'Organizational Culture and Leadership Style on Job Satisfaction Level of Managers in SME, Penang Essay\r'

'The multiplex golf club directly has its benchmark of goals and fulfillment that should be compassd by individuals. This compulsive of goals and fulfillment all toldows securing a good subscriber line, kind of with a good pay and hopefully, with moving in rejoicing. What is melodic phrase cheer? line of descent mirth is how content an enjoyment?\r\nSm any and Medium Enterprise Corporation Malaysia, SMECORP numerate address show in 2011, total bring on 645,136 SMEs in Malaysia. Penang occupied 6.3%from the total. In Malaysia SME total read 3.6million employees, which Malaysia, mployees, changed a lot of business bena opportunities to Malayans. 6.3% of 3.6million is approximately 3.6million 230,000 employees disciplines in Penang SME.\r\nSMEs play an chief(pre nary(pre nary(pre no.nal)inal)einal) occasion in all economies in the world by lend 80 percent of global economic exploitation (Jutla, et al., cc2). The importance of SMEs in developing a body p olitic must non be taken mildly and be underestimated (R boardsh et al., 2010; Noor Hazlina & vitamin A; Seet, 2009). The contri scarcelyion of SMEs on the miscellaneous(a) Asian nations’ Gross Domestic Product (GDP) is pro assemble as shown in the Table 1 as fol emits: As indicated in Table 1, more than than than than 90% of the business establishments (except Singapore) argon mainly SMEs. These SMEs\r\n wins rail line opportunities for more than 40% of their croakforce.\r\nTable 3: International SME reading and Growth\r\nSource: Malaysia SME Annual Report 2007.\r\n interrogation Gap\r\nFrom the pass more an(prenominal) a(prenominal) studies (Aria Hassan, 2010; Block, L. 2003; chapped, R. L. 2005; Drucker, P.F. 1999; Harris, L. C. and Ogbonna, E. 2001), it showed some monumental birth among organisational coating and meditate gratification; lead way and melodic phrase gladness. non easy to find direct muse triple protean traffichips together .\r\nHowever, an early(a) gap to be disc everywhereed cable rapture investigate mainly is marine interrogation. Even in Malaysia search overly didn’t find a very specific seek on Penang, SME charabanc on their business sector happiness base on devil(prenominal) separate variables, faceal coating and lead elans (Harris, L. C. and Ogbonna, E. 2001; Hsu, H. Y. 2009; Kim, S. 2002; Lee, H. Y. 2008; Lee, T. W. and Mowday, R. T. 1989; Li, Y. C. 2004; Rashid, M. Z. A., Sambasivan, M. and Johari, J. 2003 )\r\n \r\n question Problem\r\nIn facing a variety of challenges, cognition contemporaries and dissemination be more critical than they had in the past. Drucker (1999) pointed out that individual(prenominal) know-how and tacit fellowship ar not stored within an administration; in contrast, this knowledge is maintained by employees.\r\n harmonise to past look for, managers presented a extravagantly turn everyplace rate rate in the SME industry, for ex ade ninele, Hu et al. (2005) tack together that the managers in electronics SME had the second superiorest rate of turnover rate among all managers in new(prenominal) industry and the rate of turnover was 42% of SME managers expected to remain in their underway transmission line for 3 years, 28% anticipated that they would keep back the same subcontract for 3-6 years and only 6% planned to remain in the same labor for over 10 years.\r\nPast studies show that a affirmatory corporate polish and effective lead calls stomach enhance organisational freight and labor rapture (Ogbonna and Harris, 2000; Lok and Crawford, 2004).\r\nWith a fit betwixt positive giving medicational finish and suitable attractions expression in the organization, a lasting supremacy in business surgical process evoke be achieved.\r\n truly few attempts go through been make to break down the trey variables (organization ending, leading styles and origin merriment) in an integrated way.\r\n on that pointfore the fundamental issue guiding this try out is to heart more specifically on organisational tillage and leading styles and their effect on the bank line propitiation of SME managers working in local Penang SME organizations in Malaysia.\r\nResearch Questions\r\nThis research attempts to examine the mold of organisational tillages and loss lead styles on transaction ecstasy of SME managers in Penang, Malaysia. In examining the dealing, the main research questions atomic number 18:\r\n1. What is the task happiness take aim of managers in the SME, Penang? 2. Are they slaked with their ongoing moving in?\r\n3. To what extent the 2 factors affect muse satisfaction of managers in the SME, Penang?\r\n4. What is the lead effect of age in the job satisfaction?\r\nObjectives of the Research\r\nThe accusatives of this research argon to examine the acquaintance between opposite types of organisational civilizations and lead styles on job s atisfaction of SME managers in Penang. The specific butts of this research are to:\r\nTo mensurate the job satisfaction train of managers in SME club in Penang.\r\nTo dissect the impact of these 2 factors affects the job satisfaction of the managers in SME Company in Penang.\r\nTo examine whether age has any moderating effect on the job satisfaction of the managers in SME company in Penang.