The relationship between organisational culture, employee engagement and organisational performance in the public sector in South Africa.

Abstract

This study investigates the relationship between organisational culture (OC), employee engagement (EE), and organisational performance (OP) within the South African public sector. As the country’s largest employer, the effectiveness of public institutions depends significantly on the engagement, motivation, and cultural alignment of their workforce. Despite the critical importance of these factors, limited empirical research has examined their interrelationships in the South African public sector context. This study seeks to address this gap by examining how OC influences EE and how EE, in turn, affects OP. The research adopts a positivist paradigm and employs a quantitative design, using Structural Equation Modelling (SEM) to test the hypothesised relationships. The primary objectives are to assess the influence of OC on EE, evaluate the impact of EE on OP, and examine the mediating role of EE in the OC–OP relationship. Secondary objectives explore the effects of leadership, communication, job involvement, organisational commitment, and employee satisfaction on engagement and performance outcomes. Although the initial sample targeted 285 employees from three public sector organisations, a total of 408 valid responses were received and included in the final analysis. Data was collected through a structured questionnaire and analysed using correlation analysis, regression analysis, and confirmatory factor analysis to assess both measurement and structural models. The findings confirm that organisational culture significantly influences employee engagement and that engagement plays a mediating role in enhancing organisational performance. The study contributes to the literature by providing empirical insights specific to the South African public sector and validating a conceptual model that links OC, EE, and OP through key contributing factors. Practical recommendations are offered to public sector leaders and managers, highlighting strategies to strengthen organisational culture and employee engagement to improve overall performance and service delivery.