Organizational Culture, Leadership, and Competency on Employee Satisfaction and Performance

Within a company, job satisfaction is greatly influenced by a complex interplay of elements such as employee competency, organizational culture, and leadership styles. How do these factors interact and affect workers' general satisfaction?

Organizational Culture and its relationship with employee satisfaction

In every organization, there exists a tapestry of shared beliefs, meticulously woven together by its members. This intricate fabric, known as organizational culture, serves as a guiding light, illuminating the path toward internal cohesion and external adaptation. From its inception, this culture is carefully nurtured and transmitted to newcomers, serving as a compass to navigate the complexities of organizational life (Luthans et al. 2011).

At its core, a positive organizational culture mirrors the company's mission and values, instilling a profound sense of purpose, belonging, and alignment among its members (Maleka, 2023). This alignment is pivotal, as research suggests that employee job satisfaction flourishes when there's harmony between personal values and organizational culture (Taskiran et al. 2017).

Consider, for instance, a workplace that champions creativity, teamwork, and work-life balance. In such an environment, employees are more likely to find fulfillment and satisfaction, as their values resonate with the cultural fabric of the organization.

In essence, organizational culture shapes behaviors, influences decisions, and ultimately determines the destiny of the organization. As such, nurturing a positive and inclusive culture should be a paramount priority for every leader, for it is the cornerstone upon which enduring success is built (Abadiyah et al. 2016).

Impact of leadership style on employee performance

Leadership is the capacity and aptitude of an individual to shape the attitudes and actions of others, particularly those of his subordinates, to truly contribute to the accomplishment of organizational objectives (Hersona & Sidharta, 2017). As explored by Hogan and Kaiser (2005), the leadership style with an orgnazation affects employee attitudes and team functioning. 

Figure 1: Impact of Leadership Style (Hogan and Kaiser 2005)

Various leadership philosophies, including transformative, authoritarian, democratic, laissez-faire, and servant leadership, have different impacts on staff morale, engagement, and motivation. For example, transformational leaders create a culture of inspiration and growth by inspiring and motivating their people by providing a compelling goal and giving them the tools to realize it (Abadiyah et al. 2016). Conversely, autocratic leaders might foster a climate of fear and obedience, which would make workers less satisfied with their jobs (Hassnain, 2023). Thus, an organization's culture and employee satisfaction are greatly influenced by the leadership styles inside it (Muliyati, 2023).  

Employee competency and employee satisfaction

Employee competencies encompass the essential knowledge, skills, and abilities required for proficient job performance. When employees feel competent and effective in their roles, it fosters a sense of fulfillment and achievement, thereby enhancing overall job satisfaction (Putra,2021). Moreover, organizations that invest in training, offer avenues for career advancement and prioritize employee development demonstrate a commitment to fostering the growth and success of their workforce. Such initiatives not only contribute to enhancing employee competency but also cultivate a culture of support and empowerment within the organization (Gorde et al. 2022). By prioritizing employee development and creating opportunities for advancement, companies not only strengthen their talent pool but also foster a positive workplace culture conducive to employee engagement and satisfaction. This, in turn, contributes to organizational success and long-term sustainability.

Conclusion

Employee competency, organizational culture, and leadership philosophies all have a significant role in determining job satisfaction in a company. Organizations may create an atmosphere where employees feel appreciated, engaged, and pleased by investing in employee development, developing a good culture, and implementing effective leadership techniques. These actions will ultimately increase performance and success. 

References

Abadiyah, R. Eliyana, A. and Sridadi, A. (2020) 'Transformational leadership and organizational commitment as an effort to avoid burnout of nurses', 11. 

Gorde, S. Sakharekar, S.and Sayankar, K. (2022) 'The role of employee empowerment practices in the organizational development', viewed 20 March 2024, <https://www.researchgate.net/publication/364816640_The_Role_of_Employee_Empowerment_Practices_in_the_Organizational_Development>.

Hassnain, A. (2023) 'Impact of autocratic and democratic leadership styles on employees’ performance and motivation', Journal of Administrative and Business Studies, 8(3). 

Hersona, S.and Sidharta, I. (2017) 'Influence of leadership function, Motivation and work discipline on Employees’ performance', Journal of Applied Management, 15(3), pp. 528.

Hogan, R. and Kaiser, R. (2005) 'What we know about leadership', Review of General Psychology,  9(2), pp. 169-180. 

Luthans, F. Luthans, BC. and Luthans, KW. (2011) ‘Organizational Behavior an Evidence - Base Approach’, 12th edn, McGraw,  New York.

Maleka, S (2023) 'The influence of organisational culture on the implementation of strategic plans in a public service organisations',  1.

Muliyati, Lily,  Febrian, WD. Rajab M. and AR, MT. (2023) 'Transactional leadership: employee performance and organizational performance (Literature Review)', East Asian Journal of Multidisciplinary Research, 2(3), pp. 1129-1142.

Putra, P. (2021) 'The influence of situational leadership, work environment, competence, and motivation on employee job satisfaction at the National Library of Indonesia', International Journal of Current Science Research and Review, vol. 04.

Taskiran, E. Cetin, C. Özdemirci, A.  Aksu, B. and Istoriti, M. (2017) 'The Effect of the Harmony between Organizational Culture and Values on Job Satisfaction', International Business Research,10(5), p.133.