Employee performance in the context of perceived organisational change: moderated by power distance and collectivism

Sidik Sidik, Desi Tri Kurniawati and Radityo Putro Handrito
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Sidik Sidik: Universitas Brawijaya

International Journal of Research in Business and Social Science (2147-4478), 2024, vol. 13, issue 6, 128-137

Abstract: Employee performance is crucial for organizational success, especially amid organizational change. This study investigates the influence of employees' perceptions of organizational change on their performance, considering the moderating roles of power distance and collectivism. The background of the research underscores the significance of understanding how employees perceive and respond to organizational change initiatives. The purpose is to examine how cultural dimensions, specifically power distance and collectivism, moderate the relationship between organizational change perception and employee performance. Methodologically, a quantitative approach utilizing survey data from employees PT Pertamina EP Cepu Regional 4 Zona 11 is employed. Principal results indicate a significant positive relationship between employees' perceptions of organizational change and their performance, highlighting the disruptive nature of change on employee productivity. Moreover, both power distance and collectivism moderate this relationship, suggesting that cultural values play a crucial role in shaping employee responses to change. Major conclusions emphasize the importance of considering cultural contexts when implementing organizational change strategies to mitigate potential negative effects on employee performance. This study contributes to the field by providing empirical evidence of the interplay between organizational change perception, cultural dimensions, and employee performance, offering valuable insights for practitioners and scholars aiming to enhance organizational effectiveness amidst change. Key Words:Perceived Organisational Change, Employee Performance, Power Distance, Collectivism

Date: 2024
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