Exploring the Relationship between Budget Transparency and Employee Engagement within the Department of Agrarian Reform (DAR) Masbate

Authors

  • Jelisa Gabriela Q. Cos Agrarian Reform Program Technologist, Department of Agrarian Reform, Masbate Author

DOI:

https://doi.org/10.65339/ijsair.V2.I2.300

Keywords:

Accountability, Budget Management, Budget Transparency, DAR Masbate, Employee Engagement, Public Governance, Public Sector, Transparency Practices

Abstract

This study examined the relationship between budget transparency and employee engagement among employees of the Department of Agrarian Reform (DAR) Masbate. It was anchored on Agency Theory, Social Exchange Theory, and Organizational Transparency Theory, which explain how openness, fairness, and accessible information may influence employee trust, motivation, and participation. The study employed a quantitative descriptive-correlational research design using a researcher-made structured questionnaire administered to thirty (30) current employees of DAR Masbate selected through purposive sampling. Data were analyzed using frequency, percentage, weighted mean, ranking, and Pearson Product-Moment Correlation Coefficient at the 0.05 level of significance. Findings showed that budget transparency was generally rated high to very high, particularly in access to budget information, communication of budget priorities, and accountability in budget management, while employee participation in budget-related activities received a relatively lower rating. Employee engagement was rated very high in terms of dedication, absorption, and vigor. Among the dimensions of budget transparency, accountability in budget management had the greatest influence on employee engagement. The study found a moderate positive and statistically significant relationship between budget transparency and employee engagement, with an r-value of 0.54. The study concludes that stronger budget transparency is associated with higher employee motivation, commitment, and involvement. It recommends improving timely budget communication, employee participation, accountability systems, professional development, recognition, and regular monitoring. The study supports SDG 16, SDG 8, and SDG 11 by promoting transparent institutions, productive work engagement, and improved public service delivery. Its sustainability impact lies in strengthening institutional governance, employee performance, and community-oriented agrarian reform services.

References

Abbasov, R. (2025). How budget transparency affects public trust in government: A comprehensive analysis. iBusiness, 17, 124–134.

Akhunzada, A. A. (2024). The importance of employee dedication: Ensuring company success. LinkedIn.

Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015). Employee engagement, human resource management practices and competitive advantage: An integrated approach. Journal of Organizational Effectiveness: People and Performance, 2(1), 7–35. https://doi.org/10.1108/JOEPP-08-2014-0042

Alessandro, M., Cardinale Lagomarsino, B., Scartascini, C., Streb, J., & Torrealday, J. (2021). Transparency and trust in government: Evidence from a survey experiment. World Development, 138, Article 105223. https://doi.org/10.1016/j.worlddev.2020.105223

Alfredsson, H. (2025). Measuring dynamic employee engagement: Limitations of traditional survey methods [Doctoral dissertation, University of Gothenburg].

Ariyanto, E., Wijaya, M. H., & Mutiara Sari, A. N. (2025). The effect of employee engagement (vigor, dedication, and absorption) on job satisfaction at PT Pelindo 1. International Journal of Current Science Research and Review, 8(2), 673–679. https://doi.org/10.47191/ijcsrr/V8-i2-11

Ary, D., Jacobs, L. C., Irvine, C. K. S., & Walker, D. A. (2019). Introduction to research in education (10th ed.). Cengage Learning.

Baes, J. O., & Naparota, L. C. (2022). Basic psychological need satisfaction and work engagement of employees in Andres Bonifacio College, Inc., Dipolog City, Philippines. International Journal of English Literature and Social Sciences, 7(6), 122–133. https://doi.org/10.22161/ijels.76.17

Bakker, A. B., Albrecht, S. L., & Leiter, M. P. (2011). Key questions regarding work engagement. European Journal of Work and Organizational Psychology, 20(1), 4–28. https://doi.org/10.1080/1359432X.2010.485352

Beh, L. (2024). The effect of communication transparency and hierarchical structure on internal control system effectiveness with employee engagement as a mediator [Master’s thesis, Tunku Abdul Rahman University College].

Blau, P. M. (1964). Exchange and power in social life. Wiley.

Boncacas, R. A. (2025). Organizational culture and performance of the Department of Agrarian Reform Provincial Office of Albay. International Journal of Innovative Science and Research Technology, 10(2), 389–396. https://doi.org/10.5281/zenodo.14915614

Bovens, M., Goodin, R. E., & Schillemans, T. (Eds.). (2016). The Oxford handbook of public accountability. Oxford University Press.

Bracci, E., Humphrey, C., Moll, J., & Steccolini, I. (2015). Public sector accounting, accountability and austerity: More than balancing the books? Accounting, Auditing & Accountability Journal, 28(6), 878–908. https://doi.org/10.1108/AAAJ-06-2015-2090

Breevaart, K., & Bakker, A. B. (2018). Daily job demands and employee work engagement: The role of daily transformational leadership behavior. Journal of Occupational Health Psychology, 23(3), 338–349.

