Resource

RESEARCH NOTESJounud of Sport Management. 1995. 9. J 82-193® 1995 Human Kinetics Publishers. Inc.

Leadership, Organizational Culture,and Job Satisfaction in Canadian

YMCA Organizations

Mike Wallace and W. James WeeseUniversity of Windsor

This study wa.s undertaken to investigate the links between transformationalleadership, organizatitxial culture, and employee job satisfaction within the 69Canadian YMCA organizations. Leadership was measured by the LeadershipBehavior Questionnaire (Sashkin, 1988), organizational culture by the Orga-nizational Culture .Asses.sment Questionnaire (Sashkin, 1990), and employeejob satisfaction by the Job in General Index (Balzer & Smith, 1990). Theresults of a MANOVA and subsequent ANOVA statistical treatments allowedthe researchers to conclude that significant differences in organizationalculture existed between the YMCA organizations led by high transformationalleaders and YMCA organizations led by low transformational leaders. Inaddition, the YMCA organizations led by high transformational leaders ad-ministered organizations that carried out the culture-building activities ofmanaging change, achieving goals, coordinated teamwork, and customerorientation to a greater degree than YMCA organizations led by low transfor-mational leaders. No significant differences in employee job satisfactionlevels existed between the YMCA organizations led by high transfonnationalleaders and those led by low transformational leaders.

Many leadership theorists (Bennis, 1989; Bennis & Nanus, 1985; Kuhnert &Lewis, 1987, Lord & Maher, 1991; Sashkin, 1988; Tichy & Devanna, 1986;Yukl, 1989a, 1989b) have pointed to ineffective leadership as the major cause ofdeclining industrial productivity and a downward positioning of North Americancorporations on a global scale. Tichy and Devanna (1986, p. 27) summarized thepervading perspective when they noted that "corpwjrate leadership is Atnerica'sscarcest tiatural resource." Other theorists (Brown, 1982; Lieberson & O'Connor,1972; Pettigrew, 1987; Pfeffer, 1977) are more skeptical of the impact leadershave on an organization. They have suggested that (a) leadership enthusiastsinflate a leader's impact, and (b) orgatiizations are effective for a host of differentreasons, many of which fall outside the influence of an executive leader.

Mike Wallace and W. James Weese are with the Faculty of Human Kinetics,University of Windsor, Windsor, ON, Canada N9B 3P4.

182

Leadership. Organizational Culture, and Job Satisfaction 183

Interest in the study of leadership has been revitalized due to the relativelyrecent developments in the transformational leadership area. Yukl defined trans-formational leadership as "the process of influencing major changes in theattitudes and assumptions of organizational members and building commitmentfor the organization's mission, objectives, and .strategies" (1989a, p. 271). Trans-formational leaders appeal to their followers' need to feel meaningfully involvedand appreciated (Bennis & Nanus, 1985). They provide followers with a focusand commensurate levels of support, involvement, and appreciation designed toencourage the follower to adopt the vision as their own and be committed tomaking it a reality (Bryman, 1992). These leaders are purported to inspire follow-ers to contribute beyond expectations (Bass, 1985; Bennis, 1989; Yammarino &Bass, 1990; Yukl, 1989a, 1989b). People genuinely hold great regard for thistype of leader and recognize the scareity of this type of leadership (Nanus, 1989).Participants in workshops staged by the Center for Leadership Studies (SUNY-Binghamton) often described their ideal leader as someone displaying the charac-teristics and tendencies commonly associated with transformational leadershiptheory (Bass & Avolio, 1990). We believe that the purported theoretical benefitsof transformational leadership would certainly benefit sport management-basedorganizations if the theory holds true in these settings. Transformational leadershipwas quantitatively measured in this investigation by the Leadership BehaviorQuestionnaire (Sashkin, 1988), a valid and reliable instrument designed to mea-sure both the leader and follower perceptions of transformational leadership inan organization.

