In: European journal of work and organizational psychology: the official journal of The European Association of Work and Organizational Psychology, Band 14, Heft 1, S. 43-58
PurposeThe aim of the study was to examine the relationship between transformational leadership and organizational cultural orientations, as well as the joint effect of transformational leadership and organizational culture on business unit performance.Design/methodology/approachAbout 300 employees of a large financial organization in Greece filled in a number of questionnaires measuring organizational culture orientations and transformational leadership. The measurement of business unit performance was obtained by the organization under study.FindingsA path analysis showed that the achievement and adaptive cultural orientations had a direct effect on performance. Moreover, transformational leadership and humanistic orientation had an indirect positive impact on performance via achievement orientation.Research limitations/implicationsA research limitation is that the causal direction of the relations between the predictors and the criteria has been partially established by controlling for the effect of past performance on the perceptions of organizational culture and leadership.Practical implicationsOn a practical level the findings suggest that constructive and positive social relations at work need to be accompanied by goal setting and task accomplishment if high organizational performance is to be achieved.Originality/valueThe originality of this study concerns the finding that organizational culture mediates the effect of transformational leadership on business unit performance.
A review of the literature revealed four major self-report measures of organizational culture measuring organizational behavioral norms or values. This study set out to compare these different measures by correlational and factor analysis. The results of the correlational analysis showed the convergent validity of the questionnaires in a number of significant correlations among the overlapping subscales intended to measure the same theoretical construct in each of the four questionnaires. Finally, the factor analysis yielded six readily interpretable factors providing an eclectic framework of the organizational culture dimensions which is supported by the relevant literature. Results are discussed in terms of different frameworks and measures of organizational culture.