CHAPTER # 5

COURAGE AND MORAL LEADERSHIP

Moral Leadership. The individuals must have the leadership skills to exercise moral values
supported by a courage.

1. The Ethical Climate in Business. Unethical behavior can occur at all levels of org. but
top leaders in particular face closer scrutiny. Because what goes on at the top sets standards for the
rest of the org. Researchers have also found that the misdeeds in many cases could be traced to the
failure of top executives to enforce and live upto ethical standards. Unethical/illegal behaviors can
lead to serious consequences for organization and employees lost interest in leaders. Morale,
commitments and performance also suffers customers will lose trust in organization & will bolt.
Leaders at all levels carry a tremendous responsibility for setting ethical climate and are as role
models for others. However, leaders face many pressures that challenge their ability to do the right
things. The most dangerous obstinacies for leaders are personal weakness and self-interest rather
than full scale corruption. Pressures to cut cost, increase profits, meet the demands of vendors/
business partners and look successful can all contribute to ethical lapse.

2. What Leaders Do to Make Things Go Wrong? Leader signals what matters through
behavior. Some leaders operate from principles of selfishness and greed e.g senior managers or
executives were arrogant and have ambitions for personal success in which theyve their own rules
and standards of fairness and honour could be bent for the sake of achieving personal gain. Some
executives are preoccupied with their own importance and take every opportunity to feed their greed
or nourish the ego. They focus on having a huge salary, big office, long car and other symbols of
status rather than what is good for the organization. These leaders typically pay more attention to
gaining benefits for themselves rather than for organization or society. If the leader becomes
dishonest little by little, dishonesty can become way of life. Unethical leaders frequently treat people
unfairly, give in special privilege to followers who flatter their egos or who grease their or by promoting
people based on favoritism rather than concrete business results. Unethical leaders tend to take all
the credit for success but blame other for things that go wrong. They see followers do means to an
end and they show little concern. For treating people as individuals or helping followers develop their
potentials. One of the primary ways leaders contribute to an unethical behavior is by failing to speak
up against acts they believe are wrong.

Acting like a Moral Leaders. When leaders prioritized their business about the values taken not
just economic performances, organizations and leader but society suffers. Moral leadership doesnt
mean ignoring profits & losses, share prices, production costs & other measureable facts but it does
recognize to the ethical values & acknowledging the importance of human (value) meaning, quality &
higher purpose. Despite their corporate realizes of greed, competition & drive to achieve goals &
profits, leaders can act on ethical standards and encourage others to develop & use ethical values in
a work place. The most important factor is whether the leader show commitment is to ethics in their
talk and especially in their behavior.

BECOMING A MORAL LEADER

1
Moral Leadership. It is about distinguishing right from wrong and doing right, seek, the just, honest
and good in practice of leadership or good in practice of achieve goals & fulfilling purpose. A leader
excessive moral behavior distinguishes right from wrong.

Leaders have great influence over others enhances the lives of others. Whereas immoral leadership
takes away from others in order to enhance ones self. Moral leadership uplifts other people enabling
them to be better than they were without a leader. Specific characteristics such as ego strength, self-
confidence & a sense of independence may enable leaders to behave morally in the face of
opposition, moreover leaders car develop these characteristics through their own hard work people
have choices about whether to behave morally or not.

STAGES TO BECOME MORAL LEADERS DEVELOPMENT

LEVEL 3
LEVEL 2 POST CONVENTIONAL
LEVEL 1 CONVENTIONAL
PRECONVENTIONAL Follows international,
Lives upto expectations of universal principles of justice
Follow rules to avoid other. Fulfills duties & & right. Balances concern for
punishment. Acts in own obligations of social system. self with concerns for others
interest. Blind obedience to Upholds laws. & the common good. Acts in
authority for its own sake. an independence & ethical
Follow society if entry two
manner regarding
corrupt is are they if everyone
expectations of others.
is honest, they are in cost.
Bend rules to nourish their
ego greed

Negative nation

LEVEL 1 (PRECONVENTIONAL). Individuals are ego centric & remain concerned with
receiving external rewards & avoid punishments. They obey authority & follow rules to avoid damage
or satisfy immediate self-interest.

LEVEL 2 (CONVENTIONAL). People learn to confirm to the expectations of good behavior as

defined by colleagues, family, friends & society. People at this level follow rules, norms & values in
the corporate culture.