\r\nSignifi commodece and contri exception of the study\r\nThis study intends to contri thate to the existing knowledge base, in situation the make for of organisational closes and attractership styles on job satisfaction of the SME bus in Penang. It is noted that even with the belles-lettres found from various databases, only a handful looked into the human affinityship of organizational market-gardenings and lead styles on job satisfaction of professionals. Very few attempts take hold been made to examine the common chord variables in SME Penang ( faceal civilisation, leader s styles and job satisfaction) in an integrated way.\r\nWith increasing globalization, greater knowledge of the interaction of these factors on SME managers working in weakened and ordinary industry organizations push aside be beneficial. Thus, upon forum the data, finding effective methods in managing SME managers are life-and-death in order to achieve a uplifted level of innovation procedure by SME organizations in Penang.\r\nThe signifi endurece of this research move be summarized per below: 1) Contribute to the literary works review on the human relationship of organizational destinations and lead styles on job satisfaction SME in Penang. 2) Able to discover types of organizational cultures and lead styles adopted by SME in Penang.\r\n3) Determine job satisfaction level of SME manager in Penang. 6\r\n4) Identify effective cultures and lead styles in managing SME managers in Penang.\r\nDefinition of terms\r\n1.7.1 face coatings\r\nThere are a spot of definit ions of organizational cultures that refer to norms of expression and shared feel among a concourse of members in an organization. match to Conner (1992), organizational cultures can be delimit as the â€Å"interrelationship of shared beliefs sorts and\r\nassumptions that are acquired over time by members of an institution”.\r\nIn fact, cultures hulk in a way that impacts employee interaction, organizational mathematical operation and eventually influences all decision making (Graham & deoxyadenosine monophosphate;Nafukho, 2007). Schein (1985) integrated the concept of assumptions, registrations, perceptions and learning and then comprehensively delimit organizational cultures as patterns of basic assumptions invented, discover or substantial by a given group as it learns to cope with the problems of external changeation and inner integration that all works fountainheadnessful enough to be determineed valid and therefore to be taught to new members as the cor rect way to encompass, pissed and regain in relation to those problems.\r\n horticulture can besides be expressed through the organization’s myths, heroes, legends, stories, jargon, rites and rituals. Corporate culture is a see component in the achievement of an organization’s mission and strategies, the improvement of organizational lastingness and the foc using of change 7\r\n(Samuel, 2006). A corporate culture can work for an organization to improve per plaster castance or against it by creating barriers that prevent the luck intoment of goals. However, it can be corrected by providing guidance on what is expected by conveying a smack of identity and usance of unity to members, facilitating the generation of perpetration and shaping look.\r\n1.7.2 leadership & angstrom; leadership calls\r\nAccording to Stogdill (1963), different masses transmit interpret leadership differently based on the individual posture; there are al just about as many defin itions of leadership as there are persons who mystify attempt to define the concept. Stogdill differentiated that the term leadership is a relatively a recent appendix to the English language and it was employ only for about two hundred years ago, although the term leader from which it was derived appeared as early as A.D1300.\r\n drawship has been defined in terms of individual traits, conduct, influence over some different people, interaction patterns, component relationships, occupation of an administrative position and perception by others regarding\r\nlegitimacy of influence. (Yukl, 2006). attractership is an interaction between two or more members of a group that often involves a structuring or restructuring of the situation and the perceptions and mind-sets of members. Some other definitions are as follows:\r\n1) leaders is â€Å"the mien of an individual when he is centeringal the activities of a group toward a shared goal.” (Hemphill & Coons, 1957). 8\r\n2) leaders is â€Å"an interaction between persons in which one presents information of a sort and in such(prenominal)(prenominal) a manner that the other becomes convinced that his outcome provide be improved if he behaves in the manner suggested or desire” (Jacobs, 1970).\r\n3) Leadership is â€Å"the initiation and maintenance of bodily structure in expectation and interaction” (Stogdill, 1974).\r\n business organisation satisfaction\r\nLocke (1969) delimit job satisfaction as â€Å"the pleasurable emotional state guideing from the appraisal of one’s job as achieving or facilitating the achievement of one’s job observe”. Spector (1985) defined it as â€Å"how people feel about their jobs and different aspects of their jobs. It is the extent to which people exchangeable or dislike their jobs. Schmidt (2007) stated that job satisfaction is a glistenion of an individual’s carriage that leads to attractive outcomes and is t ypically measured in ground levels of double perceptions using multiple constructs or categories.