Another area rapidly gaining momentum in the organizational behaviorliterature is the area of organizational culture. The concept is defined by mostculture scholars as the deep-rooted beliefs, values, and assumptions widely sharedby organizational members that powerfully shape the identity and behavioralnorms for the group (Denison, 1990; Frost, Moore, Louis, Lundberg, & Martin,1985; Schein, 1990; Smircich, 1983; Whipp, Rosenfeld, & Pettigrew, 1989).Most culture theorists believe that executive leaders can ingrain or alter theculture of an organization and that this culture contributes to organizationaleffectiveness (Frost et al., 1985). As with the transformational leadership theory,the benefits of organizational culture should intrigue leaders in the sport andrecreation area, if the theory holds true for the sport management domain.

Schein (1990) noted that organizational cultures can be analyzed from theperspectives of culture strength and culture type. Results from studies conductedin business organizations have led researchers to conclude that strong, positivecultures have been linked to enhanced staff alignment (Barney, 1986; Wilkins &Ouchi, 1983), greater consensus toward strategic direction (Pfeffer, 1981), andincreased employee productivity (Martin, 1985; Meyerson & Martin, 1987; Smir-cich, 1983, 1985). Peters and Waterman's (1982) study of effective businessorganizations prompted researchers to conclude that all successful organizationspossess a strong, positive culture. Researchers focusing on the type of culturesuggest that the culture must support activities linked to the mission of theorganization (Feldman, 1986; Golden, 1992). The Organizational Culture A.ssess-ment Questionnaire (OCAQ) was used in this study. This instrument (Sashkin,1990) quantitatively measures both the strength of culture and the type of culturein relation to Parsons' (1960) four functions that relate to success (i.e., managing

184 Wallace and Weese

change, achieving goals, coordinated teamwork, and customer orientation) inorganizations like the YMCA.

The YMCA organizations are mandated to ' 'provide a diverse set of qualityprograms designed to promote self-improvement and self-reliance through spiri-tual, mental, and physical development" (Kaisitner, personal communication,November 1992). A large workforce, comprised of full-time, part-time, andvolunteer employees is required to deliver such a program. It is virtually impossi-ble for executive leaders to closely supervise these programs and the staff memberscharged with their delivery. Bennis (1989) noted that executive leaders shouldnot be engaged in the "nuts and bolts" activities anyway. He suggested thatleaders need to lead by focusing on the "big picture" or macro aspects of theorganization. Following this theoretical orientation, executive leaders shouldchannel their energies on developing a strong organizational culture that supportsthe four Parsonian activities that contribute to organizational effectiveness(Schein, 1990).

Leadership and organizational culture are purported (Sashkin & Sashkin,1990; Schein, 1986, 1990) to be tightly intertwined concepts. Leaders must havea deep understanding of the identity mid impact of the organizational culture inorder to communicate and implement new visions and inspire follower commit-ment to the vision (Sashkin & Fulmer, 1985; Schein, 1990). Schein (1990,p. 317) reiterated that "the unique and essential function of leadership is themanipulation of culture."

Some theorists (Miller & Friesen, 1982; Pettigrew, 1979, 1987; Whipp,Rosenfeld, & Pettigrew, 1989) have offered that ctiltures are so deeply imbeddedand difficult to change that strategic change, not leadership, is the requisitecatalyst. Others (Bryman, 1992; Deal & Kennedy, 1982; Denison, 1990; Hofstede,Neuijen, Ohayv, & Sanders, 1990; Sashkin & Fulmer, 1985; Schein, 1990) haveargued that leadership is an important element in initiating strategic changeand offer that organizational leaders modify and/or embed the culture of theorganization through their words, behaviors, policies, and reactions to criticalincidents. A crisis provides an excellent opportunity for a leader to "create newnorms, values, and working procedures as well as reveal important underlyingassumptions" (Schein, 1990, p. 92). However, this does not imply that modifyingthe culture of an organization is a simple process. Schein (1990, p. 291) notedthat "even when the leadership knows where it wants to go and is open aboutit, it takes time and energy to get large numbers of people to hold basic assumptionsabout something fundamental."