2
LEVEL 3 (POST CONVENTIONAL). They are also called Principled Level. Leaders are guided
by an internal set of principles usually recognized just and right. People at this leadership may even
disobey rules and law violates, these principles. These internal values become more than the
expectations of other people in the organizational community. A leader at this level is most visionary,
empowered & committed serving others.

3
 LECTURE ON 23 NOV 16

BECOMING A MORAL LEADER

Moral Leadership. It is about distinguishing right from wrong and doing right, seeking the just,
the honest and good in the practice of leadership or good in practice of achieving goals and
fulfilling purpose. Leaders have great influence over others and enhances the lives of others.
Whereas immoral leaders takes away from other in orders to enhances ones self moral
leadership uplift other people enabling them to get better than they were without the leader.
Specific characteristics such as ego strength. Self-confidence and a source of independence
may enable leaders to behave morally in the face of opposites. Moreover, leaders can develop
these characteristics through their own hard-work people have choices whether to behave
morally or immorally.

THREE STAGES TO BECOME MORAL LEADERS:

Level 3
Level 2 Post Conventional
Level 1 Conventional
Lives upto expectations of Follows international and
others. Fulfills duties & universal principles of justice &
obligations of social systems. right. Balance concerns for self
Uphold laws. with concerns for other and the
common good. Acts in an
independent and ethical manner
regardless of expectations of
others.

Conventional Level. Leaders are egocentric & conceived with receiving external rewards
& avoiding punishments. They obey authority & follow rules to avoid damages for satisfy
immediate self-interest.

Conventional. They are also called principled level. Leaders are guided by an
internalized set of principles usually recognized as just & right. People at this level may even
disobey rules or laws that violate these principles. These internalized values become more
important than the expectations of other people in the organization or community. A leader at
this level is more visionary, empowered and committed to serving others.

4
SERVANT LEADERSHIP

Changing leader focus from self to others.

Stage 1 Stage 2 Stage 3 Stage 4

Control Participation Improvements Service
Authorities as Participative Stewardship Servant Leaders
Leader Leaders Leaders

Obedient Self Responsible Whole Employees

Team Players
Subordinates Employee

Control Control
Centered Centered
To Leaders in followers

5
 Simple Model of Motivation

NEED creates desire to fulfill need (money, friendship, achievements

BEHAVIOR results in actions
REWARDSfor fulfill
satisfy needs
needs intrinsic or extrinsic

FEEDBACK Rewards inform person whether behavior was appropriate and should
be used again

Intrinsic Rewards. These are the internal satisfaction of a person receives in the process of
performing a particular action. It may fulfill a personal mission, completion of a complex task,
pleasant feeling of accomplishment and self-competency and self-determination.

Extrinsic Rewards. These are given by another person typically a supervisor/

managers that include salary/promotions, acknowledgement, bonuses, paid leave, medical,
insurance, transport, day care center and many others.

System wide Rewards. (opposite : individuals) apply same to all people within the
organization or within the given appointment/category.

Individuals Rewards. These differs among individuals within the same

organization/department.

Extrinsic Intrinsic
Large merit Feeling of self
Individual increase fulfillment

System Insurance benefits Pride in being part of a

wide winning organization

6
Higher V/s Lower Needs:

EXHIBIT 8.3 Needs of People

Conventional Urgent Leadership

Lower needs Higher needs

Carrot & stick (Extrinsic) Empowerment (intrinsic)

Control people Employee engagement

Adequate efforts Best efforts

Intrinsic rewards appeal to higher needs of individuals such as accomplishment, competence,

fulfillment and self-determination. Extrinsic rewards appeal to lower needs of people such as
comfort, security, safety and so on.

Conventional urges approaches after duals with individuals bare needs and comply on
extrinsic rewards & punishment methods subordinates to behave in a desired way. These
approaches are effective but they are based on controlling the behavior of people are in favor
of utilizing their labor for external rewards under conventional urgent people perform
adequately to receive external rewards and avoid punishments and they will not necessarily
drive intrinsic reward from their work.

The leadership approval strives to motivate people by providing the empowerment;

independence and opportunity to sold by their higher needs and become intrinsically rewards.
They felt excitement, happiness, pride, joy & please of mind. Ideally work behaviors should
society both lower and higher needs as well as serve the mission of the organization.

Need based theories of Motivations. These emphasize the needs that motivate people.
Needs are source of internal drive that motivates the behavior to fulfill the needs. The leaders
have to understand the followers needs. They are then distribute the reward systems to direct
energies and persistence toward attainment of shared goals.

