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Linkage between ethics and business performance
Two additional determinants of culture within an organization
Literature review of concept of organizational CULTURE
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Recommended: Linkage between ethics and business performance
Peters and Waterman argued that effective leadership plays a significant role in creating successful corporate culture (Peters and Waterman, 1982, pp 82). Organizational culture means elementary statement that are considered effective and that are trained to new employees as the way to perceive and feel in the organization (Brewis, 2007, pp. 345). Nowadays, globalization suggests that the world is borderless; therefore, organizational culture is encouraged to change in circumstances. The invasion of technologies causes the expansion of highly technical and skilled workforce (Brewis, 2007, pp. 345). The leader plays an important roles in shaping corporate culture, including leaders’ goals and objectives, leaders’ behavior, leaders ‘reaction to crisis, how leaders allocate rewards and how leaders hire and fire individuals (Nelson, Quick, Wright, Adams, 2012, pp.258-259).
In Ackroyd and Crowdy ‘Can culture be managed? Working with raw material: The case of the English slaughter man’ (Ackroyd and Crowdy, 1990, pp. 5). Ethical issues have been questioned because workers have to kill hundreds of animal every without showing any fear. In recent, employee has become well educated, well ethical behavior. Therefore, leaders are trying to change corporate in a positive way such as developing global organizational culture and developing an ethical organizational culture (Nelson, Quick, Wright, Adams, 2012, pp.264-265).
Well educated and skilled employees will want to take after a charismatic leader and only great leaders can practice corporate culture effectively (Peters and Waterman, 1982, pp 82). In comparison, a poor leader will regularly neglect to win over staff and will have issues communicating with employees effectively (Peters and ...
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...this style often causes ambiguity and conflict at work since there is no clear direction from manager (Brewis, 2007, pp.357). However, it works perfectly in the case of design teams where innovation and creativity are recommended since there is little supervised from manager (Stimpson and Farquharson, 2011, pg. 145). Brewis argued that this style of leadership is appropriate in the case of ‘work hard play hard corporate’ culture since it is a friendly culture where having is as important as work (Brewis, 2007, pp.357).
To sum up, I argue that leadership styles play a crucial role in managing corporate culture. Leaders’ goals and objectives, leaders’ behavior, leaders ‘reaction to crisis, how leaders allocate rewards and how leaders hire and fire individuals are elements that can cause impacts on managing corporation (Nelson, Quick, Wright, Adams, 2012, pp.258-259).
Analyze the CEO’s leadership style and philosophy, and how the CEO’s leadership style aligns with the culture.
Leadership is a communication process of a leader and individuals in which the leaders behavior or attitude directs individuals towards any goal effectively. It is widely believed that leadership creates the vital link between organizational effectiveness and people’s performance at an organizational level (Avolio, 1999; McGrath and MacMillan, 2000). The effectiveness of an organization depends upon the leader having an effective leadership style in order to effectively reach the goal of the organization; with it being one of the key driving forces for improving a firm’s performance. Scholars suggest that effective leadership behaviors can facilitate the improvement of performance when organizations face problems (McGrath and MacMillan, 2000). To effectively achieve leadership of individuals and organizational outcomes, four theories can be used; Fiedler’s Contingency Model, Hersey and Blanchard’s Situational Leadership Model, Vroom & Yetton Participative Leadership Model, and House & Dessler Path-Goal Theory.
Organizational culture is the system of shared beliefs and values that develops within an organization and guides the behavior of its members, while organizational structure is an expression of social and economic principles of hierarchy and specialization (Kinicki, 2015). Both the culture and the structure of an organization are important things for management to understand in order to successfully set and achieve an organization’s goals. Companies who excel in highly competitive fields can attribute their successful economic performance to a cohesive corporate culture that increases competitiveness and profitability. This culture is best utilized in an organization that has the necessary structure to allow its employees to coordinate their actions to achieve its goals.
Today’s organizations require leadership styles conducive to supporting an organization’s culture, competiveness and effectiveness for survival in the 21st century. The depth of leadership presents leaders and managers with the task of understanding and supporting the needs of employees while maintaining strategic goals and missions throughout daily leadership. However, when an organization’s culture falters due to various factors, does leadership style bear the overall responsibility for internal discord?
Reviewing this chapter as whole, I noticed that there is no fixed approach mentioned towards a leadership style, rather it suggests that range of different leadership style must be adapted based on the situation. Furthermore, I found out that this chapter lacked some useful information which should have been discussed e.g. it did not emphasis much about leadership styles and strategies in a service industry. However, some distinctive traits successful leader must have were highlighted such as good interpersonal skills, sociability and dominance. Some philosophers believe that leaders are born as a leader which perhaps I don’t really agree to, not all successful leaders were born as a leader. Leadership style can however be adapted in response to situation and needs of the business environment.
