10) Culture – Job Satisfaction Driven by Leadership and Culture

10) Culture – Job Satisfaction Driven by Leadership and Culture

These days companies operate in a very competitive global environment. Given the rapid changes occurring in business, organizations have to adapt to the market and work to become and remain strong.  In preparation of this message I have learned that some of the most highly successful companies have capitalized on the value that resides in developing and managing a unique organizational culture.

Organizational culture is defined as “the set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct

The problem is that some organizations have not understood the power of organizational cultures

GIVENT believes that the promotion of a flexibility-oriented organizational culture, based on support and innovation, may provide a great value in today’s competitive economy. This type of organizational culture may be a breeding ground for authentic leadership, which, in turn, has positive effects on employees’ attitudes.

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Engaged and satisfied employees result in satisfied customers.

The smartest companies are creating and maintaining a culture of learning that will effectively support employees

The relationship between engagement and performance at the business/work unit level is substantial.

The real answer lies in knowing that it is an engaged culture that positively affects performance.

Recruiting the right employees, embracing failure and a strong entrepreneurial spirit can help any company build an innovative culture.

 

STUDY

 

Problem

“Organizational culture is defined as “the set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct”

The problem is that some organizations have not understood the power of organizational cultures.

“Nowadays companies operate in a very competitive global environment, punctuated by the financial crisis. Given the rapid and substantial changes occurring in the economic environment, organizations have to adapt to the market and work to become and remain economically strong. While market forces, strategy, and technology are evidently important, highly successful companies have capitalized on the value that resides in developing and managing a unique organizational culture.”

While it may be tempting to purchase the next best leadership book to improve your company, science has already found the two key elements that work together to provide the best employee satisfaction: Authentic leadership and a flexible organizational culture.

Research Study

Background       

In 2013, a group of researchers published in a peer-reviewed psychology journal showing that by having an authentic leadership style coupled with a flexible organization culture, employee satisfaction increases. An authentic leader demonstrated 4 traits: Self-awareness, balanced processing, relational transparency, and an internalized moral perspective.

Hypothesis

The study hypothesized that an authentic leadership style and flexible organizational culture alone would increase employee satisfaction; and if that were the case, then the two together would show a positive correlation related to employee satisfaction.

Story

571 employees from 114 different companies were asked to take a few different surveys relating to authentic leadership, culture, and job satisfaction.

The study included employees from many different backgrounds and age groups. They also accounted for people that worked in the same company and compared their scores for accuracy.

Results

The results were profound. First, they showed that authentic leadership did result in a better job satisfaction rating than other types. Second, it showed that flexible organizational culture also increases employee satisfaction as well.

This is where it gets interesting, researchers were able to see that when a leader was authentic and exhibited the organizational culture, employee satisfaction continued to increase. By having both, companies and groups benefit tremendously.

 

Reference: Azanza, G., Moriano, J. A., & Molero, F. (2013). Authentic leadership and organizational culture as drivers of employees’ job satisfaction. Journal of Work and Organizational Psychology, 29, 45-50.