PROGRAM

Doctor of Business Administration (DBA)

SEMESTER / YEAR

September 2021

COURSE CODE

BPOM7103

COURSE TITLE

Advanced Organization and Management

MATRICULATION NO: <06512722>

IDENTITY CARD NO.: <CGSYE00000129>

TELEPHONE NO.: < +967712223308>

E-MAIL: < [email protected] >

LEARNING CENTRE: < Online Learning International>

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 Table of Contents
1. Abstract: .................................................................................................................................. 3

2. Introduction: ............................................................................................................................ 3

3. Literature Review: .................................................................................................................. 5

4. Selection of High-Performing and Low-Performing Organizations ..................................... 21

5. Analysis for the Selected-Two Organizations ...................................................................... 25

6. Conclusion and Recommendations: ...................................................................................... 29

List of Tables:
Table 1: Organizational theories ………………………………………………….…….…………..10

Table 2: Strong and weak organizational cultures …………………………….…………..………..22

Table 3: Characteristics of the organizational cultures …………………………….……………….26

Table 4: Organizational cultural similarities and differences ………………………..….………….27

Table 5: Role of Leadership similarities and differences ………………………….……………….28

List of Figures:
Figure 1: Characteristics of an organization’s culture………………………………………………..6

Figure 2: Organization’s culture layers ………………………………………………………………6

Figure 3: Various roles of organizational culture………………………………………..…..……….7

Figure 4: Organizational culture model by Schein and Hatch…………………………….………….8

Figure 5: Organizational culture models by Homburg and Pflesser ….……………...……..………..9

Figure 6: Organizational culture model by Hatch and Cunliffe ………………………..……………9

Figure 7: Culture Model presented by Cameron and Quinn………………………………..……….10

Figure 8: Organizational theory and typologies or classification……………………………..…….11

Figure 9: Conceptual Framework (Researcher design)…………………….……………..…..……..21

Figure 10: Organizational culture measurements…………………….…………………….....……..23

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1. Abstract:

There has been very little empirical research on the direct and indirect links between leadership style,
organizational culture, and organizational performance to date. However, the objectives of this study is to
conduct a literature review on organizational culture based on critical review of (7) journal articles
(Attachment: A), hence identify and discuss the concepts and theories of organizational culture, the impacts
of organizational culture on organizational performance, and the role of leadership in developing and
sustaining high performing or excellent culture. And to analyses the role of leadership in developing and
maintaining effective cultures in a successful organization. Also, to provide recommendations on approaches
in developing and managing effective cultures for a successful organization.

The description of the research aims to deeply explore the impact of role of leadership and organizational
culture on organizational performance focusing on job satisfaction and employee performance. This research
methodology was to carefully select and analysis the performance of the selected-two organizations and test
the characteristics of the culture then classifying one organization as high-performing and one as low-
performing based on clear criteria and justifications.

The findings of this study found that the role of leadership and organizational culture have a positive and
significant influence on organizational performance related to key factors which were the job satisfaction
employee performance. This research has some recommendations on how the organizational cultures of the
two selected organizations could be further justified as per Peters and Waterman’s description of the
Excellent Cultures which are the shared core values and presupposition that are acted on.

Keywords: Leadership Roles, Organizational Culture, Organizational Performance, Job Satisfaction,

Employees’ Performance.

2. Introduction:

Leadership is the process of one person motivating or influencing others to achieve organizational
objectives. It is the practice of boosting and promoting employees' self-esteem in order to accomplish
organizational tasks and objectives. Effective leaders want to achieve difficult goals and succeed at the best
level possible. Leaders have the desire to always be one step ahead. Non-leaders are less energetic and have
a shorter life span than leaders. They are physically and mentally capable of leading others. Non-leaders
lack the constancy and perseverance of leaders. Leaders that are effective take initiative. They are capable
of making decisions and taking corrective steps without the assistance of others (Javaid, 2012).

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Effective leadership will be able to influence a person's sense of job satisfaction. Leadership affects job
happiness and performance in a favorable and meaningful way as per research conducted by Runi, Ishak., et
al. (2017).

The essence of leadership is persuading and leading others to work toward a common goal, which is the
organization's success. As a result, leadership is critical in resolving conflicts, especially when success
appears to be in jeopardy (Ho et al., 2015).

A leader's leadership style is a pattern of activities that is both visible and unseen to subordinates. As a result,
the best leadership style is one that can enhance productivity, work satisfaction, growth, and adaptability to
a variety of scenarios (Rivai, 2014: 92).

When it comes to administration, leadership, circumstance, and employee performance are all loosely related
and left to their own devices. Depending on the level of direction, decision-making, and empowerment,
several leadership styles were used (Iqbal et al., 2015). This has caused poor employee performance due to
the lack of both direction and strategic leadership, in managing routine work.

Efforts to improve employee performance, as well as leadership, must be considered. A successful leader
must be able to increase his employees' performance, as well as influence and direct the activities of his
group members in order to reach common objectives. Good leadership is characterized by the ability to
motivate subordinates. Someone who can develop strategy, make plans, and motivate subordinates to
produce effective and efficient performance is referred to as a leader (Uha, 2013).

Organizational culture is a set of values and behavioral patterns gained and developed by the organization,
as well as the founder's underlying idea, that is codified into a rule that is used as a guide in thinking and
behaving in order to achieve organizational goals. Cultures were developed to be powerful, capable of
propelling the organization forward (Robbins, 2016).

To establish a value-based organization, management must pay attention to its organizational culture, which
is a set of imposed values, beliefs, and attitudes among members of the firm. Organizational culture refers to
the values that guide human resources in carrying out their responsibilities and behaving in the workplace
(Hakim, 2015).

In addition to leadership, an organization's culture can have an impact on its ability to achieve its objectives.
Organizational culture is a pattern or system of values, practices, and culture that is embedded in a group of
people's personalities and serves as a differentiator from other organizations, (Busro, 2018).

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 Performance is a result or overall level of success of a person in carrying out a task over a period of time
when compared to other options, such as work standards, targets, or criteria that have been defined in advance
and agreed upon together (Rivai, 2005).

