a good organizational

culture are considered capable of motivating and

inspiring employees to work better. Employees who

successfully adapt within the organizational culture

will be able to maximize the performance they have

so that it has an impact on achieving organizational

goals. Based on data obtained by researchers, human

resource management at PT X has been conducted.

2 THEORICAL FRAMEWORK

Performance

Organizational performance is largely determined by

how the employee's performance the organization

has. The fulcrum for the good and bad performance

of organizations to make better resources. Employee

performance itself is the output of the development

and training carried out by the organization. Gultom

(2014: 176). Improve communication skills. Good

management of their organization is needed, so that

the output that can be accessed by the organization

can be fulfilled.

Nkuraru & Wanza (2016: 190) also states that

performance is an important thing for organizations

to achieve company goals and objectives. Provisions

reinforced by Trang (2013: 210) employee

performance is the output or work results of

employees in accordance with the duties and

responsibilities to achieve organizational goals.

Employees are interpreted as something very

important, depending on how the company is able to

manage it. Then, according to Mangkunegara (2011:

43) performance is the result achieved through

certain activities and procedures by using resources

for the specified organization. Performance is the

result of the system applied by the organization,

starting from planning to evaluation.

Meanwhile, according to Utami et al. (2017:

206) individual performance is the result of work

both in terms of quality and the number of work

standards that have been determined. From here we

can see that there are two aspects that need to be

considered in one employee, namely from the

quality that can be done by the employee. From the

definition above, the researcher synthesizes

performance is the work result that can be obtained

from a project of certain procedures to achieve the

company's target according to the standards that

have been set together.

Organizational Change

Today, we want the world to be on a massive

journey. Individuals and organizations are required

to make changes in times that are able to survive in

competition. Organizations must always be prepared

to look at the risks and opportunities that exist to

survive. According to Utami et al. (2017: 207)

organization for organizational components such as

structure, strategy, systems and human behavior that

aims to increase the effectiveness of the

organization. Organizational change is done to

improve organizational performance. Then, Karanja

(2015: 232) is an organization which is an action or

movement designed in a process or process that

affects the work of the organization. Changes may

also affect the strategies used in achieving, the

process of implementing strategies, tasks and

functions carried out by employees in the

organization, and the relationship between

employees themselves. Sunaryo (2017: 102)

emphasizes the main goal of the organization which

ultimately is to achieve organizational goals to the

fullest. This achievement certainly cannot be done

simply by doing the same thing and repeatedly.

From several components that have been stated

by the experts above, the researcher synthesizes the

organization which is an action that is channeled

into the organization, such as structure, strategy,

system, and human behavior with the aim of

improving organizational performance.

Organizational Culture

Gultom (2014: 176) explains that organizational

culture in an organization is usually associated with

values, norms, attitudes and work ethics that are

shared with each component of the organization,

these elements become the basis for monitoring

employee behavior, the way they think, cooperate,

and interact with its employees.

Trang (2013: 210) explains that organizational

culture is a value, assumption, assumptions, attitudes

and behavioral norms that have institutionalized then

manifest in appearance, attitudes and actions, thus

becoming the identity of a particular organization.

Organizational culture becomes an inseparable thing

from the organization itself.

Organizational culture is agreed upon together,

both directly and indirectly by every element in the

organization. This is in line with Sunaryo (2017:

103) organizational culture is a shared perception

shared by all members of the organization.

Defined by Awadh & Saad (2013: 169),

organizational culture as a combination of values,

habits, beliefs, communication and translation of

UNICEES 2018 - Unimed International Conference on Economics Education and Social Science

834

behavior that provides guidance for many people. A

strong culture is a very useful tool for directing

behavior, because it helps employees to do better

work so that every employee at the beginning of his

career needs to understand the culture and how the

culture is implemented. The performance of an

organization is able to be sustained by a strong

organizational culture, because the established work

environment can make each employee at an optimal

level. Furthermore, the strong organizational culture

is also able to provide the control needed by

employees so as to be able to penetrate the

boundaries of a rigid formal bureaucracy, so that

motivation and innovation of employees can grow

well.

From the definition stated above, the researcher

draws the conclusion that organizational culture is a

combination of values, habits, beliefs, attitudes and

actions that become the identity of the organization,

referring to the same system and differentiating from

other organizations.

Research Constellation Model

Figure 1: Research Constellation Model

3 RESEARCH METHOD

This research is a descriptive and explanatory

research that takes place from May 2018 to August

2018 with the method of collecting data using the

survey method, namely by questionnaire. In

addition, researchers also used secondary data in the

form of employee performance appraisal data

obtained from PT X. The sampling technique used

was nonprobability sampling so that the sample in

this study were all members of the population,

namely all employees of PT X as many as 129

people.

