LEADERSHIP:
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Theory, Application, Skill
Development

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2d Edition

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Robert N. Lussier
and Christopher F. Achua

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This presentation edited and enhanced by:

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George W. Crawford
Asst. Prof. of Mgmt.

Clayton College & State University
Morrow, GA 30260


12-1

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Chapter 12

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Leadership of Culture,
Diversity, and the
Learning Organization
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Chapter 12
Learning Outcomes

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• The power of culture.
• Distinguish between a weak and strong
culture.
• Low and high performance cultures.
• Symbolic and substantive leadership actions.
• The four cultural value types.
• Framework for understanding global cultural
value differences.
• Primary reasons for embracing diversity.
• Leader’s role in creating a diverse culture.
• Leader’s role in creating learning
organization.
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Organizational Culture

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• Great culture is the
common denominator
among great companies
• High-performance
companies have highperformance cultures
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Culture

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


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CULTURE

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• Each organization has unique
culture
• Based on the values & principles
displayed by leaders
• Has its own stories & myths
• Determines how to responds to
threats & opportunities


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– In both the external & internal
environment

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• Deeply rooted

– Core essence of organization
– Often first expounded by founder
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CULTURE & STRATEGY
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• Must match
• Energized members to do their jobs
• When out of sync


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– Reduces efficiency & effectiveness

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• When culture is well matched to
strategy

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– Can lead to successful organization
– Creates internal unity
– Helps organization to adapt to
external environment
– Creates strong member identification
with the organization
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CULTURE

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• Weak: Little agreement on values

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& norms of member behavior
• Strong: Clear, explicit set of

principles & values
– Used to conduct business
– Mgmt communicates values &
principles, continuously
– Shared throughout organization
– Does not significantly change
when new leader is chosen

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FACTORS FOR STRONG
CULTURE
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• Customers’ needs
• Strategic requirement
• Competitive environment

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

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• Total organizational commitment

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– To operating under these values

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Employees
Customers
Shareholder
Other stakeholders

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–
–
–
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• Unwavering commitment from:


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• Insular thinking
• Resistance to
change
• Politicized
internal
environment
• Unhealthy
promotion
practices


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Characteristics of LowPerformance Cultures

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• Culture
reinforcement tools
• Intensely people
oriented
• Results oriented
• Emphasis on
achievement and
excellence

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Characteristics of HighPerformance Cultures

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• Leaders serve as
role models
• Ceremonial events
for high achievers
• Special
appearances by
leaders
ã Organizational
structure

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Symbolic Leadership Actions
for Shaping Culture

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Substantive Leadership
Actions for Shaping Culture

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• Replace members of old culture
with new members
• Change dysfunctional policies and
practices
• Reengineer strategy-culture fit
• Realign rewards/incentives,
resources

ã Facilities design
ã Develop a written statement
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Types of Organizational
Culture
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Internal

Bureaucratic
Culture

Adaptive
Culture

Cooperative
Culture

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External

Competitive
Culture

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Degree of Environmental Turbulence

Stable

Dynamic

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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
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12-14
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CULTURAL VALUE TYPES

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– Fast changing
business
environment
– External
strategic focus
– Encourages
introduction of
new strategies
– Risks accepted
– Do what is
necessary for
success
– Reward to
employees for
experimenting

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– Period of change
& uncertainty
– Internal focus
– Empowers
employees to
respond to

changes in
outside
environment
– Emphasizes:
Teamwork,
cooperation,
consideration,
social equality

ã Adaptive

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ã Cooperative

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CULTURAL VALUE TYPES

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– Stable
environment
– Internal focus
– Strict rules &
procedures
– Highly
structured
– Efficiency
driven
– Very vulnerable
to changes in
environment

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– Stable business
environment
– External
strategic focus
– Focus on

specific
targets
Drive to win is
what holds the
organization
together

ã Bureaucratic

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ã Competitive

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Values

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• Generalized beliefs & behaviors
that are considered by an
individual or group to be
important
• Relationships between leaders &
members are based on shared
values
ã Employees learn organizational
values by observing leaders
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Ethics


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• Provide guidelines for
conduct & decision making
• Leadership must have high
ethics for the
organization to have them
• Top management must be
committed to high ethics
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Supporting High Ethical
Standards
• Codes of ethics

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– Formal statement
– May be part of mission
statement

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• Ethics Committees
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– To oversee ethical issues

• Ethics Ombudsperson

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Ethics Ombudsperson

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• A person charged to act
as the organization’s
conscience
• Hears & investigates
complaints
ã Points out ethics failures
to top management

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Supporting High
Ethical Standards

• Training Programs

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– Teach employees to
internalize ethics into
performance of business

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• Disclosure Mechanisms

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– Allow individual to report
ethics violations without
retribution
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MORAL REASONING

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• Process used by leaders to
make decisions about ethical
behaviors
• Stages

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– Pre-conventional level

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• Based on self-interest

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– Conventional level

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• Based on gaining others’ approval

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– Post-conventional level

• Based on universal, abstract
principles which can transcend law
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Diversity

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The
inclusion of
all groups
at all levels
in an
organization
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The United States

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• Population very diverse
• Called the “melting pot”
• Becoming increasingly diverse
• Work force also changing

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– More Minorities
– More Women

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STRENGTH OF
DIVERSE
ORGANIZATION

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• Marketing advantages
• Development & retaining
talented people
• Cost effectiveness
• Creativity
12-25


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