Job satisfaction, which is defined as an employee's enjoyment in carrying out the tasks allocated to him, has
an impact on employee performance in addition to organizational culture. Job satisfaction is a positive feeling
about one's job that is derived from analyzing its aspects. Job satisfaction will increase in the organization as
a result of attention to leadership and organizational culture, which will boost the performance of each
individual employee (Sudirman, 2017).

Employee satisfaction and performance are very influential elements, according to various prior research,
including Afriadi (2018), Yusniawan and Permana (2018), Damayanti et al. (2018), Muhridin et al. (2019),
Muamar (2017), Sudirman et al. (2017). Meanwhile, Sediarsih (2017), Abidin (2018), and Ekawati,
Semmaila, B., and Suriyanti Mangkona (2019) discovered that job satisfaction had no significant impact on
civil servant performance.

3. Literature Review:

3.1. Organizational Culture:

3.1.1 Definition of Organizational Culture

A basic definition of organisational culture is necessary to provide a point of departure in the quest for an
understanding of the phenomenon. Martins and Martins (2003, p 380) state the general definition of
organisational culture as “a system of shared meaning held by members, distinguishing the organisation from
other organisations”.

Organizational culture has long been a significant element in organizational theories (Chu, Wang, & Lai,
2019). According to (Harwiki, 2016) organization's culture can be defined as a set of values, beliefs,
assumptions, or long-standing standards that are agreed upon and followed by its members as a code of
behavior and a means of resolving its problems..

Robbins, (2016) explains that the organizational culture is a set of values that individuals of the organization
hold and practice, and it can help the company stand out from the competition.

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3.1.2 Characteristics of Organizational Culture

According to (Robbins, 2016) there are seven primary characteristics seem to capture the essence of an
organization’s culture as shown in below graph (Figure 1):

Figure 1: Characteristics of an organization’s culture (Robbins, 2016)

Identifying the aspects that go into a great corporate culture is the best way to gain a handle on it. The Harvard
Business Review identifies six components which are: Vision, Values, Practices, People, Narrative, and
Place, (Harvard Business, 2016). The Barrett Model of culture consists of seven characteristics. Created by
Richard Barrett, who drew inspiration from Abraham Maslow’s Hierarchy of Needs, the model looks at the
seven areas that make up human motivations which are (Viability, Relationships, Performance, Evolution,
Alignment, Collaboration, and Contribution)

3.1.3 Levels of Organizational Culture

The same thing is stated by (Joo and Ready, 2012)

that the organizational culture consists of three layers,

as in below graph (Figure 2):

Figure 2: Organization’s culture

layers (Joo and Ready, 2012)
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3.1.4 Roles and Functions of Organizational Culture

Organizational behavior is also determined by organizational culture, which identifies primary goals, work
procedures, how members should interact and address one another, and how personal relationships should
be conducted (Harrison, 1993).

Brown (1998, p 89- 91) states the following functions of organizational culture:

• Conflict reduction.
• Coordination and control.
• Reduction of uncertainty.
• Motivation.
• Competitive advantage.

Organizational culture is crucial; some companies that have created a strong corporate culture have enhanced
their goodwill and gained a competitive advantage. The various roles of organizational culture are given
below as in Figure 3, (Sharma, 2016):

Figure 3: Various roles of organizational culture (Sharma, 2016)

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3.1.5 Organizational Culture Theories and Models:

The concept of organizational culture is based on culture theory. Among the most popular books in the
field of cultural studies are Alvesson (2002), Chhokar, Brodbeck, and House (2007), Denison, Haaland,
and Goelzer (2004), Hatch (1993), Hofstede (1980), Hofstede et al. (1990), and House, Hanges, Javidan,
Dorfman, and Gupta (2007). (2004). Their seminal work looks at a variety of areas of society and
organizational culture, or focuses on organizational leadership techniques, and applies a unique set of team
or group leadership dimensions that are extremely relevant to corporate cultures.

In general, there are three types of approaches to organizational culture: (a) dimensions approaches (e.g.,
Chatterjee, Lubatkin, Schweiger, & Weber, 1992; Hofstede et al., 1990; Sagiv & Schwartz, 2007), (b)
interrelated structure approaches (e.g., Allaire & Firsirotu, 1984; Hatch, 1993; Homburg & Pflesser, 2000;
Schein, 1985), and (e.g., Cartwright & Cooper, 1993; Handy, 1993).

The dimensions approach places a heavy emphasis on experimentally assessing organizational culture
along (in some cases bipolar) scales that can be linked to other, primarily dependent, variables of interest
(Tsui et al., 2007). Organizational culture is linked to other dimensions or features of organizations, rather
than single variables, in interrelated structural approaches. As a result, they frequently serve as the
theoretical foundation for empirical study designs. This method is usually multidisciplinary, which is how
configuration models are described (Meyer et al, 1993). Typology techniques are based on predetermined
key qualities that divide and cluster organizations into certain groups, but do not always describe how these
traits relate to one another.

Schein's (1985) organizational culture model is not only one of the most often cited, but it also provides a
high level of abstraction and complexity reduction. It is mostly made up of three domains: (a) basic
underlying assumptions, (b) espoused values, and (c) artifacts, as shown in graph below (Figure 4):

Figure 4: Organizational culture model by Schein (1985) and Hatch (1993)

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As can be seen from Figure 5, the sociostructural system, which includes structure, strategies, policies, and
processes, is aligned with the culture system; that is, myths, values, and ideologies should be used to
legitimize it. Allaire and Firsirotu (1984) recognize “individual actors” who are seen as the medium for
organizational output and influence as well as are influenced by the cultural and sociostructurally system.

Figure 5: Organizational culture models by Homburg and Pflesser (2000) and Allaire and Firsirotu (1984)

The Hatch and Cunliffe model also represents these five domains (2006; see Figure 6). There are no
distinct processes defined, and all domains are related to one another. According to Whetten (1989), this
implies that the model is incomplete because the domain connections are vague and imprecise.

Figure 6: Organizational culture model by Hatch and Cunliffe (2006)

The culture model presented by Cameron and Quinn (2011) places organizations in a continuum of four
core values, called Flexibility, Stability, Differentiation, and Integration. “What is notable about these four
core values is that they represent opposite or competing assumptions. Each continuum highlights a core
value that is opposite from the value on the other end of the continuum” (Cameron and Quinn 2011, p. 40).