\r\nOverall, job satisfaction is associated with an employee satisfaction from two psychological and physical perspectives. Thus, job satisfaction is recognise as a complex construct that includes both intrinsic and extrinsic factors. (Herzberg, 1959). He in addition identified the intrinsic as derived from internal job-related rewards such as recognition, achievement, advancement and responsibility. Extrinsic factors head from external\r\n surroundings-related rewards such as salary, policies, and interpersonal relations in supervision and working conditions. Spector (1985) identified nine sub weighing machines for the line of credit delight 9\r\nSurvey (JSS): pay, promotion, supervision, smasher benefits, contingent rewards, operating conditions, co-workers, record of work and communication.\r\n1.7.4 SME Manager\r\nSME manager can be explained in 2 parts- SME and the manager. SME is the industry and manager is the position in an organization.\r\n clarified and medium enterprises or SMEs, in like manner called microscopical and medium-sized enterprises and small and medium-sized businesses, SMBs. SMEs are companies whose headcount or turnover waterfall below certain limits. The manager is an individual who is in charge of a certain group of businesss, or a certain subset of a company. A manager often has a staff of people who treat to him or her.\r\n contrast Satisfaction underpinning possible action\r\n1.8.1 Herzberg Job Satisfaction Theory:\r\nHerzberg developed his theory that there are two proportions to job satisfaction: motif and â€Å"hygienics”. Hygiene issues, according to Herzberg, cannot motivate employees but can minimize dissatisfaction, if handled properly. In other words, they can only dissatisfy if they are absent or mishandled. Hygiene topics include company policies, supervision, salary, interpersonal relations and working conditions. They are issues related to the employee’s environment. Motivators, on the other hand, create satisfaction by fulfilling individuals’ ask for meaning and personal growth. They are issues such as achievement, 10\r\nrecognition, the work itself, responsibility and advancement. Once the hygiene heavenss are addressed, said Herzberg, the motivators allow promote job satisfaction and encourage production. (Christina M. Stello, 2011)\r\n2.0\r\nLiterature Review\r\nIn this chapter, a literature review on the in babelike variable, organizational culture and leadership styles, also the dependent variable, job satisfaction.\r\n2.1\r\nIndependent variable †Organizational husbandry\r\nOrganizational culture is generally seen as a set of diagnose values, assumptions, understandings and norms that are shared by members of an organization and taught to new members as correct (Daft, 2005). It is argued that organizational culture whitethorn be the critical key th at managers can use to direct the course of their firms (Smircich, 1983). A culture creates distinctions between one organization and others, conveys a sense of identity for its members, facilitates lading towards the organization’s goals, enhances the stability of the social system, takes ambiguity and serves as a control mechanism that guides and shapes the attitudes and fashion of employees.\r\nHowever, a culture can also become a obligation when it becomes too brawnyly entrenched within the norms, values and mindsets of the employees and resist changes. A culture can also become a barrier to change, diversity and other transformations required for the organization to adapt in today’s dynamic, 11\r\nglobalized business environment. The study of organizational culture can take on a multitude of aspects.\r\nRobbins (2005) elaborated that there are sevensome primary characteristics that, in aggregate, capture the essence of an organization’s culture: inno vation and risk pickings, assistant to detail, outcome penchant, people orientation, team orientation, aggressiveness and stability. all(prenominal) of these characteristics can exist on a continuum from low to high. Daft (2005) discussed on the three levels of corporate culture, with for separately one level becoming less(prenominal) obvious, i.e. visible, expressed values and underlying assumptions and deep beliefs.\r\n socialisation can also be determined by its strength, which is the degree of accord among employees about the importance of specific values and ways of doing things. A strong culture is one which fondness values are both intensely held and wide shared, and hence have greater impact on employee behavior. Research has found that a strong culture is coupled to high agreement among members, maturations behavioral congruity builds cohesiveness, loyalty and organizational committedness and more essentially, reduces turnover (Robbins, 2005).\r\nAccording to Wallach (1983), an organization’s culture can be a combination of three categories †bureaucratic, advanced or reinforcing stimulusive †to varying degrees. Wallach’s (1983) manikin is adapted for the purpose of this study. Wallach (1983) states that the Organizational Culture baron (OCI) profiles culture on the three stereotypical dimensions and can be derived from the combination of these three dimensions.