7
Maslow hierarchy of needs

5. Self-actualization
4. Esteems
3. Belongingness
2. Safety
1. Physiological

Two Factor Theory by Fredrick Hertzberg. Hertzberg interviewed hundreds of workers

about times when they well highly motivated to work and other times when they well best
motivated and dissatisfied. The finding have given different characteristics.

Area of
Satisfaction Motivations
Achievement recognition Motivation
responsibility works itself influence level
personal growth of satisfaction

Highly satisfied

Neither satisfied
Nor dissatisfied
Area of
Dissatisfaction Hygiene Factors
Working condition pay & Hygiene factors
security company policy
influence level of
supervisors inter-personnel dissatisfaction
relationships

Highly dissatisfied

Hygiene Factors. It involves the presence or absence of job dissatisfiers such as (in figure)
food hygiene factors remove dissatisfaction or but they do not in themselves cause people to
become highly satisfied and motivated in their work.

Motivations. These are higher level needs such as need for achievement recognition (in
figure). Hygiene factor work in area of lower level needs and their absence causes
dissatisfaction (figure) will give you dissatisfaction.

8
Acquired needs Theory. This theory proposes that certain types of needs are required
during an individuals lifetime. In other words people are not born with needs but are acquired
theory experiences those needs.

Need for Achievement. Desire to accomplish something difficult attain high standards of
success master complex tasks and scupar theory.

Need for Affiliation. Desire to be cared, to be loved and be in groups and avoid conflict.

Need for Power. Desire to influence or comfort others, be responsible for and have
authority over others. According to this study, peoples with high need for achievement terms of
enjoy work and are more innovative. People with high need for off are successful integrators
whose job is to coordinate work of people and departments. People with high need for power
after associated with successful attainment of top levels in organization hierarchy.

Reinforcement Perspective on Motivations. It looks at relationships b/w a behavior and its

outcome/consequences by changing the behavior in order to adopt immediate toward do and
to avoid punishment.

Behavior Modification. It is the claim given to set of teaching by which individual may
modify others behaviors.

Law of effect: It says that positively reinforced behavior tends to be repeated and
behavior that leads to bad outcome should not be repeated.

Reinforcement: It is anything that causes a certain behavior to be repeated or inhibited.

Positive Reinforcement. It is the administration of a pleasant and rewarding consequences

immediately followed by desired behavior e.g bonus to a person who has done extra efforts.

Negative Reinforcement. It is also called Riddance Learning: It is the process of

withdrawing an unpleasant consequence once a behavior is improved.

Punishment. It is unpleasantly outcome in order to discourage & weather an undesired

behavior.

Extinction. It is withholding of something positive such as a leader attention or praise or pay

arises. With extinction undesirable behavior is essentially ignored. The idea is the behavior
that is not reinforced with gradually or eventually disappear.

9
Expectancy Theory. It suggests that motivation depends on individual motivated
observation to perform tasks and receive desired rewards. It is not concerned with types of
reads but the thinking process that individuals use to achieve rewards. It is based on
relationship among individual efforts, the possibility of higher performance and desire ability of
outcomes:

E>P expectancy Will putting efforts into task lead

Effort Performance to the desired performance

P>O expectancy Will high performance lead to

PerformanceOutcomes desired outcome

Valence Value of outcomes Aretha available outcomes highly

(Pay recognition, other rewards) valued

Motivations

Assignment:

5-6 LR - Comprehensive 20 research patterns

5-6 Variables.
Questions.

10
 LECTURE ON 29 NOV 16

People evaluate equity by ration of inputs to outcomes i.e employees value comparison to
what they put into the jobs with what rewards they receives. Inputs include education, skills,
efforts, abilities. Outcomes includes pay recognition, promotion and other rewards. Inequity
occurs when the input/output ration are out of balance e.g employee with high level of
experience and abilities receives the same salary as new less educated employee.

EMPOWERING PEOPLE TO MEET HIGHER NEEDS

Empowerment refers to power sharing, delegation of power or authority to individual in the

organization. Empowerment provides strong motivation because it meets the higher needs of
individuals have a high need of self efficacy (It is the capacity to produce results to outcomes)
to feel they are effective.

In addition leaders greatly benefit from the expanded capabilities that employee participation
brings to organization. This enables them to dents more affection to vision and big picture. It
also takes the previous off of the leaders when subordinates are able to respond better and
quickly to manage they serve.

