THE RELATIONSHIP OF ORGANIZATIONAL CULTURE AND MANAGERIAL LEADERSHIP A Dissertation Submitted to the Graduate Faculty of the North Dakota State University of Agriculture and Applied Science By Heidi Helen Heim Larson In Partial Fulfillment of the Requirements for the Degree of DOCTOR OF PHILOSOPHY Major Program: Education Option: Institutional Analysis July 2016 Fargo, North Dakota North Dakota State University Graduate School Title THE RELATIONSHIP OF ORGANIZATIONAL CULTURE AND MANAGERIAL LEADERSHIP By Heidi Helen Heim Larson The Supervisory Committee certifies that this disquisition complies with North Dakota State University’s regulations and meets the accepted standards for the degree of DOCTOR OF PHILOSOPHY SUPERVISORY COMMITTEE: Dr. Brent Hill Chair Dr. Tim O. Peterson Dr. Claudette Peterson Dr. Tom E. Hall Approved: 7/27/16 Dr. William Martin Date Department Chair ABSTRACT The purpose of this research is to examine the relationship of managerial leadership and organizational culture based on the integration of the two culture theories of Grid and Group Competing Values Framework (Hierarchy, Market, Adhocracy and Clan Culture types), and the managerial leadership theory Full Range Leadership model (Transformational and Transactional Leadership behaviors). The study methods were comprised of a quantitative web based survey research with a convenience sample of an organization. The data was analyzed with Canonical Correlation as well as exploratory data analysis. The findings supported the relationship of Group and Clan cultures and Transformational leadership behaviors. More specifically, there was a relationship of Clan culture and Transformational leadership behaviors of Intellectual Stimulation, Idealized Influence, and Individualized Consideration. There was also support for Grid and Market culture and Transactional leadership behaviors. Market culture was specifically associated with Transformational Leadership behavior of Management by Exception. The unexpected findings were the relationship of Contingent Reward Transactional behavior and Market culture and the relationship of Group culture to Adhocracy culture. Overall, the finding of the research supported the relationship and integration of the culture theories of Grid and Group and Competing Values Framework and Transactional and Transformational Managerial Leadership behaviors of the Full Range Leadership Model. iii DEDICATION This dissertation is dedicated to my family; husband-Corey, children-Megan, Jarron and Ryan who grew tired of me always working on my school work, and much appreciation to my parents- Irene and Maurus, sister-Amie, who were always willing to help with the kids at a moment’s notice, brothers- Doug and Jeff that entertained the kids at the farm, and my in-laws-Diana, Don, and uncle Kevin that helped care for the kids in the summer at the lake while I was writing. I also dedicate this to my Advisor, Dr. Brent Hill (methodological expert), wife, Kim and newest member of their family that joined them the day following the defense. Thank you to my committee Dr. Tim O. Peterson (managerial leadership expert), Dr. Claudette Peterson (adult learning expert), and Dr. Tom E. Hall (educational leadership expert). iv TABLE OF CONTENTS ABSTRACT ................................................................................................................................... iii DEDICATION ............................................................................................................................... iv LIST OF TABLES ......................................................................................................................... xi LIST OF FIGURES ..................................................................................................................... xvi CHAPTER I: INTRODUCTION ................................................................................................... 1 Statement of the Problem .................................................................................................... 3 Purpose of the Study ........................................................................................................... 3 Research Questions ............................................................................................................. 4 Assumptions, Limitations, and Delimitations ..................................................................... 5 Assumptions ............................................................................................................ 5 Limitations .............................................................................................................. 5 Delimitations ........................................................................................................... 5 Operational Definitions ....................................................................................................... 6 Significance of the Study .................................................................................................... 6 Organization of the Remainder of the Study ...................................................................... 7 CHAPTER II: LITERATURE REVIEW ...................................................................................... 8 Theoretical Framework ....................................................................................................... 9 Organizational Culture ............................................................................................ 9 Structural Functionalism ....................................................................................... 11 Dimensions of culture: Douglas’ Grid and Group. ................................... 14 Group dimension (high, low) ........................................................ 14 Grid dimension (high, low) ........................................................... 15 The four cultural types .................................................................. 15 v Competing Values Framework ............................................................................. 18 Culture types of the Competing Values Framework................................. 19 Managerial Leadership.......................................................................................... 21 Definitions................................................................................................. 21 Theories..................................................................................................... 22 Management and leadership behaviors ..................................................... 24 Transactional/transformational behaviors ..................................... 24 Comparison and Integration of Theoretical Models ......................................................... 27 Comparison of Model Dimensions ....................................................................... 29 Comparison of Cultural Typologies and Integration of Managerial Leadership .. 31 Individualist and Adhocracy culture ......................................................... 31 Collectivist and Clan culture ..................................................................... 32 Market and Bureaucratic culture ............................................................... 33 Hierarchy and Corporate culture ............................................................... 34 Conclusion from the Literature ......................................................................................... 35 CHAPTER III: METHODS ......................................................................................................... 37 Research Questions ........................................................................................................... 37 Sample............................................................................................................................... 38 Procedures and Data Collection ........................................................................................ 38 Data Cleaning and Correction ........................................................................................... 39 Instruments ........................................................................................................................ 40 Social Game Assessment Tool (Modified) ........................................................... 40 Organizational Culture Assessment Instrument .................................................... 41 Multifactor Leadership Questionnaire 5x Rater Form .......................................... 42 vi Data Analysis .................................................................................................................... 43 CHAPTER IV: RESULTS ........................................................................................................... 45 Data Collection and Demographics .................................................................................. 46 Data Manipulation ............................................................................................................ 47 Computing the Full Range Composite Scores (MLQ 5X) ................................... 47 Computing the Grid and Group Composite Scores (SGAT) ................................ 48 Computing the Competing Values Composite Scores (OCAI) ............................ 48 Parametric Assumptions ................................................................................................... 49 General Descriptive Statistics