CHAPTER FOUR

ORGANIZATION CULTURE AND

LEADERSHIP

Instructor: Abdihakim Abdillahi

16–1
What
What Is
Is Organizational
Organizational Culture?
Culture?

Organizational Culture
A common perception Characteristics:
Characteristics:
held by the organization’s 1.1. Innovation
Innovationandandrisk
risk
members; a system of taking
taking
shared meaning. 2.2. Attention
Attentiontotodetail
detail
3.3. Outcome
Outcomeorientation
orientation
4.4. People
Peopleorientation
orientation
5.5. Team
Teamorientation
orientation
6.6. Aggressiveness
Aggressiveness
7.7. Stability
Stability

16–2
Characteristics
Characteristics Discussed
Discussed
Innovation and Risk Taking - The degree to which
employees are encouraged to be innovative and take risks.
Attention to Detail - The degree to which employees are
expected to exhibit precision, analysis, and attention to
detail.
Outcome Orientation- The degree to which management
focuses on results or outcomes rather than on the
techniques and processes.
People orientation. The degree to which management
decisions take into consideration the effect of outcomes on
people within the organization.
Team orientation. The degree to which work activities are
organized around teams rather than individuals.

16–3
Characteristics
Characteristics Discussed
Discussed
6. Aggressiveness. The degree to which people are
aggressive and competitive rather than easygoing.
7. Stability. The degree to which organizational activities
emphasize maintaining the status quo in contrast to
growth.

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Do
Do Organizations
Organizations Have
Have Uniform
Uniform Cultures?
Cultures?

Dominant Culture
Expresses the core values that are shared by a
majority of the organization’s members.

Subcultures
Minicultures within an organization, typically defined
by department designations and geographical
separation.

16–5
Do
Do Organizations
Organizations Have
Have Uniform
Uniform Cultures?
Cultures?
(cont’d)
(cont’d)

Core Values
The primary or dominant values that are accepted
throughout the organization.

Strong Culture
A culture in which the core values are intensely held
and widely shared.

16–6
What
What Is
Is Organizational
Organizational Culture?
Culture? (cont’d)
(cont’d)
 Culture Versus Formalization
– A strong culture increases behavioral consistency and
can act as a substitute for formalization.
 Organizational Culture Versus National Culture
– National culture has a greater impact on employees
than does their organization’s culture.

16–7
What
What Do
Do Cultures
Cultures Do?
Do?

Culture’s
Culture’sFunctions:
Functions:
1.1. Defines
Definesthe
theboundary
boundarybetween
betweenoneoneorganization
organization
and
andothers.
others.
2.2. Conveys
Conveysaasense
senseof
ofidentity
identityfor
forits
itsmembers.
members.
3.3. Facilitates
Facilitatesthe
thegeneration
generationof ofcommitment
commitmentto to
something
somethinglarger
largerthan
thanself-interest.
self-interest.
4.4. Enhances
Enhancesthe thestability
stabilityof
ofthe
thesocial
socialsystem.
system.
5.5. Serves
Servesas asaasense-making
sense-makingand
andcontrol
controlmechanism
mechanism
for
forfitting
fittingemployees
employeesininthe
theorganization.
organization.

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What
What Do
Do Cultures
Cultures Do?
Do?

Culture
Cultureas
asaaLiability:
Liability:
1.1. Barrier
Barrierto
tochange.
change.
2.2. Barrier
Barrierto
todiversity
diversity
3.3. Barrier
Barrierto
toacquisitions
acquisitionsand
and
mergers
mergers

16–9
How
How Culture
Culture Begins
Begins

 Founders hire and keep only employees who think

and feel the same way they do.
 Founders indoctrinate and socialize these employees
to their way of thinking and feeling.
 The founders’ own behavior acts as a role model that
encourages employees to identify with them and
thereby internalize their beliefs, values, and
assumptions.

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Keeping
Keeping Culture
CultureAlive
Alive
 Selection
– Concern with how well the candidates will fit into the
organization.
– Provides information to candidates about the
organization.
 Top Management
– Senior executives help establish behavioral norms that
are adopted by the organization.
 Socialization
– The process that helps new employees adapt to the
organization’s culture.

16–11
Stages
Stages in
in the
the Socialization
Socialization Process
Process

Prearrival Stage
The period of learning in the socialization process that occurs
before a new employee joins the organization.

Encounter Stage
The stage in the socialization process in which a new employee
sees what the organization is really like and confronts the
possibility that expectations and reality may diverge.

Metamorphosis Stage
The stage in the socialization process in which a new employee
changes and adjusts to the work, work group, and organization.

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How
How Employees
Employees Learn
Learn Culture?
Culture?

