Shaping the culture of your organization by the human capital: employees' competencies and leaders' perceived behavior

Abstract

PurposeOrganizational culture (OC) is not only a key factor in the development of organizational performance but also an important source of employee orientation toward a better understanding of organizational goals. This study aims to analyze the influence of two individual factors on OC: (1) the competencies of employees and (2) perceived leadership behavior. The study also focuses on how the relationship between individual factors and OC differs between public and private organizations.Design/methodology/approachIn this study, data were collected through a survey, and a structural equation modeling approach, partial least squares structural equation modeling, was used to highlight the proposed direct, mediated and moderated relationships. The sample comprises 1,284 respondents, representing both public and private sector organizations.FindingsBased on the results, the employees' competencies positively and significantly influence the hierarchical and market orientation of OC. Additionally, the perceived leadership behavior positively and significantly influences the adoption of all four types of cultural characteristics (i.e. clan, adhocracy, market and hierarchy).Practical implicationsThe results are of great benefit to organizations who may become more aware that employees' skills and how employees perceive leadership behavior can significantly influence OC.Originality/valueThese findings make an important contribution to understanding how the characteristics of each type of OC can be influenced by certain behaviors, skills and perceptions and how those relationships may be shaped by the organization's ownership.