Elements of Empowerment. Employees receive information about company preparation.

In companies where employees are fully empowered his information is secret or confidential.
Leaders worth managers should results to each region/ department with factory/workforce sot
that employees honour which product lives due behind or ahead which ops are struggling and
what they can do to help manager to meet organization.

Employees receive knowledge and skills contribute to company goals. Companies train people
to have knowledge & skills they read to continue to company performance. It gives the feeling
of competency, the belief that one is capable of accomplishment job successfully.

Employees have the power to make substantive decisions. Many competitive companies give
employees the power to make their own decisions through quality circles and self managing
work teams.

Employees understand the meaning and impact of their jobs. Employees consider that jobs
are important and meaningful and recognize the impact their work has an customer, stake
holders and organization success.

Employees are rewarded based on companys performance. By affirming employees are

progressing towards goals, rewards help them to keep motivated. Leaders are careful to
examine and redesign reward systems to support empowerment and team-work.

Employee Engagement Programmers. When people enjoy their jobs and are satisfied
with their work, condition, contribute enthusiastically to meet organization goals and they feel a
secure of belongingness and commitment to organization. A fully engaged employee is one
who to emotionally convectional to organization and actively seeks to serve the mission. It is

11
the behavior of leaders that works the biggest difference in whether people feel engaged at
work. Leaders can identify the level of engagement in this org and implement strategies to
facilitate full engagement and improve performance.

Employee ownership. It occurs on two levels:

Empowerment can result in a psychological commitment to the vision of organization

whereby members act as owners rather than employees.

By owing stocks in the companies for which they work, individual, are motivated to give
their belt performance.

GAIN SHARING. It is an approach that motivates people to work together rather than to
focus an individual achievement. It refers to an employee involvements progress that tier
additional pay to improvements in total employee performance. Employees are asked to
actively search for ways to make progress and process improvements with any financial gains.

Pay for Knowledge. It is a progress based an employee salary on a number of tasks or

skills he/she possess. If employees increase their skills they get paid more.

Pay for Performance. It is a progress that links at least & portion of employees monetary
rewards to results or accomplishments. Gain sharing is one type of pay for performance.
Other example, profits sharing, bonuses, merit pay, paid leaves, certificates and so on.

Job achievements. It is a motivational approach that incorporation high level motivators

into the work, including jobs responsibility, recognition, opportunities for growth, learning and
achievements.

CHAPTER
DEVELOPING LEADERSHIP DIVERSITY

The best leaders realize that diversity sparks innovation, leads to a batter decision making and
spars growth. Employees with a leader sage experience workers can learn from each others.
Organizations are changing with women & minorities slowly moving into upper level leadership
position. However, there are still many challenges for cutting distance system with different
cultures. As more women & minorities more up the management hierarchy, they after find it a
only road to travel. Even for someone who has experience or high degree, stopping into a
position of higher authority can be an eye opener.

The goal of todays leadership is to recognize that each person can bring value & strength to
the workplace based on his/her own combination of diverse characteristics.

Diversity. It is a workforce wake up of people with different human qualities and who belong
to various cultural progress. It refers to all the ways in which people differ including
dimensions as age race, gender, income level, physical ability & life styles.

12
Previously most organizations defined diversity in terms of very limited set of dimensions but
todays organization are using much more inclusive definitions of diversity. They define
diversity as how people are differ from , how they influence others, interacts with
others, drive satisfaction from their work and define who they are as people in the work place.

Exhibit 11.1

Race
Gender
Age

Diversity Lifestyle
Disability

Pay Level
Traditional

Personalit Rac Gend

y e er
Age Lifesty
le
Pay
Position
Diversity Function
Competen
/
Willing cy
Inclusive Incom
exp
e
Work Large Pare
Style hope nt

Inclusive
(6+8=14)

13
The traditional model reflects primarily in born difference that are internationally observable
such as (figure ) however, the inclusive model of diversity includes all of them ways in which
people difference of an employee living in a public housing project will be perceived differently
from one who lives in affluent part of tower. Similarly, people from minorities are perceived
differently at the workplace.

CHANING ATTITUDE TOWARDS DIVERSITY

Attitude towards diversity is changing because of spoliation. The significant changes in the
society, demographic changes have also changed attitudes toward diversity. Other factors
contribute to acceptance of diversity is the cross cultural understanding, global business or
global trade. Employees with global experience and culture are high in demand because they
are more able to serve customers particularly at metropolitan areas.

