copyright ©2004 by south-western,a division of thomson learning. all rights reserved. 12-1...

Copyright ©2004 by South-Western,a division of Thomson Learning. All rights reserved. 12-1

LEADERSHIP:LEADERSHIP:Theory, Application, Skill Theory, Application, Skill

DevelopmentDevelopment

2d Edition2d EditionRobert N. Lussier Robert N. Lussier

and Christopher F. Achuaand Christopher F. Achua

This presentation edited and enhanced byThis presentation edited and enhanced by: :

George W. CrawfordGeorge W. CrawfordAsst. Prof. of Mgmt.Asst. Prof. of Mgmt.

Clayton College & State UniversityClayton College & State University

Morrow, GA 30260Morrow, GA 30260

[email protected]@mail.clayton.edu


Chapter 12Chapter 12Leadership of Leadership of

Culture, Diversity, Culture, Diversity, and the Learning and the Learning

OrganizationOrganization


Chapter 12 Chapter 12 Learning OutcomesLearning Outcomes

• The power of culture.The power of culture.• Distinguish between a weak and strong Distinguish between a weak and strong

culture.culture.• Low and high performance cultures.Low and high performance cultures.• Symbolic and substantive leadership actions.Symbolic and substantive leadership actions.• The four cultural value types.The four cultural value types.• Framework for understanding global cultural Framework for understanding global cultural

value differences.value differences.• Primary reasons for embracing diversity.Primary reasons for embracing diversity.• Leader’s role in creating a diverse culture.Leader’s role in creating a diverse culture.• Leader’s role in creating learning organization.Leader’s role in creating learning organization.


Organizational Organizational CultureCulture

•Great culture is the Great culture is the common denominator common denominator among great among great companies companies

•High-performance High-performance companies have high-companies have high-performance culturesperformance cultures


CultureCultureThe set of key values, The set of key values, assumptions, assumptions, understandings, understandings, and ways ofand ways of thinking that is thinking that is shared by membersshared by members of an of an organization and taught toorganization and taught to new membersnew members


CULTURECULTURE• Each organization has unique Each organization has unique

cultureculture• Based on the values & Based on the values &

principles displayed by leadersprinciples displayed by leaders• Has its own stories & mythsHas its own stories & myths• Determines how to responds Determines how to responds

to threats & opportunitiesto threats & opportunities– In both the external & internal In both the external & internal

environmentenvironment• Deeply rootedDeeply rooted

– Core essence of organizationCore essence of organization– Often first expounded by founderOften first expounded by founder


CULTURE & CULTURE & STRATEGYSTRATEGY

• Must matchMust match• Energized members to do their Energized members to do their

jobsjobs• When out of syncWhen out of sync

– Reduces efficiency & effectivenessReduces efficiency & effectiveness• When culture is well matched to When culture is well matched to

strategystrategy– Can lead to successful organizationCan lead to successful organization– Creates internal unityCreates internal unity– Helps organization to adapt to Helps organization to adapt to

external environmentexternal environment– Creates strong member Creates strong member

identification with the organizationidentification with the organization


CULTURECULTURE• WeakWeak: Little agreement on : Little agreement on

values & norms of member values & norms of member behaviorbehavior

• Strong: Strong: Clear, explicit set of Clear, explicit set of principles & valuesprinciples & values– Used to conduct businessUsed to conduct business– Mgmt communicates values & Mgmt communicates values &

principles, continuouslyprinciples, continuously– Shared throughout organizationShared throughout organization– Does not significantly change Does not significantly change

when new leader is chosenwhen new leader is chosen


FACTORS FOR FACTORS FOR STRONG CULTURESTRONG CULTURE

• Strong founder or leader develops Strong founder or leader develops principles, practices, & behavior principles, practices, & behavior for:for:

• Customers’ needsCustomers’ needs• Strategic requirementStrategic requirement• Competitive environmentCompetitive environment

• Total organizational commitmentTotal organizational commitment– To operating under these valuesTo operating under these values

• Unwavering commitment from:Unwavering commitment from:– Employees Employees – CustomersCustomers– ShareholderShareholder– Other stakeholdersOther stakeholders