4 ANALYSIS

Validity test

Table 1: Validity test

Variable

Cronbach's

Alpha

Notes

Organizational

Change (X

)

0,736

Reliable

Organizational

Culture (X

)

0,622

Reliable

Validity test performed on organizational change

variables and organizational culture seen from all

items in the variable statement can be declared valid.

Expressed valid because all instruments have met

the requirements, namely the value of r count> r

table 0.344. So, it can be concluded that all

instruments can be used because they fulfill valid

assumptions.

Reliability test

Table 2: Reliability test

Variable

Item

before

tested

Item

not-

Valid

Item Valid

Organizational

Change (X

)

Organizational

Culture (X

)

Based on Table 2. above the reliability test

results for each variable organizational change and

organizational culture have Cronbach's Alpha

value> 0.6, which is 0.736 and 0.622. Thus, the

instruments of the two variables can be declared

reliable or reliable because the value of Cronbach's

Alpha is more than 0.6.

Descriptive analysis

Descriptive analysis is the result of processing raw

data of research variables to provide an overview of

the distribution and distribution of data. The raw

data of research variables are the results of research

obtained through questionnaires distributed to

respondents, namely all employees of PT X

numbered 129 employees. The results of the answers

to the questionnaire will be used to determine a

general description of the company's conditions

regarding organizational change, organizational

culture and performance.

The criteria for interpreting the scores that

researchers use in measuring organizational change

variables and organizational culture start at the level

of 0% - 25%. Disagree statements and strongly

disagree, organizational changes are declared very

How the Organizational Change and Organizational Culture Effected to the Employees’ Performance?

835

effective and the organizational culture is very

supportive. Then the levels of 26% - 50% for

disagree statements and strongly disagree, then

organizational changes are declared effective and the

organizational culture supports. Furthermore, if the

levels of 51% - 75% for statements of disagreement

and strongly disagree, organizational changes are

declared ineffective and the culture of the

organization does not support. Finally, if the level is

76% - 100% for the statement of disagreement and

strongly disagrees, organizational changes are

declared to be very ineffective and the

organizational culture is not very supportive.

Then, for a descriptive analysis of employee

performance variables, researchers used score

interpretation criteria by looking at if the average

obtained by employees is 0 - 6.00, then the

employee's performance is stated to be poor. Then, if

the average obtained by employees is 6.01 - 8.00

then the employee's performance is declared good. If

the average obtained by employees is 8.01 - 10.0,

the employee's performance is stated to be very

good.

5 RESULTS

The results of the descriptive analysis for

organizational change and organizational culture

variables indicate that the statement strongly agrees

to the organizational change variable is 6.6% and the

organizational culture is 3.6%. Then, for the

statement of agreement for the variable

organizational change is 20.2% and the

organizational culture is 21.4%. Furthermore, for

disagreeing statements for organizational change

variables is 52.6% and organizational culture is

53.5%. For statements that strongly disagree for the

variable organizational change is 20.6% and

organizational culture is 21.5%.

So, when viewed from the results of the

descriptive analysis, organizational changes were

declared ineffective because the disagreement

statement and strongly disagree amounted to 73.2%.

For organizational culture variables it was declared

not supportive because the number of disagreements

and strongly disagreed was 75%.

Then, the results of research for employee

performance variables are as follows:

Organizational changes are declared ineffective,

can be seen from employees who do not need new

skills in doing their tasks. Employees feel enough

with the skills they have now. The existence of new

methods also proved unable to make employees

easier in carrying out their work. The coordination

mechanism in the company runs poorly so that the

flow of coordination between employees is not

good.

Real organizational culture in not supporting the

achievement of organizational goals, can be seen

from the reluctance of employees to conduct

analysis in carrying out their work. The employees

also proved reluctant to cooperate in completing the

work provided by the company. Employees tend to

work individually compared to the team.

Unattainable work targets are also a factor in the

weakness of compnay's organizational culture.

Based on the results of in-depth interviews

regarding performance variables, information was

obtained that the low performance of employees was

caused by the number of employees who failed to

achieve the target of work given or their

responsibilities, employees did not come to the

office or their arrival was not on time, so poor

coordination was not awake well.