The Value of Organizational Diversity

Leaders can use internal diversity to meet the demands of diverse customers. Culture plays
an important role in determining the goods, services, household appliances, furniture, hobbies,
recreational activities so that the organization may recruit minorities who may well understand
how people live and what they need in different cultural environment.

When customers see and internal with people likes themselves they feel better about doing
business with the company. When organization supports diversity, people feel relaxed, valued
for what they bring to organization which may lead to higher morale.

14
 LECTURE ON 06 DEC 16

Challenges Minorities Face.

Prejudice: It is adverse feeling or opinion formed without any regard of facts. The
prejudiced people acute to view these as deficient in that works those people do not belong to
us.

Stereotyping. It is a rigid irrationally and typically negative feeling, belief, image

ascertain with a particular groups of people. Prejudice/ stereotype people are more likely to
have discrimination of paying females less than men for same work or refusing to hire
someone because of different ethnic group, although the countered constitution or state laws
prohibited such types of discrimination.

Unequal Expectations: The perception by many minorities is that no matter how many
degrees they earn, how many hours they work. How the dues or how much
efforts/enthusiasm, they exert they would never been considered to be the right people for the
organization e.g waves trying to advance in clearance after find difficulties in climbing up the
ladder. In most of the cases they are being criticized which may hinder their
prosperity/progress.

The Glass Ceiling. It is an invisible barrier that separate women & minorities from top
leader positions. They can look up through the ceiling but they have very weak chances to get
promoted. Minorities are still clustered at the bottom of organization hierarchy. Minorities may
have the feeling that the cause of climbing corporation ladder is too high. Indeed successful
minorities have to frequently give up time, outside friendship or hobbies.

Global Diversity. One of the most rapidly increasing sources of diversity is globalization
which means organization have to work at broader stage these ever before. For beatess
interacting people from other culture may become conferred or uneasy.

The Socio-cultural Environment. Social & cultural differences may provide more
potential for difficulties and conflicts e.g Asian families, live in joint families whereas European/
Western live in nuclear families.

Social Values System. Research done by Geert Hofstede: an IBM employees in 90

centuries, discovered issue such as individualism and collectivism strongly influence
organization and employee relationships which vary widely among cultures. Individualism Vs
Collectivism

Power Distance. People accept inequality in power among institutions, organization and
individuals. low power distance means people expect equality in power.

Uncertainty Avoidance. It means members of society feel uncomfortable with uncertainty

and ambiguity and thus support beliefs and behavior that support certainty and conformity.

15
High uncertainty avoid no regard for other values and culture low uncertainty avoid no regard
for other values and culture.

Low uncertainty avoidance means people have high tolerance for other culture.\
High uncertainty avoidance means low tolerance unclear and co-predictable.

Individualism: vs collectivism. It reflects a value for a loosely knit social framework in which
individuals are expected to take care of themselves.

Collectivism. It is a performance for tightly knit social framework in which people look
out for one another and organization prefer protect their members interests.

Masculinity and Feminity Masculinity refers for achievements, heroism, assertiveness,

material success and work centrality. Feminity reflects to values of cooperation, relationship,
group decision making and quality of life.

Quality of Life.

Developing Cultural Intelligence. (also denoted as CQ (cultural Quotient). It refers to

the persons ability to use reasoning and observation skills to interpret the familiar gestures and
situations and devise appropriate behavioral references. Developing a high level of CQ
enables a person to interpret un-familiar situations and adopt quickly.

CQ is practical learning approach that enables a person to get more understanding and
respond to new situation in an appropriate manners. It has three components:

a. Emotional
b. Cognitive
c. Physical

Cognitive. It involves persons observations and learning skills and ability to pickup
understanding of other culture.

Emotional. It concern with self confidence and self motivation. A leader has to believe in his
ability to understand and assimilate into a different culture. Difficulties and set backs are likely
to occur but individuals should not give up.

Physical. It refers to persons ability to shift his speech pattern, expression, tone, body
language, living in different culture.

Becoming an inclusive leaders. An inclusive leaders has to ensure that all people,
women, ethics minorities able, disabled, black, Asian, Europeans are given equal
opportunities, treated with fairness and respect.

16
Strong cultural sensitive leadership can improve organization towards more inclusive culture
where all individuals are solved and respectful for the unique abilities they bring to workplace.

