Employee Satisfaction as a Mediator in Good Governance and Organizational Performance in Public Works Water Resources Agency of East Java Province - Bengawan Solo River Basin Management Implementation Unit (Madiun Regional Office)

Abstract

Background: The implementation of good governance is essential for public organizations to improve employee satisfaction and organizational performance. In technical public institutions such as the Public Works Water Resources Agency of East Java Province - Bengawan Solo River Basin Management Implementation Unit (Madiun Regional Office), good governance is needed to support service effectiveness and organizational resource management. Objective: to analyze the effects of employee participation, work orientation, social development, and economic management on organizational performance through employee satisfaction as a mediating variable. Method: This study employed a causal quantitative approach. The population consisted of all 80 employees therefore, a census sampling technique was applied. Data were collected using a Likert-scale questionnaire and analyzed using SEM-PLS. Results: The results show that employee participation, work orientation, social development, and economic management have positive and significant effects on employee satisfaction. Employee satisfaction also has a positive and significant effect on organizational performance. Furthermore, employee satisfaction mediates the effects of the four dimensions of good governance on organizational performance. Conclusions: Employee satisfaction serves as an important mechanism linking good governance implementation to improved organizational performance.