issn 1308-7711 energy education science and …

ISSN 1308-7711

ENERGY EDUCATION SCIENCE AND

TECHNOLOGY, PART B

Social and Educational Studies

Volume 8. Issue 1

January 2016

SILA SCIENCE

ENERGY EDUCATION SCIENCE & TECHNOLOGY, PART B

Social and Educational Studies An International Journal

Editor-in-Chief

PROFESSOR A. DEMIRBAS

Sila Science, University Mahallesi, Bilisim Sok No 24 Trabzon, TURKEY

Editorial Assistant M. BALAT

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ASSOCIATE PROFESSOR A. ARISTOVNIK University of Ljubljana, Ljubljana, SLOVENYA

PROFESSOR B.V. BABU Department of Chemical Engineering, Birla Institute of Technology and Science

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M. BALAT

Sila Science, University Mah Mekan Sok No 24, Trabzon, TURKEY

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ISSN 1308-7711

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Volume (issue) 8(1)

January 2016

CONTENTS

Performance analysis of bio-gas plant for cooking applications and cost analysis 1-12 S. Dey, P. Bhattacharya

Role of immature paddy in rice husk gasification 13-24 S. Dey, P. Bhattacharya

The effect of organizational culture, leadership style and

employees’ trust on organizational commitment in an educational institution 25-34

B. Usman, Y. Q. Yusuf

Public’s value of hydrogen fuel cell buses: A contingent valuation study 35-42 J-Y. Heo, S-H. Yoo

Study on Chinese environmental research evaluation index system 43-52

Z-G. Niu, Z-Z. Cui, Y. Zhang, Y-X. Chen

Evaluation of performance of international alliance from the perspective

of absorptive capacity: PV solar energy industry as an example 53-70

H. Chen, A. Lee

Energy Education Science and Technology Part B: Social and Educational Studies

2016 Volume (issue) 8(1): 25-34

The effect of organizational

culture, leadership style and

employees’ trust on organizational

commitment in an educational institution

Bustami Usman, Yunisrina Qismullah Yusuf*

Syiah Kuala University, Faculty of Teacher Training and Education,Study Program of English Education, Jalan

Hasan Krueng Kalee, Darussalam, Banda Aceh 23111, Indonesia

Received: 14 January 2015; accepted 18 March 2015

Abstract

The aim of the present study was to obtain information on the effect of organizational culture, leadership style and employee’s trust on organizational commitment of an educational institution. A

number of 70 employees from a state university in Banda Aceh, Indonesia were selected randomly and

asked to fill in four questionnaires on the variables (organizational culture, leadership style and employee’s trust) of this research, each with 25 multiple choice questions. The collected data were

analyzed by path analysis. The findings showed that leadership style was found to give the most

influence on the commitment to organization. Furthermore, commitment was also directly affected by

organizational culture and employee’s trust. It can be concluded that any concern on the leadership style, organizational culture, and employee’s trust will affect organizational commitment. Therefore,

these variables are important to be part of the strategic planning of human resources development in

increasing the organizational commitment of educational institutions. Support, direction, participation, and the leader’s orientation on the employees will encourage them to feel protected, directed and

voices heard in achieving objectives. This will further move to drive employees to be loyal to their

leaders and organization.

Keywords: Educational management; Organizational culture; Leadership style; Employee’s trust;

Organizational commitment

©Sila Science. All Rights Reserved.

1. Introduction

Building a great workforce requires many different outstanding factors which includes

leadership, work environment, employee satisfaction and performance, and reward and

recognition [1]. When these factors are vulnerable, this is when the workplace starts to

______________________

*Corresponding author. Tel./fax: +6-28-227-262-0820.

E-mail address: [email protected] (Y. Q. Yusuf).

mailto:[email protected]

26 B. Usman, Y. Q. Yusuf / EEST Part B: Social and Educational Studies 8 (2016) 25-34

collapse and face various problems to its existence and conservation. Okoro [2] further states

that a strong workforce management is vital to global business success. Therefore, the role of

human resources to administer, monitor and getting involved in decision making and making

contribution to the workforce as a whole is fundamental.

In the case of Indonesia, human resources are realized to still be lingering compared to its

neighboring countries. It is a necessity for the Indonesian government to thrust the

improvement of sustainable commitment from its human resources. The role of higher

learning institutions becomes important in supporting the efforts to foster this commitment.