Five Stages of Personal Diversity Awareness:

High Level of
Awareness

Integration

Multi-cultural attitude enables are

o integrate differences and adopt
both cognitively & behaviorally

Adaptation

-Able to competitive with those of other

culture
-Able to shift from one cultural
perspective to another.

Acceptance

-Accept behavioral differences and

underlying differences in values
-Recognizes validity of other ways up
thinking and perceiving the world.

Minimizing Differences

-Leaders or Individuals cultural

differences.
-Focuses on similarities among all
individuals

Defense:

-Perceives threat against ones

comfortable world view likes agentive
stereotyping
-Assume own culture superiors

17
WAYS TO ENHANCE PERSONALITY DIVERSITY AWARENESS

Diversity Training. It helps people to identify their own cultural boundaries prejudices
and stereotypes & develop the skills for managers & workers in diverse workplace. Leaders
can improve their diversity awareness & skills by living in a multicultural environment. The
important step in training for leaders is to become aware of the assumptions they make to
increase their sensitivity & openers to those who are different than themselves. The whole aim
of this training is to recognize their leaders & over braces about what they think of different
individuals & groups.

If the leaders can recognize that they have prejudice for people they will be less able to
communicate with them. Another, step for diversity training is to communicate and work
effectively in a diverse environment. Leaders have to develop concrete skills they may have to
use in daily situations such as how to handle conflicts, disagreement and recognize in a
constructive manners.

Personal Qualities for Leading Diverse People. Four characteristics:

A personal, long range vision that recognizes and supports a diverse organization community.
Leader should employ people of various ethics & cultural groups, race, cultural groups at all
levels of organization, develop diverse community.

A broad knowledge of desirous of diversity and awareness of multi cultured issues. Leaders
need a basic knowledge of various dimensions of other culture. They put this knowledge into
action through use of inclusive language showing respect for differences.

An openness to change themselves. A leader in a divers organization encourage feedback

from employees can accept criticism and are willing to change. It is the leaders behavior that
has the most important on whether diversity is truly valued within the organization.

Mentoring & empowerment of diverse employees. Leaders takes can active role in creating
opportunities for all employees to use their unique abilities. They also offer honest feedback
and working as needed. They reward those in the organization who show respect to all
individuals.

18
 CHAPTER-14
SHAPING CULTURE & VALUES

Culture. A set of key values and assumptions; understandings and norms that are shaped by
members of an organization.

Norms. These are the shared standards that define what behaviors are acceptable within a
group of people.

Assumption: A culture is a pattern of shared assumptions and beliefs how other things are
done in an organization. Organization macular cope with internal & external problems. They develop
shared assumption & norms of behavior that may have to be corrected.

19
 LECTURE ON 17 DEC 16
SHAPPING CULTURE

Definition. Organization members cope with external & internal problems, develop & share
assumptions & norms of behavior that may be thought to new employee as the correct way to think,
act, feel & interact with others. Culture is embedded with two kinds of culture internal/external.
Culture can be thought consisting of 3 levels with each level becoming less dovias:

Visible. (Surface) Everyone knows about it.

Invisible. (Deeper) Good salary + benefits + no peace of mind
Deeply. (Embedded) Deep & Employees are unaware.

Visible.(Surface) at this level there are all physical of dress, pattern of behaviors, office layout, look
of office, car parking, caf, furniture. All these things can been seen observed & heal by watching
members of the organization.

Invisible. At the deeper level of culture are the empress values, beliefs which are not observable
but can be felt that how people explain & justify e.g good quality service, high rewards, salary, be the
invisible. These are the values that embedded organization are aware of that.

Deeply Embedded. Some values are so deeply embedded in culture that organizations members are
not aware of them they may believe that organization. Top management are very rude, disrespectful
& arrogant, these are the assets of the culture. These assumptions might include:

a. Eg, the company cares about its employees as much as expect themselves to care about
customs.
b. Individuals employees only think themselves & might give exceptional customer services.
c. Trust & honesty are very important in culture.

These assumption but over the time these are deeply embedded but .

IMPORTANCE OF CULTURE

When people are successful as what they undertake carry the ideas & values lead them to success
becomes part of that organization culture gives importance a sense of belongingness, identify status
values & generate the commitments to particular values & ways of doing things. Culture have two
important functions:

a. Internal Integration. It integrates members so that they know how to relate one & other. It
guides day to day working relationship & what behaviors is acceptable or un-acceptable & how

20
 power is allocated. Culture is set of un-written rules inside employee mind, which can be very
powerful to determining behavior this effect the organization behavior.

b. External Integration. It determines how organization meat goals & deals with outsiders.
The right cultural values can help organization responds rapidly to customers needs & moves
of competitors. Culture can encourage employee commitment to care purpose of organization.
Such as its specific goals & basic means asked to accomplish goals.

