Organizational behaviour, nature & levels of organizational behaviour
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Transcript of Journal About Organizational Behaviour
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A Study of the Relationship among Employee PersonalityCharacteristics, Organizational Culture, Leadership Style,
Organizational Commitment, and Task performance-
With the High-Tech Industry in Taiwan as an Example
Li-Yu Tseng
Ph.D. Program in Business Administration, Fu Jen Catholic University.
8F., No.278, Wenlin N. Rd., Beitou Dist., Taipei City 112, Taiwan R.O.C.
Tian-Shyug Lee
Graduate Institute of Management Fu Jen Catholic University.
No.510, Jhongiheng Rd., Sinjhuang City, Taipei County 24205, Taiwan, ROC
ABSTRACT
Past studies about task performance of high-tech industry mainly focused on the
relationship among working stress, working characteristics, employee motivation, and
compensation system. Based on the above reasoning, this study tries to detect whether
employee personality, different organizational culture, and different leadership style
will have impact on organizational commitment and hence raising the task
performance of employee. In order to verify the above hypothesis, 304 employees
from high-tech public companies in Taiwan were selected as illustrative example
using the popular LISREL software as the analytic tool. The research findings can be
summarized as follows. First, it indicates that high-tech companies whose employeesexhibiting appropriate personality characteristics have positive effect on
organizational commitment. Second, high-tech companies exhibiting innovative
culture and supportive culture also have significant impact on organizational
commitment. Third, it will help raise task performance when employees have more
value commitment and effort commitment. In addition, organizational commitment
acted as an intermediary role between employee personality characteristics,
organizational culture, and task performance; that is, employee personality
characteristics and organizational culture would indirectly influence task performance
through organizational commitment.
KEYWORDS: Employee Personality Characteristics, Organizational Culture,
Leadership Style, Organizational Commitment, Task Performance
INTRODUCTION
Facing the rise of BRIS and Next Eleven(N-11), during the governments
consideration of the economic policies, market demand and international
competitiveness, apart from facilitating enthusiastically the upgrade of the traditional
industries, it is also a key development to promote the ten most newly developed
high-technology industries, i.e. consumer electronics, communications, information,
semiconductor, precision machinery and automation, aviation, advanced materials,
specialty chemicals and pharmaceutical, health care and pollution prevention andcontrol industries, etc. It enables the proportion of Taiwans high-technology
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industries rising from 27.4% to 42.3% of the manufacturing output
(http://doit.moea.gov.tw).
With the rapidly changing global economic environment and facing the impact of
globalization and the waves of the financial tsunami, corporations cannot earn high
profits simply by using physical assets and relying sales of products. Therefore, thefocus is gradually shifted from the use of strategy to the importance of people
(Cohen, 2005). Employees personality characteristics reflect unique personal
characteristics and will result dynamical characteristics in response to different
environments. Employees of high-technology industries work under high stress every
day. Its more necessary to find out employees personality characteristics so that they
can be assigned to the appropriate work and have task satisfaction. Therefore,
personality has a considerably explanatory and predictive power to individual
behaviors. In addition, if personality matches the job nature, it enables employees to
work proficiently. Their task performance can be enhanced and thereby creates the
corporate performance.
Facing the increasingly stringent international competitive conditions, economy of
speed becomes the commercial symbol of this century (Sprenger, 2004); teamwork
has become the important element for the corporate success; and trust is the catalyst
of teamwork. Regardless of the interactions of supervisors and subordinates or among
colleagues, trust can create a great synergy. In particular, the behaviour leadership of
obtaining others trust, respect, faith and cooperation needs to encourage every
individual to pursue the vision enthusiastically and proactively through goal settings,
promotion of employee participation and communication as well as motivation. If the
corporate wants to enhance employees work quality and performance, employees and
the management must have mutual trust; and effective leadership is used to encourage
employees to complete their work enthusiastically prompting the organization to
achieve the expected goals.
Corporate members share among themselves the humanity creation, ideas, values,
assumptions, and even the perception within the organization. They have common
characteristics describing the differences among organizations. They integrate
themselves, group and the system variables of the organization to form the
organizational culture which differentiate from other organizations (Dyer, 1985;
Robbins, 1989). Organizational culture is a system of economic power distribution
(Dobson, 1990). It is a power facilitating the unity, cohesion and mutual assistance
and cooperation among the corporate members; and also a strong force for themembers to fight for the corporation goals jointly (Gordon & Ditomaso, 1992).
Organization culture can certainly take advantage of heroes and models of good
image, or use its powerful environment and selectively consolidated system to reward
the qualified employees (Dessler, 2001), in order to exercise an internal power and
make employees be initiatively dedicative to the company (Gardner, 1985).
Organizational commitment is that employees identify themselves with an
organization and its goals; and hope to maintain as a member of the organization.
(Mayer & Schoorman, 1998). It refers also that the members of the organization are
willing to pay efforts, respect, and be faithful to the organization or in pursuit of their
goals, in return for a condition for satisfaction (Hodge et al., 1996). To start the trustmechanism is the best way for employees to agree with the organization and its goals
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(Sprenger, 2004). Leaders should enthusiastically start to work from themselves. If
the trust component in an organization is greater, employees will feel that the control
measures can help to provide information and support; and also are encouraged to
trust each others. It will lead to a series of trust building and feedback (Sprenger,
2004); and encourage employees to have a strong desire to maintain the identity as a
member of an organization; trust and accept the organizational goals and values and be willing to pay a high degree of efforts to the organization (Porter et al., 1974).
Thus, employees will be self-motivated at work.
