4 ASSESSMENT

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Chapter 14

Shaping Culture and Values

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©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.

©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

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©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

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©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

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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

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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

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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

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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

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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

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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

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