The effect of organization restructuring on organization performance viewed from employee performance and leadership effectiveness at maluku provincial education office

Journal of Education and Learning (EduLearn) Vol. 13, No. 1, February 2019, pp. 118~124 ISSN: 2089-9823 DOI: 10.11591/edulearn.v13i1.11222  118 The effect of organization restructuring on organization performance viewed from employee performance and leadership effectiveness at maluku provincial education office Zainuddin Notanubun, Ribka Lemi Ririhena, John Rafafy Batlolona Primary Teacher Education, Faculty of Teachers Training and Education, University of Pattimura, Indonesia Article Info ABSTRACT Article history: The focus of this research is to comprehensively analyze the effect of organization restructuring on the performance of the organization, directly or indirectly, involving 276 employees in the education office and the Ministry of Education and Culture offices and collected by survey method. Data analysis was done using causal correlation technique to see the effect of organization restructuring on organization performance. The results of the research indicate that there is a direct influence of organization restructuring on organization performance. Another result is that there is an indirect effect of restructuring through employee performance and leadership effectiveness on organization performance. The influence of organization performance improvement is due to, organization restructuring implemented in Maluku Province education office has lead to behavior change, where the employees of education office were able to improve individual performance and can work together with the leadership as an efficient and effective structure. This has an impact on improving organization performance. Received Sep 19, 2018 Revised Oct 29, 2018 Accepted Des 15, 2018 Keywords: Effectiveness Organization Performance Restructuring Copyright © 2019 Institute of Advanced Engineering and Science. All rights reserved. Corresponding Author: Zainuddin Notanubun, Primary Teacher Education, Faculty of Teachers Training and Education, University of Pattimura, Dr. Tamaela Street, Campus PGSD Ambon 97114, Indonesia. Email: 1. INTRODUCTION The change of the centralized to the decentralized government system is marked by a clear division of authority between the central and regional governments. The division of power sharing including financial authority is contained in Law No. 22 of 1999, which has been revised into Law number 32 Year 2004. It affects merger of Maluku Province Education and Culture office with the regional office of Ministry of National Education of Maluku Province. The Education and Culture Office of Maluku Province before the merger was under the authority of the Regional Government (Governor). Meanwhile, the Regional Education Office of Maluku Province is under the authority of central government (centralized). After the merger it became the Office of Youth and Sports education under the authority of the Governor (decentralization). The consequences of the merger of the two institutions, of course, some employees are happy, but some are worried because of the many structures that must be eliminated. The removal of a number of structures, of course, also affects the employees at the two institutions. This occurs because of the demands of autonomy, which implies that regional authorities are given a large role to regulate their territory. In modern management systems, both private organizations and public organizations will always exist and are recognized for their legitimacy if they are able to adapt to changes and the dynamics of society. To achieve this, any formal organization often evaluates the performance of its organization’s structure so as to properly issue its organization restructuring policies to suit the changing development paradigm and the dynamics that develop in the surrounding community. Journal homepage: http://journal.uad.ac.id/index.php/EduLearn J. Edu. & Learn. ISSN: 2089-9823  119 According to Shapo [1], Organization is units consisting of a number of people. We need to remember that with the presence of people, there is also disagreement between them or quarrels. Quarrels within a particular unit or organization can cause degradation of morale and productivity, the working atmosphere becomes worse. This condition can cause competent employees leaving the organization [2]. A well-planned of restructuring process will have a positive impact on the appropriateness of employees placement [3]. Appropriate employees placement is the placement of individuals within the organization unit of work in accordance with the expertise and educational background of the employees [4]. This is of course very influential on the performance of the employees in the units of the organization. Giving equal opportunities to all structures to perform its functions well in accordance with the description of duties that has been set will be very good influence on improving the performance of employees in the structure [5]. In carrying out reforms including exercising some of the authority it possesses, local governments need organization devices established on the basis of their characteristics and needs. Exercise the authority of the Regional Government, an organization is required. Strong organizational management affects the performance of the employees in an organization [6]. Decline in the performance of employees in an organization generally influenced by the pattern of placement of people who are not in accordance with their areas of expertise [7]. Persons with specialist skills are scarce and indispensable, but when placed in an environment or work that is inconsistent with their expertise the results obtained from the labor are in fact unprofitable. In addition to the accuracy of the arrangement of expertise by field, there is also a need for suitable placement of expertise by level [8]. The results of research by experts found that personality dimensions can be related to performance, and can be used as a tool to predict success in work [9-10]. It should be understood that individual factors and environmental factors form the behavior of employees and their effects on performance achievement [11-12]. A fact that employee work behavior is a very important problem. Referring to some of the results of the research presented, it can be concluded that the institutional restructuring has some implications that is the decline in organizational climate as well as differences in employee behavior in the form of improvement, rejection of changes in the form of threats and withdrawal reinforced by the increasing influence of employee behavior on organizational climate which is getting stronger. In addition, the formation of employee behavior as well as its impact on performance achievement is based on a fact that employee behavior is a very important problem. Restructuring the organization of regional office for the sake of employees performance has positive and significant results. This means that if the organization's restructuring policy is made a (...truncated)