The Influence Of Organizational Changes And Organizational Culture On Employee Performance Through Job Satisfaction In The Millennial Generation Of PT Jasa Raharja, North Sumatra Branch

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The Influence of Organizational Changes and Organizational Culture on Employee Performance through Job Satisfaction in the Millennial Generation of PT Jasa Raharja, North Sumatra Branch

Introduction

In today's fast-paced business environment, organizations are constantly undergoing changes to stay competitive and adapt to new challenges. These changes can have a significant impact on employee performance, particularly among the millennial generation. PT Jasa Raharja, a state-owned company in Indonesia, is no exception. With a large branch in North Sumatra, the company is committed to good corporate governance (GCG) and good IT governance (GIG). However, the impact of organizational changes and culture on employee performance through job satisfaction among the millennial generation remains a crucial question.

Background

Indonesia is currently experiencing a demographic bonus, with a productive age population (15-64 years) reaching 70.72% based on the 2021 census. Of these figures, 25.87% are millennials. This generation is known for their unique values, hopes, and expectations from their employers. They want a challenging job, have the opportunity to develop, and have a positive and supportive work environment. PT Jasa Raharja, with its commitment to GCG and GIG, has a significant role to play in understanding the needs and characteristics of the millennial generation.

Research Methodology

This study aims to examine the effect of organizational change and culture on the performance of millennial generation employees at PT Jasa Raharja North Sumatra Branch, by looking at the role of job satisfaction as an intermediary variable. Data was collected through documentation and survey studies by distributing questionnaires to 105 young employees in the branch. 84 respondents who were permanent employees, born between 1980-2000, began work on March 17, 2019, and still active during the study, were chosen as a sample with purposive sampling technique. Data were analyzed descriptively using statistical inferential analysis and partial Least Square (SEM PLS) structural equation models.

Results

The results showed that simultaneously, organizational changes and organizational culture had a positive and significant impact on the performance of millennial employees at PT Jasa Raharja North Sumatra Branch. Organizational culture also has a positive and significant impact on job satisfaction. However, organizational change has a negative and insignificant impact on employee performance through job satisfaction. On the other hand, organizational culture is proven to have a positive and significant impact on employee performance through job satisfaction.

Deeper Analysis

The results of this study provide several important points that need to be considered:

Important Role of Organizational Culture

Positive and supportive organizational culture is the main factor that encourages job satisfaction and millennial employee performance. This shows that building an organizational culture that focuses on positive values, open communication, and appreciation for employee contributions are the key to success in improving performance.

Impact of Organizational Change

Although it has a positive impact on overall performance, organizational change does not have a significant impact on employee performance through job satisfaction. This indicates that the process of organizational change that is not managed properly, such as lack of effective communication, lack of employee involvement, and unclear change targets, can have a negative impact on employee motivation and job satisfaction.

Differences in Generations

Millennial generation has different values ​​and hopes compared to the previous generation. They want a challenging job, have the opportunity to develop, and have a positive and supportive work environment. Therefore, it is important for companies to understand the needs and characteristics of millennial generation and adjust their management strategies to create an appropriate work environment.

Recommendation

Based on the findings of this study, the following recommendations are made:

Building a Strong Organizational Culture

PT Jasa Raharja North Sumatra Branch needs to continue to build and strengthen positive and supportive organizational culture, with a focus on values ​​such as integrity, collaboration, and innovation.

Improving the Organizational Change Strategy

In implementing organizational change, companies need to actively involve employees, improve transparent communication, and ensure that these changes provide concrete benefits for employees.

Building Employee Development Program

Companies need to provide opportunities for millennial employees to develop themselves, such as training, mentoring, and leadership development programs. This will increase the sense of ownership and loyalty of employees, and help them to achieve maximum potential.

Conclusion

The results of this study provide a deeper understanding of the influence of change and organizational culture on the performance of millennial generation employees at PT Jasa Raharja Branch of North Sumatra. By implementing the right strategy, the company can maximize the potential of millennial employees and achieve better business goals.
Frequently Asked Questions (FAQs) about the Influence of Organizational Changes and Organizational Culture on Employee Performance through Job Satisfaction in the Millennial Generation of PT Jasa Raharja, North Sumatra Branch

Q: What is the main focus of this study?

A: The main focus of this study is to examine the effect of organizational change and culture on the performance of millennial generation employees at PT Jasa Raharja North Sumatra Branch, by looking at the role of job satisfaction as an intermediary variable.

Q: What is the significance of this study?

A: This study is significant because it provides a deeper understanding of the influence of change and organizational culture on the performance of millennial generation employees. It also highlights the importance of building a strong organizational culture and improving the organizational change strategy to maximize the potential of millennial employees.

Q: What are the key findings of this study?

A: The key findings of this study are:

  • Organizational changes and organizational culture have a positive and significant impact on the performance of millennial employees at PT Jasa Raharja North Sumatra Branch.
  • Organizational culture has a positive and significant impact on job satisfaction.
  • Organizational change has a negative and insignificant impact on employee performance through job satisfaction.
  • Organizational culture is proven to have a positive and significant impact on employee performance through job satisfaction.

Q: What are the implications of this study?

A: The implications of this study are:

  • PT Jasa Raharja North Sumatra Branch needs to continue to build and strengthen positive and supportive organizational culture.
  • The company needs to improve the organizational change strategy by actively involving employees, improving transparent communication, and ensuring that these changes provide concrete benefits for employees.
  • The company needs to provide opportunities for millennial employees to develop themselves, such as training, mentoring, and leadership development programs.

Q: What are the limitations of this study?

A: The limitations of this study are:

  • The study was conducted in a single company, PT Jasa Raharja North Sumatra Branch.
  • The study only focused on millennial generation employees.
  • The study only examined the impact of organizational change and culture on employee performance through job satisfaction.

Q: What are the future research directions?

A: The future research directions are:

  • Conducting a similar study in other companies to generalize the findings.
  • Examining the impact of organizational change and culture on employee performance through other intermediary variables.
  • Investigating the impact of organizational change and culture on employee performance in different industries.

Q: What are the practical implications of this study?

A: The practical implications of this study are:

  • Companies need to prioritize building a strong organizational culture and improving the organizational change strategy to maximize the potential of millennial employees.
  • Companies need to provide opportunities for millennial employees to develop themselves, such as training, mentoring, and leadership development programs.
  • Companies need to actively involve employees in the organizational change process and improve transparent communication to ensure that these changes provide concrete benefits for employees.

Q: What are the theoretical implications of this study?

A: The theoretical implications of this study are:

  • The study provides a deeper understanding of the influence of change and organizational culture on employee performance through job satisfaction.
  • The study highlights the importance of building a strong organizational culture and improving the organizational change strategy to maximize the potential of millennial employees.
  • The study contributes to the existing literature on organizational change and culture, employee performance, and job satisfaction.