The Influence of Servant Leadership on Organization Culture, Organizational Commitment, Organizational Citizenship Behavior and Employees’ Performance (Study of Outstanding Cooperatives in East Java Province, Indonesia)

The purposes of this research to investigate the influence of Servant Leadership to Organization Culture, Organizational Commitment, OCB and Employees’ Performance on Outstanding Cooperatives in East Java Province. Samples were collected amount 249 employees as unit samples. 30 managers as informant were asked to answer Employees’ Performance variable. Servant Leadership, Organization Culture, Organization Commitment and OCB variables were answered by employees. Structural Equal Modeling is used as a technique of analysis. The research findings: Servant Leadership influences to Organization Culture, Organizational Commitment, and Employees’ Performance significantly, but not to OCB; Organization Culture influences to OCB and Employees’ Performance significantly; Organizational Commitment influences to OCB significantly, but not to Employees’ Performance; OCB influences to Employees’ Performance significantly. The dominant indicators contribute to variables are: people orientation to Servant Leadership, power distance to Organization Culture, continuance commitment to Organizational Commitment, civic virtue to OCB, and individual attitude to Employees’ Performance. Servant Leadership encouraging employees easier, conducting their tasks better and building the organization values thus employees done their job well, honest and increasing their performance. Managers should be more empower themselves to help fellow workers help others voluntarily, fostering sportsmanship, altruism, conscientiousness, courtesy, and civic virtue of the employees.


Introduction
East Java as one of the biggest Province in Indonesia has more than 4,2 millions Small Medium Enterprises, number of Cooperatives was 29.145 units and absorbed man power as many as 75.430 people, with total business volume of about 26,29 trillions rupiahs in 2011 (Central Bureau of Statistic, 2012). Many reasons of conducting research on Outstanding Cooperatives as follows: (1) Only 0.08% of 29.145 units (25 units) as Outstanding Cooperatives shows not only so rigid and competitive, but also as a big opportunity to be an Outstanding Cooperatives in East Java, (2) The result of Outstanding Cooperatives research beneficial as a trigger for ordinary other Cooperatives hopefully, and (3) The empirical research of Servant Leadership has been scarce (Subramaniam, 2011) especially Outstanding Cooperatives. Servant leadership in Cooperatives relate to serve first, rather than to lead first, always striving to meet the highest priority needs of others. Servant leadership respects the capabilities of their followers and enables them to exercise their abilities, share powers, and do their best. The servant-leader is prepared to share power through empowerment, thereby involving followers in planning and decision making.
Along with the servant leadership style of Outstanding Cooperatives which show concern for their employees, the overriding focus of the servant leader is upon service to the employees, as Russell & Stone (2002) stated that the servant leader are people oriented and focused on the needs of those around them. The existence of Small Medium and Cooperatives in East Java economic growths is important, especially in supporting of 53.04% for Total PDRB (Product Domestic Regional Brutto) on 2011 (Central Bureau of Statistic, 2012), means that leadership are needed from the leaders who motivate their subordinates achieving a certain level that exerting a given level of effort will lead to a higher performance. Furthermore, the servant leadership can be operationalized and is well suitable for application in the information service arena like organizations not-for-profit, volunteer or educational institutions (Smith et al., 2004), as well for Outstanding Cooperatives hopefully. This study examine (1) the influence of servant leadership to organization culture, organizational commitment, OCB, and employees' performance, (2) the influence of organization culture to OCB and employees' performance, (3) the influence of organizational commitment to OCB and employees' performance, and (4) the influence of OCB to employees' performance.