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The four quadrants that emerged from these analyses [Clan, Adhocracy, Hierarchy, Market] match
precisely the main organizational forms that have developed in organizational science, as shown in graph
below (Figure 7):

Figure 7: Culture Model presented by Cameron and Quinn (2011)

Also, Moldoveanu, (2017) has listed the organizational theories as following:-

1. Classical or Traditional Theory 5. Weber’s Ideal of Bureaucracy

9. Motivation Theory

2. Human Relations or Neo- Classical

6. Modern Theory 10. Decision Theory
Theory

11. Scientific Management

3. Decision-Making Theory 7. Hawthorne Study
Theory

4. Systems Approach 8. Contingency Theory 12. Administrative Theory

Table 1: Organizational theories (Moldoveanu , 2017)

Other research in the field of organizational theory have contributed to the theoretical development of the
idea of organizational culture. These researches employed typologies or classification to describe and
understand the concept of organizational culture, which include the following as in Figure 8:

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 Figure 8: Organizational theory and typologies or classification

3.1.6 The Positive Organizational Culture

Organisational culture can be either weak or strong. Martins and Martins (2003, p 382) highlight that “in a
strong culture, the organisation’s core values are held strongly and shared widely”. This suggests that when
organisational members accept the shared values, they become more committed to them.

A strong organizational culture refers to organizations in which beliefs and values are shared relatively
consistently throughout the organization and have a significant impact on employee behavior; a strong culture
is a powerful lever for steering behavior (Deal & Kennedy, 1982).

Brown (1998, p 226) also believes that strong organisational culture can enable an organisation to achieve
high performance based on the following reasons:

- Facilitates goal alignment.

- Leads to high levels of employee motivation.

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 - Is better able to learn from its past.

In order to keep the organisational culture alive, the organisation has to ensure that its culture is transmitted
to organisational members (Martins & Martins, 2003).

A strong organizational culture is crucial for aligning the organization's current and future directions (Raza,
Anjum, Shamsi & Zia, 2014). Management with a weak or ineffective organizational culture, on the other
hand, has the potential to negatively impact profitability and productivity (Shahzad, Luqman, Khan &
Shabbir, 2012).

Employees and business managers who work in an organization with a strong culture have good professional
skills that help the company function better (Pinho, Rodrigues, & Dibb, 2014). Professional quality includes
(a) mutual respect and dignity among employees and management, (b) a strong dedication to customer
service, and (c) motivation and moral participation in the pursuit of organizational goals (Busse, 2014)

3.1.7 The Importance of Culture

Organizational culture is inextricably linked to the value of work and determines the achievement of
performance objectives, so it has a substantial impact. According to Sopiah and Sangadji (2018: 177),
organizational culture has a significant impact on the organization's success or failure in developing
employee performance.

Culture is what propels a business ahead, according to Fast Company, and organizations with performance-
oriented cultures see more growth, involvement, communication, and willingness to try new things.
Individuals perform at their best when they are engaged to their corporate culture through a sense of
purpose and belonging, according to Deloitte's 2020 Global Human Capital Trends survey. Culture is
significant because

-Reinforces, and sometimes sets.

-Is closely related to employee engagement.
-Can predict whether mergers and acquisition will fail.

3.2. Leadership

In today's business world, where cultures are fast changing as a result of globalization, leadership is critical
in assisting the firm in adapting to this new culture. Because leadership establishes the ground rules for how
employees interact with one another and with management. Its outcomes add value to the organization by

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increasing team members' dedication and devotion to their coworkers, individual teams, and leaders
(Maamari, & Saheb, 2018).

Leadership is the process of one person motivating or influencing others to achieve organizational objectives.
It is the practice of boosting and promoting employees' self-esteem in order to accomplish organizational
tasks and objectives. Effective leaders want to achieve difficult goals and succeed at the best level possible.
Leaders have the desire to always be one step ahead. Leaders are more energetic and fuller of life than non-
leaders. They are physically and mentally capable of leading others (Javaid and Mirza, 2012).

In any organization, the most vital aspect is leadership. Leadership, according to Achmad Sanusi and M.
Sobry Sutikno (2014: 15), is the ability to motivate and inspire others to reach a common goal.

3.2.1 Roles of Leadership:

It is impossible to overstate the importance of leaders in achieving outstanding organizational performance.

Appropriate motivation, an appropriate work environment, adequate compensation, and effective
communication between managers and subordinates all contribute to achieving this goal. Work planning and
organization are also critical. Some academics suggest that the most prevalent difficulties affecting
organizational performance in business and other institutions include poor employee attitudes, inefficiency,
and inefficient leadership in most areas, while others disagree (Haque, Faizan, & Cockrill, 2017).

A leader's job is critical to an organization's survival and growth. In their research on leadership and
organizational performance, Al Khajeh (2018) and Bhargavi and Yaseen (2016) found that the function of
leadership is vital for an organization to achieve a high level of performance.

3.2.2 Leadership Style

These distinct leadership styles can exist and be used by the same leader in different settings, according to
the path-goal theory. Furthermore, according to Thoha (2017: 49), a person's leadership style is a set of
behaviors that he or she uses to try to influence the behavior of others in the way that he or she sees fit. The
leadership style serves as the foundation for determining the type of leadership. Style encompasses
everything from attitude to movement to behavior. Style encompasses a lovely demeanor, nice gestures,
power, and the ability to accomplish good. And, as a result of a combination of ideologies, skills, attributes,
attitudes, and behaviors, leadership style is behavior and strategy, which are often applied by a leader when
he tries to influence the performance of his subordinates.

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It has been shown that different leadership styles have different effects on organizational performance. By
tying job success to valuable rewards and ensuring that people have the resources they need to get the job
done, organizations may achieve their goals more efficiently (Obiwuru, 2011).

Jeremy, Melinde, and Ciller, (2012), said that the style of leadership, consisting of four dimensions of
leadership styles, namely:

- Style Authoritarian.
- Style Caregivers.
- On the task-oriented style.
- Participatory style.

