Budget Efficiency on Job Satisfaction and Employee Performance

Abstract

The purpose of this research is Policy Relevance: Budget efficiency is the focus of the government in managing the public sector, including education. However, its impact on the satisfaction and performance of education department employees has not been widely studied, even though these two factors are crucial for the quality of education services, the Efficiency vs Performance dilemma where budget cuts risk reducing employee motivation, but if managed strategically, it can actually encourage innovation. This study will test this relationship empirically. The large number of employees requires evidence-based evaluation of budget policies to ensure efficiency does not come at the expense of human resources. The method used in quantitative research with Double Paradigm analysis of two dependent variables through simple correlation and Regression tests. The results of this study are: (1) Identifying budget efficiency affects employee satisfaction, (2) Identifying budget efficiency affects employee performance, (3) Identifying employee satisfaction affects employee performance.