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Chapter 14

Shaping Culture and

Values

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Learning Objectives

• 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

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Learning Objectives

• 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

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Learning Objectives

• 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

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Culture

• Set of key values, assumptions, understandings, and norms – Shared by members of an organization– Taught to new members

• Norms - Shared standards that define what behaviors are acceptable and desirable within a group of people

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Exhibit 14.1 - Levels of Corporate Culture

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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

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Internal Integration

Helps develop a collective identity

Aids members in working together effectively

Maintains day-to-day working relationships

Determines how people communicate in the organization

Determines what behavior is acceptable

Determines how power and status are allocated

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Culture Strength

• Degree of agreement among employees about the importance of specific values and ways of doing things– Widespread consensus results in a strong

and cohesive culture– Extensive agreement results in a weak

culture• At times strong culture can encourage the

wrong values and cause harm

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Responsive Cultures

• Cultures can be responsive or resistant• Culture gap: Difference between desired

and actual values and behaviors• To restructure a culture, leaders should

recognize when members are: – Upholding the wrong values – Not upholding the important values

strongly

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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

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Exhibit 14.3 - Combining Culture and Performance

Sources: 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 Busing Bureaucracy and Attaching Organizational Problems- Fast! (New York: McGraw Hill, 2002), p. 230

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High-Performance Culture

• Based on a solid organizational mission or purpose

• Embodies shared responsive values that guide decisions and business practices

• Encourages individual employee ownership of both bottom-line results and the organization’s cultural backbone

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Cultural Leadership

• Primary way in which leaders influence norms and values to build a high-performance culture – Cultural leader: Actively uses signals

and symbols to influence corporate culture• Articulates a vision for the organizational

culture that employees can believe in• Ensures daily activities reinforce the cultural

vision

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Exhibit 14.4 - Four Corporate Cultures

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Ethical Values in Organizations

• Ethics: Code of moral principles and values governing the behavior of a person or group – With respect to what is right and wrong

• Part of the formal policies and informal cultures

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Values-Based Leadership

• Relationship between leaders and followers that is based on shared, strongly internalized values – Values are advocated and acted upon by

the leader• Created by demonstrating a leaders

personal value and by practicing spiritual leadership

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Values-Based Leadership

• Personal values– Leaders have to discover their personal

values and the values they want to guide the team or organization, and actively communicate them

• Spiritual values– Successful leaders incorporate spiritual

values in addition to the traditional mental and behavioral aspects of leadership

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Spiritual Leadership

• Display of values, attitudes, and behaviors necessary to intrinsically motivate oneself and others – Toward a sense of spiritual expression

through calling and membership• Addresses followers’ higher-order needs

for membership and self-actualization

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Exhibit 14.5 - Model of Spiritual Leadership