Characteristics of Characteristics of Low-Performance Low-Performance

CulturesCultures• Insular thinkingInsular thinking• Resistance to Resistance to

changechange• Politicized Politicized

internal internal environmentenvironment

• Unhealthy Unhealthy promotion promotion practicespractices


Characteristics of Characteristics of High-Performance High-Performance

CulturesCultures• Culture Culture

reinforcement reinforcement toolstools

• Intensely people Intensely people orientedoriented

• Results orientedResults oriented• Emphasis on Emphasis on

achievement achievement and excellenceand excellence


Symbolic Leadership Symbolic Leadership Actions for Shaping Actions for Shaping

CultureCulture• Leaders serve Leaders serve

as role modelsas role models• Ceremonial Ceremonial

events for high events for high achieversachievers

• Special Special appearances appearances by leadersby leaders

• Organizational Organizational structurestructure


Substantive Leadership Substantive Leadership Actions for Shaping Actions for Shaping

CultureCulture• Replace members of old Replace members of old

culture with new membersculture with new members• Change dysfunctional policies Change dysfunctional policies

and practicesand practices• Reengineer strategy-culture fitReengineer strategy-culture fit• Realign rewards/incentives, Realign rewards/incentives,

resourcesresources• Facilities designFacilities design• Develop a written statementDevelop a written statement


Types of Types of Organizational Organizational

CultureCultureDegree of Environmental TurbulenceDegree of Environmental Turbulence

Competitive Culture

Adaptive Culture

Bureaucratic Culture

Cooperative Culture

External

Internal

Stable Dynamic

Strategic

Focus

Source: Based on M.D. Youngblood, “Winning Cultures for the New Economy,” Strategy and Leadership 28, 6 (Nov/Dec2000): 4-9; G.N. Chandler, C. Keller and D. W Lyon, “Unraveling the Determinants and Consequences of an Innovative-Supportive Organizational Culture,” Entrepreneurship Theory and Practices 25, 1 (Fall 2000): 59-76; J.R. Jr. Fisher, “Envisioning a Culture of Contribution,” Journal of Organizational Excellence 20, 1 (Winter 2000): 47-52.l


CULTURAL VALUE CULTURAL VALUE TYPESTYPES

• CooperativeCooperative– Period of Period of

change & change & uncertaintyuncertainty

– Internal focusInternal focus– Empowers Empowers

employees to employees to respond to respond to changes in changes in outside outside environmentenvironment

– Emphasizes: Emphasizes: Teamwork, Teamwork, cooperation, cooperation, consideration, consideration, social equalitysocial equality

• AdaptiveAdaptive– Fast changing Fast changing

business business environmentenvironment

– External External strategic focusstrategic focus

– Encourages Encourages introduction of introduction of new strategiesnew strategies

– Risks acceptedRisks accepted– Do what is Do what is

necessary for necessary for successsuccess

– Reward to Reward to employees for employees for experimentingexperimenting


CULTURAL VALUE CULTURAL VALUE TYPESTYPES

• CompetitiveCompetitive– Stable Stable

business business environmentenvironment

– External External strategic focusstrategic focus

– Focus on Focus on specific specific targetstargets

– Drive to win is Drive to win is what holds the what holds the organization organization togethertogether

• BureaucraticBureaucratic– Stable Stable

environmentenvironment– Internal focusInternal focus– Strict rules & Strict rules &

proceduresprocedures– Highly Highly

structuredstructured– Efficiency Efficiency

drivendriven– Very Very

vulnerable to vulnerable to changes in changes in environmentenvironment


ValuesValues• Generalized beliefs & Generalized beliefs &

behaviors that are behaviors that are considered by an individual considered by an individual or group to be importantor group to be important

• Relationships between Relationships between leaders & members are leaders & members are based on shared valuesbased on shared values

• Employees learn Employees learn organizational values by organizational values by observing leadersobserving leaders


EthicsEthics•Provide guidelines for Provide guidelines for conduct & decision makingconduct & decision making

•Leadership must have high Leadership must have high ethics for the organization ethics for the organization to have themto have them

