1. Shaping Culture and Values
Chapter 14
Shaping Culture and Values

2. 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.

3. 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.

4. 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

5. 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

6. 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

7. 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

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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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.

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

16. 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

17. 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

18. 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

19. 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

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

21. 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