The Link between the Organizational Culture of an Organization and its Overall Performance

1 An Examination of the Link between the Organizational Culture of an Organization and its Overall Performance Summary of Articles Title: An Examination of the Link between the Organizational Culture of an Organization and its Overall Performance Problem Statement: The link between organizational culture and performance has been a subject of major research focus. Most previous studies undertaken have been aimed at investigating how organizations align their corporate culture and strategy to attain the set goals.

The main focus has been on how to derive a culture of influencing employees to attain the set organizational goals without considering the leader's role in creating this culture by putting into place the required structures and support for employees to embrace this culture. Nonetheless, there is a gap in research, in terms of limited studies to investigate how leadership behaviors and structures in the workplace influence employee execution of their roles, its influence on organizational culture, and overall outcomes in terms of performance.

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The current research seeks to address this gap by investigating how organizational values and employees contribute to organizational performance and how the leadership support through the provision of the needed structures can contribute to employee job satisfaction and contribute to enhanced performance.

Research Questions: RQ1: What is the correlation between organizational values and employees’ motivation and performance?

RQ2: How do leaders reinforce organizational values and create the needed structures for employees ‘job satisfaction to contribute to better organizational performance?

Purpose Statement: The purpose of the research is to investigate how organizational values and employees’ behaviors affect performance and the role of leaders in providing the needed support and structures to promote employees’ satisfaction leading to increased motivation among personnel, which contributes to better performance.

Phenomena: The current study is in the context of the hospitality industry. The challenge is that a hotel is struggling with a high rate of turnover in its personnel as this is negatively impacting their performance and sustainability. The research aims to investigate how the leadership can enforce positive norms and values that will, in turn, contribute to a sustainable culture where the leadership motivates employees to undertake their roles for enhanced organizational performance. The goal is also to assess the outcome of implementing the hotel where employees

3 have a high sense of job satisfaction because of a positive organizational culture that places emphasis on employee motivation.

Empirical Studies Empirical Study 1 The purpose of the study by Ariffin et al. (2015) was to empirically examine ethical leadership in the context of the hotel industry in Malaysia to establish how leaders becoming a role model boosts employees' organizational outcomes such as commitment, job satisfaction, and adoption of citizenship behavior across different settings. To achieve this purpose, the research adopted a quantitative approach and included 183 samples drawn from middle-level managers and supervisors serving in the hotel industry in Malaysia to establish the correlation between job satisfaction and employee commitment to promoting positive organizational citizenship behavior. The data collection instrument used was a questionnaire developed to include various questions to measure ethical leadership an effective commitment, job satisfaction, and turnover intention based on an established scale.

Data analysis was performed using exploratory factor analysis and confirmatory factor analysis whereas structural equation modeling was applied with maximum likelihood estimation for hypothesis testing (Ariffin et al., 2015). The results of the study show that both job satisfaction and organizational commitment are positively and significantly linked to employee organizational citizenship behavior. In the context of ethical leadership and how leaders can build a culture that contributes to performance, the study provides useful insights into addressing the gap in the current research in terms of indicating how promoting job satisfaction to enhance employee satisfaction so that they can be committed to working towards attaining the set organizational goals and demonstrating citizenship behavior for the benefit of the organization.

4 Empirical Study 2 The research by Borkowski et al. (2015) was conducted to evaluate brand managers' leadership styles and assess the potential of employees in a hotel setting and base the results on Toyota's principles of management, particularly the ninth principle of Toyota management and the BOST survey. The purpose of the specific study was to evaluate employees' leadership style and leadership quality to examine the extent to which the hotel cares about its own human resource.

The methodology entailed the BOST approach, based on Toyota and its management and production system, which uses the Toyotarity process approach as applied by the motor company. The BOST approach was adopted as the research tool using a questionnaire technique based to examine the extent to which the application of the Toyota management approach would influence the organization. The BOST study sample was comprised of 37 employees at the hotel drawn from across different departments. The representative sample was selected randomly and the percentage of employees was 80% (Borkowski et al., 2015). Correlation analysis was applied to determine the impact of the respondent features based on personal characteristics of gender, age, education, age, gender, mobility, and mode of deployment. The results indicated that the PA factor is judged better by women compared to men, and also differs significantly based on experience. The analysis showed that most hotel workers rated themselves as having a high growth potential but having low impacts on their own work. The study is relevant to the current research on the link between organizational culture and performance in that it identifies employees as the most important resource in the organization, thus leadership should be focused on helping personnel discover their potential for organizational stability.