Task performance refers to the value of an employees contribution to the work; the
quality or quantity of work, i.e. employee productivity. High productivity of
employees means overall high operating performance. Schermerhorn (1989) believes
that a good task performance is generally based that the organization's human
resources have the ability to complete its work, be willing to pay necessary efforts,
and have the appropriate support. Ability is the most important among them. However,
Campbell (1990) thinks that task performance is the behaviour of en individual
member of an organization, to complete the organizations expectation and performthe regulated and formal role as required. In other words, employees have the ability
to complete the work within a specified period of time; and subordinates or a group
achieve the objective of a project contributing to the organizational goals.
In this rapidly competitive era, corporations pursue their own interests by focusing on
achieving its strategic goals and assessing its business performance in terms of
considering strategies, resources allocation, coordination and control, etc. in order to
enhance business performance, however, completion of work efficiently by
employees, the source of task performance, is neglected. Furthermore, the previous
studies of high-technology industries were focused on stress at work, organizational
performance, and location and selection strategies for research centres. In this study, it
is to investigate the reasons for affecting the task performance of employees in the
high-technology industries by employees personality characteristics, organizational
culture, leadership styles, organizational commitment, etc. Meanwhile, it is based on
the linear structural relationship model by the combination of factor analysis and path
analysis to simultaneously deal with the causal relationship between multiple sets of
independent variables and dependent variables. In this study, LISREL is used to
verify the variables of the hypotheses of the employees personality characteristics,
organizational culture, leadership styles, organizational commitment and task
performance. It is expected to provide the proposal for strategic management to the
business sectors by the objective empirical results.
LITERATURE REVIEW AND RESEARCH HYPOTHESES
The measure of organizational commitment
Organizational commitment refers to the individual behaviour to an organization in
terms of concern and loyalty. When the employees are more loyal to the organization,
he or she has a higher organizational commitment (Angle & Perry, 1981). Porter et al.
(1974) believes that organizational commitment is consisted of value commitment
which an individual trusts and accepts and commits to the organizational goals and
values; effort commitment which an individual has a high degree of effort
commitment to an organization; and retention commitment which an individual is
willing to maintain the membership in the organization. Stevens, Beyer & Trice (1978)thinks that employees are willing to remain in an organization and pay more efforts
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belong to normative commitment. It is because they believe that it is in line with the
organizational norms. Furthermore, organizational members measure the difference
between their contribution to an organization and the rewards from the organization
that refers to exchange commitment. The Allen & Meyer (l991) has proposed that
employees organizational commitment is consisted of affective commitment which
means organizational members are willing and have an idea of hoping and remainingto provide service in an organization; and continuance commitment which means the
awareness of the employment opportunity outside an organization and costs of
leaving an organization; and normative commitment which is remaining loyalty to an
organization. In this study, all previous research studies are reviewed and the diverse
characteristics of the high-technology employees are considered; and the different
views from Porter et al. (1974), Stevens, Beyer & Trice (1978), Allen & Meyer (l991),
etc. are summarized. Therefore, organizational commitment will be divided into
dimensions of normative commitment and exchange commitment, etc.
The measure of leadership styles
Facing the competitive changing market, corporate development and survival dependsentirely the leader of an organization. A leaders order and behaviour is associated
closely to a companys future development. A leader needs to motivate employees to
enhance their hierarchy of needs and inspire their self-conscious behaviours. Burns
(1978), Bass (1985), Bass & Avolio (1997) and other scholars have suggested that
transactional leadership which means a leader should use tangible and intangible
conditions to exchange with subordinates; transformational leadership which means a
leader with personal charisma inspires subordinates with personal care and
intellectuals to improve their hierarchy of needs in order to achieve a high-level goals.
It will be more helpful to manage subordinates to achieve the objectives (Gustafson,
2001). Therefore, leadership will include styles of transactional and transformational
leadership, etc. in this study.
Personality characteristics and organizational commitment
Personality is the unique interpersonal characteristics. It can be predicted the future
behaviour from the past behaviour (McCrae & Costa, 1986). Individual response to
situations causes structural and dynamic nature of performance (Pervin & John, 1997).
It determines the permanent nature and tendency for the similarity and diversity
between an individual and others (David, 1989). Rotter (1954), according to the social
learning theory, has proposed the locus of control concept. Personality includes
internal control which means that employees, with individuals abilities and attributes,
are able to control their own destiny; and external control means that all things in lifeare controlled by external forces. Friedman & Rosenman (1974) have proposed the
Type A and Type B personality theory. An individual with Type A personality traits
has a strong incentive to overcome obstacles, likes competition, enjoys the power and
recognition, and likes the energetic and efficient way of doing things. On the contrary,
an individual with Type B personality traits is more relaxed and patient; work hard
occasionally, but less impetuous than Type A individuals. As there is intensive
competition in the high-technology industries, employees should have characteristics
internally, e.g. the ability of overcoming difficulties, energetic and face continuously
challenges, etc. Thus, the independent variables of this study will be according to the
Type A and Type B personality theory of Friedman & Rosenman (1974) and the locus
of control concept of the internal and external control of Rotter (1954).
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Personality characteristics affect the tendency of an individual to identify oneself with
an organization, such as individuals motivation of achievement, values and ideas,
gender roles, explicit requirements, etc. Different personality characteristics
differentiate significantly organizational commitment (Luthans, Baack & Taylor,
1987). Employees with Type A personality or internal control have the higher
organizational commitment. Therefore, this study is based on the above academicstudies which have shown that personality characteristics are significantly related to
organizational commitment, and further investigate if employees with different
personality characteristics will significantly differentiate organizational commitment.
It is summarized as hypothesis below:
H1: Employees with different personality will significantly differentiate
organizational commitment.
