STUDENT ID: AB3473 Aspects of Organizational Behaviour: Understanding Organization Culture and Leadership Word Count: 2153 Number of Pages: 13 1 STUDENT ID: AB3473 CONTENTS Declaration…………………………………………………………………………... P. 2 Organizational Culture - Academic Research………………………………………………………….. P. 3 - Business Press……………………………………………………………….. P. 4 - My Own Perspective………………………………………………………… P. 5 Leadership - Academic Research…………………………………………………………... P. 7 - Business Press………………………………………………………………... P. 8 - My Own Perspective…………………………………………………………. P. 9 References……………………………………………………………………………. P. 11 Declaration I/we certify that I/we have read and understood the entry in the relevant Student Handbook for the School of Management on Cheating and Plagiarism and that all material in this assignment is my/our own work, except where I/we have indicated with appropriate references. I/we agree that, in line with Regulation 15.3(e), if requested I/we will submit an electronic copy of this work for submission to a Plagiarism Detection Service for quality assurance purposes. I/we also confirm that the percentage allocation of work is as shown above. 2 STUDENT ID: AB3473 CULTURE Academic Research Schein defines culture as a naturally occurring social element that evolves in a group of individuals who have had any amount of shared history, the strength of which depends on the amount of time the group has existed for and each individual's stability in regards to the group’s dynamics (Schein, 2004). Empirical evidence indicates the link between organisational culture and the effectiveness of an organisation. Cultural values, when correctly established lead to high morale and employees are motivated to achieve organisational goals thus increasing the efficiency of an organisation. (Gregory et al., 2009). Denison stated that there are four dimensions that are imperative for organisational effectiveness. Adaptability, consistency, involvement, and mission are the four dimensions. ‘Adaptability’ touches on the ability of an organisation to adjust to dynamic environmental changes. ‘Consistency’ is the extent to which members can hold their beliefs and values. ‘Involvement’ refers to a member’s level of participation in the decision making of an organisation. Lastly, ‘mission’ is the purpose of the organisation, in other words, the organisation’s final goal and what they are working towards. Several studies have confirmed the need for these four dimensions. Huber’s argument that consistency helps organizations to understand new information across units or O’Reilly’s understanding of the role of involvement to facilitate innovation (Zheng et al., 2010). The impact and importance of culture can be noted through business activity during the COVID 19 pandemic as well. External environmental changes always lead to some sort of change in an organisation’s structure. The pandemic has displayed significant cultural changes that directly affect an organisation’s efficiency. For instance, office culture has been replaced with the ‘work from 3 STUDENT ID: AB3473 home’ culture which has led to either ups or downs for every organisation’s day to day efficiency (Spicer, 2020). To summarize, the idea of organisational culture has been surrounded by an exceptional amount of academic debate for the last few decades. However, it is evident how culture is a vital part of any organisation even though differing views regarding the topic exist. Business Press Many think organisational culture is an ambiguous and vague topic for individuals to provide details on. According to Watkins of Harvard Business Review, although we can all agree that culture does, in fact, exist in every organization and that it plays an indispensable role in creating a sound structure for the organisation, there is little agreement on what it actually is (Watkins, 2013). Forbes on the other hand has been able to clearly define organisational culture as patterns of certain thought processes and behaviours that have been recognized and adopted (Laker, 2021). Culture can be both an asset and a risk to an organisation. It is the glue that binds an organization into one and has a considerable amount of impact on the firm’s governance, morals, and effectiveness (Lee Yohn, 2021). The values a company has, is hugely displayed by the way management treats their employees. If employers treat their employees well, business outcomes and company growth drastically improve. Companies that have incorporated a strong culture in their organisation have even seen a 4x increase in their revenues (Laker, 2021). It has also been found that companies with strong work cultures have a 20 per cent higher employee satisfaction rate which leads to higher productivity and quality of work (Singaraju, 2021). 