Employee job satisfaction has a long history as an outcome measure ofleadership studies, dating back to the leader behavior studies of the 1940s and1950s emerging out of the University of Michigan and The Ohio State University(Yukl, 1989a). Howell and Higgins (1990, p. 249) offered that "leadershipresearch has focused on a variety of outcomes such as satisfaction, effectivenessand performance." Employee satisfaction remains one of the most important andfrequently measured indicators of a leader's impact (Bass, 1990).

Gerhart (1987, p. 366) defined job satisfaction as "a function of what onewants from one's job and what one perceives it as offering." Job satisfaction ispurported to impact "citizetiship behaviors," which iiKlude prosocial behaviorslike constructive or cooperative gestures that contribute to organizational effec-tiveness (Kopeland, Brief, & Guzzo, 1990). Leaders of spx)rt and recreation

Leadership. Organizational Culture, and Job Satisfaction 185

programs will be interested in knowing whether the findings from studies set inbusiness, social service, and military organizations hold true for their environment.Specifically, the theory suggests that satisfied employees often extend themselvesbeyond the "call of duty" to improve organizational functioning (Avery, Abra-ham, Bouchard, & Segal, 1989; Kopeland et al., 1990). Bass (1981), Hater andBass (1988), Howeil and Frost (1989), Howeil and Higgins (1990), and Yukland Kanuk (1979) have offered compelling empirical evidence that leaders exhib-iting the behaviors associated with transformational leadership (e.g., charisma,genuine concern for employees, involvement in the decision-making processes,empowering style) have more satisfied followers than other leaders do. Bass(1990) noted that laissez-faire leadership (nonleadership) negatively impactedemployee job satisfaction and productivity. Donnelly, I>ubinsky, and Skinner(1985) and Putti and Tong (1992) offered evidence to support the claim thattransformational leaders significantly impact the satisfaction levels of followers.

Transformational leaders focus on people as well as the organization (Bass,1985; Bennis, 1989; Bums, 1978; Tichy & Devanna, 1986). "Most social scien-tists and managers agree that leaders have a significant impact on subordinates.It is frequently argued that employee satisfaction could be improved if leadershipwere improved" (Bullock, 1984, p. 7). Gilmore, Beehr, and Richter (1979) standin the minority with their opinion that subordinate satisfaction is not affected byleader behavior. The Job in General Index (JIG), developed by Balzer and Smith(1990), was designed to quantitatively measure employee satisfaction with theirwork environment and was utilized in this research.

Purpose of the StudyThis study was undertaken to empirically analyze the litiks between transforma-tional leadership, organizational culture, and employee job satisfaction in a sportmanagement context. Although leadership is a popular topic for sport managementscholars (Paton, 1987), few researchers have addressed the area in relation toorganizational culture, despite the suggested importance of culture to organiza-tional success in business (Deal & Kennedy, 1982; Martin, 1985; Schein, 1990)and educational (Sashkin & Sashkin, 1990) organizations. In the same vein, sportmanagement researchers have not extensively focused on the potential linkagesthat might exist between executive transformational leadership and employee jobsatisfaction. Some research set in business organizations (Bass, 1981; Howeil &Frost, 1989; Futti & Tong, 1992; Yukl & Kanuk, 1979) have confirmed the link. Inthis study, we sought to answer two research questions: (a) Are the organizationalcultures of YMCA organizations led by high transformational leaders significantlydifferent than the organizational cultures of YMCA organizations led by lowtransformational leaders, and (b) are the YMCA employees of high transforma-tional leaders more satisfied than the YMCA employees of low transformationalleaders?

MethodSample and Data Collection ProceduresThe population for the study was the 69 Canadian YMCA organizations listedin the most recent YMCA Personnel Directory (November 1991). Permission to

186 Wallace and Weese

conduct the study was obtained from the President and Chief Executive Officerof YMCA Canada. A pilot study conducted with the YMCA organizations ofmetropolitan Detroit (A' = 17) gave us the opportunity to pretest and validate allresearch instruments and study procedures prior to the initiation of the researcheffort.