Calapre, M., Sabile, L., Villamar, E., & Saranza, C. (2024). Investigating the dynamics of organizational commitment and trust among public employees in a Philippine local government unit. International Journal of Social Science and Human Research.

Centeno, M. T. (2022). Promoting employee engagement through organizational culture: An integrative action research in a finance company in the new normal [Master’s thesis, De La Salle University]. Animo Repository.

Christensen, L. T., & Cornelissen, J. (2015). Organizational transparency as myth and metaphor. European Journal of Social Theory, 18(2), 132–149. https://doi.org/10.1177/1368431014555256

Commission on Audit. (2023). Department of Agrarian Reform: Consolidated annual audit report 2022. Commission on Audit.

Credo, C. C. G., Naparota, L. C., Elopre, J. B., & Cabalida, E. S. (2024). Employees’ treatment and work engagement in the Department of Agrarian Reform, Zamboanga del Norte, Philippines. European Journal of Social Sciences Studies, 9(5). https://doi.org/10.46827/ejsss.v9i5.1671

Creswell, J. W., & Creswell, J. D. (2018). Research design: Qualitative, quantitative, and mixed methods approaches (5th ed.). SAGE Publications.

Cuadrado-Ballesteros, B., García-Sánchez, I. M., & Prado-Lorenzo, J. M. (2017). Effect of different modes of public services delivery on efficiency, quality and transparency. Public Management Review, 19(6), 836–856.

Fathirah, D., Nirwana, N., & Imran, H. (2024). Budget transparency and accountability in local government. Asian Journal of Management Analytics, 3(4), 1171–1184. https://doi.org/10.55927/ajma.v3i4.11878

Flores, J. M. N., & Maquiling, R. R. (2024). Work engagement as a function of psychological empowerment, self-efficacy and job satisfaction among financial managers: A structural equation modelling approach. International Journal of Multidisciplinary: Applied Business and Education Research.

Grunig, J. E. (Ed.). (1992). Excellence in public relations and communication management. Lawrence Erlbaum Associates.

Hadziahmetovic, N., & Salihovic, N. (2022). The role of transparent communication and leadership in employee engagement. International Journal of Academic Research in Economics and Management Sciences, 11(2), 558–571.

Hameduddin, T., & Lee, S. (2021). Employee engagement among public employees: Examining the role of organizational images. Public Management Review, 23(3), 422–446. https://doi.org/10.1080/14719037.2019.1695879

Hartwell, J. (2020). Relationship between project changes, project objectives, and employee engagement [Doctoral dissertation, Walden University]. Walden Dissertations and Doctoral Studies.

Heald, D. (2018). Transparency-generated trust: The problematic theorization of public audit. Financial Accountability & Management, 34(4), 317–335.

Homans, G. C. (1958). Social behavior as exchange. American Journal of Sociology, 63(6), 597–606. https://doi.org/10.1086/222355

House of Representatives. (2024, August 15). House panel concludes deliberation on DAR’s proposed 2025 budget. House of Representatives of the Philippines.

Jamisolamin, N. M. G. (2025). Ethical practices and perceptions of organizational ethics among employees in a local government institution. International Journal of Research and Innovation in Social Science, 9(6), 665–673. https://doi.org/10.47772/IJRISS.2025.90600056

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X

Kenton, W. (2025). Accountability: Definition, types, benefits, and example. Investopedia.

LaMacchia, C. (2021). Enhancing employee engagement to improve financial performance [Doctoral dissertation, Walden University]. Walden Dissertations and Doctoral Studies.

Larroza, E. R. F., Basilla, S. A. G., Casano, M. A., Briones, J. P., & Abante, M. V. (2024). Relationship of open communication to employee motivation in a government agency in the Philippines. Humanities, Society and Community, 2(1), 36–51. https://doi.org/10.31098/hsc.v2i1.2747

Lavigna, B. (2015). Commentary: Public service motivation and employee engagement. Public Administration Review, 75(5), 732–733. https://doi.org/10.1111/puar.12429

Maake, G. (2025). Relationship between demographic groupings, work engagement and performance management systems. SA Journal of Human Resource Management/SA Tydskrif vir Menslikehulpbronbestuur, 23(0), Article a2902. https://doi.org/10.4102/sajhrm.v23i0.2902

Manhit, V. A. (2022). Ensuring transparency and public participation in the budget process. Stratbase ADR Institute.

Men, L. R., & Bowen, S. A. (2017). Excellence in internal communication management. Business Expert Press.

Michelli, J. A. (2021, August 3). Vigor, dedication, and absorption: Customer experience is the result of team member experience. The Michelli Experience.

Na, J., & Chelliah, S. (2022). Review of organizational atmosphere, employee engagement and organizational support. Global Business and Management Research: An International Journal, 14(3s), 1413–1426.

