LECTURE 24
Chapter 10
Leadership of Culture, Diversity, and the Learning Organization
Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning
Learning Objectives
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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
Types of Organizational Culture Degree of Environmental Turbulence
CULTURAL VALUE TYPES
Cooperative (encourages exchanges and linkages among employees and departments)
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In Period of change & uncertainty
Internal focus
Empowers employees to respond to changes in outside environment
Emphasizes: Teamwork, cooperation, consideration, social equality
Adaptive (belief in active monitoring of environment)
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Fast changing business environment
External strategic focus
Encourages introduction of new strategies
Risks are accepted
Do what is necessary for success
Reward to employees for experimenting
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Greater autonomy and tolerance for faliure
Competitive (encourages highly competitive work environment)
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Stable business environment
External strategic focus
Focus on specific targets (market growth)
Drive to win is what holds the organization together
Pepsi and Coca cola
Bureaucratic
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Stable environment
Internal focus
Strict rules & procedures
Highly structured
Efficiency driven
Very vulnerable to changes in environment
Value based Leadership
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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
Leader's ethical practices and values influence organizational behavior
Employees learn organizational values by observing leaders
Ethics provide guidelines for conduct & decision making
Leadership must have high ethics for the organization
Value based leader earn respect and trust from members by cultivating ethical values and giving
sacrifices for upholding values
Leader ethical values are shaped by personal beliefs, religion, family, friends, and society
Top management must be committed to high ethics
Ethics
Leader promotes codes of ethics by
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Formal statement (May be part of mission statement)
Ethics Committees (To oversee ethical issues)
Ethics Ombudsperson
Training Programs
Disclosure Mechanism
Code of Ethics
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Formal statement
Some organizations include this in their mission statement (see Exhibit 10-4)
Ethics Ombudsperson
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A person charged to act as the organization’s conscience
Hears & investigates complaints
Points out ethics failures to top management
Supporting High Ethical Standards
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Training Programs
Teach employees to incorporate ethics into performance of business and daily behavior
Disclosure Mechanisms
Allow individual to report ethics violations without retribution (Hotlines)
Whistle blowing: Employee disclosing of violation of ethics and illegal practices
MORAL REASONING
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Process used by leaders to make decisions about ethical behaviors
Stages
Pre-conventional level
Based on self-interest
Conventional level
Based on gaining others’ approval
Post-conventional level
 Based on universal, abstract principles which can transcend law.
Framework of Understanding Cultural Differences
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Leader's ethical values are shaped by national and societal culture
National culture is product of values and norms that guide and control people behavior
Values are what people think right and wrong
Globalization and Diversity of workforce creating need for multicultural leaders
Multicultural learning and intercultural adaptation is result of interaction between
culture and person
Multicultural leader have competencies to motivate people from different culture and
nationality through understanding of cultures
Hofstede Cultural Model (orientation of society)
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Individualism vs collectivism
High uncertainty avoidance vs low uncertainty avoidance
High power distance vs low power distance
4. Long term orientation vs short term orientation
5. Masculinity vs Femininity
Implications for Leadership Practices
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Leaders need to learn norms, values of national cultures and person's source of identity in
different societies
Interpersonal conflict most often arises from value differences
People see issues from their perspective as moral and justify
Diversity
The inclusion of all groups at all levels in an organization.
In the World
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Population is very diverse
Work force also changing
More Minorities
More Women
Challenge for HR to maintain and manage diverse workforce
The US is called the “melting pot” (blend with the culture)
Recent concept is 'Salad Bowl' (cultural integration and maintaining own self identity)
STRENGTH OF DIVERSE ORGANIZATION
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Marketing advantages
Development & retaining talented people
Cost effectiveness (decrease turn over and absent rate)
Creativity
Leadership Initiatives
Achieving Diversity
LEARNING ORGANIZATIONS
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Organizational survival depends on adaptability to lelarn
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Learning organizations are skilled at creating, acquiring, and transferring knowledge
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Modify behavior to reflect new knowledge and insight
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Value experimentation, initiative, innovation, flexibility
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Leader is responsible to change their organizations into learning organizations
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Strong top management support
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Provide resources to foster learning at all levels
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Emphasis on both long-and short-term performance
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Little fear of failure
Learning Organization Characteristics
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Learning embedded in culture
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Visible & strong management support
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Mechanisms & structures to nurture ideas
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Knowledge & information is disseminated
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Resource are committed in fostering learning
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Employees empowered to resolve problems
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Equal emphasis on short- and long-term performance
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Deep desire throughout to develop, define, and adapt
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People are not afraid to fail
The Traditional vs The Learning Organization
LEADERS OF LEARNING ORGANIZATIONS
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Encourage creative thinking
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Create climate to encourage experimentation
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Provide incentives for learning & innovation
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Encourage systems thinking
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Create culture for team & individual learning
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Have system to channel & nurture creative ideas & innovation
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Create shared vision for learning
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Broaden employees’ frames of reference
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Create environment that allows learning from mistakes
Source: Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning