Research Article: 2022 Vol: 21 Issue: 2
Dewi Kurniawati, State Polytechnic of Jember
Raden Andi Sularso, University of Jember
Andarula Galushasti, State Polytechnic of Jember
Citation Information: Kurniawati, D., Sularso, R.A., & Galushasti, A. (2022). Determining factors for state polytechnic change management in java island Indonesia. Academy of Strategic Management Journal, 21(2), 1-11.
Applying strategic management in the Java Island polytechnic environment is expected to bring changes in the management sector, especially human resource management. Research related to determinants of change management at State Polytechnic in Java Island. The research variables were conducted by strategic leadership and organizational commitment to change management through a quantitative approach, namely, explanatory research. Only 121 state polytechnic environmental officials carried out the sampling technique in Java. Data analysis using descriptive statistical tests and partial least squares. The study results concluded that strategic leadership has a significant relationship with change management, while organizational commitment has a significant relationship. This commitment states that leaders must make changes in facing challenges globally, accompanied by organizational commitment. It added substantial evidence and framework for a great group view of strategic leadership.
Human resources are essential in the era of revolution 4.0 because human resources determine the success of companies, so companies/agencies need reliable, competent, and quality human resources. In facing challenges, changes, and global competition, human resources carry out their duties and functions and as a competent knowledge (human capital) entity to impact performance according to company/agency goals. The human resources function occupies an essential position for the company because people shape each organization, the use of human services, the development of skills, the encouragement of people who are in the institution for high performance and commitment so that the presence of human resources can achieve organizational goals (Shenkar, 2005). One education that improves a nation's people's quality is higher education, especially polytechnic. Polytechnic is a vocational college that produces graduates who are professionally ready in the world of work by developing, disseminating knowledge and skills, and even technology produced in various scientific fields to society through the world of work. The work plan in higher education, namely polytechnics, must follow the Directorate General's Strategic Plan of Vocational and Professional Higher Education 2020-2024. The strategic issues are the percentage of vocational education graduates who seek employment within one year of graduation.
The challenge in implementing higher education, especially polytechnics, is the Gross Enrollment Rate (APK) data. The APK, especially for polytechnics, will reach 50% by 2024. This Figure 1 is relatively low, so State Polytechnic needs to increase the APK by increasing distance learning (blended learning). The need to provide scholarships to underprivileged and high-achieving students, establish study programs that meet the needs of the revolution era 4.0, equitable distribution of facilities. For example, the Director-General of PTV has set a study program that focuses on hospitality, creative economy, machinery, and construction and care services. In dealing with strategic issues, challenges, new hopes, and changes, especially the State Polytechnic, a leadership that is capable of thinking, designing, and making good, innovative, and critical strategic decisions are needed in the form of regulations, rules, and policies both in the short, medium and long term as well as rational in the face of increasingly competitive competition in the world of higher education.
Given the strategic issues, challenges in implementation, it is necessary to have strategic capabilities based on academic innovation that a state polytechnic leader must own. Building strategic capabilities create three essential elements: human resources that reflect the workforce's capabilities and competencies (technical skills, innovative thinking, leadership); structural capital (organizational structure); and relational capital (forms of joint activities, agreements, trusts). Strategic leadership is a determining factor for success, especially for universities facing challenges and changes today (Fachrunnisa et al., 2020). Without strategic leadership, the organization's opportunity to change is minimal (Atkinson & Mackenzie, 2015). The failure and success of sustainable change management are needed for effective leadership (Gill, 2002). Changes in this strategic environment have led to demands for changes in higher education leaders (Singh & Purohit, 2010). A leadership role is needed to improve agency performance and respond to environmental changes (Appleton et al., 2017; Ham, 2014; Intan Fandini & Sunariani, 2020). Strategic leadership can improve companies' performance in a competitive position (Ireland & Hitt, 1999). Leaders in carrying out duties and responsibilities require commitment because it can be carried out according to company goals with a commitment to work. A leader's decision to manage a company/organization is facing change, and challenges require joint commitment or organizational commitment from members of the agency (Siswanti et al., 2021; Yasa, 2021). Employee commitment is needed to carry out organizational change management, supported by organizational leadership behavior in making changes (Shin et al., 2015). Change management is a planned change for good. The focus is to maximize organizational performance by changing the organization's capabilities to respond to any environmental changes (Shenkar, 2005). An essential step in studying the level of the leadership potential is to establish closeness and direction of the relationship between the indicators of the level of change potential and components of the leadership potential (Dzwigol et al., 2019). The study further confirms the link between strategic leadership and human and social capital at polytechnics that can increase sustainable competitive advantage based on the fundamental theories used in the study (Mahdi et al., 2021).