Nica, E., Rusu, C., & Ilie, M. (2016). Participatory budgeting and employee engagement in organizations. Management Dynamics in the Knowledge Economy, 4(3), 377–393.

OECD. (2021). Pay transparency tools to close the gender wage gap. OECD Publishing.

OECD. (2024). OECD survey on drivers of trust in public institutions—2024 results: Building trust in a complex policy environment. OECD Publishing.

OECD. (2025). Quality budget institutions: Developments in OECD countries. OECD Publishing.

Otero, M. G., Villegas, J. R., Camilo, J. B. C., & Ramos, A. L. (2025). Reviewing transparency and accountability mechanisms for sustainable implementation of Sibonga Community College. Psychology and Education: A Multidisciplinary Journal, 41(10), 1094–1105.

Pekkonen, A., & Malena, C. (n.d.). Budget transparency [Toolkit]. CIVICUS.

Philippine News Agency. (2023, May 29). Masbate farmers earn P627K in DAR’s agri fair project.

Philippine Statistics Authority. (2021, July 7). 2020 Census of Population and Housing population counts declared official by the President.

Philippine Statistics Authority. (2025, July 17). 2024 Census of Population population counts declared official by the President.

Pratiwi, R., Haliah, H., & Kusumawati, I. (2024). Budget transparency and public trust: A systematic review. Cashflow Journal, 3(2), 67–82.

Pringle, R., & Tequila, Q. (2023). Employee engagement and leadership in the federal sector [Doctoral dissertation, Walden University]. Walden Dissertations and Doctoral Studies.

Puni, A., & Hilton, S. K. (2020). Dimensions of authentic leadership and patient care quality. Leadership in Health Services, 33(4), 365–383.

Quantum Workplace. (n.d.). What is employee engagement? The QWork Future Blog.

Rahman, K. (2021). Anti-corruption measures for reducing corruption in agriculture (U4 Helpdesk Answer). U4 Anti-Corruption Resource Centre, Chr. Michelsen Institute.

Republic of the Philippines. (1971). Republic Act No. 6389: Code of Agrarian Reform of the Philippines.

Republic of the Philippines. (1988). Republic Act No. 6657: Comprehensive Agrarian Reform Law of 1988.

Rich, B. L., LePine, J. A., & Crawford, E. R. (2010). Job engagement: Antecedents and effects on job performance. Academy of Management Journal, 53(3), 617–635. https://doi.org/10.5465/amj.2010.51468988

Saikia, S. (2024). The role of transparency in improving employee engagement. Vantage Circle.

Saputra Jaya, L. H., & Ariyanto, E. (2021). The effect of vigor, dedication, and absorption on the employee performance of PT Garuda Indonesia Cargo. European Journal of Business and Management Research, 6(4), 311–320.

Saunders, M., Lewis, P., & Thornhill, A. (2019). Research methods for business students (8th ed.). Pearson Education.

Schaufeli, W. B., & Taris, T. W. (2014). A critical review of the job demands-resources model: Implications for improving work and health. In G. F. Bauer & O. Hämmig (Eds.), Bridging occupational, organizational and public health (pp. 43–68). Springer.

Schaufeli, W. B., Bakker, A. B., & Salanova, M. (2006). The measurement of work engagement with a short questionnaire: A cross-national study. Educational and Psychological Measurement, 66(4), 701–716. https://doi.org/10.1177/0013164405282471

Smith, G. (2025). How transparency in the workplace leads to better engagement. ThriveSparrow.

Solteo, G. L., & Schneider, S. F. (2022). The influence of organizational transparency on employees’ trust among cooperatives in Davao del Norte. EPRA International Journal.

Taylor, E. (2024). Budgeting for employee engagement in 2024. Drive Research.

Transparency International. (2025). Strong anti-corruption and transparency on governance reform: The key to lasting change. Transparency International.

Tshikotshi, K. P. (2024). Investigating the impact of employee engagement on employee performance: A case of a Gauteng-based call-centre [Doctoral dissertation, Selinus University]. Selinus University.

Umachi, K. U. (2025). Transformational leadership influence on employee commitment and retention in BPO companies in the Philippines [Master’s thesis, Ateneo de Manila University].

Wright, S. (2022). Leadership strategies for improving employee engagement [Doctoral dissertation, Walden University]. Walden Dissertations and Doctoral Studies.

Yeow, V. (2025). Investigate the impact of inclusive leadership and organisational transparency on employee engagement [Master’s thesis, Tunku Abdul Rahman University College].

Downloads

Published

2026-04-26

Issue

Section

Articles

How to Cite

Cos, J. G. (2026). Exploring the Relationship between Budget Transparency and Employee Engagement within the Department of Agrarian Reform (DAR) Masbate. International Journal of Sustainability and Advanced Integrated Research, 2(2), 1121-1132. https://doi.org/10.65339/ijsair.V2.I2.300