This study critically
examines the interrelationships between organisational culture, employee
engagement, and organisational performance within the South African public
sector. A quantitative approach employing Structural Equation Modelling (SEM)
through Smart PLS was used to test a multidimensional conceptual framework
comprising 21 hypotheses. A stratified random sample of 408 employees across
three government departments was surveyed using pre-validated instruments that
measured nine latent constructs, including inspiring leadership, open and
transparent communication, a challenging and engaging environment,
organisational commitment, job involvement, employee satisfaction, motivation,
retention, and organisational results. The measurement model demonstrated
excellent reliability and construct validity, with all constructs exceeding the
minimum thresholds for Cronbach’s alpha, composite reliability, and average
variance extracted (AVE).
The results confirmed strong and statistically
significant relationships between organisational culture and employee
engagement, and between employee engagement and organisational performance.
Mediation analysis revealed that employee engagement partially mediates the
culture-performance relationship, suggesting that a positive organisational
culture influences performance directly and indirectly via enhanced engagement.
Key cultural drivers such as inspiring leadership and a challenging work
environment exhibited substantial predictive relevance, whereas open and
transparent communication demonstrated limited statistical significance in some
paths. The study makes a novel contribution to the limited body of empirical
research on public sector management in emerging economies, offering actionable
insights for leadership, policy reform, and human resource development in the
South African public administration landscape.