The contribution of universities to the development of genuine improvement can be realized if

the state of these higher educations is in good conditions. The existence of universities in the

overall life of the nation has a huge role through its Tridharma Perguruan Tinggi (or literally

translated as the three responsibilities a higher education institution must achieve), which

embraces education, research and community service [3].

Based on our preliminary observation in our university, the authors found that some of the

subordinate employees are discerned to have little commitment to their organizations and

their superiors. From this observation, questions arise and directed to their trust on work or to

their superiors’ leadership style. It is reasonable because any university as an organization is

not only consuming an institutional product but also employees as an integral part which

cannot be separated in the process of input into output. Therefore, leadership style of

superiors demands apposite abilities and expectations of their employees positively affect

their performance and vice versa [4, 5]. These, together with the role of organizational culture

formed in the work environment, further bring impact on their trust.

Dessler [6] also claims that employees who have higher commitment have lower value of

attendance but longer working time and tend to work harder and show better performance.

These cannot be separated from their confidence on management and good treatment towards

them. The management approach to human resources is a valuable asset and a commodity to

be exploited by the managers.

Higher education institutions in Indonesia encourage their entire staff to jointly build their

graduates with a systemic approach, so that their voice can be heard not only at the local level,

but also at the national and international levels. More importantly, it could further refine and

ground their tridharma roles. In the last twenty years, the output quality of graduates has

become a matter of high concern to universities in Aceh province. Therefore, efforts are taken

to elevate it with a systemic approach. This approach is believed to enable integrated

interdisciplinary organizing principles to function appropriately. It is further capable of

dynamically expressing complex interdependence. For that reason, our research investigated

the running management of a government university in Banda Aceh, Indonesia. It is aimed at

answering the following research questions:

1. Does organizational culture directly affect the university employees’ commitment on

organization?

2. Does leadership style directly affect the employees’ commitment to organization?

3. Does the employees’ trust directly affect their commitment to organization?

4. Does organizational culture directly affect the employees’ trust?

5. Does leadership style directly affect the employees’ trust?

Based on the research questions, the authors have formulated the following hypotheses:

1. There is a positive direct effect of organizational culture on the commitment to

organization.

2. There is a positive direct effect of leadership style on the commitment to organization.

B. Usman, Y. Q. Yusuf / EEST Part B: Social and Educational Studies 8 (2016) 185-194 27

3. There is a positive direct effect of employees’ trust on the commitment to

organization.

4. There is a positive direct effect of organizational culture on the employees’ trust.

5. There is a positive direct effect of leadership style on the employees’ trust.

2. Literature review

Managing any organization requires certain conditions from its employees to procure

successful outcomes of its goals. These conditions are commitment [7], organizational culture

[8], and leadership style and trust [9].

Commitment to the organization is a condition in which members of the organization are

in favor of its structure and adjectives, as well as their desire to remain a part of the

organization [7, 10]. Besides alignment and involvement of activities, commitment also refers

to the loyalty to the company by its employees [11]. Therefore, Gibson et al. [12] further

conclude that commitment to an organization involves three attitudes:

1. A sense of partiality toward the organizational objectives

2. A sense of involvement in organizational task, and

3. A sense of loyalty to the organization.

Consequently, commitment to the organization means the willingness of a person as a

member of his organization to play proactive role in order to achieve the goals and desire to

remain a member of the organization based on the dimension of effectiveness, normativeness

and sustainability.

Organizational culture is a value system that is developed in an organization that is

performed by various employees that distinguishes the organization from other organizations

[7]. Accordingly, organizational culture is a form of internal and external solutions to

problems that are consistent in a group, therefore the organization is taught to new members

as the correct way to perceive, think and feel in connection with those problems [13]. Thus,

organizational culture is the application of values, norms and assumptions of the organization

that directs members of the organization to think and act on problems and opportunities that

are believed to realize a common goal, to indicate united spirit, integration, consensus value

and sincerity toward the achievement of common goals.

