Shaping Culture and Values Chapter 14 Shaping Culture and Values

Chapter 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.

Chapter Objectives (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.

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

Ex. 14.1 Levels of Corporate Culture Culture that can be seen at the surface level Visible Artifacts such as dress, office layout, symbols, slogans, ceremonies Invisible Expressed values, such as “The Penney Idea,” “The HP Way” 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

Importance 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

Importance 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

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

Ex. 14.2 Adaptive Versus Unadaptive Cultures Adaptive Organizational Culture Unadaptive 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

Culture 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

High 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

Cultural 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

Ceremonies, Stories, and Symbols 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

Language, Selection, Socialization and 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.

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

Ex. 14.3 Four Corporate Cultures Flexibility Clan Culture Adaptability Culture Values: Cooperation Consideration Agreement Fairness Social equality Values: Creativity Experimentation Risk-taking Autonomy Responsiveness External focus Internal focus Bureaucratic Culture Achievement Culture Values: Economy Formality Rationality Order Obedience Values: Competitiveness Perfectionism Aggressiveness Diligence Personal initiative Stability

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

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

Personal 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

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

Spiritual 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