Empirical Study 3

5 Bridoux and Stoelhorst (2016) examined the crucial role that firms play in furthering the social welfare of stakeholders to facilitate joint-value creation that includes public good dilemma arising from team production level. The purpose of the study is to build on relational models theory to examine how individual stakeholders’ contribution to foster joint value creation is influenced by stakeholder mental representation of the relationships with other stakeholders to facilitate value creation. The methodology adopted in the research is a systematic review of the literature and it uses a qualitative research design. The article builds on the relational model theory to build on a stakeholder theory of individual stakeholder contribution to create value for the organization. The research establishes that the mental perceptions that stakeholders achieve about the firm are influenced by the perceived behavior of the firm. A relational approach to stakeholder management plays a significant role in promoting the social welfare of employees.

The relational model theory supports the approach of creating joint value through a transactional approach. The article contributes to the current study on how organizational culture influences performance by addressing how firms can establish transactional relationships with stakeholders to create joint value for the business. The basis of deriving value for organizations to realize performance is forging positive relationships among stakeholders and recognizing the value they derive to the firm, thus forging relationships that create significant value for all.

Empirical Study 4 In this article, Estiri et al. (2018) focused on addressing the relationship between leaders and their follows and their contribution to effective leadership in the hospitality industry. The interaction between leaders and followers is fundamental in promoting functional behaviors, which entails organizational citizenship behavior. The level of organizational citizenship behavior and leader and follower exchange is considered to vary on the basis of gender. The

6 purpose of the study was to examine the relationship between organizational citizenship behavior and leader-member exchange with gender as a moderator variable in the context of the hospitality industry.

The research methodology was quantitative and the participants in the study included employees of five Iranian Public hotels. The representative sample was selected from employees drawn from separate units and sections in coordination with the management. Questionnaires were used to collect data and 405 filled questionnaires were received from 1005 participants. The overall response rate for the questionnaires was approximated at 38% as only 380 questionnaires were established as valid for analysis. The measurement for the leader-member exchange was determined using the Liden and Maslyn scale which offered a multidimensional approach whereas organizational citizenship behavior was measured using focus groups, with a Likert scale used to measure the organizational citizenship behavior elements.

The results of the study show that leader-member exchange and gender have a positive and significant effect on organizational citizenship behavior. In effect, organizational citizenship behavior and leader-member exchange have been established as vital elements in shaping how a leader relates with members. The relationship between leaders and members can, therefore, instigate subordinates to behave in a more satisfactory manner. The study contributes to the current research in demonstrating how leader development of desirable leadership with members can contribute to employee motivation to behave in a desired manner beyond their defined roles and how this contributes to organizational development.

Empirical Study 5 He et al. (2019) examined the interactive effects of human resources and responsible leadership in facilitating enhanced employee well-being in the hospitality industry. The main

7 purpose of this research was to explore the effects of HRM a responsible leadership on millennial employee management in the hospitality industry by linking HRM and responsible leadership, task performance and explore why the hospitality industry has a responsibility to ensure the wellbeing of millennial employees. The research also sought to establish the interactive impacts of HRM and responsible leadership on the well-being of employees and the extent to which they execute their roles.

The research methodology was a quantitative approach. The research hypotheses were tested using multiple linear regression analysis based on a survey of 234 millennials employee in the Chinese hospitality industry. A convenient sampling approach was applied to select a representative sample. Data was collected using a questionnaire, which was sent out to 300 millennial employees. WeChat, email, and QQ were used in collecting data and the total response of 243 questionnaires was retained for analysis (He et al., 2019). The measures used for data were a five-point Likert scale to establish employee well-being and its impact on task performance. The measurement for HRM was based on a scale on how the company contributes to opportunities for upward mobility and employee wellbeing was determined based on life wellbeing, work well-being, and psychological well-being.