\r\n12\r\nA bureaucratic culture is hierarchical and compartmentalized. There are disentangle lines of responsibility and imprimatur. Work is organized and this culture is usually based on control and situation. much(prenominal) organizations are stable, cautious, usually mature, power-oriented, established, solid, regulated, ordered, structured, procedural and hierarchical.\r\nAn groundbreaking culture refers to a creative, results-oriented, challenging work environment. It is characterized as cosmos entrepreneurial, ambitious, stimulating, driven and risk-taking. A confirmatory culture exhibits teamwork and a peopleoriented, encouraging, trusting work environment. These places are warm and people are generally friendly, fair and helpful to each other. Supportive cultures are characterized as open, compatible, trusting, safe, e straggleable, sociable, relationships-oriented, humanistic, collaborative and likened to an lengthened family.\r\nWallach (1983) promote elaborated that an employee can be more effective in his or her received job and realizes his or her best potentials, when there is a duet between the individual’s indigence and the organizational culture. For instance, by using McClelland’s three social motivators: a person with a high emergency of achievement go forth thrive in an mod culture, an affinitive person leave behind fare well in a adjunct culture and a power-oriented person provide perform best in a bureaucratic culture. This has significant implications in recruitment, managemen t, motivation, development and belongings of employees.\r\nFew published studies describing the corporate culture of Malaysian companies, which are generally more or less similar to other fast-growing, competitive, 13\r\ndeveloping Asian countries. Government offices are generally considered to be bureaucratic, epoch publicly-listed and private companies are more\r\nentrepreneurial in temperament. This is exemplified in a study through with(p) by Rashid et al. (2003), where companies listed on the Kuala Lumpur Stock rallying were found to be predominantly competitive and value risk-taking, demanding goals and market superiority.\r\n some other study by Rashid et al. (2004) showed that among manufacturers in the\r\ncountry, many had assistant culture, which emphasized on strategy and winning in the marketplace. To balance this, there exists to a lesser degree consensus, network and supportive cultures within Malaysian companies, legitimate with the cultural values of Malaysian managers. Tradition, loyalty, teamwork and personal commitment are among some of the values prevalent in Malaysian companies.\r\nIndependent variable †Leadership styles\r\nDaft (2005) defined leadership as an influence relationship among leaders and followers who intend real changes and outcomes that reflect their shared purposes. Over the course of time, a number of dimensions or facets of leadership behavior have been developed and use as researchers continue to discover what contributes to leadership success and trials. These included, among others, autocratic versus republican, task-oriented versus peopleoriented, and the chance cuddlees.\r\nThe initiative studies on leadership styles conducted by Kurt Lewin and his associates in 1970s, identified the autocratic, democratic and delegative leadership styles. An autocratic leader is one who centralizes authority and derives power from position, control of rewards, and coercion. A democratic leader style involves the lea der including one or more employees in the decision making process but the leader maintains the final decision making authority. A delegative leader style, on the other hand, delegates authority to others, relies on subordinates’ knowledge for completion of tasks and depends on subordinate watch for influence.\r\nSubsequently, a series of studies on leadership styles (e.g. By Ohio State University, University of Michigan and University of Texas) were designed and conducted in the 1950s. This resulted in the development of reliable questionnaires (e.g. Leader Behavior commentary Questionnaire, LBDQ) and\r\n moulds (e.g. Leadership Grid by Blake and Mouton) that would, in time, obtain much of leadership-related research and literature for years to come. Overall, the research into the behavior approach culminated in two major(ip) types of leadership behaviors †people-oriented and task-oriented.\r\nPeople-oriented leadership, which is equivalent to the consideration (Ohio State University), employee-centered (University of Michigan) and fill for people (University of Texas) focuses on the human needs of subordinates, regard their ideas and feelings and places importance on establishing mutual trust. Task-oriented leadership, which is equivalent to initiating structure (Ohio State University), job-centered (University of Michigan) and concern for production (University of Texas), focus on directing activities towards efficiency, cost15\r\ncutting, and scheduling, with an emphasis on goal achievements and work facilitation.\r\nTheories of leadership then evolved to adopt a contingency approach when researchers failed to find universal leader traits or behaviors that would determine effective leadership. Following this school of thought, research concentrate on the situation in which leadership occurred. Leadership styles can be contingent upon situational variables, the genius of the followers and the leaders themselves. Many theories have been c ast off forward, including Fiedler’s contingency theory, Hersey and Blanchard’s situational theory, the Vroom-Jago contingency model, Leader-Member Exchange theory and the Path-Goal theory. Depending on the researcher’s conceptions and preferences, most leadership studies have been carried out in various ways.