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Learning Outcomes
LO1: Understand the organisation’s ethical and value-based approach to leadership
Assessment Criteria: Evaluate the impact of the organisation’s culture and
values on leadership (Session 1-This session) Discuss how organisational specific, legal, regulatory
and ethical requirements impact on leadership demands (Session 2)
Evaluate current and emerging social concerns and expectations impacting on leadership in the organisation (Session 3)
What is culture?
Culture is ‘how things are done
around here’. It is what is typical of
the organization, the habits, the
prevailing attitudes, the grown-up
pattern of accepted behaviour.
(Drennan, 1992:3)
Why is culture important?
Culture shapes behaviour• Friendly or Aggressive• Proactive or Passive • Concerned or Not Bothered• Team worker or Solo Player• Rule Follower or Rule Breaker.
Implications of culture
Behaviour is not shaped by extrinsic and intrinsic motivators but by values, beliefs and
assumptions. Culture guides actions but only when it is strong and unchallenged. Some cultures are better than others. If values, beliefs and attitudes can be learned,
they can also be changed.
Handy’s four types of culture
Person – The individual is the central focus. Found amongst artists, performers, barristers, architects.
Power – Power radiates out from the centre like a spider’s web. Found in small
entrepreneurial companies, family dominated companies, etc.
Role – Found in bureaucracies where the main emphasis is on compliance with rules and procedures.
Task – The emphasis is on completing the job or project. Found in organisations which require teamwork,
flexibility and speed, such as advertising agencies.
Main cultures in the UK = Role and TaskHandy (1986)
The cultural web
The Cultural Web
Represents the determinants of organisational culture
Considers the paradigm or taken-for-granted assumptions about the organisation
Routines:Routines are the scheduled and deliberate
practices of day-to-day life in an organisation
They ensure the smooth running of the organisation
Cultural Web contd...
Rituals Are used to reinforce routines Include induction and training courses Rituals and routines will be very clear and
important in strong culture organisationsStories Represent an organisation’s history, or
significant events, and people in the past
Cultural Web contd...
Are often told to new people in the organisation
Indicate acceptable and unacceptable behaviour in the organisation
Symbols Represent the power an individual has
in an organisation Indicate the value of an individual to
the organisation
Cultural Web contd...
Power structures Are groups of individuals with power
underpinned by a common set of values and beliefs
Often based on technical or professional expertise
Cultural Web
Organisational structureDetermines where the power will exist in the
organisation Simple structure - power rests with the
owner Functional structure – power with senior
mgmt Divisional structure – power is spread
throughout the organisation Matrix structure – power rests with individuals in
the matrix
Cultural Web
Control systems Monitor what is important to the
organisation Can monitor money, budgets, people
– rewards systems, work – efficiency and effectiveness
Deal and Kennedy’s four types of culture
The Tough Guy, Macho culture, characterised by individualism and risk-taking, e.g. a police force.
The Work-Hard/Play-Hard culture, characterised by low risks and quick feedback on performance, e.g. McDonald’s.
The Bet-Your-Company culture, characterised by high risks and very long feedback time, e.g. aircraft companies or oil prospecting
The Process culture, characterised by low risks and slow feedback, e.g. insurance companies.
Deal and Kennedy (1982)
Organizational Values
The enduring beliefs that have worth, merit, and importance for the organization
Ethics
The code of moral principles and values that governs the behavior of a person or group with respect to what is right and wrong-------------------------------------------Code of Ethics: a formal statement of the company’s ethical values
Values-Based Leadership
A relationship between leaders and followers that is based on shared, strongly internalized values that are advocated and acted upon by the leader
References
Carnal, A. C. (2006) ‘Managing Change in Organisations’, FT Prentice Hall, England
Kay, J. (1993) ‘Foundations of Corporate Success’, Oxford University Press, Oxford.
Lynch, R. (2006) ‘Corporate Strategy’, FT Prentice Hall, England