4 STUDENT ID: AB3473 To conclude, although there is difficulty in explaining the concept of organisational culture, it is clear that there is a direct correlation between a strong organisational culture structure and a company’s high financial returns as well as the well-being of the employee. My own perspective In a more personal sense, my family values and the lessons I have learned throughout my life is what the term ‘culture’ means to me and it hugely contributes to how I identify with myself, how I identify with other people and how I place myself in this diverse world of ours. If you compare this personal meaning of the word to the organisational, more formal, meaning it can be understood that the members of an organisation as well, do set a standard of values and guidelines for the organisation and its goals so as to understand their role in the organisation. I truly understand why the culture and the work-life of an organisation directly affect the performance of a company because of my life as a child in school. During school, I noticed that other children and myself would never perform well if there was a toxic school culture. If I ever had strict teachers who were constantly frustrated at any questions I had, I would despise the subject and perform horribly in the examinations. On the other hand, if a teacher was understanding, empathetic and if they took the time to explain the concepts to me, I would have a love for the subject and excel in the examination. Likewise, when we look at the work culture of an organisation, for better results, the organisation must establish a comfortable and open work culture for its members. To summarise, through this study of organisational culture, I have understood the vagueness of the subject which leaves many clueless on how to aptly define it, I have understood the many different dimensions of organisational culture, I have understood that if we are to be without organisational culture then it will lead to the fall of several large organisations and overall, I have learned that organisational culture is of utmost importance for the success of 5 STUDENT ID: AB3473 the organisation. Especially in the current environment where the world is rapidly changing and an organisation’s culture is what helps to adapt to these changes while maintaining the consistency of an organisation. On an end note, below is a chart from Deloitte where managers and leaders from organisations were asked what they thought were the most important topics for them to engage in and culture is noticeably ranked as the third most important topic. As can be seen from the above, the second most important topic for organisations to focus on has been the topic of leadership which is the second topic of this paper today. 6 STUDENT ID: AB3473 LEADERSHIP Academic Research Leadership is a key factor in the effectiveness of an organization and has existed for thousands of years. There have been multiple research efforts made to understand the concept of leadership in organisations (Burke & Stashevsky, 2006). It has been defined by many as the process of influencing activities of an organization towards achieving the goals that have been set by them (Buchanan & Huczynski, 2019). Leaders are often associated with the executive positions of an organisation and those who possess titles of leadership however some leaders can be seen at all levels of the organisation (Buchanan & Huczynski, 2019). Effective leaders can be identified with high morale, peak performance levels and successful work teams. Leaders have direction and set a vision of the future and inspire others to overcome hurdles in order to achieve the vision. There is confusion between management and leadership. Management is to achieve order and consistency by developing organisational structures and monitoring the results against these structures and plans, whereas leadership focuses on coping with change (Burke & Stashevsky, 2006). Leaders must plan, evaluate, and control all while communicating and motivating others to train the human resources of the organisation, so as to achieve better results and goals, set by the organisation. With this, organisations are able to invest in their employees and themselves which ensures competitive advantages over markets and proves to be beneficial for their success (Carlos Ferreira & Novo, 2021). The core principle of leadership is the attribute of credibility which has been earned by demonstrated ethical and transparent approaches to practice. Leaders speak against the status quo and show initiative and responsibility when needed (Hughes, 2009). In conclusion, leadership is hugely important for an organisation. They are not identified by titles or pay grades but their attitude towards helping the human resources of an organisation to achieve the organisation’s goals. 7 STUDENT ID: AB3473 Business Press If leadership is to be analysed, the would-be analyst often misunderstands his task by not studying the true essence of leadership and instead, they study popularity and power. Although many leaders possess those two things, they do not define what leadership stands for. According to Harvard Business Review, leadership stands for the accomplishment of goals by directing human assistants. A great leader can do this over a long period of time while overcoming the many different hurdles that a dynamic business environment presents (Prentice, 1969). Forbes states that “Leadership has nothing to do with seniority of one’s position in the hierarchy of the company”. When one talks to the leadership of a company it is thought that the so-called ‘leaders’ refers to the senior-most executives. However, leadership does not come to an individual when they reach a certain pay grade and has nothing to do with titles that an individual has. Leadership is simply the process of influencing others while maximizing the efforts of others towards the achievement of a goal. It doesn’t stem from a place of authority or power but social influence with an intended outcome, a ‘goal’ (Kruse, 2013). The traditional ideology that “a leader is born not made” no longer stands true in today's world and there is a steady increase in the ideology of making a leader. To lead well, one