Organizational Culture Change and its Effect on Change Readiness through Organizational Commitment
Abstract: In the dynamic
global, regional and local environment, organization should be ready to face
the challenge of changes. This research aims to understand the relationship
between cultural organization, organizational commitment and readiness to
change. The research was conducted at Bumiputera 1912 Mutual Life Insurance
Company (MLIC) Head Office in August and September 2014 with 190 respondents
selected using purposive sampling method. Paired sample t-test and Structural
Equation Modeling (SEM) analysis were employed as statistical tools. The
results of this study showed that the mean score between existing cultural
orientation and preferred cultural orientation differ significantly. SEM
analysis found that the existing organizational culture has positive effect on
organizational commitment but negatively affects the readiness to change.
Preferred organizational culture has a positive effect both on organizational
commitment and readiness to change significantly. Organizational commitment has
positive effect on readiness to change.
Author: Joko Suwaryo, Heny K.
K. Daryanto, Agus Maulana
Journal Code: jpadministrasinegaragg150046