H1-1 Employees with Locus of Control personality will significantlyhigher organizational commitment
H1-2 Employees with Type A personality will significantly higherorganizational commitment
Organizational culture and organizational commitment
Organizational culture is that organizational members share a common system of
values which differentiates an organization from another organization (Robbins,
1998). It is a set of values, beliefs and patterns of behaviours for establishing the core
system of an organization (Dension, 1990). Wallach (1983) believes that an
organization is flexible, internal and external oriented and has proposed that
organizational cultures can be divided into bureaucratic culture, innovative culture
and supportive culture. Until 1985, Cameron thinks that effective culture should also
be considered. As the high-technology industries have the characteristics such astechnology, capital, technological labour-intensive, high risk, and short product life
cycle, etc, the innovative culture and supportive culture of Wallach (1983) will be
used as the dimensions of organizational culture in this study.
Reimann & Wiener (1988) suggest that the core values of an organizations members
exist strongly in the organizational culture when the cultural beliefs are widely shared
by themselves. Thus, a logical measurement is one of the ways to strengthen
organizational culture and the degree of members commitment to their organization
(Banner & Gagne, 1995). Moreover, organizational commitment regulates the
pressure generated by the internalization of the integrity that enables staff to behave in
line with an organizations goals and interests (Wiener, 1982), therefore, the higherthe consistency of the organizational culture and the stronger the intensity, the higher
the employees can commit. Situations such as turnover, absence as well as work
inefficiently, etc. will not be easily occurred. Thus, the dimensions of organizational
culture, innovative culture and supportive culture proposed by Wallach (1983), will
be used in this study. The hypothesis is summarized below:
H2: Different corporate culture differentiates employees organizational
commitment.
H2-1 Corporate with innovative culture, employees organizationalcommitment will be higher
H2-2 Corporate with supportive culture, employees organizationalcommitment will be higher
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Leadership styles and organizational commitment
Ever since the organizational behaviour began among mankind, leader is the most
influential factor for the organizational operation in the integration process between
individuals and organizations; and has both identities no matter between the leader
and followers or between the manager and subordinates. Hewlett-Packard hasdeveloped from a garage business, with 6,700 employees worldwide currently,
showing a clear path for forming a great company is the key of leadership (Malone,
2007). Therefore, the problem arising from the leadership is related to the success or
failure of an organization and the employees benefits and also enhances the
organizational effectiveness. A Transactional leader uses a rewards system for
organizational goals setting and awards employees with good performance. In
recognition of employees achievements makes them get a sense of accomplishment
in the organization, and be willing to pay efforts, ability and loyal to the
organizational goals (Hodge et al., 1996). Furthermore, a transformational leader
provides vision and mission, is good at communicating with employees, gives
individual concern; enhances employees a sense of belonging and loyalty, so thatemployees have the desire to maintain memberships in the organization; are willing to
invest a high level of efforts for the organization to assist it to reach its goals. Below
is the hypothesis in this study:
H3: Different leadership styles differentiate employees willingness to commit to
the organization
H3-1Leadership style with transformational leader will higher employeeswillingness to commit to the organization
H3-2 Leadership style with transactional leader will higher employees
willingness to commit to the organization
The measure of task performance and its influencing factors
The so-called "performance" refers to a measure of the achievement of the goals for
an organization. It is used as indicators and measurement methods to present the level
of achievement in the mission, goals and objectives (Duquette & Stowe, 1993). Task
performance is the quality and volume of achieved task or work performed by an
individual or a group (Schermerhorm, 1999). Task performance refers to an
employees total value of inconsecutive behavioural events at a standard time, in
terms of behaviour, tasks, evaluation and multi-dimensions. It is used as the default
variable number of future-driven development and effective motivation (Borman &
Motowidlo, 1997). Browning (2006), Elizabeth (1990), Mcgrath (1993) and Donna(1996) believe that the measurements of performance indicators are nothing more
than the Efficiency, Effectiveness and Quality. However, Borman & Motowidlo
(1993) believe that the indicators, Efficiency and Effectiveness in task performance
should be classified as task performance; Quality is classified as contextual
performance.
Robbins (1998) believes that the measurement for task performance can be divided
into two categories: employees work outcome and employees work behaviours
(including some employees characteristics). Employees in the high-technology
industries face the rapid changing external environment, in addition to evaluate the
work efficiency, work effectiveness and work quality, it needs also to consider work
behaviours such as self-motivated at work, attention and alertness, obey the norms atwork, etc.; and work outcomes such as unspoken consensus among colleagues, goals
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achievements, recognition of work performance and willing to undertake additional
work, etc. Therefore, the arguments from Borman & Motowidlo (1993), Robbins
(1998) are summarized as two major dimensions: work outcome and work behaviour.
Organizational commitment and task performance
Organizational commitment is that individuals identify themselves with anorganization and its goal; and the extent of hoping to maintain as a member of the
organization (Mayer & Schoorman, 1998); facilitate employees to have a sense of
identity; be proud of being a member of an organization and practice it on the task
performance. In order words, employees identify themselves with the values of an
organization and make every effort to help the organization to achieve its goals and
expectation; and perform behaviours as regulated or formal required roles (Campbell,
1990). The higher the employees loyalty, sense of identity and participation in
organizational activities, the higher organizational commitment the employees will
have (Robbins, 2001). Employees will then converse this organizational commitment
to work hard and expect to create task performance for an organization. Thus, highly
committed employees show good task performance such as proactive efforts and work behaviour in coping with the organizational goals and achieving the work outcome
(Steers, 1977).
H4: The higher an employee's organizational commitment to the company, the
better an employee's task performance.
H4-1 Employee's with normative organizational commitment, will gethigher task performance.
H4-2 Employee's with exchange organizational commitment, will gethigher task performance.
Personality characteristics, organizational commitment and task performance
Every employee has different personality characteristics which affects the deeply-
rooted patterns of behaviour of employees and predicts the performance of individual
behaviour (Wiggins, 1996). If a company understands the locus of control of
employees who are self control of everything (with traits of internal control) or
believe everything is controlled by external situations (with traits of external control);
would like to achieve the greatest in the shortest time (Type A personality) or often
set a deadline for themselves or work relatively slower (Type B personality);
employees can be assigned to appropriate work position according to their diverse
personality traits, thereby, it enables them to achieve the job objectives efficiently and
complete the tasks of the organization (Brouther, 2002); appropriate personnel can beselected and qualified employees can be retained (Furnham & Miller, 1997).
