Leader Intentions and Employee Perceptions of Organizational Culture in a Private Fitness Corporation

Abstract

Understanding “how things are done around here” is an integral part of managing any organization. Organizational culture may impact the attitudes and behaviour of members, and the performance of the organization as a whole. Thus, the indoctrination of positive values, that become widely understood, is the likely intention of the organization's leaders. This study examined leader intentions and employee perceptions of organizational culture, as well as the existence of distinct subcultures, and the further influence of subculture on staff behaviour (intent to leave) and organizational performance (profit margin, client retention). Qualitative and quantitative methods were used to describe the specific culture of the focal organization. The study revealed a significant culture gap between the leaders’ intentions and employee perceptions, and the existence of subcultures by organizational level (head office versus club). The strength of the respective subcultures was inversely associated with employee intentions to leave the organization, however club subculture had little association with performance in terms of profit margin or client retention rates. The findings suggest that culture has a more direct influence on employees and a less direct influence, if any, on organizational performance. The results extend our understanding of the nature and influence of organizational culture and subcultures, and have implications for their management within the focal organization.