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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
Editorial Board
ASSOCIATE PROFESSOR A. ARISTOVNIK University of Ljubljana, Ljubljana, SLOVENYA
PROFESSOR B.V. BABU Department of Chemical Engineering, Birla Institute of Technology and Science
Pilani 333031(Rajasthan), INDIA
M. BALAT
Sila Science, University Mah Mekan Sok No 24, Trabzon, TURKEY
PROFESSOR P. KALAČ University of South Bohemia, Faculty České Budějovice, CZECH REPUBLIC
PROFESSOR M. M. KUCUK YY University, Educational Faculty, Van, TURKEY
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ENERGY EDUCATION SCIENCE & TECHNOLOGY, PART B
Social and Educational Studies
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: yunisrina@gmail.com (Y. Q. Yusuf).
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,
28 B. Usman, Y. Q. Yusuf / EEST Part B: Social and Educational Studies 8 (2016) 25-34
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.
B. Usman, Y. Q. Yusuf / EEST Part B: Social and Educational Studies 8 (2016) 25-34 29
Statistic Hypothesis 2
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.
Statistic Hypothesis 3
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.
Statistic Hypothesis 4
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.
Statistic Hypothesis 5
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
30 B. Usman, Y. Q. Yusuf / EEST Part B: Social and Educational Studies 8 (2016) 25-34
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
B. Usman, Y. Q. Yusuf / EEST Part B: Social and Educational Studies 8 (2016) 25-34 31
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
The result of the calculation shows that the coefficient line of X2 to X4 (p42) is 0.179
with tcount = 2.18793. At α = 0.05, ttable = 1.995 is obtained. Since the value of tcount (2.187) >
ttable (1.995), therefore H0 is rejected and H1 is accepted. This indicates that there is a
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.
32 B. Usman, Y. Q. Yusuf / EEST Part B: Social and Educational Studies 8 (2016) 25-34
Hypothesis 3
The result of the calculation shows that the coefficient line of X3 to X4 (p43) is 0.479
with tcount = 4.18494. At α = 0.05, ttable = 1.995 is obtained. Since the value of tcount (4.184) >
ttable (1.995), therefore H0 is rejected and H1 is accepted. This indicates that there is a
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
The result of the calculation shows that the coefficient line of X1 to X3 (p31) is 0.618
with tcount = 8.01795. At α = 0.05, ttable = 1.995 is obtained. Since the value of tcount (8.017) >
ttable (1.995), therefore H0 is rejected and H1 is accepted. This indicates that there is a
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.
B. Usman, Y. Q. Yusuf / EEST Part B: Social and Educational Studies 8 (2016) 25-34 33
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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