3.2.3 Leadership Theories and Models

Effective leadership, according to organizational theorists, is one of the most essential factors to total
organizational success (Weber, 2009; Daft, 2000; Pettinger, 2000; Barney, 1991; Kotter & Heskett, 1992;
Wade & Ricardo, 2001). Many leadership theories have been proposed over the last fifty years, many of
which claim to have influenced the overall success of businesses when some of these theories have been
implemented. Organizations must employ leadership styles that enable them to thrive in today's
competitive world, which includes technology advancements inside the corporate environment (Maritz,
1995; Bass, 1997). Without leadership, the probability of mistakes occurring increases, and the
opportunities for success become more and more reduced.

Academics and practitioners alike have shown a keen interest in leadership and organizational culture. In
today's world, leadership is regarded as an organization's most influential aspect. Leaders are individuals
who direct an organization's progress along a predetermined route to success. As per Ukessays (2020)
which stated that among the leadership theories are:

-Trait Theory

-Group and Exchange Theory

-Contingency Theory

-Path Goal Theory

-Situational Leadership theory

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3.2.4 Leadership Behavioral Theories

One of the most critical things that can effect job happiness is a leader's behavior. This is because a
favorable association exists between leadership style and employee job satisfaction. As a result, the leader
of an organization must always be able to create conditions that please employees at work, needing people
who are not only able to work but also eager to work toward organizational goals, and the leader must be
able to link individual demands with organizational needs. based on interactions between people (Robbins
and Judge, 2015: 18).

Different types of leadership promote different styles of communication and constituting a major
component of internal communication systems (Whitworth, & Chiu, 2015). A clear difference between the
two is that transactional leadership style relates to satisfying extrinsic needs or lower order needs, while the
transformational leadership style satisfies intrinsic needs or higher order needs (Dartey-Baah, 2016).

Transactional Theory: This is a phrase that is used to investigate the interactions between an organization's
leaders and followers. The decision-makers concentrate on a sequence of "transactions." Here, leaders and
followers exchange benefits as a result of rewards and benefits in order to achieve the company's goals.
People can only be motivated by reward or punishment, according to transactional leaders. It's also
beneficial when it comes to ensuring that specific organizational goals are reached (James & Collins,
2008).

Transformational Theory: It can be defines as a leadership approach that engenders change in individuals
and social systems. It explores valuable and positive change in the group with the target of developing the
followers in to leaders. And it’s style typically opposed to transactional leadership (Alonderiene, &
Majauskaite, 2016). A transformational leadership is charismatic (Men & Stacks, 2013), encourage
subordinates and appeal to their ideals and moral values by creating and representing a motivational vision
of the future (Yukl, 2006).

3.2.5 Traits of the Effective Leadership

According to (Arif & Akram, 2018), the traits most commonly associated with great leadership include
(Adaptability and flexibility, adaptability and flexibility Capacity to motivate others, assertiveness Courage
and determination, Creativity, decisiveness, and a willingness to accept responsibility are all desirable
qualities. Emotional balance, Intelligence and decision-making that is action-oriented Desire to succeed,
People abilities, Perseverance, self-assurance, task expertise, dependability, and an understanding of their
followers' needs).

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 Similarly, Spears (2002) identified ten leadership characteristics a servant leadership should be:

1. Listening, and communicate.

2. Empathy.
3. Healing.
4. Awareness.
5. Persuasion.
6. Conceptualization.
7. Foresight.
8. Stewardship.
9. Commitment to the growth of people.
10. Building community.

3.2.8 Leadership Types:

Further clarification of leadership type by Clegg, Kornberger and Pitsis (2016) is adequately described as
(Charismatic-visionary, Transformational, and Transactional Leaders).

3.3. Organizational Performance

Organizational performance is considered to be the sum of accomplishments achieved by all

businesses/departments. These successes are tied to a specific organizational goal that must be met in a
certain amount of time. The objective is either for a certain stage or for the entire project (Lee & Huang,
2012). The idea of organizational performance is affiliated to the survival and success of an organization
(Ahmed & Shafiq, 2014). Organizational performance includes effectiveness, efficiency, productivity,
quality, and innovation (O’Reilly et al., 2014).

Performance, according to Ahmed and Shafiq (2014), is defined as "performing, applying, and doing each
regular and dedicated work." The level of success of a company is referred to as organizational
performance (Sulaiman, Yusoff & Chelliah, 2010). This is a traditional method for determining a broad
indication of the economic effectiveness of management activities. The effect can be positive if the result is
close to the ideal state, meets the target function, and matches to the constraint system. According to
organizational academics, employees are more likely to work well in circumstances where they are treated
well (Haque et al., 2017).

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3.3.1 Measuring Organizational Performance

According to some academics, performance measurement is a complicated subject (Hakimpoor, Tat

&Arshad, 2011). Organizational performance can be measured in terms of innovation (Winne & Sels,
2010). In any case, the fundamental purpose of the management system is to ensure that the managed item
has a direct impact on its performance. There is a challenge establishing a generalizing indicator that would
be a measure of organizational performance in this setting because the different qualities and parameters of
the subject's and management's activity frequently disagree with one another, resulting in dialectical
contradiction.

Job Satisfaction

One of the most significant variables in achieving optimal work results is job satisfaction. When a person is
satisfied at work, he will do everything he can to perform his job assignments to the best of his ability. Job
satisfaction is a fascinating and important issue for employees, businesses, and society. Job aging refers to
a person's ability or emotional reaction to various aspects of their job (Wirawan, 2014) and states that job
satisfaction is an employee's assessment of their work and the context in which they work, and it is the
most researched attitude. Job satisfaction is a measurement of how people feel about their jobs, their work
environments, and their emotional experiences at work. Employees' attitudes toward various features and
settings of work are referred to as job satisfaction.

Employee performance is one of the variables that can influence the ups and downs in sales volume. If
employees are satisfied with their jobs, their performance will improve, assisting the company in achieving
maximum benefits; however, if employees are dissatisfied with their jobs, their performance will suffer,
making it more difficult for the company to achieve maximum benefits as planned. According to studies
conducted by Afriadi (2018) and Kusmaningtyas (2012), job happiness has a considerable impact on
employee performance.

Job happiness is influenced by organizational culture (Robbins and Coulter, 2016: 80-81). High job
satisfaction is also a sign of good management, indicating that the organizational culture has been properly
managed.