Literature Review
Servant leadership is a term referred to by a surprising number of leadership writers and researchers. Senge (as cited in Spears, 1996) emphasized the importance of the concept by stating that he believes the essay by Robert Greenleaf titled The Servant as Leader, is the most useful statement on leadership in the last 20 years. Covey (2002) summarized his view of servant leadership by stating that "you don't just serve, you do it in a way that makes them independent of you, and capable and desirous of serving other people" That was close to the first part of Greenleaf's (1970) best test of servant leadership asks "When served, do they grow as persons?" Therefore, this research included employee perceptions of their opportunities for their performance in the Cooperatives Organization, while Bass (2000) point out that leaders who adopt transformational leadership style successfully motivate their employees, and Storseth (2004) suggested that a leadership style involving a ''people-orientation'' was identified as a key predictor for work motivation. Kreitner & Kinichi (1995) identified that organization culture is a social glue bounded members in organization. Several researchers proved the linkage between leadership and organizational culture (Bass, 2000), and conducted study on leadership style and its impact on culture, and found that transactional leaders operate in a boundary of existing culture, while transformation leaders operate to align the culture of the organization with vision of the organization. Jogulu (2010) found that leadership style changes as the culture of the organization changes. Existing studies consistently have shown that organizational culture is associated with OCB (Wayne et al., 1997;Werner, 2000). Further, Werner (2000) postulates that the organizational culture influences on the extent to which employees are engaged in contextual performance which is defined as "individual efforts that are not directly related to their main task functions but are important because they shape the organizational, social, and psychological context that serves as the critical catalyst for task activities and processes". Sabir et al. (2011) gave the model provides link between leadership style, organization culture, and organization commitment, and recommended that future research can be conducted with new variable i.e. servant leadership style in the model by replacing the transactional leadership. Subramaniam (2011) proved that individual did not need much time to learn his/her organization since the servant leadership style will encourage the organizational commitment in all levels of organizations. Work behavior or known as OCB in the organization that is committed to improving service quality is also very important to be developed or nurtured. Organ (1998), defined OCB as individual behavior that is discretionary, not directly or explicitly recognized by the formal reward system, and the aggregate promotes the effective functioning of the organization. Zabihi & Hashemzehi (2012) proved empirically that style of leaderships (transactional or transformational) have significant impact and partially influence the OCB. Individual performance has become a topical issue in today's business environment, so much that organizations go to great lengths to appraise and manage it (Armstrong & Baron, 1998). Servant leadership as a fundamental of effective leadership and the leader has to support the employees' competency on realizing the best performance, responsible on operating organization (Northouse, 2001). The finding of Jo & Joo (2011) showed that organizational learning culture positively related to OCB. It is the fact that organizational culture can offer a shared system of meanings, according to Campbell et al. (1999), culture can also have influence on employee motivation; employee morale and 'good will'; productivity and efficiency; the quality of work; innovation and creativity, the attitude and the performance of employees in the workplace. The results of studies by Di Tomasso (1992), Nystrom (1993), Fey & Denison (2000), all suggest that organization culture is positively and significantly associated with employees' performance. With reference to Indian organizations, a review literature suggest that dimensions of OCB such as altruism, conscientiousness, and civic virtue match with society as India, and would thus have a positive impact on individual performance (Hofstede, 1984).

Methodology
The research was conducted in the East Java Province as a whole currently has 17 districts as the area within 25 units Outstanding Cooperatives. Population in this study includes all employees and managers in Outstanding Cooperatives in East Java, consisting of 660 employees, 40 managers, and 4 unit businesses. Sampling technique used was the area sampling or cluster sampling that takes samples based on area/region (Bungin, 2011). Population divided into certain huge unit is called cluster, then counting it in each area/cluster based on sample measured by Slovin formula and proportionally at 5%. Structural Equal Modeling (SEM) is used as a technique of analysis in this research, because of the complexity model and the limitation of multi dimension analysis tools in quantitative research such as multiple regressions, factor analysis, and descriminant analysis. SEM is an analytical technique used to test a set of complicated relationship among variables simultancy. These complex relationships consist of more than one dependent variables with many independent variables. Each constructs is created by indicator variables (Ferdinand, 2006 OCB (Y3) Employees' Performance (Y4) Table 1 presented testing the validity and reliability of research instrument for each variable, the result shows that all correlation values of each indicators and items were above 0.3. Thus the overall indicators and items have valid questions. While the Cronbach Alpha values obtained from the above 0.6 for the whole variables, so it can be concluded that the instrument was valid research data.   Solimun (2009) stated that the best criterion can be used as the goodness model indicator if the Chi Square/DF value less than 2, and RMSEA above 0.08. In this research, RMSEA value has fulfill cut off value, thus concluded that SEM model is appropriate and suitable to be used for this research.