Leadership style can be tested by examining some basic elements; one of them is to use

various styles of leadership. The leader has the properties, habits, temperament, and character

with a unique and typical personality. So, his behavior and style are what distinguish him with

another leader that will certainly color his leadership behavior. Campling et al. [14] state that

leadership style is a pattern of behavior indicated by a leader, and it is the entire pattern of

explicit and implicit leaders’ actions as seen by employees [10]. In managerial activities,

leadership style is also known as the manager’s attitude towards his subordinates [15] and will

further affect the behavior of subordinates who support the style [9].

Fiedler [16], as quoted by Robbins and Judge [17], believes that the factor key in success

leadership is fundamental leadership style of an individual. It is the specific leader approach

pattern in directing his subordinates both individually and groups which make an organization

achieve its goals, and this is indicated by the leader’s attention to the needs of employees,

guidance, work coordination, consultation with employees, consideration of personnel

proposal and job targets.

Trust raises respect and a sense of security in a relation. A trust is the capital and strong

motivator in reaching achievement and ambitions. Dishonesty, broken promises, prejudice,


Assumptions, and attitudes to utilize or manipulate and irresponsibility are the main enemies.

Trust can be said as the belief of an individual or group against the other party in relation to

duty delegation, authority and responsibility to others which operationally in accordance with

the achievement of organizational goals [18-21]. The indicators are dare to take risks, willing

to cooperate, provide true information, open to the influence of organization, contribute ideas

and energy to organization, and accept the possibility of failure due to organizational actions.

Therefore, the positive culture of an organization is the spirit and confidence shown by the

people in it [22]. The spirit of the people in organization is often referred to as espirit de corps

which drives to build harmony and unity in the organization.

Various studies have been conducted on the conditions above to investigate the

management of an organization. A study by Nyhan [23] explores the increase in commitment

to the organization that is affective in public organizations. The study was conducted on 600

employees in three different public organizations. The result of the study reveals that trust is

strongly and significantly correlated to the commitment to organization. Another study by

Perry [24] examines the relationship of commitment to organization that is affective with

supervisory trust. The study showed that although trust and commitment are not closely

linked in direct statistical calculation, thus, in supervision it has an important role in

increasing commitment to the organization. These studies largely examined one or two

conditions in managing the organizations, and for that reason, this present study extended the

conditions to more variables, namely the influence of organizational culture, leadership style

and employee’s trust on organizational commitment in managing an educational institution to

fill in the gap from previous studies.

3. Research methodology

This research analyzed direct and indirect effect or influence of organizational culture,

leadership style, and employee’s trust to the commitment on an educational organization. The

authors used survey methods, causal techniques with path analysis, and analyzed the effect of

one variable on the other. Endogenous variables in this study consist of the commitment to

organization (X4) while exogenous variables include organizational culture (X1), leadership

style (X2) and employee trust (X3).

A number of 70 employees of undergraduates at the University of Syiah Kuala, Banda

Aceh, Indonesia, participated in this study. They were selected by a stratified random

sampling technique. It was considered based on the availability and consent of the

respondents. The instrument used was questionnaire. For each variable (e.g. commitment,

organizational structure, leadership style and trust), a questionnaire with 25 multiple choice

questions was distributed to the respondents. Calculations were conducted by using the Data

Analysis package in the Microsoft Exel and SPSS. Data analysis techniques were descriptive

and inferential.

Statistical hypothesis for the five hypotheses of the study are as the following:

Statistic Hypothesis 1

H0: β41 ≤ 0, there is no positive direct influence of organizational culture on commitment to

the organization.

H1: β41 ˃ 0, there is a positive direct influence of organizational culture on commitment to

the organization.



H0: β42 ≤ 0, there is no positive direct influence of leadership style on commitment to the

organization.

H1: β42 ˃ 0, there is a positive direct influence of leadership style on the commitment to the

organization.


H0: β43 ≤ 0, there is no positive direct influence of the employee’s trust on commitment to

the organization.

H1: β43 ˃ 0, there is a positive direct influence of employee’s trust on commitment to the

organization.


H0: β31 ≤ 0, there is no positive direct influence of organizational culture to the trust of

employees.

H1: β31 ˃ 0, there is a positive direct influence of organizational culture to the trust of

employees.


H0: β32 ≤ 0, there is no positive direct influence of leadership style on the trust of employees.