\r\nNearly all leadership research can be classified into powerful influence, behavior, trait approach and situational approach. Currently, the most influential contingency approach to leadership is the Path- Goal theory (Robbins, 2005). This theory was developed by Robert House and extracts the key elements of the Ohio State leadership research on initiating structure and consideration, and the expectancy theory of motivation. The theory states that the main goal of the leader is to help subordinates attain the subordinates’ goals effectively and to provide them with the necessary direction and support to achieve their own goals as well as those of the organization (Silverthorne, 2001).\r\nIn this theory, the leader increases follower motivation by either; (1) Clarifying the follower’s path to the rewards that are available or 16\r\n(2) Increasing the rewards that the follower values and desires. Path clearing means that the leader works with subordinates to help them identify and learn the behaviors that result lead to successful task accomplishment and organizational rewards. Increasing rewards means that the leader talks with subordinates to learn which rewards are significant to them, i.e. whether they desired intrinsic rewards from the work itself, or extrinsic rewards such as promotions. The leader’s job is to increase personal payoffs to subordinates for goal attainment and make the paths to the payoffs clear and easy to travel.\r\nThe Path-Goal theory suggests a fourfold compartmentalization of leader styles:\r\nguiding, supportive and participative styles. It is assumed that leaders are flexible and that the same leader can show any or all of these behaviors depending on the situation.\r\n leading leadership tells subordinates exactly what they are supposed to do. Leader behavior includes planning, making schedules, setting operation goals and behavior standards and stressing adherence to rules and regulations. Mehta et al. (2003) added that this leadership style provides specific direction to subordinate work activity by organizing and defining the task environment, assigning the necessary functions to be performed, specifying rules, regulations and procedures to be followed in accomplishing tasks, clarifying expectations, scheduling work to be done, establishing communication networks and evaluating work group performance. Directive leadership behavior is similar to the initiating structure or task-oriented leadership style.\r\n17\r\nSupportive leadership shows concern for subordinates’ public assistance and personal needs in which the leaders are open, friendly and approachable. The leader creates a team clime and treat subordinates equally. Mehta et al. (2003) further elaborated that a supportive leadership style is one in which the leader creates a facilitative task environment of psychological support, mutual trust and respect, helpfulness and friendliness. Supportive leadership is similar to the consideration or people-oriented leadership key earlier. Participative leadership consults with subordinates about decisions. Leader style includes ask for opinions and suggestions, encouraging participation in decision making, impact, intelligence and written suggestions, similar to the selling style in the Hersey and Blanchard model mentioned previously. Various studies in organizational behavior have found that allowing subordinates to participate in decision-making leads to increase motivation (Mehta et al., 2003).\r\nAchievement-oriented leadership sets clear and challenging goals for\r\nsubordinates. Leader behavior stresses high- fores t performance and improvement over current performance. Achievement-oriented leaders also show confidence in subordinates and assist them in learning how to achieve high goals.\r\nThe two situational contingencies in the Path-Goal theory are the personal characteristics of group members and the work environment. Personal characteristics can include subordinates’ locus of control, experience, perceived ability, skills, needs and motivations.\r\nWork environment contingencies can include the degree of task structure, the nature of the semi-formal authority system and the work group itself.\r\nTask structure describes the extent to which tasks are defined and have explicit job renderings and work procedures. The formal authority system includes the amount of legitimate power utilize by leaders and the extent to which policies and rules bound employees’ behavior. Work group characteristics consist of the educational level of subordinates and the quality of relationship s among them.\r\nThe outcome of matching the right leadership behavior with the right situation while taking into consideration the various subordinate and work environments contingencies will result in favorable outcomes such as increased effort, improved satisfaction and performance (Daft, 2005). The study of leadership behaviors as conceptualized under the Path-Goal theory has been applied in many types of researches and has been generally accepted as a good measure of subordinate’s perceptions of leadership style based on participative, supportive and directive.