H5: Different employees personality characteristics differentiates their
willingness to task performance
Allport (1961) believes that personality characteristics determine an individuals
adaptation of the external environment, and the unique patterns of ideas and
behaviours, so employees behaviour will reflect their unique personality
characteristics. If an individual has a positive evaluation of an organization and
psychologically involvement, and focus on work roles after joining an organization
(Buchanan, 1974), it can develop to an affection of loyalty to an organization. If acompany can make use of organizational commitment, encourage employees to trust
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and accept the goals and values of an organization and make them be willing to work
towards to the organizational goals and values. Then, there will be employees with
high organizational commitment. It can help to enhance task performance in an
organization such as completing tasks within limited time, a high rate of
accomplished goals and reducing the rate of customer complaints, etc.
H6: Employees with different personality characteristics and organizational
commitment affect them to have better task performance.
Organizational culture, organizational commitment and task performance
Organizational culture is a pattern of shared values and beliefs for developing the
code of conducts and norms in a company (Osland, Kolb & Rubi, 2004). It is also the
right way of how organizational members think and deal with the internal integration
and external problems. It helps the organizational members to understand the idea and
experience of how to handle things in an organization (Griffin, 2005). Therefore, the
conversion of organizational culture to the guidelines of employees behaviours will
help to improve the work efficiency of employees.
H7: Different organizational culture differentiates employees willingness
towards their task performance.
When a corporate makes use of organizational culture to unite strongly all the
employees within the organization, the employees will develop organizational
commitment and agree with the organization and its goals. When employees hope to
become a permanent member of an organization (Mitchell, 1992, Robbins, 2001),
they will demonstrate their own work ability to be recognized by the management and
accepted by an organization and will be more willing to pay more efforts for an
organization (Angle & Perry, 1981). This can make employees to achieve all the tasks
and objectives at work, and thus enhance employees work efficiency.
H8: Different organizational culture and the impact of organizational
commitment affect employees to have better task performance.
Leadership styles, organizational commitment and task performance
Leadership is the art of achieving the work objectives by others (Mhut, 2002), and to
make the organizational members more confident to achieve the organizational goals
(Dubrin, 2004), so that leadership can be said as the ability to influence a group to
achieve its objectives (Robbins, 2001). Yammarino & Bass (1990) believe thattransformational leadership understands how to encourage the followers and inspire
the employees to make the greatest efforts to reach a high level of performance
standards; however, Bass (1985) believes that transactional leaders focus on the
process that a leader is committed to exchange rewards with subordinate. Employees
can then understand how to get rewarded and are willing to work hard for achieving
the organizational goals.
H9: Different leadership styles differentiate employees willingness to task
performance.
A leader with transactional leadership can make use of tangible and intangibleconditions to exchange with subordinates; or a leader, with transformational
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leadership, with personal charisma inspires subordinates with personal care and
intellectuals to improve employees hierarchy of needs. If the organization can create
the organizational commitment by recognition of an organization and its goals; and
enhance the degree of employees wish of membership in an organization, it can
reduce the employees intention of turnover (Micales & Spector, 1982) and make
employees focus on putting efforts to reach organizational goals.
H10: Different leadership styles are adopted and the impacts of organizational
commitment affect employees to have a better task performance.
Establishment of the research framework
Task performance is the basic element for employees to create the corporate values.
The objective of task performance does not only measure the degree of job
accomplished by employees and the performance of current work situation, but also
enables employees to understand their created work values, quality and productivity
for an organization (Byars & Rue, 2001). As the task performance of employees are
related to their personality characteristics, it will help a company to enhanceorganizational competitiveness if there are positive, hardworking, self-motivated
employees; the leader makes use of enlightened leadership; and together with
organizational culture which unites employees. However, the previous articles of task
performance have not been focused on the dimensions of personality characteristics,
organizational culture, leadership styles and organizational commitment, etc. to
investigate the causality. In this study, as shown in Figure 1, the research framework
will be a combination of personality characteristics, organizational culture, leadership
styles as independent variables, organizational commitment as the intervening
variable, and task performance as the dependent variable.
METHODS AND RESEARCH DESIGN
Measurement of variables and operational definition
LISREL has the hypotheses-testing capabilities and can also eliminate obvious
multicollinearity of the independent variables; a variable becomes another variables
dependent variable. It can also be a variable for a variable number of contingency, to
analyze the characteristics of a complex casual relationship better than path analysis
(Joreskog & Sorbom, 1993), In addition, LISREL is not only used for the chi-square
test, to verify the theoretical model and distribution of data type, but also for testing
the significance of a special path by the t value or sequential chi - squire difference
test. A part of LISREL is to describe the relationship of the structural equation model
between the latent variable, which cannot be observed directly; another part is todescribe the measurement model of the relationship between the directly observed
H1
Figure 1 Conceptual Framework
Note: H1H2H3H4H5H7H9are Direct EffectsH6H8H10 areIndirect Effects
Employee PersonalityCharacteristics
Organizational Culture
Leadership Style
Organizational
CommitmentTask Performance
H2
H7H3
H4
H9
H5H6
H8
H10
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manifest variables (Hair et al., 1998). With the framework of this study, the initial
definition of the latent exogenous variables are personality characteristics (1),
organizational culture (2) and leadership styles (3); and the latent endogenous
variables are organizational commitment (1) and task performance (2). The
measurement for the exogenous manifest variable (X) and the endogenous manifest
variable (Y) will be combined to the theories and the interview experience anddevelop a 5-point Likert-scale questionnaire for investigation. The details are
described as follows:
Personality characteristics
Personality characteristics refers to an individuals psychological and physiological
phenomena. It shows the unique psychological characteristics in response to different
time and situations, thus, to determine the patterns of behaviour and ways of thinking
for adaptation of environment. It can be divided as follows:
(1) Internal / external locus of control: one believes that the creation of job
opportunities depends on oneself (Rotter, 1954); Regardless of job contents, one canachieve it; Take action if one is not satisfied with the decision made by the boss
enthusiastically; can achieve the assigned work by the organization; can achieve the
goals (Brissett & Nowick, 1976); strive to become an excellent employee (Spector &
O'Connell, 1994); job promotion is for employees with good task performance (Rotter,
1954); work seriously should be awarded with given deserved reward; ones
behaviour determines ones own life (Spector & O'Connell, 1994).