The YMCA organizations were appropriate for this research given theirrelative homogeneity in mi.ssion, organizational structure, and dispersion through-out Canada (Kaisimer, personal communication, November 1992). Each YMCAorganization was headed by an on-site CEO who. while operating within theoverall mission and philosophy of the YMCA, was granted the autonomy toadminister his or her respective setting indep)endently and in an entrepreneurialfashion. CEOs occupied positions that enabled them to influence the culture andsatisfaction levels of employees in their respective settings (Kaisimer, persona!communication, November 1992).

All YMCA CEOs (N = 69) were forwarded a prestudy letter highlightingthe purpose of the research, the importance of their participation in the study,and a notice of the forthcoming research package. A Leadership Behavior Ques-tionnaire (LBQ)-self instrument was forwarded to each CEO to quantitativelymeasure the self-perceptions of his or her transformational leadership tendencies.A sampling of two subordinates, positioned one hierarchical level below theCEO level and randomly selected from the YMCA Personnel Directory, receivedLBQ-other instruments to measure their pereeptions of their CEO's transforma-tional leadership tendencies. All participants were forwarded their instrumentdirectly and were instructed to use the enclosed self-addressed, stamped envelopeto facilitate maximal returns. The three leadership measures were averaged todetermine an overall transformational leadership .score for each of the 69 YMCACEOs. Bass and Avolio (1990) and Sashkin (1988) both noted that the multiplemeasures of the leadership construct (made possible through the self-other ques-tionnaire) provided a more valid assessment of the leadership situation.

The second phase of the research was initiated after the LBQ scores wereanalyzed. High transfotmational {N = 12) and low transformational (N = 12)leadership groups were statistically created on the basis of the LBQ scores. Thisphase of the researeh called for an analysis of the organizational culture andemployee job satisfaction situations exi.sting in each of the 24 organizations.

All staff members listed in the YMCA Fersonrwl Directory from each ofthe high and low transformational leadership groups were included in this portionof the research. Each staff member was provided with (a) a personally addressed,introductory letter outlining the study, (b) an OCAQ to quantitatively measurethe culture of the organization, (c) a JIG instrument to quantitatively measureemployee job satisfaction, and (d) a self-addressed, stamped envelope. A mini-mum of four OCAQ and JIG instruments from each organization were requiredfor inclusion in the data analyses. A three-step nonresponse procedure (i.e.,reminder fax after 14 days, reminder phone call after 21 days, and eliminationfrom the study after 30 days) was enacted in both phases of the data collectionprocess.

ResultsA 49.76% response rate was realized for the leadershipdata collection procedures.In total 29 complete data sets (one LBQ-self and two LBQ-other) were obtained.

Leadership, Organizational Culture, and Job Satisfaction 187

The data were recorded and analyzed using the SPSSx statistical computer pack-age. All calculated values were tested for significance at the .05 criterion alphalevel.

The 12 organizations with the highest average LBQ scores and the 12YMCA organizations with the lowest average LBQ scores were included in thesecond phase of the research. The middle four organizations were eliminated todraw a clearer distinction between the high and low leadership groups (? =6.51,p < .05). The LBQ-self and LBQ-other scores significantly correlated (r = .52,p < .05).

A MANOVA .statistical treatment was employed to analyze the data forboth research questions. The MANOVA procedure allowed the researchers todetermine if a significant leadership difference existed for (a) the five organiza-tional culture factors measured by the OCAQ and (b) the satisfaction levels ofemployees as measured by the JIG. These results are statistically summarized inTable I.

Leadership and Organizatioiud Culture

A 58.94% response rate was garnered for the organizational culture measures.Eighteen (nine high transformational-led organizations and nine low transforma-tional-led organizations) of the 24 selected YMCA organizations satisfied thefour OCAQ return criteria. The MANOVA (WiIks-Lambda) result indicated thata significant difference existed between the organizational culture of the highand low transfonnational groups, f(i,16) = 4.64, p< .05. TTie results of follow-upANOVAs uncovered significant differences for each of the four culture buildingactivities: (a) customer orientation, F(l,16) = 7.12, p < .05; (b) coordinatedteamwork, F(l,16) = 9.20, p < .05; (c) managing change, f(l,16) = 21.42, p <.05; and (d) achieving goals, F(l,16) = 11.64, p < .05. The poor scale reliabilityvalue of the culture strength measure (Cronbach alpha = .23) prompted us toremove this specific measure from the analyses.