The study results indicated that human resource management and responsible leadership have a positive influence on employee well-being and, consequently, task performance. The research is relevant to the current study by showing how responsible leadership can contribute to task performance. Organizational performance can be effectively attained by creating a culture whereby employee well-being is taken care of to facilitate effective human resource utilization to derive sustainable performance in the hotel industry.

Empirical Study 6

8 Meuser et al. (2016) examined the status of leadership theory integration in organizations by reviewing published literature to establish the approaches mostly adopted across organizations. The adopted methodology was a systematic review of literature, which included reviewing 14 years of published research in 10 top journals. In total, 49 leadership approaches were drawn from 293 articles, and three additional approaches were used in the investigation. An inductive research design was applied to focus on the articles that reflected a relatively extensive integration of theory. Graphic network analysis was used as a guide to drawing a conclusion about the extent of leadership theory integration as manifested in the articles.

The results of the study established six leadership approaches as the most dominant theory, and these included transformational leadership, charismatic leadership, diversity and leadership, participative leadership, and trait approach leadership. As manifested in the inductive approach of the analysis, the two key findings deduced from the research include 49 focal leadership theories that are categorized as middle-range theories ready for integration to address organizational challenges. The graphical analyses revealed that there is a potential connection between neighboring middle-range leadership theories and provide a solid basis upon which theoretical integration is made.

The article contributes to addressing the gap in the current research by providing a theoretical basis for use when integrating leadership theories in organizations to works towards sustainability through support for a team effort, adoption of ethical leadership, emotional development, and identification theories of leadership.

Empirical Study 7 Wang et al. (2016) theorized and tested an integral model for establishing the connection between cognitive diversity and team creativity. The model entails developing team intrinsic

9 motivation as a mediator for achieving transformational leadership as a moderator. The purpose of the study was to propose and test an integrated model to extend knowledge with regard to how, when, and why cognitive diversity impacts team diversity.

Data was collected from 62 research and development teams drawn from 14 organizations in South Korea. All the research and development teams in these organizations were engaged in the study. Data was collected through a pair-survey, comprised of 352 surveys from 68 teams and this represented a 73.6% response (Wang et al., 2016). The measures applied for data analysis included a four-item scale to assess cognitive diversity, a multifactor leadership questionnaire to measure transformational leaders, team creativity, control variables, and aggregation tests.

The results of the study established that transformational leadership serves an integral role in moderating the direct effect of cognitive diversity on team intrinsic motivation and its indirect effect on team creativity through team intrinsic motivation. The findings of the research were that the effects of cognitive diversity on intrinsic motivation were positive when the transformational leadership approach was adopted, but lacking when transformational leadership was not in use. The conclusion drawn from the study is that the integrated model for leadership across organizations should adopt cognitive diversity and team creativity to achieve intrinsic motivation as a mediator combined with transformational leadership to attain organizational success and sustainability.

The study addresses the gap being addressed in the current research in that it provides practical implications for organizations and team leaders to work towards building teams with a diverse educational or functional background to effectively integrate creativity into the team by

10 leveraging the contribution of diverse team members to bring a rich blend of information and expertise to foster organizational growth and enhanced performance.

Empirical Study 8 Pakdil and Leonard (2015) conducted research to establish the impact of organizational culture on implementing and sustaining lean processes. The purpose of the study was to establish whether organizational variations correlate with the success and effectiveness of lean processes at the organization. The research also explores the specific organizational structures needs for effective lean implementation and continuation. The research design/method entailed an examination of literature in the field of lean production and lean management. The literature used integrate organization culture and lean processes to facilitate the integration of these practices into an organizational culture to attain sustainability. The research applied the Competing Value Framework taxonomy to analyze the intersection of these aspects in the research literature featured. The results of the study show that lean processes in relation to organizational culture facilitate the achievement of propositions that incorporate various cultural dimensions and which are based on a model of interaction to realize sustainability. The research also identified the quadrants of the Competing Values Framework for use in future research to promote cultural integration in organizations as organizations strive to build a positive culture that is focused on attaining sustainability.

This article relates to addressing the gap in the current study in that it provides a basis for determining organizational culture across firms that have implemented lean processes. The implementation of the approach is integrated with organizational culture and management to build a thriving organization whereby its culture is based on sustaining the lean effort. The

11 values and norms that organizations adopt should be aligned with organizational norms and values to foster performance and sustainability.