Measurement Model:
Loading factor value shows indicator values as a measurement of each latent variable. Indicator with the highest loading factor as the strongest measurement for the dominant variables showed on Table 3 as follow.  Table 3 concluded that:  Servant Leadership variable (X1) consisted of 4 indicators: character orientation, people orientation, task orientation and process orientation. The highest loading factor value is people orientation (X1.2) as the most dominant factor to support servant leadership.  Organization Culture variable (Y1) consisted of 4 indicators: uncertainty avoidance, femininity vs. masculinity, collectivism vs. individualism, and power distance. The highest loading factor value is power distance (1.4) as the most dominant factor to support organization culture.  Organizational Commitment variable (Y2) consisted of 3 indicators: affective, continuance and normative commitment. The highest loading factor value is continuance (Y2.2) as the most dominant factor to support organizational commitment.  OCB variable (Y3) consisted of 5 indicators: sportsmanship, civic virtue, conscientiousness, altruism, courtesy. The highest loading factor value is civic virtue (Y3.2) as the most dominant factor to support OCB.  Employees' performance variable (Y4) consisted of 3 indicators:: output, work behavior, and individual attitude. The highest loading factor value is individual attitude (Y4.3) as the most dominant factor to support employees' performance.  Table 4 shows the hypothesis result testing of direct influence. The result of structural model graphically showed as follow.

