The Effects of Organizational Culture on Work Outcomes through Leadership Styles. MICHELLE LEESUNWAY 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 2Level 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

Hierarchical Organizational Culture Direct Transformational Leadership Direct Transactional Leadership Job Satisfaction Work Productivity Job Performance Level 2Level 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 Culture Direct Transactional Leadership Direct Transformational Leadership Job Performance Level 2Level 1 95% CI, LL= , UL= % CI, LL= , UL= β=.11*** β=.25***

Hierarchical Organizational Culture Direct Transactional Leadership Direct Transformational Leadership Work Productivity Level 2 Level 1 95% CI, LL = , UL= % CI, LL= , UL= β=.14*** β=.30***

Hierarchical Organizational Culture Direct Transactional Leadership Direct Transformational Leadership Job Satisfaction Level 2 Level 1 95% CI, LL= , UL= % CI, LL= -0.05, UL= 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