Lecture Notes: Leadership and Organizational Culture

Key Concepts

• Business Strategy and Culture
  • Managers are often trained to align organizational capabilities with business strategy.
  • Shaping culture requires personal involvement and isn't typically taught in school.

Leaders' Role in Creating and Maintaining Culture

1. Define the Culture

   • Align culture to support business strategy.
   • Demonstrate desired culture through consistent behavior.
   • Explain the importance of culture to employees.
   • Ensure accountability for maintaining culture.

2. Influencing Organizational Culture

   • Develop and communicate a clear mission and set of values.
   • Focus on what is measured, controlled, and prioritized.
   • Select employees who embody desired values.
   • Use daily routines to exemplify values and beliefs.
   • Role model behaviors that align with culture.
   • Align HR management with cultural values.
   • Foster traditions and rituals that reinforce culture.

3. Triggers for Cultural Change

   • Changes in strategy, technology, and structure necessitate shifts in employees' attitudes, behaviors, values, and skills.

Layers of Organizational Culture

• Outer Layers

  • Includes marketing strategies and customer service perceptions.
  • Can change relatively quickly.

• Inner Layers

  • Composed of fundamental values and ideologies.
  • Change is much slower.

Diverse Cultures Within Organizations

• Different sectors or subgroups can have unique cultures tailored to their specific business needs.
• Employees might engage with multiple cultures if they are part of different subgroups.

Conclusion

Leaders play a critical role in establishing and nurturing the culture within an organization. This involves consistent behavior, communication, and strategic HR processes to align the culture with the business goals and adapt to necessary changes.