(2) Type A /B: have the concept of punctuality and never be late for work or attending
conference; show a positive and competitive attitude (Friedman & Rosenman, 1974);
be willing to bear the stress; in pursuit of efficiency (Friedman & Rosenman, 1974 ;
Caplan & Jones, 1975; Carrer & Glass, 1987;); do not easily reveal the feeling of any
matter; work overtime voluntarily or carry the job to work at home; have a feeling of
guilty if one has too much leisure time; set the progress of work and deadlines; pay
attention to personal achievements; not easily lose ones temper; think about the
unfinished work (Jenkins, 1976; Chesney & Rosenmna, 1980).
Organizational culture
Organizational culture is a common system of values followed by organization
members from the top management to all subordinates. It is also the internal
guidelines for behaviours in a company that differentiate from another company. It
can be divided into:(1) Innovative culture: adventurous and enterprising spirit; encourage employees to
accept new ideas or to be innovative; operate independently; autonomy is given;
encourage to express views / ideas; collect customer-related information
enthusiastically (Wallach, 1983).
(2) Supportive culture: cooperation; mutual trust; equal treatment; emphasis on
interpersonal relationships; give often encouragement and rewards; a harmonious
working atmosphere; give others a sense of security (Wallach, 1983).
Leadership styles
Leadership styles from the leaders can be divided as follows:
(1) Transformational leadership: a model for employees to respect and learn from;enable employees to feel happy and proud of; trust the managers who have ability to
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overcome work difficulty and power of judgement; use methods to encourage
employees; enable employees be enthusiastic about the assigned tasks; set a high
standard for employees task performance (Burns, 1978); able to point out the current
direction of thinking for employees; able to give concerns at the appropriate time;
able to understand the need of employees; express gratitude at the appropriate time; is
willing to spend time to instruct employees; encourage employees; use a new way ofthinking to think about the old problems; emphasize that employees use wisdom to
solve their problems.
(2) Transactional leadership: will get the desired returns as long as one works hard;
can negotiate with the direct supervisor about the task performance; extent of
involvement is closely related to return of investments; exchange what employees
need with support; the direct supervisor is satisfied with a good task done by the same
method (Bass, 1985; Avolio & Bass, 1989); talk with employees only about the scope
of matters which they need to know; accept employees new practice of work but do
not actively encourage it (Konovsky & Pugh, 1994).
Organizational commitment
Organizational commitment is that organizational members identify themselves with
the organization and are willing to pay additional efforts to achieve the organizational
goals. It can be divided as follows:
have a high organizational commitment; be proud of being a member of an
organization; be concerned about a companys future development and visions; fully
develop ones abilities; a company is significantly important for employees personal
work achievement and career development; personal values and corporate values are
very closely to each others; the company is an ideal work place; employees are
satisfied with working hard in a company; have a affective emotion to the company;
be willing to pay additional efforts; have the responsibility to work hard (Porter et al.,
1974); try the best to overcome difficulties at work; take the initiative to help
colleagues to solve the problems at work; teach the new colleagues with ones own
work experience; take initiative to collect and learn the required and work-related
information and skills (Stevens, Beyer, & Trice, 1978); feel to have a bright future if
remaining to work in the company; hope to continue to work at the company; have
paid a lot of efforts for the company; employees do not consider to change the job; be
still willing to remain in the company (Allen & Meyer, l991).
Task performance
Personal knowledge, ability and role, cognitive expectation on an individual at anorganization influence the extent of individual efforts to an organization and the job
performance. It can be divided as follows: follow the standard of operating procedures;
overcome the problem by oneself; have mutual support and assistance if colleagues
encounter problems at work; follow the instructions to complete the work; pay highly
attention and increase alertness; with dedicated spirit of responsibility; be attentive
and obey the safety and health-related matters (Borman & Motowidlo, 1993); high
morale and efficiency /good attendance; complete the work within the time scheduled;
co-operate to achieve the organization goals; recognize the performance of colleagues;
the quality of work is recognized by the direct supervisor; be willing to undertake
additional work; contribute a lot to the work unit (Robbins, 1998).
Target of sample and the operational model
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In view of the high-technology industries have been the leading industry for economic
development in Taiwan recently, and the operation for high-technology industries
must have a specialized knowledge and technology, abundant high-technology talents
as well as accumulation of such cutting-edge technology are important successful
factors, therefore, selection of personnel is very import. They must have personality
characteristics such as being able to work under a stressful environment, has a senseof satisfaction and full of ambition; so that it can enable the organization full of
vitality, competition and determination internally and externally. Moreover, leaders
for the high-technology industries are different from traditional manufacturing or
service industries. Facing the highly competitive environment, and threatened by
global competitors, speed is the most essential no matter in aspects of production,
sales and marketing or research and development. Under such high working pressure,
termination or turnover rate is high, job-hopping spree is even popular, in addition to
the specialization of division of labour, diverse workforce, recruitment and training
and development need to be highly emphasized. Thus, how a leader could make use
of his/her leadership style to integrate the high technological labour under such
industry with special characteristic environment , to enhance employees to commit tothe organization, identification, cohesion, consensus and lead them work towards the
mission and establish friendship among colleagues, aiming to enable the formation of
a closely community between employees and the organization, in order that
employees are retained and capacity of the organization is maintained under the high
labour mobility rate. However, the previous studies of high-technology industries
often neglected the assessment of personality characteristics, employees willingness
to commit to the organization and achieve its goals, thus increasing the significant
importance of their own task performance. The high technological industries are
particularly selected as the target of samples in this study.
