The Effect of Organizational Structure and Readiness for Change to Employee Engagement and Good Governance in Cooperative, SMEs and Industry Service Samarinda

Abstract

This study aims to analyze the effect of organizational structure and readiness for change on employee engagement and good governance at the Department of Cooperatives, SMEs and Industry of Samarinda City. The sample is 71 permanent employees of the Department of Cooperatives, SMEs and Industry of Samarinda City who are involved as respondents and are given a questionnaire containing questions that must be answered by giving a score. The data analysis method used is the Structural Equation Model (SEM) analysis using the SmartPLS application. The results showed that there was a significant influence between each organizational structure on employee engagement, readiness for change on employee engagement, readiness for change on good governance, and employee engagement on good governance. However, it is found that readiness for change on good governance does not have a significant effect. Based on the results of the study, almost all variables have a significant effect, but only readiness for change on good governance does not have a significant effect, so whatever changes the organization do, employees of the Department of Cooperatives, SMEs and Industry of Samarinda City some are being not able or even not willing to implement the changes.