Leadership and Employee Job Satisfaction

An identical 58.94% response rate was also realized for job satisfaction measuresas measured by the JIG. The results of the MANOVA allowed the re.searchers

Table 1 MANOVA for Leadership and Organizational Culture Components

Activity

Managing changeAchieving goalsCoordinated teamworkCustomer orientationCulture strength

All factors

df

1, 161, 161, 161, 16++

1, 16

Stepdown P

21.42*11.64*9.20*7.12*-H-

Multivariate P

4.64*

P

.0003

.004

.008

.017++

Note. *Significant at p < .05.-H- Unable to measure due to poor internal consistency.

188 WaUace cmd Weese

to conclude that a nonsignificant difference existed between the high and lowtransformational leadership groups for employee job satisfaction, f (1,16) = 2.49,p > .05.

Discussion cmd ImplicationsTheorists (Bass, 1985; Deal & Kennedy, 1982; Sashkin, 1986; Sashkin & Sashkin,1990; Schein, 1990; Yukl, 1989a, 1989b) have consistently argued that transfor-mational leadership and organizational culture are tightly intertwined concepts.Schein (1990) suggested that the most important aspect of a leader's position isshaping and preserving the culture of the organization. Theoretically, organiza-tions led by high transformational leaders should possess stronger, more definedcultures and engage in the Parsonian culture-building activities to a greater degreethan organizations led by low transformational leaders. A poor culture strengthscale reliability finding did not allow for a precise testing of the first theoreticalproposition; however, the results of the study supported the second portion ofthe statement. High transformational leaders oversee organizations that engagein each of the culture-building activities to a greater degree than organizationsled by low transformational leaders.

Some theorists (Deal & Kennedy, 1982; Denison, 1990; Sashkin, 1986;Schein, 1990) have noted that managing change is a critical cultural functionthat leaders can influence. Change is omnipresent in sport and recreation organiza-tions such as the YMCA, and creating a culture that pervades the management ofchange is paramount to organizational success and survival. The transformationalleader who ensures that staff members deal with change and who uses marketforces to help guide the activities of the organization will be well served (Sashkin,1986).

The creation and penetration of a vision for the organization that can beingrained in the culture of the organization is also recognized as an importantaspect of transformational leadership (Bass, 1985; Bennis, 1989; Bennis & Nanus,1985; Sashkin, 1986; Schein, 1990; Tichy & Devanna, 1986; Yukl, 1989a, 1989b).The C)C. Q measured this culture-building function. High transformational lead-ers were found to lead organizations that engage in the culture-building activityof attaining goals to a significantly greater degree than the organizations led bylow transformational leaders. Consistent with contemporary leadership theory,Bennis and Nanus (1985) suggested that individuals and organizations are moreeffective when they have (a) a clear image of what they want to achieve, and(b) the steps required to attain this desired end. Sport and recreation leaders whoorient their staff members toward a desired end and help shape and preserve aculture grounded in goal attainment are purported to be more effective.

Transformational leaders more effectively align the efforts of staff membersand harmonize their activities in a synergistic fashion (Bass, 1985, 1990; Bass &Avolio, 1990; Bennis & Nanus, 1985; Sashkin, 1986; Tichy & Devanna, 1986;Yukl, 1989a, 1989b). Bums (1978) suggested that many organizations lack aunification of effort. Covey (1991) suggested that competition prevalent withinmany organizations has negatively impacted organizaticmal and personal produc-tivity. He suggested that leaders need to cultivate a coUdwrative orientation. Theresults of this study lend support to the theoretical position that transformational

Leadership. Organizational Cultune. and Job Satisfaction 189

leaders positively impact the coordinated teamwork culture-building activity.Sport and recreation organizations are rarely staffed to full complements andtherefore must rely on the synergistic contributions of staff members workingas a team. Transformational leaders pull staff members together and highlightthe importance of working in harmony toward a desired goal.