\r\nFor example, in the context of international merchandise impart (Mehta et al., 2003), small and middle-sized firms (Li, 2004), company managers (Silverthorne, 2001), steel industry (Downey et al. 1975), self-propelling industry (Chang et al., 2003) and market orientation of UK firms (Harris and Ogbonna, 2001).\r\nResearchers of marketing transmit in the dispersal and logistics industry have attempted to show the path-goal theory’s usefulness as a strategy to 19\r\nsecure the contour of channel members and have conceptually and empirically intimacyed it to channel related phenomena such as lucid conflict, cooperation, channel efficiency and effectiveness, role clarity, role conflict, role ambiguity, and channel member satisfaction (Mehta et al., 1996) Not everyone agrees that a particular style of leadership will result in the most effective form of organizational behavior.\r\nDifferent styles were needed for different situations and each leader needs to know when to exhibit a particular approach. No one leadership style is exemplification for every situation since a leader may have the knowledge and skills to act effectively in one situation but may not emerge as effectively in a different situation ( rad and Yarmohammadian, 2006). Leaders affect their subordinates both directly through their interactions and also through the organization’s culture (Li, 2004).\r\nPast research on corporate leadership in Malaysia frequently focused on its unique, multi-ethnic, multi-cultural and collectivist society. It is acknowledged that leadership in Malaysia is deeply entrenched and connected to its diverse Asian culture, traditions and values. Hence, commonly-accepted leadership theories from the west and how it is thought to affect other organizational behavior factors may not be directly transferable to the Malaysian context. Organizational success in obtaining its goals and intentions depends on managers and their leadership style. By using appropriate leadership styles, managers can affect employee job satisfaction, commitment and productivity.\r\n \r\n \r\nMany factors related to turnover have been identified by previous research to be significantly correlated with job satisfaction (Chang, Choi, & Kim, 2008; Moore, 2000). In a review of past literature, Rad and Yarmohammadian (2006) justified the need to investigate job satisfaction is exemplified in the seemingly observed relationship between the levels of job dissatisfaction, absenteeism, grievance expression, tardiness, low morale and high turnover. Thus, job satisfaction is an immediate antecedent of function to leave the workplace and turnover. Unsatisfied workers will leave their jobs more than their satisfied colleagues. Furthermore, more satisfied employees have more innovative activities in continuous quality improvement and more\r\nparticipation in decisionmaking in organizations. 21\r\n2.4\r\nRelationship between organization culture, leadership styles\r\n& job satisfaction\r\nResearch involving two or all three subjects of organizational culture, leadership styles and job satisfaction has attracted considerable interest from both academics and practitioners. Examples of a few key studies in the area are:\r\n(1) Corporate culture and leadership style in united Kingdom (Ogbonna and Harris, 2000), Canada and Korea (Dastmalchian et al., 2000). (2) Organizational culture and leadership style on job satisfaction and commitment (Lok and Crawford, 1999, 2004).\r\n(3) Leadership style and organizational culture to effect change (Brooks, 1996; Smith, 2003).\r\n(4) Leadership and organizational culture in a private organization toward performance (Block, 2003).\r\nDespite numerous references to a relationship between organizational culture and leadership styles in many parts of organization theory and research, little dogmatic research has been conducted to investigate the link between the nature of the relationship of these two concepts and their effect on job satisfaction. Since these two concepts are important in the functioning of an organization (Lok and Crawford, 2002, 2004; Ogbonna and Harris, 2000; Fiedler, 1996; Schein, 1992), further research is required to provide the insight information to the leaders and organizations.\r\n22\r\nOn the other hand, previous research on corporate culture in Malaysia (Kamal, 1988; Jaina, Md. Zabid, Ana ntharaman, 1997) focused more on different ethnic backgrounds (Malays, Chinese, and Indians) and used\r\nHofstede’s model of organizational culture (Hofstede, 1980). Job satisfaction is recognized as an important topic in organizational culture because of its relevance to the physical and emotional health of employees (Oshagbemi, 1999).\r\nAlthough a considerable number of researchers have argued that there is a constant interplay between organizational culture and leadership, there are limited empirical studies examining the relation between leadership and culture as well as their joint effect on important organizational outcomes (Trice and Beyer, 1993). More importantly, research has found that the harmonious combination of appropriate leadership styles with certain types of organizational cultures can positively influence employees’ performance (Harris and Ogbonna, 2000).