Rosen, R. H. (1997). Learning to lead. In F. Hesselbein, M. Goldsmith & R. Beckhard (Eds.), The Organization of the Future. The Drucker Foundation Future Series (p. 306). New York, NY: Jossey-Bass Inc Schein, E. H. (2010). Organizational culture and leadership. (4th ed., p. 13). San Francisco: Johan Wiley & Sons, Inc.
Leaders have influence the organizational climate and can change the command culture. However to accomplish that they have to first understand the existing organizational culture within which they are operating. Culture is the behavior characteristic of a particular group. In an organizational setting, leaders have to be mindful of this cultural factors in the context that is sensitive to the different backgrounds of team members to best leverage their talent. There are three levels of culture. First level is the Artifacts. This is the surface level. It includes all phenomena that one sees, hears, and feels when one encounters a new group with unfamiliar culture. Second level is the espoused values. These reflect the original values. Third level is the basic underlying assumptions. These are what were once hypothesis, supported only by a hunch or a value, come gradually to be treated as reality. Climate, in the other hand, is a prevailing trend of public opinion or attitude in a given organization at a given time.
The concept of organizational cultures was first raised in 1970s, and soon became a fashionable topic. Organizational culture is the shared beliefs, values and behaviours of the group. Theorists of organizations believe that organizational culture represents the pattern of behaviours, values, and beliefs of an organization. Hence, studies around organizational culture have been seen as great helpful and essential for understanding organizations and their behaviours. Additionally, organizational culture has been considered to be an important determinant of organizational success. Therefore, leaders and managers pay more than more attentions on this topic, focusing on constructing and managing organizational cultures.
Leadership and Management are two very important positions to have for anyone in an organization. Both of these positions come with a great deal of responsibilities; however, they both serve two different purposes and responsibilities in an organization, along with a different sent of guidelines. This paper will differentiate between Leadership and Management, give two recommendations to create and maintain a healthy organizational culture and give two examples to support the recommendations.
House et al. (2007) discovers that leadership and Organisational culture are closely linked together as leaders influence the culture of their organisations. Researches talk about a range of leadership definitions but it is not easy to define. (E.g. Western, 2008; Yukl, 2010). However, Cohen (2009) critically analyses definitions from Dracker (1996), Eisenhower (1969), Northouse (2004) and finally summarised the definition of leadership constitutes five elements. First of all, ask question to set direction, which means effective leaders need to listen to followers’ voice respectfully and then share the common goals and ideas with them. In addition, leaders need to seek insights and allocate resources optimally; act ethically; allow their employees to work in a conformable and most effective way. This essay will explain different leadership styles and how they influence the organisations with examples of organisations and leaders with main focus on well-known entrepreneur: Sir Alan Sugar. He grows from nothing to incredible success (£ 730 million), is a legend in the UK business history; his reality TV show “The Apprentice”, a great entertainment for recruitment appeals to the public without reasons. However, he as a person is controversial amongst people, probably due to his leadership style as bullying or harassment (destructive). There are four schools of leadership styles: Trait, behavioural, contingency and transformational. Nevertheless, in the case of Alan Sugar, trait and transactional styles match him which will be illustrated following in detail.
Leadership has been defined as mobilizing the workforce towards training organizational goals (Yukl, 1998). The style of the leader is considered to be important in achieving organizational goals and therefore it is important to know your own leadership style as the leadership style will impact on the performance among subordinates (Berson et al., 2001). However this does not mean the leadership style alone will be responsible for all the performance of workers and attainment of goals.
Ngirwa, C. C., Euwema, M., Babyegeya, E., & Stouten, J. (2013). Leaders styles of managing
Organisational culture is one of the most valuable assets of an organization. Many studies states that the culture is one of the key elements that benefits the performance and affects the success of the company (Kerr & Slocum 2005). This can be measured by income of the company, and market share. Also, an appropriate culture within the society can bring advantages to the company which helps to perform with the de...
In this paper I will look at the four major leadership styles, their characteristics, advantages, disadvantages, and in what situations a particular leadership style is desired. Additionally, I will look at my leadership style and how I acquired this style throughout my career.
Shaping a culture is a difficult task, because many of the valuable qualities a leader might have are never taught in a classroom. These qualities can be learned through out a life of experiences. Emotional development, genuineness, and a strong character are all essential qualities if leadership in a culture-driven company is to be effective. This analysis will discuss the relationship between a successful leader and the organization cultural change in today’s business.