The Effects of Organizational Culture on Work Outcomes through Leadership Styles.MICHELLE LEE SUNWAY UNIVERSITY

MOHD AWANF IDRIS UNIVERSITY MALAYA

Focus of the Study

Examine the fit between organizational culture to direct leadership style on employees’ outcome, specifically the Asian context.

Definitions & Variables

Organizational culture as ‘the shared beliefs, perceptions, and expectations of individuals in organizations.’ (Boan, 2006)

Hierarchical organizational culture implies a very top-bottom hierarchy system whereby authority is valued and cherished

Very systematic procedure

Not being questioned or voice out.

(Cameron & Quinn, 1999)

Transformational leadership style Intellectual stimulation,

Individualized consideration,

Inspirational motivation

Idealized influenced

Transactional leadership style which includes Contingent reward,

Active and passive management by exception and

Laissez-faire leadership.

(Bass, 1985)

Thus Far… Different organizational culture used different leadership

style (Giritli, Oney-Yazici, Topcu-Oraz, &Acar, 2013)

3 types leadership, which are, Strategic leadership, ones create the vision of the organization

(CEO, COO, CFO)

Organizational leadership higher managerial posts (GM, marketing manager, regional manager)

Direct leadership who execute the plans to make sure they are effective

(National Defense University, 2012)

Strategic leadership is often = organizational culture (Giberson et al., 2009),

Organizational culture, organizational climate and leadership style: Fundamental building blocks for explaining & analysing organization phenomena (Schein, 2000); extension of knowledge on organizational behaviour literature (Ashkanasy, 2003; Ashkanasy, & Jackson, 2001; Cooper, Cartwright, & Earley, 2001).

Transformational often obtain a favorable outcomes than transactional leadership. TFL higher Leader-Member relationship (Wang, Law, Hackett, Wang, & Chen, 2005).

Southeast Asian managers to be more directive and more transactional (Gill, 1998)

Malaysian workplace: Collectivistic, relationship oriented, & hierarchical. (Abdullah, 1994)

Issue: Horizontal-individualistic context (e.g. Western) than in vertical-collectivistic (eg. Asian) contexts (Rockstuhl, Shore, Ang, & Dulebohn, 2013).

Weese (1996) found organizational culture as an effect towards organizational effectiveness rather than leadership style

Giritli, Oney-Yazici, Topcu-Oraz, and Acar (2013) also confirmed the presence of organizational culture in determining the appropriate leadership styles to practice within organization.

Gap of the Study Upper levels factors (organizational climate,

organizational culture, leadership style) were not well researched in the Asian context (Ojo, 2012).

The importance of leader-culture fit framework in work outcomes (Nieminen, Biermeier-Hanson, Denison, 2013; Sackmann, 2011)

Giberson et al., (2009) :Strategic leadership is often = organizational

culture

:Most researches place focus on organizational leadership, with least on direct leadership

Direct leadership has the most direct effect on employees (Hogan, Curphy, & Hogan, 1994).

Theoretical Approach Social Information Processing Theory (Salancik

& Pfefer, 1978): Environment on behavior

Group Effect(Schulte, Ostroff, & Kinicky, 2006) : Group members on attributes & perception

Interactionalism (Mischel’s, 1977)

Hierarchical Organizational

Culture

Direct Transformational Leadership

Direct Transactional Leadership

Job Satisfaction

Work Productivity

Job Performance

Level 2 Level 1

H1

H4: Mediation Effects

H3

H2

Method Participants

256 participants, of 41 teams

(male:46%; female:54%) Malaysia

Instruments

Organizational Culture (OCAI, Cameron & Quinn, 1999); Transformational and Transactional Leadership (MLQ, Bass & Avolio, 1990); Job Performance (Hochwarter et al, 2006); Work Productivity (HPQ, (Kessler et al., 2003), Job Satisfaction (COPSOQ, 2003)

Procedure

Analyses

Rwg, ICC, HLM, Monte Carlo test

Table 1 Means, standard deviations, reliability, and Pearson bivariate correlationsVariables Mean S.D. α No. Items 1 2 3 4 5 61. Hierarchy Culture 26.31 5.18 0.66 6 12. Transformational Leadership 35.49 4.23 0.95 12 -0.18** 13. Transactional Leadership 14.56 1.93 0.87 5 -0.2** .86** 14. Job Performance 22.38 3.15 0.86 6 -0.18** .31** .30** 15. Productivity 21.99 3.64 0.78 4 -0.15* .32** .29** .44** 16. Job Satisfaction 15.20 5.04 0.77 4 -0.19** .45** .39** .28** .31** 1Note. * p < .05, ** p < .01, *** p < 0.001. N=256, team = 41

Hierarchical Organizational

Culture

Direct Transformational Leadership

Direct Transactional Leadership

Job Satisfaction

Work Productivity

Job Performance

Level 2 Level 1

β=-.29

β=-.13***

β=.11***

β=.14***

β=.09***

β=.25***β=.30***

β=.19***

Hierarchical Organizational

Culture

Job Satisfaction

Work Productivity

Job Performance

Level 2 Level 1

β=-.14*

β=-.19*

β=-.07

Hierarchical Organizational

CultureDirect

Transactional Leadership

Direct Transformational

Leadership

Job Performance

Level 2 Level 195% CI, LL= -0.0749, UL= 0.0004

95% CI, LL= -0.0727, UL= -0.0028

β=.11***

β=.25***

Hierarchical Organizational

CultureDirect

Transactional Leadership

Direct Transformational

Leadership

Work Productivity

Level 2 Level 195% CI, LL = -0.091, UL= 0.0000

95% CI, LL= -0.0812, UL= -0.0042

β=.14***

β=.30***

Hierarchical Organizational

CultureDirect

Transactional Leadership

Direct Transformational

Leadership

Job Satisfaction

Level 2 Level 195% CI, LL= -0.9102, UL= 0.0006

95% CI, LL= -0.05, UL= -0.002

β=.09***

β=.19***

Discussion Transformational leadership supported previous

researches

Surprisingly, transactional too

It is plausible to explain that there is no fixed leadership that can shaped and determined the outcomes, it usually comes with a set of prescribed underlying indirect effect, though it is still very much unclear about (Bass, 1995).

Leader-culture fit framework in work outcomes (Nieminen, Biermeier-Hanson, Denison, 2013; Sackmann, 2011)

Hierarchical culture had a negative relationship with all variables

Transformational leadership did not show mediation but transactional did.

Moderator to further test the model

The End