As the purpose of this study is emphasized to investigate the influence of the
employee personality characteristics, leadership styles, organizational culture to
organizational commitment for the high-technology industries in Taiwan, the
employees in the these industries from the listed companies and the OTC companies
of the Ministry of Finance R.O.C., strictly confidential, are selected as the target for
the sample and respondents to fill in the questionnaires and enables a consistency of
recovery to the population. A total of 512 questionnaires have been distributed and
372 copies are received. After deducting 68 incomplete questionnaires, 304
questionnaires are valid and the effective return rate is 59.4% which supports the
framework for the operational model. It is shown in Figure 2:
3
2
1
Figure 2 Structure Equation Model of Research
4
2
1
3
1
X
21
X
y32
y
11
21
Employee Personality
CharacteristicsTask
Performance2Organizational
Commitment
Normative
Commitment
Y1
Exchange
Commitment
Y2
Locus of
Control
AB Style
X2
Work
Behavior
Y4
WorkOutcomes
Y3
y11
y21
2
4
3
X
41
X
12Organizational
Culture2
Innovative
Culture
X3
Supportive
Culture
X4
6
5
X
61
X
13
Leadership
Style3
Transformatio
nal
Leadership
Transactional
LeadershipX6
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DATA ANALYSIS AND EMPIRICAL RESULTS
Validity and reliability analysis
Validity can accurately measure the extent of what researchers measure (Chen, 2000),
while reliability is the consistency of measuring results by the same measuring tools
and target of research in various environments. The design of the questionnaire in this
study is reviewed by the relevant literature and the actual situation of high-technologyindustries. To ensure the integrity and representativeness of the contents of
questionnaire, experts and practitioners are repeatedly requested to make amendments,
thus, it should meet the standard of validity. At the same time, in order to verify the
questionnaires construct validity, not only the individual items and the correlation
coefficient of the total score are used (Kerlinger, 1986); and eliminate the items of
insignificant relationship between the operational definitions such as action (0.310),
reveal easily (0.245), independent operations (0.383), standards setting (0.270), etc.;
but also factor analysis, according to Kaiser criteria, by retaining the factors with
characteristic value which is larger than 1; and then tested by extracting the common
factor coefficient (extension of validity). Then, Cronbach's coefficient is used to test
the reliability of this study. If the reliability coefficient is above 0.80, it reaches thehigh reliability standards. If it is larger then 0.70, it is regarded as the acceptable
reliability (Wortzel, 1979). From Table 1, the Cronbach's coefficients of this study
are between 0.711 ~ 0.896 and show the internal consistency of all variables.
Table 1 Reliability Analysis
Latent Variable Manifest Variables Cronbachs Latent
Variable
Manifest
VariablesCronbachs
EmployeePersonality
Characteristics
1
Internal / externallocus of control X1
0.728 OrganizationalCommitment
1
NormativeCommitment Y1
0.856
AB Style X2 0.788Exchange
Commitment Y20.849
OrganizationalCulture
2
Innovative cultureX3 0.840 Task
Performance2
Work OutcomesY3 0.896
Supportive culture
X40.778
Work Behaviour
Y40.867
LeadershipStyle3
Transformational
leadership X50.845
Transactionalleadership X6
0.711
Basic information of the respondents
In the 304 valid questionnaires, the proportion of the basic information among the
respondents can be accounted for: gender: male (56.2%) and female (43.8%); Level of
education: university (42.1%) and research institute or above (38.5%) share themajority; years of service: 1-3 years (28.9%) is the majority and is followed by 5-10
years (21.4%) and 10 years (18.4%); years of establishment of the parent company in
the country: the majority is more than 20 years (about 46.1%); the majority of
respondents who belong to telecommunication (28.6%) and information industries
(27.3%); the amount of capital is more than 50 hundred million (43.1%); the amount
of sales is more than 100 hundred million (41.1%); the number of employees in the
parent company in the country is more than 1,001 people is majority (about 29.3%),
the next is between 100 and 250 people (about 28.9%). The high-technology
industries have a huge amount of capital, according to the capital amount from the
parent companies, and the time establishment is up to 20 years and employees of
1,001 people are the majority.
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To confirm whether the variables of this study are in line with the normal assumption,
structural equation model is used for analysis. It is in line with the normal tests,
skewness, in which the absolute value of S coefficient is less than 3; and the kurtosis,
in which the absolute value of K coefficient is less than 10 (Kline, 1998). The results
of the absolute values of S coefficient of all latent variables are between -0.351 ~
0.602; the absolute values of K coefficient are between -0.008 ~ 2.199. All meet thenormal requirements. The details of results are shown on Table 3. Next, to assess the
means of all measuring variables in the samples, for personality characteristics, the
mean of Type A/B is the highest (3.6441, standard deviation: 0.5342), showing that
the personality characteristics of high technological labour tend to prefer competition,
recognition, working hard, work in an efficient way of full of ambition and energy
(Friedman & Rosenman, 1974; Chesny & Rosenman, 1980); Moreover, the latent
variable of the organizational culture shows innovative culture (3.4485, standard
deviation: 0.7752) is higher than supportive culture (3.4485, standard deviation:
0.6991), showing that the high-technology organizations value the employees
creativities and challenges more than providing them a warm family feeling
environment. Furthermore, for the leadership styles, transformational leadership(3.4024, standard deviation: 0.7466) is higher than transactional leadership (3.2146,
standard deviation: 0.6514); for organizational commitment, effort commitment is the
highest (3.6102, standard deviation: 0.7026); for job performance, work outcome is
higher than work behaviour.