Multiple Regression Test

Table 3: Multiple Regression Test

Based on table 3, the organizational change variable

has a tcount of 4.449. The tcount is then compared

with the t table value searched at α = 5%: 2 = 2.5%

(2-sided test) with degrees of freedom (df) nk-1 or

129-2-1 = 126, where n is the number of samples

and k is the number of independent variables. Based

on these calculations, obtained ttable of 1.979 thus t

count> t table and the significance value of the

organizational change variable of 0.000, thus 0,000

<0.05. It can be concluded that H0 is rejected and

Ha is accepted. This means that organizational

changes have a positive and significant influence on

employee performance.

Coefficients

Model

Unstandardiz

Coefficients

Stand

ardize

Coeffi

cients

Sig.

Std.

Error

Beta

(Constant)

2.15

0.553

3.88

0.00

Organizatio

nal Change

0.10

0.024

0.375

4.44

0.00

Organizatio

nal Culture

0.14

0.026

0.462

5.47

0.00

a. Dependent Variabel: Employees’ Performance

UNICEES 2018 - Unimed International Conference on Economics Education and Social Science

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As what was said by Utami et al. (2017) that

organizational change is an act of switching an

organization from the current conditions to future

conditions to improve the effectiveness of

organizational performance. These results are in

accordance with the research conducted by Ferlan

(2016), Simbolon (2013), Sunaryo (2017) which

states that organizational change has a significant

effect on employee performance.

From table 3 also shows the t-count for the

organizational culture variable of 5.474, and a

significance value of 0.000. The tcount is then

compared with the t table value searched at α = 5%:

2 = 2.5% (2-sided test) with degrees of freedom (df)

nk-1 or 129-2-1 = 126, where n is the number of

samples and k is the number of independent

variables. Based on these calculations, obtained t

table of 1.979. This shows that tcount> t table and

significance value 0,000 <0.05. That is, H0 is

rejected and Ha is accepted. That is, there is a

positive and significant influence between

organizational culture on employee performance.

As what was conveyed by Trang (2013) which

states that organizational culture is able to move

conscience and mind to do things better, so that the

culture is able to become a motivator in employees

to improve their performance. This result is

consistent with the research conducted by Gultom

(2014), Hatta and Rachbini (2015), Sunaryo (2017).

Table 4: Goodness of Fit Model

In table 4, the calculated F is 55,264. The calculated

F value is then compared with the Ftable value,

which is sought with a 95% confidence level, engan

with df 1 (number of variables-1) or 3-1 = 2, and df

2 (n-k-1) or 129-2-1 = 126. Based on these

calculations, obtained Ftable is 3.07, thus Fcount>

Ftable. The significance of the model feasibility test

is 0,000, thus 0,000 <0.05. It can be concluded that

the research model of organizational change and

organizational culture can predict the performance

variable of PT X employees

6 CONCLUSIONS

After analyzing the research data on "The influence

of organizational change and organizational culture

on the employees’ performance, then conclusions

can be taken as follows:

1. Description of organizational change,

organizational culture and the employees’

performance are:

a. Organizational changes are classified as

ineffective in achieving organizational goals.

Employees do not need new skills in carrying out

their tasks. Employees feel enough with the skills

they have now. New methods have proven unable to

make employees easier to carry out their work. The

coordination mechanism in the company runs poorly

so that the flow of coordination between employees

is not good.

b. Organizational culture is classified as not

supporting the achievement of organizational goals.

Employees are reluctant to carry out analysis in

carrying out their work. Employees also proved

reluctant to cooperate in completing the work

provided by the company. Employees tend to work

individually compared to the team. Unattainable

work targets are also a factor in the weakness of

companys organizational culture.

c. Employee performance is relatively low,

because the average employee rating of a total of

129 employees is in the number 5.994 which means

that it is in the poor performance rating category

(below 6). This is caused by poor collaboration

between employees, failure of the employee to

achieve work targets that have become his

responsibility, the presence of employees who are

undisciplined and often not on time.

2. Organizational change has an influence on the

performance of employees. Where the influence is

positive and significant, meaning that the more

effective organizational changes carried out by the

company the higher the performance of its

employees.

3. Organizational culture has an influence on the

employees’ performance. Where the influence is

positive and significant, meaning that the more

organizational culture is able to support the

achievement of organizational goals, the

performance of employees will be higher.

ANOVA

Mode

Sum of

Squares

Mean

Square

Sig.

Regre

ssion

39.149

19.575

55.2

.000

Resid

ual

32.587

0.354

Total

71.736

a. Dependent Variabel: Employees’ Performance

b. Predictors: (Constant), Organizational Culture,

Organizational Change

How the Organizational Change and Organizational Culture Effected to the Employees’ Performance?

837

4. The research model of organizational change and

organizational culture can predict the the employees’

performance.

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