11

Chapter 14Chapter 14

Shaping Culture and ValuesShaping Culture and Values

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Chapter ObjectivesChapter Objectives

• Understand why shaping culture is a critical function of leadership.

• Recognize the characteristics of an adaptive, as opposed to an unadaptive, culture.

• Understand and apply how leaders shape culture and values through ceremonies, stories, symbols, language, selection and socialization, and daily actions.

• Identify the cultural values associated with adaptability, achievement, clan, and bureaucratic cultures and the environmental conditions associated with each.

33

Chapter Objectives Chapter Objectives (contd.)(contd.)

• Act as an ethical leader and instill ethical values in the organizational culture.

• Apply the principles of spiritual leadership to help people find deeper life meaning and a sense of membership through work.

44

CultureCulture

The set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct

55

Ex. 14.1Ex. 14.1 Levels of Corporate Culture Levels of Corporate Culture

Visible1. Artifacts such as

dress, office layout, symbols, slogans, ceremonies

Invisible

2. Expressed values, such as “The Penney Idea,” “The HP Way”

3. Underlying assumptions and deep beliefs, such as “people here care about one another like a family”

Deeper values and shared

understandings held by

organization members

Culture that can be seen at the surface level

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Importance of CultureImportance of Culture

• It integrates members so that they know how to relate to one another. (Internal)

– Guides day-to-day work– Determines how communication occurs in

the workplace – What behavior is acceptable– How power and status are allocated

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Importance of CultureImportance of Culture

• It helps the organization adapt to the external environment. (External)– How organization meets goals and deals with

outsiders– How organization responds to

customers/competitors

88

Culture StrengthCulture Strength

The degree of agreement among employees about the importance of specific values and ways of doing things

99

Ex. 14.2Ex. 14.2 Adaptive Versus Unadaptive Cultures Adaptive Versus Unadaptive CulturesAdaptive

Organizational CultureUnadaptive

Organizational Culture

Visible Behavior Leaders pay close attention to all their constituencies, especially customers, and initiate change when needed to serve their legitimate interests, even if it entails taking some risks

Managers tend to behave somewhat insularly, politically, and bureaucratically. As a result, they do not change their strategies quickly to adjust to or take advantage of changes in their business environments

Expressed Values Leaders care deeply about customers, stockholders, and employees. They also strongly value people and processes that can create useful change (e.g., leadership initiatives up and down the management hierarchy)

Managers care mainly about themselves, their immediate work group, or some product (or technology) associated with that work group. They value the orderly and risk-reducing management processes much more highly than leadership initiatives

Underlying Assumption

Serve whole organization, trust others

Meet own needs, distrust others

1010

Culture GapCulture Gap

• The difference between desired and actual values and behaviors– Exists in all organizations to some degree– Must pay attention to when people are

adhering to the wrong values– Difficulty in merging cultures

1111

High Performance CultureHigh Performance Culture

• Strong culture encourages adaptation

• Strong adaptive cultures often incorporate the following values– The whole is more important than the pars

and boundaries between parts are minimized– Equality and trust arte primary values– The culture encourages risk taking, change

and improvement

1212

Cultural LeadershipCultural Leadership

• Defines and uses signals and symbols to influence corporate culture– Articulates a vision for the organizational

culture that employees can believe in– The cultural leader heeds the day-to-day

activities that reinforce the cultural vision

1313

Ceremonies, Stories, and SymbolsCeremonies, Stories, and Symbols

Ceremonies– Planned activities that make up special events and

are generally conducted for the benefit of an audience

Stories– Narratives based on true events that are repeated

frequently and shared among employees

Symbols– A object, act, or event that conveys meaning to others

1414

Language, Selection, Socialization Language, Selection, Socialization and Daily Actionsand Daily Actions

• Specialized language – slogans or sayings to express key corporate values

• Selection – hiring the right people

• Socialization - the process by which a person learns the values, norms perspectives, and expected behaviors that enable him or her to successfully participate in the group or organization

• Daily actions – the signaling and support of important cultural values through a leader’s daily actions.

1515

Organizational ValuesOrganizational Values

The enduring beliefs that have worth, merit, and importance for the organization

1616

Ex. 14.3Ex. 14.3 Four Corporate Cultures Four Corporate Cultures

External focus

Flexibility

Internal focus

Stability

Clan CultureValues: Cooperation

Consideration Agreement Fairness Social equality

Bureaucratic Culture

Values: Economy Formality Rationality Order Obedience

Adaptability CultureValues: Creativity

Experimentation Risk-taking Autonomy Responsiveness

Achievement Culture

Values: Competitiveness Perfectionism Aggressiveness Diligence Personal initiative

1717

EthicsEthics

The code of moral principles and values that governs the behavior of a person or group with respect to what is right and wrong

1919

Personal EthicsPersonal Ethics

• Employees learn from watching leaders

• Ethical leaders generate high trust and respect

• Based on courage, determination and self-sacrifice

• Must uphold commitment to values during difficult times

2020

Spiritual ValuesSpiritual Values

• Values and practices:– Integrity– Humility– Respect– Appreciation for the contributions of others– Fair treatment– Personal reflection

2121

Spiritual LeadershipSpiritual Leadership

• Create a vision through which organization participants experience a sense of spiritual expression through calling and membership

• Establish a corporate culture based on altruistic love

• Addresses followers’ higher order needs for membership and self-actualization

• Reduces negative feelings, emotions and conflicts