The results of this study are consistent with the theoretical positions ofBass (1985), Bennis and Nanus (1985), Bums (1978), Sashkin (1986), Sashkinand Sashkin (1990), Tichy and Devanna (1986), and Yukl (1989a, 1989b) whooffered that transformational leaders lead organizations that are oriented to thewants, needs., and desires of their current and potential clients. An executiveleader of an organization such as the YMCA must ensure that sUff members arefocused on the needs of current and prospective customers. The culture of theorganizations led by high transformational leaders in the YMCA organizationswere more aligned to customer orientation than the cultures of YMCA organiza-tions led by low transformational leaders. One theoretical consequence of thisfinding could be that the culture supports the customer-oriented behaviors anddecisions in these organizations that ultimately contribute to heightened levelsof organizational success and survival.

High transformational leaders are purported to focus on much higher idealssuch as justice, self-actualization, and humanitarianism that contribute to height-ened levels of employee satisfaction (Bass, 1990). This theoretical proposition,however, was not supported by the findings of this research. Theorists (e.g.,Bass, 1985; Bullock, 1984; Bums, 1978; Sashkin, 1986, 1990; Tichy & Devanna,1986; Yukl, 1989a) have suggested that staff members in organizations ledby high transformational leaders are more satisfied than staff members fromorganizations led by low transformational leaders.

An explanation for this finding of nonsupport might rest with the type ofemployee attracted to the YMCA organizations. There were uniformly highlevels of employee satisfaction in every YMCA organization, regardless of thetransformational leadership situation in each respective setting. The YMCA orga-nizations are altruistic organizations that attract staff members with similar orien-tations (Butterfield, 1990). YMCA organizations are staffed by volunteers andpaid employees who work together to design and implement programs and ser-vice.s to help their clients and/or enrich their lives.

The Y MCA organizations attract staff members who are interaction-ori-ented as opposed to task-oriented (Hallett, personal communication, January1993). TTie YMCA organizations offer staff members the opportunity to enjoytheir work in a harmonious, interactive work environment. However, YMCAemployees receive low compensation packages and few opportunities to advancewithin the system (Hallett, persona] communication, January 1993). Bass (1960,p. 148) noted that "some members will find satisfaction if and when the groupattains task success; other members will be more satisfied mainly if the groupaffords the opportunity to interact harmoniously with others."

A final factor contributing to the uniformly high employee satisfactionratings found in all YMCA organizations might be the sampling technique em-ployed. The JIG instrument was distributed to each staff member listed in theYMCA Personnel Directory (November 1991). The directory had been in printfor one year prior to conducting the researeh. Staff members would have beenemploye! for at least one year and probably much longer. YMCA (Hallett, 1993)

190 Wallace and Weese

intemal research efforts have determined that employees whose longevity extendsbeyond two years usually have long careers with the YMCA. These people aregenerally satisfied with their position and intend to stay with the YMCA for anextended period of time. The highest level of employee turtiover occurs in thefirst two years of employment with the YMCA (Hallett, personal communication,January 1993).

In conclusion, the areas of transformational leadership, organizational cul-ture, and employee job satisfaction continue to provide interesting spon manage-ment research avenues. The findings of this study support the theoreticalproposition that links transformational leadership and organizational culture. Thefindings of this study, however, did not support the prevailing opinions linkingtransformational leadership and employee job satisfaction.

Leadership, culture, and job satisfaction are multifaceted concepts that aredifficult to quantify. Additional research in different sport management settingsand employing a qualitative paradigm would provide further insights into theimpact of transformational leadership on organizational culture and employeejob satisfaction. Specifically, experimental research designs in sport managementsettings and incorporating the area of strategic change could aid theorists inunderstanding the complex process of leaders impacting the beliefs, values, andsatisfaction levels of staff members.

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AcknowledgmentThe authors wish to acknowledge Dr. Trevor Slack for his insightful and helpful

comments on an earlier draft of this article.