Developing Human Governance Index Using Partial Least Squares (PLS) Approach
A high-quality workforce depends on the metric of governance practices. The establishment of governance has produced a concept of human governance that aims to communicate the development and practice of good values among employees. Human governance is a significant element to improve the value and ethical behaviour of employees in the organization. This study seeks to establish human governance determinants. The selected organizations involved in this study are based on the information provided by the Malaysia Anti-Corruption Commission (MACC). The unit of analysis for this study is the employees who were involved in the decision making within the organization. Partial Least Square Structural Equation Modelling (PLS-SEM) was utilized to analyze the collected data. This study adopted the stratified sampling technique. The results of this study revealed that the factor loading for each item is above 0.60, the average variance extracted is above 0.50, composite reliability is above 0.70, and Cronbach’s Alpha is above 0.60. The finding shows that the human governance index consists of 8 determinants: Leadership, Integrity, Religiosity, Spirituality, Culture, Training and Development, Recruitment and Selection, and Internal Policy Control.