•Top management must be Top management must be committed to high ethicscommitted to high ethics


Supporting High Supporting High Ethical StandardsEthical Standards•Codes of ethicsCodes of ethics

–Formal statementFormal statement–May be part of mission May be part of mission statementstatement

•Ethics CommitteesEthics Committees–To oversee ethical issuesTo oversee ethical issues

•Ethics OmbudspersonEthics Ombudsperson


Ethics OmbudspersonEthics Ombudsperson•A person charged to act A person charged to act as the organization’s as the organization’s conscienceconscience

•Hears & investigates Hears & investigates complaintscomplaints

•Points out ethics failures Points out ethics failures to top managementto top management


Supporting High Supporting High Ethical StandardsEthical Standards

•Training ProgramsTraining Programs– Teach employees to Teach employees to internalize ethics into internalize ethics into performance of businessperformance of business

•Disclosure MechanismsDisclosure Mechanisms– Allow individual to report Allow individual to report ethics violations without ethics violations without retributionretribution


MORAL REASONINGMORAL REASONING• Process used by leaders to Process used by leaders to

make decisions about make decisions about ethical behaviorsethical behaviors

• StagesStages– Pre-conventional levelPre-conventional level

•Based on self-interestBased on self-interest– Conventional levelConventional level

•Based on gaining others’ Based on gaining others’ approvalapproval

– Post-conventional levelPost-conventional level•Based on universal, abstract Based on universal, abstract principles which can transcend principles which can transcend lawlaw


DiversityDiversityThe The

inclusion inclusion of all of all

groups at groups at all levels in all levels in

an an organizatioorganizatio

nn


The United StatesThe United States•Population very diversePopulation very diverse•Called the “melting pot”Called the “melting pot”•Becoming increasingly Becoming increasingly

diversediverse•Work force also changingWork force also changing

– More MinoritiesMore Minorities– More WomenMore Women


STRENGTH OF STRENGTH OF DIVERSE DIVERSE

ORGANIZATIONORGANIZATION•Marketing advantagesMarketing advantages•Development & retaining Development & retaining

talented peopletalented people•Cost effectivenessCost effectiveness•CreativityCreativity


Framework of Value Framework of Value Dimensions for Dimensions for Understanding Understanding

Cultural DifferencesCultural DifferencesIndividualism

Collectivism

High Uncertainty Avoidance

High Power Distance

Long-term Orientation

Short-term Orientation

Low Power Distance

Low Uncertainty Avoidance

Masculinity

Femininity

Source: Based on G. Hofstede, “Cultural Constraints in Management Theories,” Academy of Management Executive (1993), pp. 81-94.


Management Management CommitmentCommitment

Remove Personal and Organizational

Obstacles

Implant aImplant aDiversity-Diversity-

Supportive Supportive CultureCulture

Engage Employees in DiversityAwareness Training

LeadershipEducation


ACHIEVING ACHIEVING DIVERSITYDIVERSITY

• Remove Remove obstaclesobstacles– Stereotypes & Stereotypes &

prejudiceprejudice– EthnocentrismEthnocentrism– Outdated policies Outdated policies

& practices& practices– Glass ceilingsGlass ceilings– Unfriendly work Unfriendly work

environmentenvironment


Achieving DiversityAchieving Diversity

ObstaclesObstaclesObstaclesObstaclesPolicies

and Practices

Policiesand

PracticesEthnocentrismEthnocentrism

GlassCeilingGlass

Ceiling

UnfriendlyWork

Environment

UnfriendlyWork

Environment

Stereotypes and

Prejudice

Stereotypes and

Prejudice


Low Levels of

Conflict

Low Levels of

Conflict

Bias-FreeEnvironment

Bias-FreeEnvironment

Culture of DiversityCulture of DiversityCulture of DiversityCulture of Diversity

DiverseLeadershipStructure

DiverseLeadershipStructure

StrongIdentity withOrganization

StrongIdentity withOrganization

Strong Support Network for Women and Minorities


LEARNING LEARNING ORGANIZATIONSORGANIZATIONS

•Skilled at creating, Skilled at creating, acquiring, and acquiring, and transferring knowledgetransferring knowledge

