BITS Pilani

Pilani|Dubai|Goa|Hyderabad
MMZG514 (Lecture # )
Dr. Anubha Dadhich, Department of Management, BITS
Pilani.
BITS Pilani
Pilani|Dubai|Goa|Hyderabad

Chap # 14 (T1)
Shaping Culture and Values
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Chapter Objectives
Understand why shaping culture is a critical function of
leadership.
Recognize the characteristics of an adaptive, as opposed to an
unadaptive, culture.
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, clan, and bureaucratic cultures and the
environmental conditions associated with each.
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Chapter Objectives (contd.)
Act as an ethical leader and instill ethical 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
The set of key values,
assumptions, understandings,
and norms that is shared by
members of an organization
and taught to new members
as correct
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Levels of Corporate Culture
Visible
1. Artifacts such as
dress, office layout,
symbols, slogans,
ceremonies

Invisible
2. Expressed values, such as
The Penney Idea, The
HP Way
3. Underlying assumptions
and deep beliefs, such as
people here care about
one another like a family
Deeper values and
shared
understandings
held by
organization
members
Culture that can
be seen at the
surface level
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Importance of Culture
It integrates members so that they know
how to relate to one another. (Internal)
Guides day-to-day work
Determines how communication occurs in the
workplace
What behavior is acceptable
How power and status are allocated
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Importance of Culture

It helps the organization adapt to the external
environment. (External)
How organization meets goals and deals with
outsiders
How organization responds to
customers/competitors



BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Culture Strength
The degree of agreement among
employees about the importance
of specific values and ways of
doing things
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Ex. 14.2 Adaptive Versus Unadaptive Cultures
Adaptive
Organizational Culture
Unadaptive
Organizational Culture
Visible Behavior
Leaders pay close attention
to all their constituencies,
especially customers, and
initiate change when needed
to serve their legitimate
interests, even if it entails
taking some risks
Managers tend to behave
somewhat insularly,
politically, and
bureaucratically. As a result,
they do not change their
strategies quickly to adjust to
or take advantage of
changes in their business
environments
Expressed Values
Leaders care deeply about
customers, stockholders,
and employees. They also
strongly value people and
processes that can create
useful change (e.g.,
leadership initiatives up and
down the management
hierarchy)
Managers care mainly about
themselves, their immediate
work group, or some product
(or technology) associated
with that work group. They
value the orderly and risk-
reducing management
processes much more highly
than leadership initiatives
Underlying
Assumption
Serve whole organization,
trust others
Meet own needs, distrust
others
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Culture Gap
The difference between desired and actual
values and behaviors
Exists in all organizations to some degree
Must pay attention to when people are adhering
to the wrong values
Difficulty in merging cultures
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High Performance Culture
Strong culture encourages adaptation
Strong adaptive cultures often incorporate the
following values
The whole is more important than the pars and
boundaries between parts are minimized
Equality and trust arte primary values
The culture encourages risk taking, change and
improvement

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Cultural Leadership
Defines and uses signals and symbols to
influence corporate culture
Articulates a vision for the organizational culture
that employees can believe in
The cultural leader heeds the day-to-day activities
that reinforce the cultural vision

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Ceremonies, Stories, and Symbols
Ceremonies
Planned activities that make up special events and are
generally conducted for the benefit of an audience
Stories
Narratives based on true events that are repeated
frequently and shared among employees
Symbols
A object, act, or event that conveys meaning to others

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Language, Selection, Socialization and
Daily Actions
Specialized language slogans or sayings to express key
corporate values

Selection hiring the right people

Socialization - the process by which a person learns the
values, norms perspectives, and expected behaviors that
enable him or her to successfully participate in the group or
organization

Daily actions the signaling and support of important cultural
values through a leaders daily actions.
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Organizational Values
The enduring beliefs that have
worth, merit, and importance for the
organization
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Ex. 14.3 Four Corporate Cultures
External focus
Flexibility
Internal focus
Stability
Clan Culture

Values: Cooperation
Consideration
Agreement
Fairness
Social equality

Bureaucratic Culture
Values: Economy
Formality
Rationality
Order
Obedience
Adaptability Culture
Values: Creativity
Experimentation
Risk-taking
Autonomy
Responsiveness
Achievement Culture
Values: Competitiveness
Perfectionism
Aggressiveness
Diligence
Personal initiative

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Ethics
The code of moral
principles and values that
governs the behavior of a
person or group with
respect to what is right and
wrong
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Personal Ethics
Employees learn from watching leaders
Ethical leaders generate high trust and respect
Based on courage, determination and self-
sacrifice
Must uphold commitment to values during
difficult times
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Spiritual Values
Values and practices:
Integrity
Humility
Respect
Appreciation for the contributions of others
Fair treatment
Personal reflection

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Spiritual Leadership
Create a vision through which organization
participants experience a sense of spiritual
expression through calling and membership
Establish a corporate culture based on altruistic love
Addresses followers higher order needs for
membership and self-actualization
Reduces negative feelings, emotions and conflicts
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

THANK YOU !!
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