Understanding the leadership and commitment of organizations to the importance of change management in higher education management, especially state polytechnics in East Java, it has a positive impact on globally competitive human resources. Based on strategic issues, challenges in implementation, it is necessary to have strategic capabilities based on academic innovation that a state polytechnic leader must own. This research is conducted to determine the understanding of strategic leadership and the organization's commitment to changing management.
Strategic Leadership Has a Significant Effect on Change Management
Leadership states that a person can influence, motivate, and make others contribute to achieving effectiveness and success (House, 1996). Leadership is seen from the perspective of art and science that the problem of leadership can be seen from the theory of leading and how to practice leading (Forssten Seiser, 2020; Nabi et al., 2018; Wilkinson & Kemmis, 2015). Strategic leadership is a person's ability to prevent, plan a vision, maintain flexibility, think critically and strategically, and collaborate with others in order to initiate changes that will make a better future for the organization/company and allow it to perform well in the future (Ireland & Hitt, 1999). Strategic leadership is a leader who can understand the organization and the environment in which the organization operates and tries to understand the need to make changes through other people in the organization in order to create short and long term stability for the survival of the organization (Cresswell et al., 2019). Changes in higher education institutions include strategic objectives, missions, e.g., creating new institutional strategies or modifying existing ones (Immordino et al., 2016; Mensah, 2020). Curriculum and teaching methods (e.g., introducing new teaching programs, modifying or eliminating existing ones, or promoting information technology and e-learning in teaching). In comparison, Robertson proposed and used a more comprehensive diagnostic model that combines various elements, the A Change-Based Organizational Model (organizational model based on change). According to this model, the internal organizational environment factors that shape and guide employee behavior are grouped into four categories: organizational arrangements, social factors, physical environment, and technology (Robertson et al., 1993).
Considering the increasing understanding of change is required for organizations to develop and succeed in today's and tomorrow's environments, implementing change, particularly significant change, remains a difficult task. Many transformation initiatives fail to live up to the organization's goals. Many leaders have a significant strategic issue in people management during the transition process and cope with strength. Most transformation projects fail because of resistance to change and a lack of effective leadership. As a result, change management must effectively listen to and interact with employees (Daly et al., 2003; Green, 2008; Sukiennik & Bak, 2019). There is still much emphasis on how leaders may employ change management tactics instead of responding to them successfully. This strategy is capable of articulating compelling reasons for change. Maintain open and regular communication and road map implementation and skill and competency training programs. Creating coalitions of supporters and experts on the ground early in the change process; recognize and value the contributions of others to the process. Manage resources and priorities wisely. Maintaining transparency; having a plan in place to deal with resistance. Without effective line leadership, groups never reach the required authority (Kotter & Heskett, 1992).
Organizational Commitment has a Significant Effect on Change Management
Organizational commitment is built on an individual belief in organizational values, willingness to help realize organizational goals, and loyalty to remain a member. Therefore organizational commitment will lead to a sense of belonging (belonging) to both individuals. There is also a belief that organizational commitment will increase job satisfaction in an organization. However, it is not easy to understand the direct relationship between the two (Choi, 2018; Rubiharto et al., 2020). Professionals will feel more comfortable associating themselves with their professional organizations in carrying out their duties. They will also be more willing to comply with norms, rules, and professional codes of ethics in solving the problems they face (Manalu et al., 2020; Meilana, 2020). Thus, professional commitment can affect performance, affecting comfort and pride at work. The effect of change readiness, commitment to an organization, and communication about organizational change on changes in organizations. Their results showed a significant influence between the three and the implementation of organizational change (Aslam et al., 2018; Chebbi et al., 2020; Egeland et al., 2019; Lynch & Mors, 2019). Of the three variables, commitment to the organization plays a crucial role. According to them, the readiness to change and communication about change will influence change implementation, accompanied by a solid commitment to the organization. Organizational commitment plays a role in keeping workers in the organization, even in uncertainty. Also, communication about organizational change influences the implementation of change. If the communication delivered takes personal valence into account, which is a dimension of readiness to change. The shows that communication about change can positively influence change readiness, which will affect the implementation of change.
