Human Resource Management, Organizational Culture, and Good Governance Practices: A Structural Equation Model on Service Orientation among Government-Owned and Controlled Corporation in Davao Region

Abstract

This study examined the determinants of service orientation among employees of Government-Owned and Controlled Corporations (GOCCs) in the Davao Region, Philippines, with a particular focus on the interplay between human resource practices, organizational culture, and good governance. Employing a quantitative, descriptive-correlational research design, the study utilized validated survey instruments distributed to 400 plantilla employees from the Pag-IBIG Fund, Social Security System (SSS), and Philippine Sweepstakes Office (PCSO). Data were analyzed using multiple regression and structural equation modeling (SEM) to identify the best-fit model explaining the drivers of service orientation. Findings indicated that while HR practices had a positive association with service orientation, they did not exert a statistically significant direct effect. In contrast, good governance and organizational culture demonstrated strong influences, with governance emerging as the most significant predictor. Model 3, identified through fit indices, highlighted the organizational culture significantly mediating the relationship between governance and service orientation. These findings emphasized the importance of promoting ethical governance, inclusive organizational culture, and strategic HR interventions to strengthen public service delivery. This research advocates responsive governance, participatory workplace environments, and competency-based training in the public sector, emphasizing the need for strong institutions, inclusive practices, and sustainable communities to enhance service delivery, employee commitment, and citizen trust in governance.