1. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6e ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 14 Shaping Culture and Values

2. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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 2

3. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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 3

4. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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 4

5. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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 5

6. ©2015 Cengage Learning. All Rights Reserved. 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 6

7. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Importance of Culture 7 It integrates members so that they know how to relate to one another It helps the organization adapt to the external environment

8. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Internal Integration 8 Helps develop a collective identityAids members in working together effectivelyMaintains day-to-day working relationships Determines how people communicate in the organization Determines what behavior is acceptableDetermines how power and status are allocated

9. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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 9

10. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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 10

11. ©2015 Cengage Learning. All Rights Reserved. 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 11 Source: Based on John P. Kotter and James L. Heskett, Corporate Culture and Performance (New York: The Free Press, 1992), p. 51

12. ©2015 Cengage Learning. All Rights Reserved. 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 12 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

13. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. High-Performance Culture 13 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

14. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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 14

15. ©2015 Cengage Learning. All Rights Reserved. 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 15

16. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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 16

17. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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 17

18. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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 18

19. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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 19

20. ©2015 Cengage Learning. All Rights Reserved. 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 20