Commitment is an individual's willingness to do something based on trust (Yukl, 2013).. Organizational commitment is a person's identification with and attachment to an organization (Gea & Zuraida, 2020; Madjar et al., 2011). This organizational commitment means that organizational commitment is a feeling determined by a person's attachment to the organization. Commitment to the organization is (1) a strong desire to remain a member of a particular organization, (2) a willingness to exert the maximum effort possible for the organization, (3) certain beliefs and acceptance of values and goals (Luthans et al., 2011). The intended organization is the number of workers dedicated to the organization, hiring them and willing to work on their behalf, and the possibility of membership retention (Jex, 2002). Employees that are deeply dedicated to the organization will be more stable and productive, eventually supporting change (Greenberg & Baron, 2003). Employees deeply devoted to the company will be more motivated to attend meetings and endeavor to meet organizational goals, even improving current procedures (Harimurti & Mariatin, 2014; Mowday et al., 1979).
This trial is the first small-scale study conducted to assess reliability data and feasibility of experiments. Improving the study's design before large-scale questionnaire surveys are conducted is essential to save time and money by avoiding poorly conceived projects. Cronbach's alpha reliability test was performed to assess the correctness of the replies in the pilot research. Indeed, the alpha coefficient is a fundamental statistic for determining reliability based on internal consistency (Churchill, 2004). Alpha Cronbach's minimum of 0.6 is required for pilot studies, as recommended by Hinton et al. (2004). Indeed, its reliability is weak below 0.6, acceptable below 0.7, and when the value is over 0.8, it is perfect (Sekaran, 2003) . As a result, the actual alpha of 0.85 was counted in the trial, allowing us to continue the data collection phase (Rasool et al., 2021).
Research with a quantitative approach with explanation, namely research that explains the causal between variables by testing the hypothesis. The literature analysis was carried out according to the approach proposed by (Centobelli et al., 2020; Rasool et al., 2021). These are the references of these papers that provide a theoretical justification of the literature review process. Causality research is also done because it tests and analyzes variables' influence. The research was conducted to test the strategic leadership variables, organizational commitment, change management at the State Polytechnic in East Java. The study population consisted of directors, deputy directors, heads of sections and heads of departments, and all subdivisions, heads of UPTs in each State Polytechnic in East Java Province. The sampling technique was purposive so that a sample of 121 people was determined—the method of collecting data using a questionnaire. The data analysis technique was performed using the covariance-based Structural Equation Model method, namely Partial Least Square (PLS).
Descriptive analysis of research variables the variable used in this study is strategic leadership (X1), which is measured with seven indicators, measured organizational commitment (X2), change management (Y) (Table 1).
The description of the strategic leadership variable (X1) is perceived as “very good” by most respondents, evidenced by the overall mean value of 4.28 and the mode of 5. Perfect perceptions of the strategic leadership variable can be seen through the indicators in the study, namely the ability to plan vision and strategic goals, ability to convey the vision and strategic goals, ability to build and develop human capital, ability to build and develop social capital, ability to maintain the culture, ability to behave ethically and ability to control activities.
|Table 1 Descriptive Analysis|
|Strategic Leadership||X1.1.1||4.30||5||Very Good|
|Organizational Commitment||X22.214.171.124||4.23||4||Very Good|
Most respondents perceived the variable of organizational commitment (X2) as “very good,” as evidenced by the overall mean value of 4.25 and mode of 5. Perfect perceptions of the variable organizational commitment can be seen through research indicators consisting of normative commitment, affective commitment, and continuous commitment. Most respondents perceive the change management variable (Y1) as “good,” as evidenced by obtaining an overall mean value of 4.24 and mode of 4. The respondents answered very well in the dimensions of change management that are perceived to be very good on the ability to realize change, determine the intended change, and build enthusiasm for change. This response shows that leaders recognize the importance of implementing change and determining change for state polytechnics. This change is to achieve the institution's strategic objectives and is in line with the strategic plan of Vocational Higher Education at the Director-General of Diksi.