Table 2 Results of Overall Model Fitness
Manifest VariablesCoefficient
of Skewed
Coefficient
of KurtosisMin Max Mean Std. Var.
Locus of Control X1 0.570 0.304 1.50 5.00 3.5822 0.6573 0.432
AB Style X2 0.111 0.197 2.00 5.00 3.6441 0.5342 0.286
Innovative culture X3 -0.351 -0.008 1.00 5.00 3.5197 0.7752 0.601
Supportive culture X4 0.445 1.207 1.00 5.00 3.4485 0.6991 0.489
Transformational leadership X5 0.602 0.752 1.00 5.00 3.4024 0.7466 0.557
Transactional leadership X6 0.388 0.828 1.00 5.00 3.2146 0.6514 0.424
Normative Commitment Y1 0.450 0.991 1.00 5.00 3.4353 0.6799 0.462
Exchange Commitment Y2 0.548 0.567 1.00 5.00 3.6102 0.7026 0.494
Work Outcomes Y3 0.574 2.199 1.22 5.00 3.7387 0.5036 0.254
Work Behaviour Y4 0.377 1.817 1.00 5.00 3.5954 0.5577 0.311
Testing of overall model fitness
For the LISREL analyses, the samples of the overall model fit achieve the results withdetails in Table 4: (1) the overall rate of the sample 2 is 1.915 which is correspond to
the standard of less than 3. The goodness of fit index GFI is very close to 1 and is in
line with the test standard of more than 0.9. (3) The adjusted goodness of fit index
AGFI is larger than 0.8, representing model fit is good. (4) The root mean square
residual RMR, which reflects the fitted residuals variance /mean covariance, is
0.011 which is less than 0.05. (5) The incremental fit index IFI is larger than 0.9,
indicating the model fitness is excellent (Bentler & Bonett, 1980).
Table 3 Fit Indices for Measurement Model for the Research ModelFitting Indexand Standard
2Ratio0.8 RMR 0.9
Fitting Index 1.9150.8 0.0110.9
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Testing of the intrinsic quality of a model
In this study, the samples are all in line with the LISREL model of the internal quality
control. The results of the square multiple correlation (SMC) of the individual
manifest variables are equivalent to R2 value of manifest variables and latent
variables, larger than 0.5 (See details in Table 5), and the component reliability of the
latent variables is also larger than 0.6, representing the Cronbach's coefficient ofeach latent variable has a very high reliability .
Table 4 Fitness of Internal Structure of Model
Item
Employee PersonalityCharacteristics(1)
OrganizationalCulture(2)
LeadershipStyle(3)
OrganizationalCommitment(1)
TaskPerformance(2)
X1 X2 X3 X4 X5 X6 Y1 Y2 Y3 Y4
SMC 0.43 0.94 0.59 0.78 0.89 0.98 0.62 0.52 0.78 0.81
LambdaLoading
0.68 0.97 0.77 0.88 0.94 0.99 0.79 0.75 0.89 0.90
CR 0.621 0.804 0.660 0.771 0.885
AVE 0.7275 0.8370 0.7245 0.8135 0.8985
As the measurement of construct validity by LISREL model covers whether different
manifest variables can effectively measure the convergent validity of the same latent
variable, and also focuses on one latent variable and design manifest variables if they
are different from discriminant validity of other latent variables. Convergent validity
is usually observed from the average variance extracted of the latent variables. The
higher the average variance extracted, the higher the reliability and convergent
validity the latent variables have. Fornell & Larcker (1981) have suggested that the
standard value is larger than 0.5 representing each manifest variable have explanatory
power of the average variation of the latent variables. In this study, the average
variance extracted of the samples is between 0.7245 and 0.8985 (See details in Table5), representing each manifest variable can test a considerable extent of the latent
variables (Sharma, 1996). Next is the discriminant validity (See details in Table 6).
Espinoza (1999) finds that an average variance extracted of latent variables must
larger than any one of the non-diagonal pair potential variables, the square of the
correlation coefficient can be regarded as discriminant validity. Each latent variable in
this study has sufficient discriminant validity among the variables.
Table 5 Discriminant Validity
Item
Employee
Personality
Characteristic
OrganizationalCulture
LeadershipStyle
OrganizationalCommitment
TaskPerformance
Employee
PersonalityCharacteristic
0.7275
OrganizationalCulture
0.409 0.8370
LeadershipStyle
0.390 0.625 0.7245
OrganizationalCommitment
0.398 0.682 0.532 0.8135
TaskPerformance
0.511 0.652 0.500 0.705 0.8985
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Testing of path relationships
Testing of employees personality characteristics, organizational culture and
leadership styles to organizational commitment respectively
High-technology industries select employees with personality characteristics which
suit the corporation in terms of values, willingness to work hard and job satisfaction
and so on will have a better performance. Then, employees have a high commitmentto the organization (11=0.46)(See details in Table 7), hypothesis H1 is verified to be
in line with the arguments of Hellriegel & Richards (1998) and Chen & Lin(2001)
who emphasize that personality characteristics affect employees identifications to an
organization. Furthermore, the core values of members in an organization exist
strongly in a corporate culture. It is sufficient to measure employees identifications
and support to an organization (21=0.75), hypothesis H2 is verified to be in line with
Banner & Gagne (1995), Wiener (1982) who has proposed and discussed that
organizational culture and organizational commitment are closely related. In this
study, it is found that leadership styles is an important factor affecting the operation of
an organization in the past, but employees has a majority of seventh grade in the
current job market flaunting self-centred; focus more on interaction between peers, incontrast of the leadership style of making use of rewarding system or personal
charisma which are unable to attract the seventh grade, thus, using of transactional or
transformational leadership style has no significant impact on organizational
commitment (31 = -0.10), hypothesis H3 cannot be verified.
