1. THE EFFECTS OF LEADERSHIP
STYLES & ORGANIZATIONAL CULTURE
OVER FIRM PERFORMANCE
Multi National Companies in Istanbul, Turkey
By:Cemal Zehira , Öznur Gülen Ertosunb ,
Songül Zehirc, Bü ra Müceldilid,

2. THE MAIN QUESTIONS ADDRESSED IN THIS
PAPER ARE:

a) Does organizational culture affect organizational
performance ?

b) Is there a significant relationship between
organizational culture and leadership styles?

c) Does leadership affect organizational
performance?

d) Mediating effect of organizational culture
between leadership and performance.

3. WHAT IS ORGANIZATION CULTURE?

Behavior of humans who are part of an organization and
the meanings that the people attach to their action

Organizational culture includes:

organization values, visions, norms, working language,
systems, symbols, beliefs and habits.

Organizational culture affects the way people and groups
interact with each other, with clients, and with
stakeholders.

4. CULTURE & ORGANIZATIONAL
PERFORMANCE

In the fields of management and
organizational theory, organizational culture
is one of the most popular concepts.

There’s a significant relationship between
organizational culture and organizational
outcomes such as financial performance,
competitive advantage , firm effectiveness

5. CULTURE & ORGANIZATIONAL
PERFORMANCE

McDonalds, IBM, P&G and HP these firms have
superior financial performance .

Their focus on culture and leadership fit

Culture will remain linked with superior performance
only if the culture is able to adapt to changes in
environmental conditions and it must have unique
qualities which cannot be imitated.

6. LEADERSHIP & PERFORMANCE

Leaders interacting with employees from different
backgrounds produce different types of leadership styles
.

Leadership styles divided into two major categories:
Mechanistic based leadership style
 Humanistic based leadership style


7. MODELS OF LEADERSHIP STYLES

Mechanistic based model practiced in organizations
that operate in a stable market environment

Focus on internal organizational environments and
give less emphasis to high commitment human
resource practices

Humanistic model operate in a dynamic market
environment

Focusing on external competitiveness and
emphasizing high performing human resource
practices

8. LEADERSHIP STYLES

Research paper has mentioned 3 leadership styles
•
Transactional
Supportive
Participative
•
•

9. LEADERSHIP STYLES

Transactional leaders are more focus on
performance.

Supportive leaders are focus on emotional,
informational, instrumental and appraisal support to
followers.

Participative leaders are often work more closely
with their followers and involve all levels of
followers in making decisions

H1: There is a relationship between leadership
types and organizational performance

10. CULTURE & LEADERSHIP & PERFORMANCE

Leadership is crucial because, as
organizational cultures develop and change,
they also need to be managed and controlled.

Leaders create mechanisms for cultural
development

Cultural norms arise and change due to its
leaders focus

Good leaders develop their skills to alter the
culture in order to improve organizational
performance.

11. PERSPECTIVES
Functionalist perspective
 Attribution perspective
 Contingency perspective


These Perspectives lightening the relationship
between organizational culture and leadership
behavior.

12. CULTURE & LEADERSHIP & PERFORMANCE

All these perspectives states that there is a
positive relationship between culture and
leadership but in certain conditions
organizational outcomes affected by leaders’
behavior

H2: There is a relationship between culture
dimensions and leadership types

H3: There is mediating effect of culture of
organizations on the relationship between
leadership types and organizational
performance.

13. TYPES OF CULTURE

Community Culture(based on loyalty and
commitment to a strong leader )

Competitive Culture(concentrate on achieving goals
under aggressive and competitive leaders and
focus to gain competitive advantage)

Bureaucratic Culture(governed by formal
procedures, policies and value longevity,
predictability, efficiency, and stability.)

14. IMPACT OF CULTURE TYPES ON
ORGANIZATION PERFORMANCE

A close connection between organizational culture
and organizational performance

H4: There is a relationship between culture types
and organizational performance.

15. RESEARCH MODEL

16. RESEARCH DESIGN
Data collected through face-to-face questionnaire
technique
 Manufacturing and service sector companies.
 All most 62% of companies are global
 25%of them are international
 12% are national.
 Almost 12% of companies are small
 30% are medium-sized
 58% are big companies


17. RESEARCH DESIGN

Valid questionnaires were 295.

Questionnaires were allocated as hard copy.

Gathered data have been analyzed in SPSS
software

Correlation and regression analysis used

18. RESULTS

These results imply that, organizational culture and
leadership are vital components of firm
performance.

Mechanistic-based leadership and humanisticbased leadership are significantly related to
organizational culture.

Associations between the leadership styles and
organizational performance are Mediated by
organizational culture.

19. RESULTS

Humanistic-based leadership bureaucratic and
competitive culture are partial mediator on this
relationship, Community culture is not significant.

If firms have to achieve positive firm performance in
the competitive business environment; firms need
to give importance to organizational culture and
leadership.

20. LIMITATIONS & SUGGESTIONS

Only three leadership styles have been studied.

Use different leadership types.

Study only focused on the link between culture,
leadership and performance.

Should include individual outcomes.

Study was conducted in Turkey.

Focus on different national cultures and across
different types of organizations.