Hypothesis Test Results
To test the hypothesis using a statistical value, for alpha 5%, the statistical value used is 1.98. The acceptance or rejection criteria of the hypothesis are Ha accepted, and Ho is rejected when the t-statistic is >1.98 (Table 2).
|Table 2 Hypothesis Test Results|
|Sample (O)||Sample (M)||Standard Deviation (STDEV)||T-Statistic||Description|
|X1 =>Y||0.493||0.498||0.113||4.355||H1 Accepted|
|X2 =>Y||0.454||0.446||0.111||4.073||H2 Accepted|
H1 Strategic leadership has a significant effect on change management.
The path parameter coefficient obtained from the relationship between organizational commitments to change management is 0.493, with a T-statistic value of 4.355. The T-statistic value is more significant than the t table (1.98). Based on these results, the data states that strategic leadership influences change management, proven correct, or H1 is accepted. This result means that strategic leadership has a significant effect on change management. If strategic leadership increases, it can improve change management in state polytechnics in East Java and vice versa. A leader's ability in the strategic leadership indicator increases, affecting the leadership's ability to manage and adapt to the changes faced by state polytechnics in East Java. It can be concluded that strategic leadership has a role in change management at state polytechnics in East Java.
H2 Organizational commitment has a significant effect on change management.
The path parameter coefficient obtained from the relationship between organizational commitments to change management is 0.454, with a T-statistic value of 4.073. The T-statistic value is more significant than the t table (1.98). Based on these results, the data that organizational commitment influences change management is proven correct, or H2 is accepted. This result means that the more organizational commitment increases, it can also improve change management at the State Polytechnic in East Java and vice versa. Organizational commitment in the form of leadership commitment in managing change management faced.
Convergent validity of the measurement model with a reflexive indicator is assessed based on the correlation between the item score/component score estimated by Software PLS. Ghozali (2016) for research in the early stages of developing a measurement scale, the loading value of 0.5 to 0.6 is considered sufficient. This analysis shows that the loading factor is above 0.60 so that all items of questions/statements in this study are valid. In the Composite Reliability and Average Variance Extracted (AVE) analysis, the validity and reliability criteria can be seen from the reliability value of a construct and the Average Variance Extracted (AVE) value of each construct. The construct is said to have high reliability if the value is 0.70 and the AVE is above 0.50 (Table 3).
|Table 3 Result of Convergent Validity|
|Variable||Composite Reliability||Average Variance Extracted (AVE)|
Structural Model Testing (Inner Model)
At this stage, the inner model test is helpful to see the relationship between variables, the significance value, and the R-square of the research model. Changes in the R-square value can assess the substantive effect of certain independent latent variables on the dependent variable.
Strategic Leadership Affects Change Management
The findings on the strategic leadership variable on the dimensions of the leadership's ability to plan and communicate change management's vision and strategic goals prove that leaders can realize, identify, and adopt changes faced by state polytechnics. The leadership of state polytechnics in East Java in the dimensions of the ability to plan vision and strategic goals includes adapting and accepting the Vocational Higher Education (PTV) Strategic Plan Changes (Renstra) for 2020-2024. Changes to the Vocational Higher Education (PTV) Strategic Plan for 2020-2024 must be implemented in the Renstra of all State Polytechnics in East Java. As a manager of vocational education, a vocational education leader must reorganize; carry out management and innovation (renewal) in leadership to be able to face changes and challenges that occur in the internal and external environment.
