Effect of Orgranisational Culture and Leadeership Style on Job Satisfaction

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The effect of organisational culture and leadership style on job satisfaction and organisational commitment A cross-national comparison
Peter Lok
Australian Graduate School of Management, UNSW, New South Wales, Australia

The effect of organisational culture 321
Received April 2003 Revised September 2003 Accepted September 2003

John Crawford
School of Management, University of Technology, Sydney, Australia Keywords National cultures, Leadership, Organizational culture, Job satisfaction, Job commitment Abstract This study examined the effects of organisational culture and leadership styles on job satisfaction and organisational commitment in samples of Hong Kong and Australian managers. Statistically significant differences between the two samples were found for measures of innovative and supportive organizational cultures, job satisfaction and organizational commitment, with the Australian sample having higher mean scores on all these variables. However, differences between the two samples for job satisfaction and commitment were removed after statistically controlling for organizational culture, leadership and respondents’ demographic characteristics. For the combined samples, innovative and supportive cultures, and a consideration leadership style, had positive effects on both job satisfaction and commitment, with the effects of an innovative culture on satisfaction and commitment, and the effect of a consideration leadership style on commitment, being stronger in the Australian sample. Also, an “initiating Structure” leadership style had a negative effect on job satisfaction for the combined sample. Participants’ level of education was found to have a slight negative effect on satisfaction, and a slight positive effect on commitment. National culture was found to moderate the effect of respondents’ age on satisfaction, with the effect being more positive amongst Hong Kong managers.

Introduction Organisational commitment and job satisfaction have received significant attention in studies of the work place. This is due to the general recognition that these variables can be the major determinants of organisational performance (Angle, 1981; Riketta, 2002) and effectiveness (Laschinger, 2001; Miller, 1978). Some studies have reported strong correlations of organisational commitment and job satisfaction with turnover (Benkhoff, 1997). When employees are dissatisfied at work, they are less committed and will look for other opportunities to quit. If opportunities are unavailable, they may emotionally or mentally “withdraw” from the organisation. Thus, organisational commitment

Journal of Management Development Vol. 23 No. 4, 2004 pp. 321-338 q Emerald Group Publishing Limited 0262-1711 DOI 10.1108/02621710410529785

JMD 23,4

322

and job satisfaction are important attitudes in assessing employees’ intention to quit and the overall contribution of the employee to the organisation. Numerous antecedents of job satisfaction and organisational commitment have been suggested in the earlier studies (Chen and Francesco, 2000; Mathieu and Zajac, 1990; Williams and Hazer, 1986). For example, leadership (Williams and Hazer, 1986) and organisational culture (Trice and Beyer, 1993) were shown to have significant impact on both job satisfaction and organisational commitment (Lok and Crawford, 1999, 2001). However, the influence of national culture on leadership styles, organisational culture and their subsequent effects on employee’s job satisfaction and commitment were not explored. Earlier studies have shown that national cultures can affect managerial styles (Westwood and Posner, 1997) and employee behaviour (Chen and Francesco, 2000; Miroshnik, 2002). The intention of this study is to examine the...
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