According to Griffin and Moorhead (2014), the degree to which people are satisfied or fulfilled at work is
measured by job satisfaction. Employment satisfaction is a pleasant sensation that arises from someone's
impression that their job satisfies or allows them to satisfy the values that are important to them.

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 The independent variables of job satisfaction are the elements of work that cause or affect job satisfaction
according to (Ukil, 2016), which consists of:

1. The work itself

2. Wages and promotions

3. Working conditions

4. Colleagues and superiors

5. Conformity between work and personality

Employee Performance

Davoudi and Allahyari (2013) states, that the attitude of workers in accordance with the organization's
objectives is referred to as performance. It might be regarded as the result of activity in a certain period or
the consequence of performing the functions of a particular vocation. Employees in an organization
determine the success and continuation of all organizational actions in order to fulfill organizational goals.
As a result, management must provide significant support in inspiring people to work professionally so that
they can accomplish performance that meets their expectations and those of their companies. Performance
refers to an employee's ability or performance at work in order to achieve the best possible results.

Performance is likewise made up of three interconnected elements: talents, efforts, and external
circumstances. Knowledge, abilities, interpersonal skills, and technical skills are examples of basic skills
that people bring to work (Fatah, 2012: 127).
Several factors that influence employee performance are stated by Armstrong and Baron (1998: 15) , which
are (Personal, Leadership, Team, System, and Contextual/situational factors).

Individual workers' performance is influenced by a number of factors, including their abilities, motivation,
support, the type of the work they do, rewards or incentives, their relationship with the company, and so
on. According to Wibowo (2016: 70), performance can be viewed as a process or an outcome of labour.

3.4. Organizational Culture and Role of Leadership:

Leadership behavior, in terms of its support or opposition to perceived organizational principles, has an
impact on organizational culture perception (Lord & Brown, 2001). Organizational culture is linked to the
public display of values (Schein, 2010), which is reflected in the leaders' perceptions (Eisenberger et al.,

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 2010). More research on the impact of leadership on organizational culture is needed (Bass & Avolio,
1994), with the goal of better understanding how followers internalize a company's values and beliefs.

Sudaryo and Ari Wibowo's (2018: 103) organizational culture theory suggests that culture is a common
system and values in an organization that becomes a reference for how people work to achieve
organizational goals. Meanwhile, according to Sopiah (2018), organizational culture has a significant
impact on the success or failure of an organization's efforts to improve employee performance.

Organizational culture has long been regarded as one of the most significant core competencies. Employee
satisfaction indicates the psychological well-being of those who work for a company. Job happiness and
company goals can both be aided by organizational culture (Zhang & Bing, 2013). Research by Amilia et
al. (2014), there is an influence between organizational culture on job satisfaction.

Organizational culture can shape employee personality. These personalities will shape employee behavior
in doing work. Research conducted by Sulistiawan et al. (2017) states that Employee performance and
organizational culture have a relationship. Employee performance is influenced by job satisfaction
(Cahyana & Jati, 2017). In the research of Suwardi & Utomo (2011), there is an influence between job
satisfaction and performance.

The way and approach to delivering guidance, implementing programs, and motivating others is referred to
as leadership style. The leadership style used by the leader has a considerable impact on the relationship
between the leader and the employee, as well as the quality of the employee's performance (Ojokuku,
Odetayo, & Sajuyigbe, 2012).

One of the things that influences job happiness is leadership. Subordinates' satisfaction and performance
can be influenced by the leader's personality (Yukl, 2013). According to Made Suprapta et al. (2015)'s
research, leadership has an impact on employee work satisfaction.

3.5. Organizational Culture, Role of Leadership, and Organizational Performance:

An examination of the literature in the field of culture and leadership revealed that leadership and culture
have been used interchangeably and independently linked to performance (Howell & Avolio, 1993;
Ogbonna, & Harris, 2000).While some studies argued that organizational culture has no direct influence on
performance (Yesil & Kaya, 2013). Others found that organizational culture has both direct and indirect
influence on employee’s performance (Valmohammadi & Roschanzamir, 2015).

Page 19 of 39
 Any business that uses the right leadership style(s) in conjunction with other aspects in its operations has a
better chance of meeting its objectives. The leadership style(s) of an organization have a significant impact
on the culture of the organization. This, in turn, has a direct or indirect impact on the organization's
performance (Haque, 2015). In today's enterprises, leadership style is quite significant. The approach and
manner in which a manager or supervisor chooses to act with his employees or subordinates, as well as
how they carry out the leadership function, is referred to as leadership style (Xenikou, 2017).

Researchers in the area of leadership suggest that no one leadership style is better than the other but that
styles are dependent on some factors (Armstrong, 2012). They mention things like the sort of organization,
nature of the task, individual qualities in the leader's team, the group the leader leads as a whole, and, most
crucially, the leader's personality. According to some authors, leadership styles can influence employee job
happiness, and job satisfaction is a result of leadership style. This could be linked to the employee's desire
to leave the company (Khan, 2014).

Similar study by Sihombing, et al., (2018) argued that leadership significantly affects organizational culture
and indirectly influence employee performance. The difficulty of the research on the relationship between
organizational culture, leadership style and performance is as a result of the multiplicity of cultures to
which the organization’s members belong, and this situation makes the role of the leader difficult to define
and to relate it directly to performance.

To positively use the leaders position to influence employee’s performance, the leader in the first place
should fit into the organization culture, and his leading style should be suitable to the situations of the
organization and to its culture (Maamari, & Saheb, 2018). Furthermore, Rowold (2009) found that
transformational leadership style have significant relationship with higher work performance and employee
attitudes. Yildirim and Birinci (2013) also argued that organizational culture has its origin from leadership
style.

3.6. Conceptual Framework and Hypothesis

For this study, the proposed variables used are Leadership (X1) and Organizational Culture (X2) are
independent variables, while Organizational Performance (Y) is dependent variable. To explain what the
indicators are used in this research, and try to explain the concepts of the research study in details as
showing in below graph (Figure 9) in the followings:

Page 20 of 39
 Figure 9: Conceptual Framework (Researcher design)

Research Hypothesis:

The hypothesis proposed in this study as following:

H1: Role of Leadership has an impact on Organizational Performance.

H2: Organizational Culture has an impact on Organizational Performance.