Empirical Study 9 Quintana et al. (2015) examined the impacts of transformational, transactional, and nontransactional leadership on personnel in the hotel industry and how this contributes to better outcomes and satisfaction with management. The purpose of the investigation is to contribute to literature in business from the perspective of transformational, transactional, and non-leadership and the respective elements of each style of leadership. The study also sought to establish the impacts of the three styles of leadership on employee effort, effectiveness in roles, and job satisfaction. The goal is to assess the moderating impact of different types of hotel ownership and how the style of leadership impacts on outcomes of employee activities.

The methodology included a paper-based survey applied to collect data from employees drawn from international hotels for tourists in the Canary Islands. The survey was distributed to a sample of 84 employees from eleven four-star hotels in Spain provided (Quintana et al., 2015).

Data was collected through the use of questionnaires to the participants who took part in the survey. The measurement used in the survey is a multi-factor leadership questionnaire including a set of questions regarding the three leadership styles; transformational, transactional, and nontransactional leadership.

The research findings show that "idealized attributes" of transformational leadership and the contingent rewards derived from transactional leadership are the most integral factor that yields extra effort among personnel, enhanced efficiency, and job satisfaction. The article provides useful insights into addressing the gap in the current investigation in addressing the link between leadership style and effective employee outcomes. The type of relationships that

12 employees develop with each other and with the management plays a significant role in influencing the level of job satisfaction, which in turn impacts organizational performance and sustainability.

Empirical Study 10 Tao et al. (2017) examined the extent to the impact of leadership style on the relationship between new employee intention to leave (NEIL) their job and the consequent work performance for the employee. The research focused on NEIL among employees who had commenced their role within a large hospitality firm in China to test the impact the outcome of leadership style on their performance. The purpose of the research was to determine how effective leadership can be implemented in organizations to motivate new employees to serve the organization and achieve a rich sense of job satisfaction so that their intention to leave is addressed.

The methodology applied was comparing the moderating impact of abusive and ethical leadership style on the link between NEIL and the consequent work performance. The data for the survey was collected from a sample of 355 leader-employee dyads, whereby 61 of these leaders included those in supervisor positions (Tao et al., 2017).

Results from the findings of the investigation showed that NEIL had a negative impact on the employees' consequent performance in their role. Further, an abusive leadership style enhanced the negative outcome. Conversely, an ethical leadership style was helpful in neutralizing this effect. The research is relevant in addressing the gap in the current investigation in that it offers useful insights into how NEIL negatively impacts employee performance, and how an effective leadership approach built on ethics can have a mediating impact in alleviating this negative impact. Therefore, Leaders should strive to enforce ethical leadership to alleviate the likelihood of employees leaving the organization. Creating a culture etched on ethics is

13 important in promoting a positive organizational culture whereby employees are well motivated and work towards the achievement of the set goals.

Synthesis The research is an examination of the Link between the Organizational Culture of an Organization and its Overall Performance. The specific gap addressed in the research is how leadership style and behavior can help promote a thriving culture where organizational sustainability can be attained. The identified challenge is that leadership, especially in the hospitality industry, has failed to adopt effective behavior to motivate employees and put into place the required systems in place to foster employee motivation. In their assessment on why leaders should adopt ethical leadership to motivate employees, Ariffin et al. (2015) offer useful insights into addressing the gap in the current research in terms of indicating how promoting job satisfaction to enhance employee satisfaction so that they can be committed to working towards attaining the set organizational goals and demonstrating citizenship behavior for the benefit of the organization.

Borkowski et al., (2015) recognize employees as a critical resource for the organization, thus the need to adopt a favorable leadership style as guided by the principles of management by Toyota Motor company to attain efficiency. Another way to promote a positive culture that enhances employee motivation and achieve a high sense of job satisfaction among personnel (Estiri et al. 2018; Meuser et al., 2016). Responsible leadership is about ensuring the wellbeing of the employee and this is an aspect that has been addressed by He et al. (2019), who contend that organizational performance can be effectively attained through creating a culture whereby employee wellbeing is taken care of to facilitate effective human resource utilization to derive sustainable performance in the hotel industry. Equally, Meuser et al. (2016) affirm the essence of

14 integrating leadership theories in organizations to works towards sustainability through support for a team effort, adoption of ethical leadership, emotional development, and identification theories of leadership.

