A STRUCTURAL EQUATION MODEL ON THE JOB PERFORMANCE OF EMPLOYEES IN A NATIONAL GOVERNMENT AGENCY IN REGION XI

Abstract

This study used Structural Equation Modeling (SEM), a multivariate statistical technique that combined factor analysis and multiple regression in analyzing structural relationships, to establish the best-fit structural model for job performance. 400 DENR employees selected using proportionate stratified random sampling throughout Region XI participated in the survey. Data analyses yielded these results: the statistical mean was high in all the variables. Pearson r revealed a significant and positive relationship between organizational change, organizational culture, job satisfaction (exogenous variables), and job performance (endogenous variable). Multiple regression analysis uncovered the influence of the exogenous variables on job performance at 66.3%. Moreover, SEM revealed the direct effect of organizational culture on job performance. On the other hand, the mediating role of organizational culture resulted in the indirect effect of job satisfaction and organizational change on job performance. Also, the SEM model showed that the appropriate manifest variables for predicting job performance are mission (for organizational culture), contingent rewards and fringe benefits, nature of work, a climate of change (for job satisfaction), and readiness for change (for an organizational change). These findings have implications for leadership in government agencies vis-à-vis employees’ outstanding job performance. KEYWORDS: public administration, organizational culture, organizational change, job satisfaction, job performance, structural equation model, DENR employees