Figure 2: The Result of Inner Model Direct Testing
Based on Table 4 and Figure 2, the result of direct influence hypothesis testing as follow:  Direct influence testing of Servant Leadership (X1)on Organization Culture (Y1), found standardized coefficient value 0.403 with p-value of 0.000, because of p-value < 5%, there is sufficient evidence to accept the hypothesis that Servant Leadership (X1) influences Organization Culture (Y1). Since the coefficient is positive (0.403), indicating that the higher value of Servant Leadership (X1) will lead to the higher value of Organization Culture (Y1 to accept the hypothesis that Organization Culture (Y1) influences to Employees' Performance (Y4), since the coefficient is positive (0.258), indicating that the higher value of Organization Culture (Y1) will lead to the higher value of Employees' Performance (Y4).  Direct influence testing of Organizational Commitment (Y2)on OCB (Y3) found standardized coefficient value0.355 with p-value 0.001, because p-value < 5% there is sufficient evidence to accept the hypothesis that Organizational Commitment (Y2) influences to OCB (Y3)", since the coefficient is positive (0.355), indicating that the higher value of Organizational Commitment (Y2) will lead to the higher value of OCB (Y3).  Direct influence testing of Organizational Commitment (Y2) on Employees' Performance (Y4) found standardized coefficient value0.121 with p-value 0.203, because p-value > 5% there is insufficient evidence to accept that Organizational Commitment (Y2) influences to Employees' Performance (Y4). Organizational Commitment (Y2) has no significant effect to Employees' Performance (Y4) thus the change of Organizational Commitment's value will not affect to the exchange of Employees' Performance's value.  Direct influence testing ofOCB (Y3) on Employees' Performance (Y4) found standardized coefficient value 0.307 withp-value 0.002, because p-value < 5% there is sufficient evidence to accept the hypothesis that OCB (Y3) influences to Employees' Performance (Y4), since the coefficient is positive (0.307), indicating that the higher value of OCB (Y3), will lead to the higher value of Employees' Performance (Y4).
Discussion: Patterson (2003) found that leadership style influences on organization culture. Theoretically Hofstede (1984) and Schein (1997) identified that culture as software of the mind can be impacted by leadership style. This study is consistent with several researches by Bass (2000) and Sabir et al. (2011), both found that leadership style impacts on culture, and leadership style changes as the culture of the organization changes. Agarwal et al. (1999) stated that attention (as a vital component of servant leadership) has a positive relationship with organizational commitment, while Subramaniam (2011) proved that there was a relationship between servant leadership and organizational commitment. So this result supported Agarwal et al. (1999) and Subramaniam (2011). Although servant leaders understand that primary function as a leader is to serve the need of others and help subordinates, but sometimes their behavior disconnected with their beliefs, simply because they are not willing to address the evils of abusive power and egoistic pride (Wong & Page, 2003), in line with this research that no significant were found between Servant Leadership on OCB, but this result did not support Budiyanto and Oetomo (2011) suggested that leadership is positively and significantly related to OCB. Hall (1996) stated that organizational leadership influences employees' performance directly and indirectly. Hayward (2005) initially revealed a weak mildly significant negative linear relationship between employee performance and leadership. Furthermore, it was found that there was a significant weak, negative linear relationship between employee performance and transactional leadership. So this result supported Hall (1996) and enhanced Hayward (2005).
The culture of organization should be developing to support employees' style of helping others as a good teamwork. De Long & Fahey (2000) stated that organization culture influences organizational commitment, OCB, and intention to share knowledge. The strong organization culture as a vital trigger of OCB (Organ, 1988), Jo & Joo (2011) proved that organization culture learning has positive relationship with OCB. This study supported the existing studies of Somech & Drach-Zagavy (2004) and Williams & Anderson (1991) provides empirical evidence on positive influence organization culture to OCB. Denison& Mishra (1995) examined that the certain type of organization culture increased employees' performance. Koesmono (2005) proved that organization culture influences the manager's performance of furniture manufacture in East Java. In this connection, the finding supported that organization culture had a positive impact on employees' performance. Efraty & Wolfe (1988) stated there was a positive relationship among behavior performance and job attitude on organization, this condition enforced that psychology individual bending and organization would influence on pro-organization behavior. Alotaibi (2001) empirically identified organizational commitment as a factor which has a positive relationship to OCB. This study supported these existed findings. Meyer et al. (1989) stated if employees involved with their job hearted-deeply, they will dedicate their strong effort for the organization success, and this way will increase their performance. Benkhoff (1997), Suliman (2002), and Husnawati (2006) proved that organizational commitment influences on employees' performance. OCB behaviors are vital for productivity: organizations cannot forecast the entire spectrum of subordinate needed for achieving goals through stated job descriptions (Deluga, 1994), but normally such behaviors are not specifically rewarded by organizations who demonstrate such behaviors are often seen having a favorable attitude towards overall business efficacy (Smith et al., 2004). In this connection, Biswas & Varma (2007) found that OCB had a positive impact on individual performance. The result showed an influence of OCB to employees' performance.

Conclusion
Several conclusions can be obtained as follow: (1) there is the influence of servant leadership to organization culture, organizational commitment, and employees' performance, but servant leadership has not influenced to OCB; the higher servant leadership, it could lead to higher the organization culture, organizational commitment, and employees' performance, but it could not influence the change of OCB, (2) there is the influence of organization culture to OCB and employees' performance; the higher organization culture, it could lead to higher OCB and employees' performance, (3) there is the influence of organizational commitment to OCB, but organizational commitment has not influenced to employees' performance, (4) OCB has not influenced employees' performance

Recommendations:
The future research should: (1) add the new relationship between Job Involvement and servant leadership as Covey (2002) stated leader not only served, but also supported employees to love their job and good socialized in organization, (2) take the other object such as: women's cooperatives, employees' cooperatives and make the comparison analysis to be knowing the application of servant leadership and how the influences of servant leadership on employees' performance, (3) use the longitudinal data to make deeper and enhancing of study, (4) Managers have to give examples of real behavior for employees to serve customers better, to help others, and creating activities precisely to keep employees' commitment and to empower local community (5) Managers have to remind employees on realizing the value of their job, make them proud of their job. More they involved in their job, more possibilities to increasing their individual performance.