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 LeaderMember 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)
Level 2
Level 1
H3
H1
Hierarchical
Organizational
Culture
H2
Job
Performance
Direct
Transformational
Leadership
Direct
Transactional
Leadership
Work
Productivity
Job
Satisfaction
H4: Mediation Effects
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 correlations
Variables
Mean
S.D.
α
No. Items
1
1. Hierarchy Culture
26.31
5.18
0.66
6
1
2. Transformational Leadership
35.49
4.23
0.95
12
-0.18**
3. Transactional Leadership
14.56
1.93
0.87
5
-0.2**
4. Job Performance
22.38
3.15
0.86
6
-0.18**
5. Productivity
21.99
3.64
0.78
4
-0.15*
6. Job Satisfaction
15.20
5.04
0.77
4
-0.19**
Note. * p < .05, ** p < .01, *** p < 0.001. N=256, team = 41
2
3
4
5
6
1
.86**
.31**
.32**
.45**
1
.30**
.29**
.39**
1
.44**
.28**
1
.31**
1
Level 2
Level 1
β=-.29
Hierarchical
Organizational
Culture
β=-.13***
Direct
Transformational
Leadership
β=.11***
Job
Performance
β=.14***
β=.25***
Direct
Transactional
Leadership
β=.30***
Work
Productivity
β=.09***
β=.19***
Job
Satisfaction
Level 1
Level 2
β=-.14*
Hierarchical
Organizational
Culture
β=-.19*
β=-.07
Job
Performance
Work
Productivity
Job
Satisfaction
Level 2
Hierarchical
Organizational
Culture
95% CI, LL= -0.0749, UL= 0.0004
Direct
Transformational
Leadership
Level 1
β=.11***
Job
Performance
Direct
Transactional
Leadership
β=.25***
95% CI, LL= -0.0727, UL= -0.0028
Level 2
Hierarchical
Organizational
Culture
95% CI, LL = -0.091, UL= 0.0000
Direct
Transformational
Leadership
Level 1
β=.14***
Work
Productivity
Direct
Transactional
Leadership
β=.30***
95% CI, LL= -0.0812, UL= -0.0042
Level 2
Hierarchical
Organizational
Culture
95% CI, LL= -0.9102, UL= 0.0006
Direct
Transformational
Leadership
Level 1
β=.09***
Job
Satisfaction
Direct
Transactional
Leadership
β=.19***
95% CI, LL= -0.05, UL= -0.002
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
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