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The Pennsylvania State University The Graduate School School of Hotel, Restaurant and Recreation Management THE EFFECT OF PERSONAL VALUES, ORGANIZATIONAL CULTURE, AND PERSON- ORGANIZATION FIT ON INDIVIDUAL OUTCOMES IN THE RESTAURANT INDUSTRY A Thesis in Man-Environment Relations by Mustafa Tepeci  2001 Mustafa Tepeci Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy May 2001 We approve the thesis of Mustafa Tepeci. Date of Signature Albert L. Bartlett Assistant Professor of Hotel, Restaurant and Recreation Management Thesis Advisor Chair of Committee Garry E. Chick Associate Professor of Hotel, Restaurant and Recreation Management Arun Upneja Assistant Professor of Hotel, Restaurant and Recreation Management Linda K. Trevino Professor of Organizational Behavior William P. Andrew Associate Professor of Hotel, Restaurant and Institutional Management Professor in Charge of Graduate Programs in Hotel, Restaurant and Institutional Management iii ABSTRACT Person-Organization fit seeks to identify how congruence of organizational culture and individual values predicts individual attitudes and behaviors. This study developed the Hospitality Industry Culture Profile (HICP), an instrument to assess perceived organizational culture, preferred organizational culture (interpreted as individual values), and person- organization (P-O) fit in hospitality organizations. The instrument was administered to a sample of 326 employees representing 34 restaurants. A seven-factor structure of organizational culture was identified. A .67 correlation among culture profiles of 26 restaurants suggests an industry-wide restaurant culture exists. Then, perceived organizational culture, preferred organizational culture, and the fit between the two (P-O fit) were assessed as predictors of job satisfaction, intent to remain, and willingness to recommend the organization. Hierarchical regression analyses were conducted at the individual-level and cross-level. Among perceived culture factors, only the Honesty/People Orientation factor predicted the outcomes. Among preferred culture factors, the Honesty/People Orientation and Fair Compensation/Employee Development factors predicted the outcomes. Perceived and calculated P-O fit were assessed. Mixed and limited results in correlating the measures indicate continuing questions about measurement of P-O fit. Perceived fit was found to explain variance in the outcomes beyond that explained by organizational culture and individual values, but calculated fit did not. Perceived and calculated P-O fit explained significant variance in the outcomes when perceived and preferred culture were not in the model. iv For hospitality research, the HICP provides a tool to further assess culture, individual values, fit, and their effects. For hospitality practice, the findings support hiring and socializing employees to enhance fit, and managing employees to demonstrate people orientation, honesty, and overall concern for employees’ well-being. TABLE OF CONTENTS LIST OF FIGURES ................................................................................................................viii LIST OF TABLES .................................................................................................................. ix ACKNOWLEGMENTS ........................................................................................................ xi CHAPTER I. INTRODUCTION.......................................................................................... 1 Purpose of the Study ............................................................................................ 6 Significance of the Study ........................................................................................ 6 CHAPTER II. A REVIEW OF THE LITERATURE............................................................... 7 Organizational Culture .......................................................................................... 7 Measuring Organizational Culture ............................................................. 8 Outcomes of Organizational Culture ......................................................... 13 Organizational Culture in Restaurant Organizations ...................................... 14 Individual Values.................................................................................................... 16 Measuring Individual Values ..................................................................... 17 Outcomes of Individual Values ................................................................. 18 Individual Values in Restaurant Organizations ............................................ 19 The Interactional Perspective ................................................................................ 20 Person-Organization Fit ............................................................................. 20 Measurement of Person-Organization Fit .................................................. 21 Outcomes of Person-Organization Fit ....................................................... 26 Person-Organization Fit in Restaurants........................................................ 28 Individual Outcomes .............................................................................................. 30 Employee Job Satisfaction ......................................................................... 30 Intent to Quit ............................................................................................ 31 Willingness to Recommend the Organization ............................................. 32 Control Variables .................................................................................................. 32 CHAPTER III. METHODOLOGY ...................................................................................... 34 Conceptual Framework.......................................................................................... 34 Research Design ................................................................................................... 36 Instrumentation: Development of the Hospitality Industry Culture Profile (HICP) ..................................................................................... 36 Pilot Study One.......................................................................................... 37 Pilot Study Two ........................................................................................ 39 Pilot Study Three ....................................................................................... 40 Population, Sample, and Data Collection................................................................ 43 Data Collection Protocol ....................................................................................... 45 Variables ............................................................................................................. 47 The Control Variables ............................................................................... 47 The Independent Variables......................................................................... 48 vi TABLE OF CONTENTS (Continued) The Dependent Variables........................................................................... 49 Data Analysis ....................................................................................................... 51 Factor Analysis of Organizational and Individual Values ............................. 51 Reliability Assessment of the Factor Scales and Dependent Variables Used in the Study .............................................................................. 52 Calculation and Reliability Assessment of the Aggregate Culture Profiles of Restaurants ....................................................................... 52 Calculation of Person-Organization Fit Scores ........................................... 