must constantly be on the journey of personal development and selfimprovement. Leaders must learn to understand how their assumptions shape their behaviour and learn to consciously adopt mindsets that help result in better leadership outcomes. For instance, they should start with an issue that they would like to resolve or a result they would like to achieve and then understand why it is of urgent importance to them. They should then seek information on how to approach the issue and choose behaviours to implement the methods of solving their issue or achieving their goal. Lastly, a good leader must always seek feedback from those who are influenced by them so that they can improve on themselves (Valcour, 2020). This proves that anyone can be a better leader or even make themselves a 8 STUDENT ID: AB3473 leader. Due to globalization and many other such influences, the current times are very dynamic. Emotional intelligence is the ability to be empathetic in dealing with yourself and other people through emotions and interpersonal relations. Since leaders are in a position of high social influence, they must also possess a high degree of emotional intelligence in dealing with people. Subordinates generally expect their leaders to empathize with the situations that they go through as well as their emotions and aspirations (Juneja, n.d.). In summary, in today’s world, leaders are constantly being made to better themselves and people are even changing themselves to become leaders. They must have the ability to take accountability, adapt themselves to changes and be empathetic to the issues their subordinates face. My Own Perspective As I have grown up, I have understood the importance of leadership. I believe that leaders are not only important for organisations and businesses but also our society. They are the individuals that create change through innovation, development and progress. Growing up, everyone around me assumed a leader is one who has the ability to order people around to get things done their way, but in my opinion, a real leader is one who collaborates with those, who follow him/her, in order to maximise their capabilities and reach the desired outcome. The difference between the former and the latter is that a real leader wouldn’t insinuate him/herself to be superior to his/her subordinates and instead remains at their level while helping and motivating them to achieve the final goal. For a long time, I thought I wasn’t capable enough to be in a position of leadership, I believed in the outdated opinion that leaders were born not made. I was surrounded by peers who were able to take on these roles of leadership and never saw myself in those roles. All this changed when I became a house captain in my final year of school. I stepped up and ran for this 9 STUDENT ID: AB3473 position when my house teacher told me that she thought I was the best candidate for it. Being house captain of my house for the whole school taught me and made me understand what leadership was. I was able to lead my house to win the house cup that year and I did it by motivating the members of my house to participate and contribute to the house points. It became clear to me that, if I misused my authority, I would not gain the respect I needed to guide my house to victory, from my juniors and my peers. Thus, to conclude, leadership is a very important element for our society and the organisations that operate within. For mankind to progress, leaders are required whether it's in the field of business, socioeconomics or politics. Leaders are always going to be the backbone of our society and without them, we would be nowhere. 10 STUDENT ID: AB3473 References Schein, E. (2004). Organizational Culture and Leadership (3rd ed., p. 32). Jossey-Bass. Gregory, B., Harris, S., Armenakis, A., & Shook, C. (2009). Organizational culture and effectiveness: A study of values, attitudes, and organizational outcomes. Journal Of Business Research, 62(7), 673-679. https://doi.org/10.1016/j.jbusres.2008.05.021 Zheng, W., Yang, B., & McLean, G. (2010). Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management. Journal Of Business Research, 63(7), 763-771. https://doi.org/10.1016/j.jbusres.2009.06.005 Spicer, A. (2020). Organizational Culture and COVID‐19. Journal Of Management Studies, 57(8), 1737-1740. https://doi.org/10.1111/joms.12625 Watkins, M. (2013). What Is Organizational Culture? And Why Should We Care?. Harvard Business Review. Retrieved 9 January 2022, from https://hbr.org/2013/05/what-isorganizational-culture. Laker, B. (2021). Culture Is A Company’s Single Most Powerful Advantage. Here’s Why. Forbes. Retrieved 9 January 2022, from https://www.forbes.com/sites/benjaminlaker/2021/04/23/culture-is-a-companys-single-mostpowerful-advantage-heres-why/?sh=611ccbc9679e. 11 STUDENT ID: AB3473 Lee Yohn, D. (2021). Company Culture Is Everyone’s Responsibility. Harvard Business Review. Retrieved 9 January 2022, from https://hbr.org/2021/02/company-culture-iseveryones-responsibility. Singaraju, P. (2021). Council Post: Organizational Culture Is An Overlooked Factor In Transformation. Forbes. Retrieved 9 January 2022, from https://www.forbes.com/sites/forbestechcouncil/2021/08/31/organizational-culture-is-anoverlooked-factor-in-transformation/?sh=50a4eddb6420. Buchanan, D., & Huczynski, A. (2019). Organizational behaviour (10th ed.). Pearson. Burke, R., & Stashevsky, S. (2006). International Journal of Manpower. 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