Decentralization and Managerial Performance

Oct 13, 2025 by magicalceylontours.com 31 views

Effect of Decentralization, Organizational Commitment, and Government Internal Control System (SPIP) on Managerial Performance of Regional Work Units (SKPD): Empirical Study of the Labuhanbatu Main Regency Government

Introduction

The effectiveness of government management is a crucial aspect of ensuring the well-being of citizens. In recent years, the concept of decentralization has gained significant attention as a means to improve government management. Decentralization allows decisions to be taken closer to the community, increasing responsiveness and efficiency in public services. However, the success of decentralization depends on various factors, including organizational commitment and the government's internal control system. This study aims to investigate the effect of decentralization, organizational commitment, and government internal control system on managerial performance of the Regional Work Unit (SKPD) in Labuhanbatu Regency.

Methodology

This study employed a saturated sample method, collecting 50 questionnaires that can be analyzed further. The research hypothesis was tested using a structural equation model (SEM) with the help of SmartPLS 3.0 software. The study focused on the Labuhanbatu Main Regency Government, which is a significant case study in Indonesia.

Decentralization and Managerial Performance

Decentralization is one of the essential aspects of government management, allowing decisions to be taken closer to the community. With decentralization, SKPD is given the freedom to make decisions that are in accordance with local needs. This is expected to increase responsiveness and efficiency in public services. Research shows that decentralization not only improves managerial performance but can also increase community participation in decision making, so that it has an impact on citizen satisfaction.

Decentralization can be achieved through various means, including:

Delegation of authority: Decentralization involves delegating authority to lower-level officials, allowing them to make decisions that are in accordance with local needs.
Increased autonomy: Decentralization provides SKPD with increased autonomy to make decisions, which can lead to improved responsiveness and efficiency in public services.
Community participation: Decentralization encourages community participation in decision making, which can lead to increased citizen satisfaction.

Organizational Commitment

Organizational commitment refers to the extent to which employees feel bound and have dedication to the organizational goals. In the SKPD context, a high commitment from employees will produce better performance. When employees feel involved and respected, they tend to be more proactive and responsible in carrying out tasks. The findings of this research emphasize the importance of human resource management to develop a positive work culture and support the increase in organizational commitment.

Organizational commitment can be achieved through various means, including:

Employee involvement: Encouraging employee involvement in decision making can lead to increased commitment and motivation.
Positive work culture: Developing a positive work culture can lead to increased employee commitment and motivation.
Training and development: Providing training and development opportunities can lead to increased employee commitment and motivation.

Government Internal Control System (SPIP)

The Government Internal Control System (SPIP) aims to ensure that all processes in the government take place in accordance with the principles of accountability and transparency. Effective SPIP can minimize the risk of irregularities and corruption, while increasing operational efficiency. This study shows that the application of good SPIP not only improves SKPD performance, but also creates public confidence in the government.

SPIP can be achieved through various means, including:

Accountability: Ensuring that all processes in the government are transparent and accountable can lead to increased public confidence.
Transparency: Ensuring that all processes in the government are transparent can lead to increased public confidence.
Risk management: Implementing effective risk management strategies can minimize the risk of irregularities and corruption.

Recommendation

Based on the results of the study, it is recommended that all government agencies in Labuhanbatu Regency increase the application of decentralization, strengthen organizational commitment, and implement a better internal control system. These steps are expected to encourage improvement in managerial performance in the SKPD, so that public services can be more optimal and effective.

Conclusion

This study provides empirical evidence on the effect of decentralization, organizational commitment, and government internal control system on managerial performance of the Regional Work Unit (SKPD) in Labuhanbatu Regency. The findings of this study emphasize the importance of decentralization, organizational commitment, and government internal control system in improving managerial performance. The implementation of these three aspects is expected to encourage improvement in managerial performance in the SKPD, so that public services can be more optimal and effective.

Limitation

This study has several limitations, including:

Sample size: The sample size of this study is relatively small, which may limit the generalizability of the findings.
Case study: This study is a case study of the Labuhanbatu Main Regency Government, which may limit the generalizability of the findings to other government agencies.

Future Research

Future research should focus on investigating the effect of decentralization, organizational commitment, and government internal control system on managerial performance in other government agencies. Additionally, future research should focus on investigating the impact of decentralization, organizational commitment, and government internal control system on citizen satisfaction and public trust in government.

References

[List of references]

Appendix

[Appendix]
Frequently Asked Questions (FAQs) about the Effect of Decentralization, Organizational Commitment, and Government Internal Control System (SPIP) on Managerial Performance of Regional Work Units (SKPD)

Q: What is decentralization, and how does it affect managerial performance?

A: Decentralization is the process of delegating authority and decision-making power to lower-level officials, allowing them to make decisions that are in accordance with local needs. Decentralization can improve managerial performance by increasing responsiveness and efficiency in public services.

Q: What is organizational commitment, and how does it affect managerial performance?

A: Organizational commitment refers to the extent to which employees feel bound and have dedication to the organizational goals. A high commitment from employees can lead to better performance, as they tend to be more proactive and responsible in carrying out tasks.

Q: What is the Government Internal Control System (SPIP), and how does it affect managerial performance?

A: The Government Internal Control System (SPIP) aims to ensure that all processes in the government take place in accordance with the principles of accountability and transparency. Effective SPIP can minimize the risk of irregularities and corruption, while increasing operational efficiency.

Q: How can decentralization be achieved in a government agency?

A: Decentralization can be achieved through various means, including delegation of authority, increased autonomy, and community participation.

Q: How can organizational commitment be achieved in a government agency?

A: Organizational commitment can be achieved through various means, including employee involvement, positive work culture, and training and development opportunities.

Q: How can the Government Internal Control System (SPIP) be implemented in a government agency?

A: SPIP can be implemented through various means, including accountability, transparency, and risk management.

Q: What are the benefits of decentralization, organizational commitment, and SPIP in a government agency?

A: The benefits of decentralization, organizational commitment, and SPIP in a government agency include improved managerial performance, increased responsiveness and efficiency in public services, and minimized risk of irregularities and corruption.

Q: How can government agencies in Labuhanbatu Regency implement the recommendations of this study?

A: Government agencies in Labuhanbatu Regency can implement the recommendations of this study by increasing the application of decentralization, strengthening organizational commitment, and implementing a better internal control system.

Q: What are the limitations of this study?

A: The limitations of this study include a relatively small sample size and a case study of the Labuhanbatu Main Regency Government, which may limit the generalizability of the findings.

Q: What are the future research directions for this study?

A: Future research should focus on investigating the effect of decentralization, organizational commitment, and SPIP on managerial performance in other government agencies, as well as the impact of decentralization, organizational commitment, and SPIP on citizen satisfaction and public trust in government.

Q: What are the implications of this study for government agencies in Indonesia?

A: The implications of this study for government agencies in Indonesia are that they should prioritize decentralization, organizational commitment, and SPIP to improve managerial performance and increase responsiveness and efficiency in public services.

Q: What are the implications of this study for policymakers in Indonesia?

A: The implications of this study for policymakers in Indonesia are that they should develop policies that support decentralization, organizational commitment, and SPIP in government agencies, and provide resources and support for the implementation of these policies.