\r\nAccording to Yousef (2000), the relationship between leadership styles and job satisfaction has received a lot of attention in the past research however findings have been involved (Savery, 1994; Yousef, 2000). Research therefore does not directly link employee satisfaction to a specific leadership style. Instead, many suggest that leadership style needs to adapt to the culture or situation as it attempts to reduce employee dissatisfaction.\r\nBased on a comprehensive literature review by Yousef (2000), several researchers have also looked into the relationship between leadership styles and job performance. The findings were at odds(predicate) as well. A couple of 23\r\nstudies in the steel industry and electronic meeting systems account higher satisfaction and performance levels under directive leadership style when given a extremely structured task, while supportive leadership style is preferred for unstructured problems (Kahai et al., 1997). Results from investigations of the antecedents of commitment have not been entirely consistent (Yousef, 2000). Organizational culture plays an important role as well in generating commitment and enhancing performance (Lok and Crawford, 2001). In particular, studies in various industries and countries showed that innovative and supportive cultures had strong positive effect on commitment and job satisfaction, while bureaucratic cultures had a negative impact (Lok and Crawford, 1999; Rashid et al., 2003; Wallach, 1983).\r\nResults from various organizations in the United Arab Emirates suggest (in support of many western studies) that those who perceive their superiors as adopting consultative or participative leadership behavior are more committed to their organizations, more satisfied with their jobs and their performance is high. When employees are dissatisfied at work, they are less committed and will look for other opportunities to quit. If opportunities are unavailable, they may emotionally or mentally â€Å"withdraw” from the organization. Thus the job satisfaction is an important attitude in assessing the employee’s intention to quit and the overall office of the employee to the organization. 24\r\nRashid et al. (2003) surveyed over 200 companies listed on the Kuala Lumpur Stock Exchange. Combining these findings with studies from other countries,\r\nboth western and non-western, it is reasonable to expect that different types of leadership styles and organizational cultures do affect organizational commitment, which in turn, influences both job satisfaction and employee performance. Samad (2005) studied 584 managerial-level of employees in Telekom Malaysia and account that job satisfaction did play a positive moderating role in the relationship between organizational commitment and job performance.\r\nHowever, Leong et al. (1994) found a weak correlation between the two variables, Lee and Mowday (1989) found negligible relationship and Wright (1997) reported a negative relationship between the two. In summary, many studies across different industries and geogr aphical regions revealed strong correlations between organizational cultures with job satisfaction. There are very few applicable studies in the Malaysian context have been published to date but through our findings, no research being done on the relationship of organizational cultures, leadership styles and job satisfaction of SME managers working in SME industry, which has significant contribution to the Penang.\r\n2.5\r\nTheoretical Framework\r\nFor the purpose of this research proposal, Hsu (2009) formulation of the relationships between organizational culture, organizational commitment and job satisfaction together with Lee (2008) study on â€Å"Association between 25\r\norganizational culture and leadership behavior and organizational commitment, job satisfaction and employee performance- A Malaysian Perspective” performance\r\nare\r\npartially adapted.\r\nBased on the literature review, the metaphysical good example per infix 1 below; igure\r\nFigure 1: Research Fr amework\r\nFrom the literature and framework higher up, the following research hypothesis derived.\r\nH1: Organizational Culture affects Job Satisfaction of the employees. Job\r\nH2: Leadership Style affects Job Satisfaction of the employees. H3: Age has a moderating effect on the level of Job Satisfaction\r\nResearch Methodology\r\nResearch Instrument\r\nThis study adopts a quantitative approach and the data unaccompanied depends on the primary data. The instrument to be used to collect the data in this research is a set of questionnaire. The questionnaire consists of two main regions †Section A and B.\r\nSection A is regarded respondent’s profile, such as Gender, Age Group, Position in this organization, Highest take of Academic Qualification and Total Year of operative Experience in this company.\r\nSection B is pertaining to the metre of variables under studied. There are total three variables in this study †one dependent variable which is Job Satisfaction , and two independent variables which are perceived Organization Culture and Perceived Leadership Style. The Job Satisfaction is measured with ten souvenirs, and Organization Culture and Leadership Style, they are assessed by 20 and 15 items respectively. This is self-administered questionnaire. Respondents will be asked to indicate their agreement on each item on a 5-points Likert scale. The scale points are 1=Strongly Disagree,\r\n2=Disagree, 3=Neutral, 4=Agree, and 5=Strongly Agree. A set of questionnaire is appended in Appendix A for reference.