H1: β32 ˃ 0, there is a positive influence of leadership style on the trust of employees.

where:

H0 = null hypothesis

H1 = alternative hypothesis

β = coefficient line

4 = commitment variable

3= employee’s trust variable

2 = leadership style variable

1 = organizational culture

4. Findings and discussion

Fig. 1 shows the first substructure and the calculation results of the causal effect between

the variables that consists of one endogenous variable (X3) and two exogenous variables (X1)

and (X2). The determination coefficient at the first substructure is R12 = 0.4088. This means

that the variation changes in the organizational culture (X1) and leadership style (X2) together

can explain the 0.4088 variation change in the employee’s trust variable. The scale of

variation change in employee’s trust described by another variable reaches 0.576. This case

suggests that in addition to these three variables, there are other variables that affect the


employee’s trust. The effect of 0.714 of one deviation standard and its immediate influence is

illustrated in Fig. 1.

Fig. 1. Coefficient line on the first substructure.

Overall testing or Ftest of the coefficient line on the first substructure produced Fcount =

67.609. Meanwhile, Ftable = F0.05; 2; 67 on the first substructure for 3.134. Therefore, H0:

βX3X2 = 0 is rejected. This means that variable X1 and X2 together can better explain

variable X3. Thus, it can be continued on an individual test or test t. The value of tcount of all

coefficient lines of the first substructure is greater than t table = t0.05; 67. Thus, all coefficient

lines of the first substructure are significant or the effect of those variables area significantly

different from zero.

Fig. 2. Coefficient line on the second substructure.

Fig. 2 shows the second substructure and the calculation results of the causal effect

between the variables that consists of one endogenous variable (X4) and three exogenous


variables (X1, X2 and X3). The determination coefficient in second substructure is

R12X4X1X2X3 = 0.713, meaning that the organizational culture change variation (X1),

leadership style (X2) and employee’s trust (X3) together can explain the 0.719 variation

change in commitment variable to the organization (X4). The scale of variation to the

organization supported by other variables by 0.281 or its effect by βX4ε2=0.536 deviation

standard. This shows that apart from the three variables, there are other variables that affect

the employee’s trust with the influence of 0.536.

Overall test or test F of the coefficient line in the second substructure resulted in Fcount =

20.579, meanwhile, Ftable = F0.05; 3; 66 in the second substructure is by 2.743. Thus, Fcount>

F0.05; 2; 97. Therefore, H0: βX4X4 = βX4X2 = βX4X3 = 0 is rejected, meaning the variation

in variables X1, X2 and X3 together can well explain the variable variation X4.

Hypothesis 1

The result of the calculation shows that the coefficient line of X1 to X3 (p31) is 0.298

with tcount = 2.95092. At α = 0.05, ttable = 1.995 is obtained. Since the value of tcount (2.950) >

ttable (1.995), therefore H0 is rejected and H1 is accepted. This indicates that there is a

significant positive direct influence of organizational culture on commitment to the

organization. This further means that an improvement on the organizational culture will

increase commitment to the organization [5].

Therefore, organizational culture directly influences the commitment to organization by

0.289, meaning that variations in organizational culture effect the commitment variation to

organization by 0.289. These findings support the theory presented by Robbins [20] that one

of the function of organizational culture is to increase commitment to the organization. It is

further stated that the functions of organizational culture are:

1) To create a clear distinction between one organization with other organizations,

2) To bring a sense of identity for the members of organization,

3) To facilitate the emergence of commitment to something broader than self-interest of

an individual,

4) To function as social glue that helps the organization write by providing the right

standards to be executed by employee, and

5) As a mechanism maker of meaning and guiding control and shaping employee

behaviour and attitudes.

Hypothesis 2




significant positive direct influence of leadership style on the commitment to the organization.

This further means that an improvement on the leadership style will increase commitment to

the organization.

It can be said that the style of leadership also directly influences the commitment to

organization by 0.179. This shows that the variation in leadership style effect the commitment

variation to organization by 0.179. These findings support the theory of Hersey and Blanchard

[4] that good leaders will make an impression and positive power on others, because they

combine positive confidence with a positive attitude because the trust and the action are

essentially the form of commitment.


Hypothesis 3




significant positive direct influence on trust of employees on the commitment to organization.

This further means that an improvement on the trust of employees will increase commitment

to organization [23].