•Modify behavior to Modify behavior to reflect new knowledge reflect new knowledge and insightand insight

•Value experimentation, Value experimentation, initiative, innovation, initiative, innovation, flexibilityflexibility


LEARNING LEARNING ORGANIZATIONSORGANIZATIONS

• Strong top-Strong top-mgmt supportmgmt support

• Provide Provide resources to resources to foster learning foster learning at all levelsat all levels

• Emphasis on Emphasis on both long-and both long-and short-term short-term performanceperformance

• Little fear of Little fear of failurefailure


Learning OrganizationLearning OrganizationCharacteristicsCharacteristics

•Learning embedded in Learning embedded in cultureculture

•Visible & strong Visible & strong management supportmanagement support

•Mechanisms & structures to Mechanisms & structures to nurture ideasnurture ideas

•Knowledge & information is Knowledge & information is disseminateddisseminated

•Resource are committed in Resource are committed in fostering learningfostering learning


Learning OrganizationLearning OrganizationCharacteristicsCharacteristics

•Employees empowered to Employees empowered to resolve problemsresolve problems

•Equal emphasis on short- Equal emphasis on short- and long-term performanceand long-term performance

•Deep desire throughout to Deep desire throughout to develop, define, and adaptdevelop, define, and adapt

•People are not afraid to failPeople are not afraid to fail


The Traditional vs The Learning OrganizationTraditionalTraditional•Stable environment•Vertical structure

•Top-down strategy•Centralized

decision making•Rigidly defined and

specialized tasks•Rigid culture not

responsive to change•Formal systems of communication

LearningLearning•Changing environmentChanging environment

•Flat structureFlat structure•Collaborative strategy Collaborative strategy

•Decentralized Decentralized decision makingdecision making

•Loose, flexible, and Loose, flexible, and adaptive rolesadaptive roles

•Adaptive cultureAdaptive culture•Continuous improvementContinuous improvement

•Encourages changeEncourages change•Open exchanges Open exchanges

without filterswithout filters


LEADERS OF LEADERS OF LEARNING LEARNING

ORGANIZATIONSORGANIZATIONS• Encourage creative thinkingEncourage creative thinking• Create climate to encourage Create climate to encourage

experimentationexperimentation• Provide incentives for Provide incentives for

learning & innovationlearning & innovation• Encourage systems thinkingEncourage systems thinking• Create culture for team & Create culture for team &

individual learningindividual learning


LEADERS OF LEADERS OF LEARNING LEARNING

ORGANIZATIONSORGANIZATIONS• Have system to channel & Have system to channel & nurture creative ideas & nurture creative ideas & innovationinnovation

• Create shared vision for Create shared vision for learninglearning

• Broaden employees’ frames Broaden employees’ frames of referenceof reference

• Create environment that Create environment that allows learning from allows learning from mistakesmistakes


Discussion Question Discussion Question #1#1

What are What are similarities similarities

and and differences differences between the between the cooperative cooperative culture and culture and the adaptive the adaptive culture?culture? ??



How does a How does a code of code of ethics help ethics help enforce enforce ethical ethical behavior behavior in an in an organizatioorganization?n?



How would individualism How would individualism as a value dimension as a value dimension among followers affect among followers affect their interaction and their interaction and relationship with other relationship with other coworkers who display coworkers who display collectivism?collectivism?



What potential What potential problems problems could develop could develop in a case in a case where a leader where a leader has a scarce has a scarce time time orientation but orientation but his followers his followers have an have an abundant time abundant time orientation?orientation?



Why has the Why has the “melting pot” “melting pot” mentality of mentality of multiculturalismulticulturalism been m been replaced with replaced with the “salad the “salad bowl”mentalitybowl”mentality??



What are What are the major the major obstacles obstacles often often encountered encountered in trying to in trying to achieve achieve diversity?diversity?



What are the What are the leading leading characteristicharacteristics of learning cs of learning organizationorganizations?s?

copyright ©2004 by south-western,a division of thomson learning. all rights reserved. 12-1...

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