Effect of Change Management Practices on Organizational Performance: The Mediating Role of Employee Engagement in the Public Sector in South Ethiopia Regional State

Abstract

This study examines how change management practices affect organizational performance in the public sector through the crucial lens of employee engagement.  To collect data from 350 respondents randomly selected from ten bureaus, as well as qualitative data from selected individuals in the study region. A cross-sectional survey design and a convergent parallel design were used. Data analysis using SmartPLS4 showed that the measurement and structural models met the expected criteria, demonstrating the validity and reliability of the constructs through bootstrapping. The findings suggest that effective change management practices have a substantial impact on both employee engagement and organizational performance. Furthermore, employee engagement mediates the relationship between change management practices and organizational performance, indicating that strategic change management practices boost engagement, which in turn improves organizational performance. The study's originality lies in its focus on the public sector, offering strategic change management practices designed to enhance organizational performance through increased employee engagement. This research contributes to the literature by exploring the under-investigated role of employee engagement as a mediator in the relationship between change management practices and organizational performance, particularly in the public sector. Employee engagement plays a critical role in the implementation of change management practices and in organizational performance.