4. Selection of High-Performing and Low-Performing Organizations

4.1. Organization Performance Definition

Organizational performance refers to how well a company performs in terms of profit, market share, and
product quality in comparison to other companies in the same industry (Saasongu, 2015).As a result,
organizational performance is a reflection of the productivity of an organization's members as measured by
income, profit, growth, development, and expansion (Saasongu, 2015). Organizational performance is
regarded as one of the most fundamental concepts in management, and the majority of management
responsibilities are based on it. Of course, an organization's success can be measured by how well it
performs.

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4.2. Organization Performance Criteria for Classification

A strong and positive organizational culture can be a key determinant in an organization's success.
Organizational culture is no longer viewed as a relic of the past, but rather as a strategic tool for achieving
firm goals and ensuring strong competitiveness. There are two types of organizational culture: strong and
weak. Members of an organization with a strong organizational culture share the organization's beliefs and
aims, and new employees readily embrace these values (Kotter & Heskett, 2011).

Employees in a company with a poor organizational culture have a difficult time defining the company's
principles and determining the best way to do business (Childress, 2013). Schein (2010) noted that
management with weak organizational culture lacks transparent and consistent communication in the
organization. There are five indicators that characterized organization as high or low performance as
detailed in table below (Robbins, 2016):

Table 2: Strong and weak organizational cultures (Robbins, 2016)

• Employee performance measures indicators, according to (Robbins, 2006: 260), there are six indicators
to measure the performance of individual employees (Quality, quantity, timeliness, effectiveness,
independence, and Punctuality). Many aspects, such as enthusiastic behavior, hygiene factors, managerial
accountability, and working environment, have been validated by researchers through the development of
many theories (Darrow, 1971, Igalens and Roussel, 1999; Brewer et, al. 2008; Ahsan et al , 2009; Kuo et
al., 2007).

Page 22 of 39
• Wages, Employment, Promotional Opportunities, Supervisors, and Coworkers are all indicators of job
satisfaction, according to Gibson, Ivancevich, and Donnely (1993). According to Robbins and Judge
(2015), the job satisfaction indicators are work itself, salary, promotion, supervision, and coworker. In this
study, the job satisfaction indicator used is job satisfaction according to Robbins and Judge (2015).
• The idea of organizational culture is measured by the typical approach in this study for organizational
culture measures. as suggested by Robbins (1996: 209), namely:

Figure 10: Organizational culture measurements (Robbins, 2016)

• The role of leadership it’s the ability of the leader to influence and motivate his employees to achieve a
common goal in a planned manner. And the measurements used in this study, as suggested by Purwadi,
2020: 119), namely as followings:

1- Characteristics and personality.

2- Optimism.

3- Skills.

4- Integrity, and quality.

5- Influence.

Page 23 of 39
4.3. Justifications of the Selected-Two Organizations
4.3.1 High-Performing Organization

The selected organization as a high-performing organization is the Department of Transportation, Indonesia

as described by (Purwadi, 2020) research under title “Exploration of Leadership, Organizational Culture,
Job Satisfaction, and Employee Performance”, Department of Transportation (DOT), Indonesia. Based on
the study results findings which explained the key indicators as follows:

• It shows that the leadership has a positive and significant effect on job satisfaction. Where the highest
indicator is skilling, while the lowest is integrity. This implies that the better the level of leadership
undertaken by the Head of DOT; the employee job satisfaction will also increase.
• Findings shows that the organizational culture has a positive and significant effect on job satisfaction.
Where the highest indicator is aggressiveness, and the lowest in the orientation of people.
• It demonstrates that organizational culture has a large and favorable impact on employee performance. That
is, the higher the level of existing organizational culture institutions, the higher the level of employee
performance. Aggression is the highest indicator, while people's orientation is the lowest. So, rather of
being comfortable when receiving assignments / jobs, DOT employees have been more aggressive for
themselves. Employees are required to be more thorough in their work so that work is accomplished
properly and accurately.
• Furthermore, the findings demonstrate that leadership has a favorable and significant impact on staff
performance. Skills are the most important of the leadership markers, while integrity is the least important.
In this situation, the leadership variable on the skills indicator indicates that DOT employees believe a
good leader's ability to carry out his obligations as a leader, as well as the leader's skills in making
decisions, coming up with new ideas to improve the agency, and interacting well with colleagues.
• It shows that the job happiness has a detrimental, but not statistically significant, impact on employee
performance. This means that the higher the level of job happiness, the less likely employees are to perform
poorly in the DOT, and vice versa. There's a chance that several additional variables that weren't looked at
after the job satisfaction variable have an impact on employee performance. Coworkers are the most
important indicator, while advancement is the least important.

Page 24 of 39
4.3.2 Low-Performing Organization

The selected organization as a low-performing organization is the Regional Secretariat Office of Regency,
Indonesia as described by (Irwan, 2020) research under title “The Effect of Leadership Style, Work
Motivation and Organizational Culture on Employee Performance Mediated by Job Satisfaction”, Regional
Secretariat Office of Regency(RSO), Indonesia. Based on the study results findings which explained the
key indicators as follows:

• It was discovered that organizational culture has no substantial effect on job satisfaction; therefore, the
RSO's of organizational culture has not been able to have a real effect on enhancing employee job
happiness, because it is still weak. Superiors do not encourage employees to pay attention to details about
the work done by RSO employees, and the Personnel department does not urge every employee to pay
attention to details about the work done by RSO employees.
• Employee performance is unaffected by organizational culture, according to the findings. This is because
the RSO's organizational culture implementation has not gone as planned because there are still factors that
need to be improved in the application of organizational culture, such as increasing encouragement for
every employee to always innovate in creating new ways to complete work so that they can.
• The impact of job satisfaction on employee performance, according to research findings. Whereas this
study discovered that job happiness has a substantial impact on increasing employee performance, this
suggests that the increased job satisfaction felt by RSO staff will be able to impact employee performance.
• The impact of job satisfaction on employee performance, according to research findings. Whereas this
study discovered that job happiness has a substantial impact on increasing employee performance, this
suggests that the increased job satisfaction felt by RSO staff will be able to impact employee performance.
• Employee job satisfaction can modulate the effect of work motivation on employee performance, according
to the findings of the data processing. This study suggests that high employee motivation at work leads to
increased job satisfaction, which can lead to improved employee performance.