Organizations working towards a culture of performance and sustainability is based on the values and norms that organizations adopt should be aligned with organizational norms and values to foster performance and sustainability (Pakdil & Leonard, 2015). Indeed, the leaders' behavior will be taken on by the employees and then affect the organization's overall performance. As noted by Quintana et al. (2015), both effective and ineffective leadership can mutually influence organizational culture. Therefore, leaders need to deliberate in building a favorable organizational culture where employees can thrive and achieve great job satisfaction.

Failure to build a strong culture could be detrimental to employees, and the bottom-line could be increased turnover as employees will not satisfied with the work environment. The position is further affirmed by Wang et al. (2016), who posit that the personal characteristics that the leader portrays determine their leadership approach, ability to influence employees, and the extent to which they lead the team to achieve organizational goals.

Conclusion The paper has presented a summary of ten literature review articles that have been adopted as the basis upon which the study is based. The summary included the purpose of the study, methodology, results, and how the articles addressed the gap in research being investigated in the current study on the link between organizational culture and performance. The gap in the literature that has been addressed is the scarcity of research to investigate how leadership behaviors and structures in the workplace influence employee execution of their roles, its influence on organizational culture, and overall outcomes in terms of performance. Most of

15 the featured articles provide a theoretical basis to show senior leadership's role in putting into place relevant structures aimed at enhancing employee motivation to derive job satisfaction. The recurrent theme in these articles is the role of leadership in providing the right guidance, motivation, and structures to influence employee motivation in executing their roles. Visionary and transformational leadership has been established as having a positive impact on driving intrinsic motivation among employees. When employees' well-being is taken into account, the outcome is a high level of motivation to execute assigned roles and enhanced job satisfaction.

Appropriate leadership has been considered as a benchmark upon which organizations can strive to build a favorable culture that strives to promote employee job satisfaction by providing all the required structures needed to achieve team success.

References Ariffin, R. N., Ghorban, Z. S., Tahernejad, A., & Babaei, H. (2015). Ethical leadership and Employee-organizational outcomes in the hotel industry. South African Journal of Business Management, 46(2), 89-98.

Borkowski, S., Knop, K., & Adamus, K. (2015). A structure of leadership styles based on the Toyatrity model in the chosen hotel. Journal of Competitiveness, 7(1).

Bridoux, F., & Stoelhorst, J. W. (2016). Stakeholder relationships and social welfare: A behavioral theory of contributions to joint value creation. Academy of Management Review, 41(2), 229-251.

Estiri, M., Amiri, N. S., Khajeheian, D., & Rayej, H. (2018). Leader-member exchange and organizational citizenship behavior in the hospitality industry: a study on the effect of gender. Eurasian Business Review, 8(3), 267-284.

16 He, J., Morrison, A. M., & Zhang, H. (2019). Improving Millennial Employee Well-Being and Task Performance in the Hospitality Industry: The Interactive Effects of HRM and Responsible Leadership. Sustainability, 11(16), 1-19.

Meuser, J. D., Gardner, W. L., Dinh, J. E., Hu, J., Liden, R. C., & Lord, R. G. (2016). A network analysis of leadership theory: The infancy of integration. Journal of Management, 42(5), 1374-1403.

Pakdil, F., & Leonard, K. M. (2015). The effect of organizational culture on implementing and sustaining lean processes. Journal of Manufacturing Technology Management, 26(5), 725-743.

Quintana, T. A., Park, S., & Cabrera, Y. A. (2015). Assessing the effects of leadership styles on employees’ outcomes in international luxury hotels. Journal of Business Ethics, 129(2), 469-489.

Tao, J., Jiang, W., Liu, C., Yang, X., Zhang, W., & Zhang, H. (2017). New employee intention to leave and consequent work performance: Does leadership style matter?. Social Behavior and Personality: An International Journal, 45(10), 1707-1721.

Wang, X. H. F., Kim, T. Y., & Lee, D. R. (2016). Cognitive diversity and team creativity: Effects of team intrinsic motivation and transformational leadership. Journal of Business Research, 69(9), 3231-3239.

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