CHAPTER 14 Shaping Culture and Values ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (slide 1 of 3) • Understand why shaping culture is a vital function of leadership • Recognize the characteristics of a responsive, as opposed to a resistant, culture • Know how to establish a high-performance culture by paying attention to both values and results ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (slide 2 of 3) • 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, involvement, and consistency cultures and the environmental conditions associated with each ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (slide 3 of 3) • Act as a values-based leader and instill healthy 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 ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Culture and Norms 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 Norms • Shared standards that define what behaviors are acceptable and desirable within a group of people ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 14.1 – Levels of Corporate Culture ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Importance of Culture It integrates members so that they know how to relate to one another It helps the organization adapt to the external environment ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Internal Integration (slide 1 of 2) Develops a collective identity Helps members work together effectively Guides day-to-day working relationships Determines how people communicate in the organization ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Internal Integration (slide 2 of 2) Determines what behavior is acceptable Determines how power and status are allocated ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. External Adaptation • Determines how to meet goals and deal with outsiders • Helps to respond rapidly to customer needs or the moves of a competitor • Encourages employee commitment to the core purpose of the organization • Determines what is needed to meet external challenges • Embodies the values and assumptions needed to succeed ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Culture Strength The degree of agreement among employees about the importance of specific values and ways of doing things ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 14.2 – Responsive versus Resistant Cultures Source: Based on John P. Kotter and James L. Heskett, Corporate Culture and Performance (New York: The Free Press, 1992), p. 51. ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Culture Gap The difference between desired and actual values and behaviors ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 14.3 – Combining Culture and Performance Source: Adapted from Jeff Rosenthal and Mary Ann Masarech, ‘‘High-Performance Cultures: How Values Can Drive Business Results,’’ Journal of Organizational Excellence (Spring 2003), pp. 3–18; and Dave Ulrich, Steve Kerr, and Ron Ashkenas, Figure 11–2, GE Leadership Decision Matrix, The GE Work-Out: How to Implement GE’s Revolutionary Method for Busting Bureaucracy and Attacking Organizational Problems—Fast! (New York: McGraw-Hill, 2002), p. 230. ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. High-Performance Culture A culture that is based on a solid mission, embodies shared responsive values that guide decisions, and encourages individual ownership of both bottom-line results and cultural values ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Cultural Leader A leader who actively uses signals and symbols to influence corporate culture ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Cultural Leadership • Cultural leaders influence culture – Articulate a vision for the organizational culture that employees can believe in – Heed the day-to-day activities that reinforce the cultural vision ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Mechanisms That Enact Cultural Values (slide 1 of 2) Rites and ceremonies Stories Symbols Specialized language ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Mechanisms That Enact Cultural Values (slide 2 of 2) Selection and socialization Daily actions ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ceremony (slide 1 of 2) A planned activity that makes up a special event and is generally conducted for the benefit of an audience ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ceremony (slide 2 of 2) • Reinforce specific values • Create a bond among employees • Celebrate employees who symbolize important achievements – Ceremonies are often accompanied by the presentation of awards ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Story (slide 1 of 2) A narrative based on true events that is repeated frequently and shared among employees ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Story (slide 2 of 2) • Used to illustrate the company’s primary values • May not be supported by facts, but is consistent with the values and beliefs of the organization ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Symbol An object, act, or event that conveys meaning to others ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Specialized Language • Language can shape and influence organizational values and beliefs • Leaders use slogans or sayings to express key corporate values • Leaders express and reinforce cultural values through written public statements ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Socialization The process by which a person learns the cultural values, norms, and behaviors that enable him or her to “fit in” with a group or organization ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Selection and Socialization • Companies with healthy cultures have rigorous hiring practices • Socialized people “fit in” with others in the organization • Common socialization tools – Leader’s act as role models – Training programs – Rituals ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Daily Actions • Important to maintain the desired culture • Evaluations should include – Work performance – Demonstration of organizational values ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Values (slide 1 of 2) The enduring beliefs that have worth, merit, and importance for the organization ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Values (slide 2 of 2) • Concerns – Changes in the nature of work – Globalization – Increasing diversity in the workforce – Shifts in the larger society • Two dimensions to be assessed – Extent to which the competitive environment requires flexibility or stability – Extent to which the organization’s strategic focus and strength is internal or external ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 14.4 – Four Corporate Cultures Source: Based on Paul McDonald and Jeffrey Gandz, ‘‘Getting Value from Shared Values,’’ Organizational Dynamics 21, no. 3 (Winter 1992), pp. 64–76; Deanne N. Den Hartog, Jaap J. VanMuijen, and Paul L. Koopman, ‘‘Linking Transformational Leadership and Organizational Culture,’’ The Journal of Leadership Studies 3, no. 4 (1996), pp. 68–83; Daniel R. Denison and Aneil K. Mishra, ‘‘Toward a Theory of Organizational Culture and Effectiveness,’’ Organizational Studies 6, no. 2 (March–April 1995), pp. 204–223; Robert Hooijberg and Frank Petrock, ‘‘On Cultural Change: Using the Competing Values Framework to Help Leaders Execute a Transformational Strategy,’’ Human Resource Management 32, no. 1 (1993), pp. 29– 50; and R. E. Quinn, Beyond Rational Management: Mastering the Paradoxes and Competing Demands of High Performance (San Francisco: Jossey-Bass, 1998). ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Corporate Culture (slide 1 of 2) Adaptability culture • Culture characterized by values that support the organization’s ability to interpret and translate signals from the environment into new behavior responses Achievement culture • Culture characterized by a clear vision of the organization’s goals and leaders’ focus on the achievement of specific targets ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Corporate Culture (slide 2 of 2) Involvement culture • Culture with an internal focus on the involvement and participation of employees to meet changing expectations from the external environment Achievement culture • Culture with an internal focus and consistency orientation for a stable environment ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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 ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Values-Based Leadership (slide 1 of 2) An influence relationship between leaders and followers that is based on shared, strongly internalized values that emphasize the common good and are consistently advocated and acted upon by the leader ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Values-Based Leadership (slide 2 of 2) • Leaders influence organizational culture – Demonstrating their personal values • Generates trust and respect from employees – Practicing spiritual leadership • Values and practices considered as spiritual ideals include integrity, humility, respect, appreciation for the contributions of others, fair treatment, and personal reflection ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Spiritual Leadership The display of values, attitudes, and behaviors necessary to intrinsically motivate oneself and others toward a sense of spiritual expression through calling and membership ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 14.5 – Model of Spiritual Leadership Source: Based on Louis W. Fry, Sean T. Hannah, Michael Noel, and Fred O. Walumbwa, ‘‘Impact of Spiritual Leadership on Unit Performance,’’ The Leadership Quarterly 22 (2011), pp. 259–270; and Louis W. Fry, ‘‘Toward a Theory of Spiritual Leadership,’’ The Leadership Quarterly 14 (2003), pp. 693–727. Used with permission. ©2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Leadership Reflection Questions Week X (enter week number as appropriate) 1. Cut and paste Question 1 here in Bold font. If it has multiple parts, you may list them all together or separate them with your answers in between each sub-question. Use Normal spacing with Calibri 11 point font. Type your response to Question 1 here (normal font). APA format not required for Leadership Reflection Questions, so no citations or References list required. 2. Cut and paste Question 2 here in Bold font. Type your response to Question 2 here (normal font), and so forth until you have addressed all questions and sub-questions in the Leadership Reflection Questions document for the week.
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