5. Analysis for the Selected-Two Organizations

5.1. Characteristics of the Culture:

As stated by (Robbins, 2015), there are seven primary characteristics to capture the essence of an
organization’s culture accordingly the analyses of the culture characteristics of the selected-two
organizations as per following indicators:

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Characteristic / Characteristics of the Culture for the Selected Organizations
Indicator
High-Performing: Department of Low-Performing: Regional Secretariat
Transportation (DOT) Office (RSO)

1-Innovation and As per findings the organization has taken It is still lacking in terms of supervisors
risk taking steps for the taking risks, hence the office encouraging employees to do new things in
employees are ready to take risks at work. their jobs, and the personnel department
does not urge every employee to pay
2-Attention to Wasn't rated attention to the specifics of the work done
detail by RSO staff.

3-Outcome Results orientation, it shows that Employee performance is unaffected by

orientation organization has oriented office employees organizational culture, according to the
to pay more attention to results. findings. This is because the RSO's
implementation of organizational culture has
not gone as planned because there are still
4-People Was the lowest indicator as the factors that need to be improved in the
orientation organization makes a decision to take into application of organizational culture, such as
account the results of employees who make increasing employee encouragement to
employees feel their personality or habits always innovate in creating new methods of
only take into account results. completing work to improve their work
performance.

5-Team Wasn't rated It shows that the organization has no

orientation effective methods for the team orientation,
concerns the degree to which work activities
are organized around teams.

6-Aggressiveness With the presence of aggression, stability, As per findings the organization hasn't take
outcomes from orientation, and people steps for this, hence concerns the degree to
orientation, was the greatest indicator, which people are aggressive and competitive
indicating that a stronger organizational rather than easygoing aggressive in
culture promotes employee job satisfaction. competing than being relaxed was weak.
As a result, the agency must sustain and
pay greater attention to the organizational
culture that already exists in order to
improve the job happiness of its personnel.

7-Stability As per findings the organization has taken Wasn't rated

steps for the stability to balance between
activities and the growth of office
employees.

Table 3: Characteristics of the organizational cultures (Robbins, 2015)

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5.2. Organizational Cultural and Role of Leadership (Similarities and Differences):

The selected organizations were the Regional Secretariat Office of Regency (RSO) as per (Irwan, 2020)
research and the Department of Transportation (DoT) as per (Purwadi, 2020) research, hence the
similarities and differences for the organizational culture and role of leadership factors are detailed in
below tables:

1) Organizational Cultural:

No. Similarities Differences

1 To improve employee work satisfaction, the The team orientation, and attention to detail
DOT organization must sustain and pay more characteristic / Indicator were not rated in the DOT
attention to the organizational culture that organization, while it's still lacking and no effective
already exists inside the agency. Similarly, the methods, hence encouragement by superiors to
RSO organization encourages all employees to employees at the RSO organization was essential
pay close attention to the intricacies of their required.
work.

2 In addition, the DOT organization has decided The DOT organization results showed that
to consider the results of employees, making organizational culture has a positive and significant
employees believe that their personality or effect on employee performance,
habits are the only factors that are considered.
Basically, an employee's personality and while RSO organization results showed that
habits will affect their work behavior, which organizational culture cannot have an influence on
will eventually determine their performance. employee performance.
Similarly, the RSO organization encourages
every employee to constantly innovate in
order to improve their work performance by
developing new methods of completing tasks.

3 The RSO organization’s findings showed The RSO organization's results showed that
work motivation has a direct or indirect effect organizational culture has no significant effect on job
on employee performance through job satisfaction; thus, the RSO's application of
satisfaction. Similarly, DOT organization has organizational culture has not been able to have a real
influenced and motivated their employees to effect in increasing employee job satisfaction, whereas
achieve a common goal in a planned manner. the DOT organization is doing it.

4 The DOT organization has taken steps for the RSO organization results found that job satisfaction
stability to balance between activities and the has a significant effect on improving employee
growth of office employees, Similarly RSO performance, while the DOT organization results
organization has a good clarity to develop showed that job satisfaction has a negative and not
employee’s capacity. significant effect on employee performance.

Table 4: Organizational cultural similarities and differences (Purwadi and Irwan, 2020)
Page 27 of 39
2) Role of Leadership:

No. Similarities Differences

1 According to the findings of the DoT Leadership style affects employee performance
organization, leadership has a favorable and directly or indirectly through job satisfaction at the
considerable impact on staff performance. That RSO organization, while the DoT organization
is, the higher the level of leadership, the higher results showed the highest indicator is skills, while
the employee's performance. Similarly, RSO the lowest is integrity so this implies that the better
organization results revealed that leadership the level of leadership undertaken by the DoT, the
style influences employee performance employee job satisfaction will also increase.
improvement, and the findings indicate that
leadership style influences employee
performance improvement.

2 The results of the DoT organization revealed The highest is skills; employees at the Department
that leadership has a favorable and considerable of Transportation believe a good leader's ability to
impact on job satisfaction. Job satisfaction can carry out his tasks as a leader, as well as the leader's
also moderate the impact of leadership styles on skills in making choices, developing ideas to
employee performance, according to RSO enhance the agency, and engaging successfully with
organization findings. As a result, the findings colleagues. However, the RSO organization's
of this study show that leadership style has a research revealed that in order to meet the job's
considerable impact on job satisfaction, which needs, management must take the appropriate
has ramifications for staff performance. efforts to enhance leader competencies.

3 Also, the DoT organization results showed a The lowest is a leader's integrity in the DoT has not
great influence, the head of office can give good been able to fully gain the trust of employees in
influence to the employees, similarly, RSO carrying out their duties in accordance with the
organization results. agency's vision and mission, leaders should be able
to make their employees believe in what tasks so
that employees can follow the leader's attitude,
while the RSO organization findings showed that
integrity and quality levels for leavers are quick
good and require some improvements.

4 Results showed by DoT organization that The DoT organization results showed that
characteristics and personality, head of office optimism, the ability of the head of office to be
have good behavior in dealing with the himself and always struggle with what he wants,
employees. This was similarly indicated in the while the RSO organization findings showed a
RSO organization findings. weak and lacking which need to take some actions
to strength those features.