The study findings support the belief that strategic leadership requires emphasizing what influential top leaders do to create an organization (Kaiser, 2020; Outlook, 2015) . Achieving organizational success is not a coincidence. Decisions made by strategic leaders largely determine this. Top managers' responsibility is to monitor the organization's internal and external environment, build resources and capabilities, track industry and competition trends, see emerging market opportunities, identify threats, and develop a vision that followers can trust (Drago & Clements, 1999; Lemos, 2012; Mistarihi, 2021; Raja Suzana Raja Kasim, 2010). Namely being involved in change, being more proactive in communicating change, unwilling to change leadership to become an external consultant, and not only having a vision of change but accompanied by a sustainable capacity for change implementation, always encourages the creation of change (Curaj et al., 2020; Moreno-Serna et al., 2020; Watabe & Gilby, 2020; Zabaniotou et al., 2020). Behavior change positively is independent and allowing others to do the same and dare to take risks.
Organizational Commitment has a Significant Effect on Change Management
The dimension of affective commitment is a feeling of leadership in emotions to optimally plan and deal with change. These findings mean that leaders can adequately implement the country's polytechnic change management if leadership is well committed to the organization. If leadership is not well committed, planned change management will not work well. Judging from the dimension of normative commitment, the leader's feeling on his duties and obligations manifested in working correctly according to institutional goals, working with all his might for the sake of obligations, and working with his awareness. As a leader, he must feel that the state polytechnic is vital to his life. He must work wholeheartedly in planning changes and dealing with changes in the 2020 Directorate General of Dictions strategic plans and classify changes as force major (Covid 19 pandemic). Change, strategic issues, and challenges must be dealt with wholeheartedly and proudly to face and contribute to decision-making in facing change.
Morell (1990) stated that organizational commitment is a psychological condition that describes the connection between workers and the company or its consequences that influence whether employees will remain in the organization or not, which is divided into three components including (1) affective commitment, namely: emotional participation in the organization shown as sentiments of affection towards the organization; (2) continuance commitment, namely: a person's perception of costs and risks by leaving the current organization, meaning that there are two aspects to continuous commitment, namely: involving personal sacrifice when leaving the organization and the absence of alternatives available to that person; (3) normative commitment, namely: a moral dimension based on a feeling of obligation and responsibility to the employing organization. Greenberg & Baron (2003) found that employees who have a high commitment to the organization will be more stable and more productive to support change ultimately. Finding that employees who are highly committed to the organization will be more motivated to attend the organization and seek to fulfill corporate goals, including organizational goals to change existing systems (Harimurti & Mariatin, 2014; Mowday et al., 1979). The strategic management perspective that we have assumed as the basis of our investigation is expected to offer a broad spectrum of future works (Centobelli et al., 2020).
Based on the results and discussion related to the determinants of change management at state polytechnics in East Java and research variables, strategic leadership and organizational commitment to change management. State the strategic leadership variable has a significant effect on change management. This conclusion states that leadership improvements made by polytechnic officials will impact change management so that the quality of education will increasingly have a vision and mission. Meanwhile, organizational commitment has a significant effect on change management. The results state that organizational commitment is based on three components, namely affective commitment, sustainable commitment, and normative commitment. This commitment can create a better relationship between leaders and employees in tertiary institutions and impact management changes in state polytechnics in East Java. In the future, leaders at both the top management and middle management levels will adapt to the changes and challenges faced in leading state polytechnics. According to a source-centered approach, a leader's strategic agility is a dynamic feature that can serve as a valuable, rare, and irreplaceable resource (Asil & Farahmand, 2019). Leaders must maintain consistency and sincerity in work and embody organizational commitment. The commitment of the leader organization can be a role model for employees to improve the productivity and performance of state polytechnics in general. This research might lay the groundwork for future researchers to conduct more research on this subject. It added substantial evidence and framework for a great group view of strategic leadership. Ultimately, due to the growing importance of strategic leadership in the polytechnic domain, other exciting challenges may be inherent in adapting research models in different local systems and evaluating the impact of leadership on individual vocational colleges.
This research is supported by the Jember University, State Polytechnic of Jember, and independently funded by the authors.
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