•• Stories
Stories
•• Rituals/customs/habits
Rituals/customs/habits
•• Material
MaterialSymbols
Symbols
•• Language
Language

16–13
Creating
CreatingAn
An Ethical
Ethical Organizational
Organizational Culture
Culture
 Characteristics of Organizations that Develop
High Ethical Standards
– High tolerance for risk
– Low to moderate in aggressiveness
– Focus on means as well as outcomes
 Managerial Practices Promoting an Ethical
Culture
– Being a visible role model.
– Communicating ethical expectations.
– Providing ethical training.
– Rewarding ethical acts and punishing unethical ones.
– Providing protective mechanisms.

16–14
Creating
Creating aa Customer-Responsive
Customer-Responsive Culture
Culture
 Key Variables Shaping Customer-Responsive
Cultures
1. The types of employees hired by the organization.
2. Empowering employees with decision-making
discretion to please the customer.
3. Good listening skills to understand customer
messages.
4. Role clarity that allows service employees to act as
“boundary spanners.”
5. Employees who engage in organizational citizenship
behaviors.

16–15
Creating
CreatingaaCustomer-Responsive
Customer-ResponsiveCulture
Culture(cont’d)
(cont’d)

Managerial
ManagerialActions
Actions::
•• Select
Selectnew
newemployees
employeeswith
withpersonality
personalityand
andattitudes
attitudes
consistent
consistentwith
withhigh
highservice
serviceorientation.
orientation.
•• Train
Trainand
andsocialize
socializecurrent
currentemployees
employeesto tobe
bemore
more
customer
customerfocused.
focused.
•• Change
Changeorganizational
organizationalstructure
structureto
togive
giveemployees
employees
more
morecontrol.
control.
•• Empower
Empoweremployees
employeesto tomake
makedecision
decisionabout
abouttheir
their
jobs.
jobs.

16–16
Creating
CreatingaaCustomer-Responsive
Customer-ResponsiveCulture
Culture(cont’d)
(cont’d)

Managerial
ManagerialActions
Actions(cont’d)
(cont’d)::
•• Lead
Leadby
byconveying
conveyingaacustomer-focused
customer-focusedvision
visionand
and
demonstrating
demonstratingcommitment
commitmentto tocustomers.
customers.
•• Conduct
Conductperformance
performanceappraisals
appraisalsbased
basedonon
customer-focused
customer-focusedemployee
employeebehaviors.
behaviors.
•• Provide
Provideongoing
ongoingrecognition
recognitionfor
foremployees
employeeswho
who
make
makespecial
specialefforts
effortsto
toplease
pleasecustomers.
customers.

16–17
Spirituality
Spirituality and
and Organizational
Organizational Culture
Culture

Workplace Spirituality
The recognition that people have an inner life that
nourishes and is nourished by meaningful work that
takes place in the context of the community.

Characteristics:
Characteristics:
•• Strong
Strongsense
senseofofpurpose
purpose
•• Focus
Focusononindividual
individualdevelopment
development
•• Trust
Trustand
andopenness
openness
•• Employee
Employeeempowerment
empowerment
•• Toleration
Tolerationof
ofemployee
employeeexpression
expression

16–18
 CONTEMPORARY
LEADERSHIP ISSUES

16–19
Trust:
Trust: The
The Foundation
Foundation of
of Leadership
Leadership

Trust
A positive expectation that another will not—through
words, actions, or decisions—act opportunistically.
Trust is a history-dependent process (familiarity)
based on relevant but limited samples of experience
(risk).

16–20
Dimensions
Dimensions of
of Trust
Trust
 Integrity  Loyalty
– honesty and truthfulness. – the willingness to protect
 Competence and save face for another
person.
– an individual’s technical
 Openness
and interpersonal
knowledge and skills. – reliance on the person to
 Consistency give you the full truth.

– an individual’s reliability,
predictability, and good
judgment in handling
situations.

16–21
Trust
Trust and
and Leadership
Leadership

LEADERSHIP
LEADERSHIP

TRUST
TRUST
and
and
INTEGRITY
INTEGRITY

16–22
Three
Three Types
Types of
of Trust
Trust
Deterrence-based Trust
Trust based on fear of reprisal if the trust is violated.

Knowledge-based Trust
Trust based on behavioral predictability that comes
from a history of interaction.

Identification-based Trust
Trust based on a mutual understanding of each
other’s intentions and appreciation of the other’s
wants and desires.
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Basic
Basic Principles
Principles of
of Trust
Trust
 Mistrust drives out trust.
 Trust begets/creates trust.
 Growth often masks mistrust.
 Trust increases cohesion.
 Mistrusting groups self-destruct.
 Mistrust generally reduces productivity.

16–24
Framing:
Framing: Using
Using Words
Words to
to Shape
Shape Meaning
Meaning and
and
Inspire
Inspire Others
Others

Framing
A way to use language to manage meaning.

Leaders
Leadersuse
useframing
framing(selectively
(selectivelyincluding
includingor
or
excluding
excludingfacts)
facts)to
toinfluence
influencehow
howothers
otherssee
see
and
andinterpret
interpretreality.
reality.

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