Table 5: Role of Leadership similarities and differences (Purwadi and Irwan, 2020)

Page 28 of 39
6. Conclusion and Recommendations:

The conclusion of this research problem is based on the literature review, findings of problems identified
and arranged in the research objectives and theoretical basis. Referring to the results of the analysis and
discussion in the previous section, the following conclusions can be drawn:

1) Leadership, the results of this study indicate that leadership has a positive and significant effect on job
satisfaction of organization employees. The better the leadership, the better job satisfaction felt by the
employees.

2) Leadership, the results of this study indicate that leadership has a positive and significant effect on
employee performance at the concerned organizations. The better the level of leadership, the better the
level of employee performance.

3) A leader's leadership style has the potential to improve employee job happiness. The findings of the
study have been reflected in the implementation of a leadership style that has greatly improved employee
job satisfaction at the firms in question.

4) Employee performance may be improved by adopting diverse leadership styles; these studies suggest
that using multiple leadership styles can assist organizations considerably increase employee performance.

5) Leadership style has an impact on employee performance, either directly or indirectly, through job
satisfaction in the organizations concerned.

6) Organizational culture, according to the findings of this study, organizational culture has a favorable
and significant impact on job satisfaction in the organizations studied. Employees will be more satisfied
with their jobs if the corporate culture is improved.

7) Organizational culture, according to studies, organizational culture has a favorable and considerable
impact on employee performance in the organizations in question, and as organizational culture improves,
employee performance improves as well.

8) Because some employees believe that the Personnel Department does not emphasize every employee to
pay attention to the details of the implementation profession, the organizational culture that has been
implemented thus far has not been able to have a real impact on increasing employee job satisfaction at the
concerned organizations.

Page 29 of 39
 9) Organizational culture has had no substantial impact on employee performance since some employees
believe their supervisors do not push them to innovate in their work at the RSO organization.

10) At the RSO, organizational culture has no direct or indirect impact on employee performance through
job satisfaction.

11) Job happiness can boost staff productivity. This is demonstrated in the fact that job happiness has a
substantial impact on increasing employee performance in the firms concerned.

12) Job happiness, according to studies, has a negative and non-significant impact on employee
performance in the DOT organization. Job satisfaction does not have a substantial impact on employee
performance.

Recommendations:
According to literature review that obtained and based the analysis of the performance of the two selected
organizations, here below suggested recommendations on how those organizations could be further justified
what Peters and Waterman’s described as the Excellent Cultures.

1) In order to increase employee performance, leaders in both organizations must be able to recognize the
level of readiness and maturity of different subordinates and change their leadership style to match the
readiness and maturity of their subordinates.
2) Based on the findings of the investigation, participation leadership styles are anticipated from leaders at
both firms, in this case field managers, in order to boost employee performance at their respective
organizations.
3) To boost employee performance, both firms' management teams should preserve and socialize
organizational culture in the workplace, such as a culture of innovation in the workplace and a culture of
paying attention to details such as rules, safety, and the work environment. It is also necessary to develop
the people-oriented culture, such as rewarding employees who do well.
4) With the presence of aggression, stability, outcomes from orientation, and people orientation, the DOT
organization displayed the greatest indicator, indicating that a better organizational culture promotes
employee work satisfaction. As a result, the agency must sustain and pay greater attention to the
organizational culture that already exists in order to improve the job happiness of its personnel.
5) The Innovation and risk taking at the RSO showed its still lacking, so encouragement by superiors to
employees is required regarding new innovations in handling each job, and besides that the personnel

Page 30 of 39
 section does not encourage every employee to pay attention to details about the work handled by
employees who work at the RSO.
6) Outcome orientation, and people orientation results at RSO organization showed that organizational
culture cannot have an influence on employee performance, the reason is because in the implementation of
the organizational culture that has been applied so far at the RSO and it has not been as expected because
there are still factors which needs to be improved in the application of organizational culture, namely by
increasing encouragement for every employee to always innovate in creating new methods of completing
work so that they can improve their work performance, besides that, an approach is needed to approach
employees to pay attention to the details of the work done so far.
7) Stability findings at the DOT organization showed they have taken steps for the stability to balance
between activities and the growth of office employees but still need more efforts to sit with the staff
expectations.
8) The team orientation, and attention to detail characteristic / Indicator were not rated in the DOT
organization, and it's still lacking and no effective methods, hence encouragement by superiors to
employees at the RSO organization was essential required.
9) The RSO organization results showed that organizational culture has no significant effect on job
satisfaction, it can be said that the application of organizational culture carried out by the RSO has not been
able to have a real effect in increasing employee job satisfaction so management need to have a clear plan
to solve this issue.
10) For further researchers, it is expected to add other variables that affect employee’s performance such as
motivation, compensation, skills, competence, motivation, commitment, facilities and infrastructure, stress
level and work environment.

------------------------------------------------(End)----------------------------------------------------------

#_Note: Number of words are (8,800) words excluding references.

Page 31 of 39
 ATTACHMENTS
A) List of the Selected Journal Articles for this Study
No. Articles Title Authors Year Remarks

1 Exploration of Leadership, Organizational Culture, Purwadi 2020 Literature review, and

Job Satisfaction, and Employee Performance Purwoharsojo selected as a high-
performing organization

2 The Effect of Leadership Style, Work Motivation Andi Irwan 2020 Literature review, and
and Organizational Culture on Employee Selected as a low-
Performance Mediated by Job Satisfaction performing organization

3 Effect of Motivation, Leadership, and Maartje Paais 2020 Literature review

Organizational Culture on Satisfaction and
Employee Performance

4 Employees’ Performance: Organizational Culture Sri Langgeng 2019 Literature review

and Leadership Style Through Job Satisfaction Ratnasari

5 The Effect of Leadership and Organizational Marlina 2019 Literature review

Culture on Employees Performance at Pt. Widiyanti
Pertamina EP Limau Field

6 Leadership Style, Organizational Culture and Judith E. 2020 Literature review

Performance: A Critical Literature Review Bwonya

7 Role of Organizational Culture on Organizational Jomo 2017 Literature review

Performance of Commercial Banks in Kenya: A Kenyatta
Case of Commercial Banks in Voi Sub County

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