\r\n \r\nPopulation and specimen\r\nThe population for this study composed of all managers in the SME in manufacturing sector companies located in Penang. A two layer sampling method will be employed in selecting the respondents for this study. In the first layer, the companies that formed the respondents will be selected using a simple random sampling method. The list of all the SME in the manufacturing section publishes on the SME webs ite will be used as the population. Each company will be assigned a number and random numbers will be generated to select 380 companies to form the participants. In the second layer, 5 sets of questionnaire will be given to the military man Resources managers of the 380 companies selected. The questionnaire will then be distributed to the managers in their company. The selection of managers is at the discretion of the Human Resources managers.\r\n3.3\r\nPilot Test\r\nTest Pilot is a trial run of procedures and instruments that you plan to use. Pilot rivulet will be conducted with 50 managers of SME in the manufacturing sector randomly picked from the population to ensure that the instrument used is reliable. The returned data on the questionnaire will be entered into the SPSS statistical software. A reliability shield will be run and Cronbach’s Alpha coefficient value will be examined. It is suggested that Cronbach’s Alpha value of 0.7 and above is considered good r eliability of the measure. However, if the Cronbach’s Alpha value below than 0.7, then we will look further into the value of 28\r\nâ€Å"Cronbach’s Alpha if item Deleted”. We will screen through all the items to determine which item if this item deleted will improve the Cronbach’s Alpha value. If necessary, we will add in redundant items to enhance the reliability of the measure.\r\nIn addition, we will also examine the value of â€Å"Corrected item-Total Correlation”. The value of 0.4 to 0.6 is considered acceptable. This statistic can be used to test rigor of the measure. If the value is too small such as 0.05, it means this item is no correlated to other items. In other words, this item is not relevant in this measure. Contrary, if the value is too high such as 0.8, then it means this item is too correlated with other items or it is duplicated with other items. The original test will be repeated to achieve the acceptable level of reliability and validity.\r\n3.4\r\nMethod of epitome\r\nThis study will employ descriptive statistic and an consequence statistic approach to test the hypothesis and achieve the objectives of this research. However, in the first place we begin any actual data analysis, we will perform the goodness of measure test.\r\n3.4.1 Goodness of bankers bill\r\nReliability is one of the elements to ensure the goodness of measure. It is suggested that Cronbach’s alpha coefficient should be above 0.7 for reliability to consider the scale as consistent scale. As presented in the Pilot Test, the\r\n29\r\nreliability will be assessed and enhanced before the actual data show and analysis. In other words, the goodness of data has been pre-assessed.\r\n3.4.2 descriptive Statistic\r\nA descriptive statistic table will be generated using the SPSS statistical software. The table will report the total numbers of respondent and the demographic statistics, mean values and standard deviation of Job Satisf action, Organization Culture and Leadership Style. These are the basis statistics to describe the samples.\r\nFrom this descriptive statistics, specifically from the mean score of Job Satisfaction, we will know the satisfaction level of managers of the SME manufacturing section in Penang. This statistic is able to achieve the first objective of this research †To assess the job satisfaction level of managers in\r\nSME companies in Penang.\r\n3.4.3 Inferences Statistic\r\nVarious statistical analysis techniques will be employed in this study. These techniques are multivariate analysis and hierarchical multiple degeneration analysis. Each technique has its own purpose in related to the objective of the research and hypothesis testing. To test the following research hypothesis, multivariate analysis will be carried out.\r\n30\r\nH1: Organizational Culture affects Job Satisfaction of the employees. H2: Leadership Style affects Job Satisfaction of the employees.\r\nThe outcome of th is data analysis will help us achieve the second objective †To study the impact of these 2 factors affects the job satisfaction of the managers in SME companies in Penang. To test on the following hypothesis, we will carry out the hierarchical multiple degeneration analysis. H3: Age has a moderating effect on the level of Job Satisfaction. With the outcome of this test, the third objective of this study will also can be achieved †To examine whether age has any moderating effects in the job satisfaction of the managers in SME companies in Penang.\r\nThe above data analysis plan and its purpose of each test in regards to the research objective can be summarized in the table below.\r\n \r\nDastmalchian, A., Lee, S. and Ng. I. (2000). 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