Testing of organizational commitment to the task performance
The high-technology industries are one of the competitive industries. If the company
wants to have a good competitive advantage, the fundamental element is that
employees are involved at work and have a positive participation. A company needs
to enable its members to have organizational commitment, i.e. a sense of identity and
be willing to reach the organizational goals. The higher the organizational
commitment employees have, the higher the identification and loyalty they have.
Employees will then expect individual performance be recognized by the organization
and be proud of being a member of it. So that they will enthusiastically collect and
learn the required skills at workplace, be willing to work together with colleagues to
accomplish the organizational goals; to perform the best at work and recognized and
awarded by supervisors (21=0.75) (See details in Table 8). Hypothesis H4 is verified.
It is in line with Steers (1977), Mayer & Schoorman (1998), Campbell (1990),
Robbins (2001) who has proposed and discussed that employees will converse the
organizational commitment to the hard work and expectations to create good job
performance for the organization.
Testing of employees personality characteristics, organizational culture and
leadership styles to the task performance
When the high-technology companies have found the employees whose personality
characteristics are appropriate to the organization, they can develop their own
capability and enhance their task performance in the workplace. (See details in Table
7). Moreover, a common way of thinking and ground rules for the organizational
culture will guide the employees to complete the work properly and efficiently (See
details in Table 7). Hypotheses H5, H7 and H9 are verified.
Testing of employee personality characteristics, organizational culture and
leadership styles to task performance through organizational commitment
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Personality characteristics, organizational culture, with the impact of organizational
commitment as an intervening variable, show the significantly indirect influence to
task performance except leadership styles. This can be explained that, in the high-
technology companies, enhancing the task performance directly does not only depend
on different personality characteristics of employees, but also depends on trust of the
companies, acceptance of organizational goals and values, and the organizationalcommitment to willingly work towards the organizational goals and values. The
hypothesis H6 is verified. Moreover, the high-technology companies can develop an
organizational culture with common values and beliefs. This enhances directly task
performance. If employees identify themselves with the organization and its goals that
integrated into the organizational commitment, it helps also to enhance employees
task performance. The hypothesis H8 is verified.
Table 6 Path Coefficient of Direct and Indirect EffectHypothesis H1 (11) H2 (21) H3 (31) H4 (21)
Latent
Variable
Employee
personalitycharacteristics
Organizational
culture
Leadership
style
Organizational
commitment
DependentVariable
Organizationalcommitment
Organizationalcommitment
Organizationalcommitment
Taskperformance
Direct
Effect
0.46**
t = 4.15
0.75***
t = 7.72
-0.10
t = -1.61
0.75***
t = 14.26
Hypothesis H5 (21) H7 (22) H9 (23)
LatentVariable
Employee
personalitycharacteristics
Organizationalculture
Leadershipstyle
Dependent
Variable
Task
performance
Task
performance
Task
performance
Direct
Effect
0.38**
t = 3.93
0.43**
t = 3.72
-0.03
t = -0.73Hypothesis H6 H8 H10
LatentVariable
Employeepersonality
characteristics
Organizationalculture
Leadershipstyle
DependentVariable
Taskperformance
Taskperformance
Taskperformance
Indirect
Effect
0.34**
t = 4.15
0.56***
t = 7.74
-0.07
t = -1.61
Annotation* P
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Employees are one of the important resources for a high-technology corporation.
Selection of employees with appropriate personality characteristics does not only help
employees to enhance organizational commitment, sense of belonging and loyalty and
responsibility to the organization, which are in respond to Luthans, Baack & Taylor
(1987), Pierce & Dunham ( 1987) who have proposed and discussed that personality
characteristics are significantly related to organizational commitment; but also createthe organizational commitment of the beliefs and acceptance of the organization's
goals and values, willing to be highly involved in the organization and maintain a
membership in the organization, and thus employees task performance will be
enhanced. Moreover, organizational culture is the rules of behaviour for employees
internally and provides the guidelines for employees to adapt to the environment
externally. It will enable employees to enhance a sense of responsibility and
organizational commitment (Chien, 2004); and to contribute to employees loyalty,
identification and involvement; and also enhance their task performance.
The high-technology industries compete vigorously with similar others and have
shorter product life cycle than other industries. They need to rely on new technologies,continuous innovation and research and development in order to get a foothold in the
market. Thus, it is recommended the high-technology industries should select
employees with personality characteristics of high resistance to stress and creativity.
They can, at any time, provide new and constructive ideas; and overcome the external
obstacles combining with know-how positively and proactively (Brissett & Nowick,
1976). They can find out the solutions promptly and enable a competitive advantage
for the company in the market place even though the bottleneck of development is
encountered.
Organizational culture is the important factor for uniting employees by the centripetal
force; it is recommended that the high-technology industries should not only develop
a culture of learning and encouragement in order to enhance continuously the learning
abilities of organizational members; but also should build a culture and values beliefs
of knowledge sharing. On the one hand, to strengthen the infrastructure of digital
technology; and to make use of the media of the standardized processing system,
databases, electronic documents / e-mail, Internet, video / communication conferences,
online learning, etc. to accelerate the diversification of circulation of knowledges; on
the other hand, it should be the management who actively provides an interactive
organizational learning environment for sharing of organizational culture and
common guidelines; to make good use of formal and informal channels allowing
employees to communicate interactively, to build the mutual trust and cohesion,consensus inspiring the mutual trust and mutual benefits for employees that can
improve the circulation and sharing of knowledges and enhance task performance.
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