Consequently, the employee’s trust directly influences the commitment to organization by

0.479, meaning that variation in the employee’s trust effect the commitment variation to

organization by 0.479. The result of this research reinforces the theory put forward by

Colquitt et al. [18] that individual “outcomes” within the organization are in the form of

performance and commitment to the organization. Outcomes of the individuals are influenced

by individual mechanism, work satisfaction, stress, motivation, confidence, justice and

ethnics, learning and decision taking.

Hypothesis 4




significant positive direct influence of organizational culture to the trust of employees. This

further means that an improvement on organizational structure will increase the trust of

employees.

Based on the findings, organizational culture is found to directly influence the trust of

employee by 0.618, showing that variations in organizational culture effect on the variation of

the employee’s trust by 0.618. The result of this study supports the theory of Torrington [22]

that the spirit and confidence shown by the people in an organization reflects the culture of

that organization.

Hypothesis 5

The result of the calculation shows that the coefficient line of X2 to X3 (p32) is 0.340 with

tcount = 4.40996. At α = 0.05, ttable = 1.995 is obtained. Since the value of tcount (4.409) > ttable

(1.995), therefore H0 is rejected and H1 is accepted. This indicates that there is a significant

positive influence of leadership style on the trust of employees. This further means that an

improvement on the leadership style will increase the trust of employees.

And so, leadership style directly influences the employee’s trust by 0.340, suggesting that

variations in leadership style effect on the variation of employee’s trust by 0.340. These

findings support the theory of Fiedler [16] as quoted by Robbins and Judge [17] that the key

factor in successful leadership is the basic leadership style of an individual. Furthermore, it is

stated that there are three dimensional contingency that determines the effectiveness of

leadership, namely:

1) The leader-subordinates relationship: level of self-confidence, trust, and the respect of

subordinates in their leaders,

2) The structure of the task: the degree to which the task is structured or not, and

3) The power of position: the degree of influence of a leader who has variables of power,

such as appointment, dismissal, discipline, promotion, and salary increases.


From the findings presented in this section, leadership style was found to give the most

influence on the commitment to organization. Therefore, the university should make efforts to

improve the leadership style to achieve successful goals of its organization.

5. Concluding remarks

The research outcomes revealed that leadership style is to be the most influential on the

commitment to organization. The university should make more efforts to raise commitment to

the organization through superior leadership style. The implementation of the role and

function of the superior in enforcing leadership is measured by the degree of success in

implementing supportive directive, participative, and success-oriented behaviours. Support,

direction, participation, and the leaders’ orientation on the employees will encourage them to

feel protected, directed and voices heard in achieving the objectives. This will further move to

drive employees to be loyal to their superior and the campus.

Furthermore, organizational culture and employees trust also shows a significant positive

direct effect to the commitment on organization. The organizational culture also influence

positively on the employee’s trust. The improvement on the organizational culture is the key

to gain more trust; therefore the university should increase it by communicating work

particularly on how to provide good guidance, work coordination, and emphasis on the

employees that the success of the organization’s objective depends very much on them.

Despite leadership style was found to give the most influence on the commitment to

organization, efforts to improve the commitment to the organization cannot be merely done

through the improvement of the leadership style. Organizational culture should also be

emphasized because the results show that it gives a positive effect on the employee’s trust to

the organization. The improvement on the commitment to the organization through the

organizational culture can be achieved by increasing unity of spirit, integrity between

employees, believes value consensus and sincerity on the achievement of common goals. The

commitment on the organization can also be improved by increasing the employee’s trust on

organization. This endeavor can be done by having the attitude of boldness in taking risks,

willing to cooperate giving accurate information to the organization, being open-minded to

the influence of the organization, devoting thought and energy to the organization and ready

to accept possible failures due to action of the organization.

Conceptually, this study limits the study to only four variables which have a direct or

indirect influence. They are exogenous variables comprising organization culture, leadership

style and employee’s trust, and one endogenous variable comprising commitment to the

organization. The fact shows that there are still many other variables affect, either directly or

indirectly on the commitment to the organization. Furthermore, the number of sample size of

this study is only 70 employees and the scope of this research is confined to one educational

institution. Hence, it is suggested that a profound approach of personal interviews with the

respondents can be done in future related research to reinforce the conclusions set forth in this

study.

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