53 Hierarchical Regression Analyses................................................................ 55 Revised Model .......................................................................................... 55 Strength and Limitations of the Study’s Design ........................................... 56 CHAPTER IV. ANALYSIS OF THE DATA ....................................................................... 58 Representativeness of the Sample ........................................................................... 59 Factor Analyses ..................................................................................................... 62 Factor Dimensions of Perceived Restaurant Culture .................................... 63 Factor Dimensions of Preferred Restaurant Culture..................................... 66 Comparability of Perceived and Preferred Culture Profiles ......................... 67 The Cross-Level Sample........................................................................................ 70 Calculation of Person-Organization Fit.................................................................... 74 The Dependent Variables ..................................................................................... 75 Comparison of Fit and Outcome Scores According to Demographics .................... 76 Relationships Among Variables in the Study .......................................................... 78 Relationships Among Person-Organization Fit Scores ........................................... 78 Hierarchical Regression Analyses............................................................................ 83 Individual Level Hierarchical Regression Analysis ....................................... 84 Cross Level Hierarchical Regression Analysis ............................................ 89 CHAPTER V. CONCLUSION ............................................................................................. 94 Restatement of the Problem.................................................................................... 94 Summary of Procedures......................................................................................... 95 Summary of Findings and Conclusion...................................................................... 95 Development of the Hospitality Industry Culture Profile (HICP) and Objective Measurement of Restaurant Culture ............................. 96 Multiple Measures of Person-Organization Fit............................................. 97 Culture, Individual Values, and Person-Organization Fit as Predictors of Attitudes and Behavioral Intentions ................................................ 98 Implications............................................................................................................100 Limitations .............................................................................................................102 Recommendations for Future Research...................................................................103 REFERENCES ... ..................................................................................................................105 vii TABLE OF CONTENTS (Continued) APPENDIX A: FACTOR LOADINGS OF 39 VALUE ITEMS ON PERCEIVED AND PREFERRED ORGANIZATIONAL CULTURE .............................................114 APPENDIX B: SURVEY INSTRUMENT..............................................................................116 APPENDIX C: COVER LETTER...........................................................................................120 APPENDIX D1: ORGANIZATIONAL CULTURE DIMENSIONS AND VALUE ITEMS FOR FRONT- OF- THE-HOUSE SAMPLE.................................................121 APPENDIX D2: ORGANIZATIONAL CULTURE DIMENSIONS AND VALUE ITEMS FOR BACK- OF- THE-HOUSE SAMPLE ..................................................122 viii LIST OF FIGURES 2.1 The Original Organizational Culture Profile (Q-sort) Format .............................................. 12 2.2 Person-Organization Fit Calculation by Correlation (Q) Method........................................ 25 3.1 Relationship Between Organizational Culture, Individual Values, Person-Organization Fit and Individual Outcomes ............................................................ 35 3.2 Revised Model ................................................................................................................ 56 ix LIST OF TABLES 2.1 Organizational Value (Culture) Dimensions Found by the Five Value Instruments............... 9 2.2 Dimensions of Dinner-House Restaurant Culture ....................................................... 15 3.1 Organizational Culture and Individual Value Dimensions .......................................... 37 3.2 Eight Dimensions and 32 Value Items Tested in Pilot Study One........................................ 38 3.3 Ten Dimensions and 40 Value Items Tested in Pilot Study Three....................................... 41 3.4 Eight Perceived Culture and Six Preferred Culture Dimensions Derived From Pilot Study Three ........................................................................................................ 42 3.5 Thirty-six Value Items to Measure Nine Culture and Preferred Culture Dimensions in Restaurants ........................................................................................... 43 4.1 Comparison of Sample and Population Characteristics ...................................................... 61 4.2 Goodness-of-Fit Measures For Confirmatory Factor Analyses.......................................... 63 4.3 Factor Analysis Scores for the Perceived Organizational Culture Dimensions ..................... 65 4.4 Factor Analysis Scores for the Preferred Culture (Individual Value) Dimensions................. 68 4.5 Perceived and Preferred Culture Dimensions Identfied in the Study.................................... 69 4.6 Reliability Scores of Aggregate Culture Profile for Each Restaurant.................................... 71 4.7 Correlations Among Restaurant Culture Profiles................................................................ 73 4.8 Descriptive Statistics for Person-Organization Fit Scores................................................... 74 4.9 Alphas, Means, and Standard Deviations for the Dependent Variables .............................. 75 4.10 Fit and Dependent Variable Mean Scores, Compared According to Demographic Categories ............................................................................................ 77 4.11 Correlations Among All Variables in Entire Sample .......................................................... 79 4.12 Correlations Among All Variables in High Consensus Restaurants .................................... 81 4.13 Individual-Level Hierarchical Regression Results for the Effects of Demographic Variables, Culture, Preferred Culture, and Person-Organization Fit on the Dependent Variables.................................................................................................. 85 x 4.14 Individual-Level Hierarchical Regression Results for the Effects of Fit on the Dependent Variables Without Controlling for Perceived and Preferred Culture ............ 88 4.15 Cross-Level Hierarchical Regression Results for the Effects of Demographic Variables, Culture, Preferred Culture, and Person-Organization Fit on the Dependent Variables.................................................................................................. 90 4.16 Cross-Level Hierarchical Regression Results for the Effects of Fit on the Dependent Variables Without Controlling for Perceived and Preferred Culture ............ 92 5.1 Culture and Individual Value Dimensions Identified in the Study......................................... 96

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