DIFFERENT TYPES OF CULTURE

Culture Strength. It refer to degree of agreement among employees about the importance of
specific values & ways of doing things. If wide spread culture exist then culture is strong
cohesive. If little agreement then culture is weak. The effect of strong culture is not always a
positive one sometimes strong culture encourage the wrong values & harm the organization &
its members. A strong culture employees cohesion & commitments to values goals &
strategies of organization but sometimes company have un-healthy values or unfit/unethical
values because they are not fit to environment.

ADAPTIVE CULTURE/UN-ADAPTIVE

Top Adaptive. Top level give value to employee un-adaptive level only protect & nourish
their own interests.

Adaptive. Leaders are concerns with customers & those internal people. Process &
procedures that are we to organization.

Un-adaptive. Leaders are concern with their own interest nourish their own self esteem
& self interest & their own special purposes & they value to discharge charge & risk taking.

Culture Gap. It is the difference between & actual values & behaviors many
organization have some degree of culture gaps though the leaders fail to realize it. Culture
gap can become more immense in the case of acquisitions & mergers.

High Performance Culture. Give more opportunity of good/bad manner culture place an
important role in creating organization climate that enable leading & innovative responses
competitive threats & new opportunities. In enhances organization performance by energizing,
motivating employee unifying. People around common towards shaping or shared goals,
higher mission, shaping, guiding employee behavior so that there action aligning with
organization strategies. Strong adaptive culture facilitate high performance often incorporate
with following guidelines values.
CHAPTER 15 (LAST)
LEADING CHANGE

21
Frame work of leading change:

Stage-1. (Sense of urgency) There is an emergency that change is must. It is really needed or
otherwise it leads to crises or threats.

Stage-2. Form a powerful friendly co-relational The managers they develop sense of team
work among the group for the change focus there must be share armed around to the need and
policy for organization team of. it is also important that local level managers get involved.

Stage-3. Develop a company vision and strategy Leaders are responsible for formulation
allocating a company develop strategy for achieving that vision.

Stage-4. Communicate the visionary At this stage the correction of change against should
set an example by modifying new behavior leading an employ. The managers must about the change
many things, more the things necessary. Irrational behavior is impose unless majority of people in
the organization are important and willing to help (change cannot be forced).

Stage-5. Empower employees to act on the vision. It means getting rid of obstacles to
change which may require reward system structure or procedures that hinder the change effort.
People are empower with knowledge and discretions to make things happens and:

Stage-6. Generate short terms wins to bring change. Leader can plan visible performance
improvements enables them to celebrate employees win. Letter of appreciation, Picnic parties.

Stage 7. Keep up the urgency, tackle bigger problems The mangers they try to build on the
credibility & momentum to tackle with the bigger problems. The use of power give people energy &
power to take on issue. This often involve changing systems, policies, hiring & promoting people who
can implement vision & make sure employees have time, surety & they need to pursue the vision.

Stage 8. Make the changes stick The transformation is not over until the changes have well
established. Leaders have new values, attitudes & behaviors so that the empower view the changes
not as something new but normal & integral part how the organization operates.

Appreciative Inquiry (A I) It is a technique for leading change that engages individuals teams
or entire organization by reinforcing by positive messages & focusing on learning from success,
rather than looking at the situation of viewpoint who is wrong and positive approach by asking:

What is possible?
What we want to achieve?

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E.g Rather than looking at problem such as sales, AI would investigates what makes sales increase.
(inquiry usually use as negative notion).

Leading a Major Change. It can create frustration among employees. Major change cant be
forced & in less period of time they can applied.

Four Stages of Appreciation Inquiry

Discovery
Identify & appreciating the best of what enote

Destiny Dream
Appreciative
Sustaining what will be for the future Imagining what could be creating a vision
Topic

Design
Formulating action plan to achieve what should be

Discovery. The people identify what is best of what exist? Key strengths & best practice. This
stage is about discovering unique qualities that have contributing to success.

Dream. People learn during discovery stage & imagine what it would be like if these extra-
ordinary experiences which are launched e.g people visualize best possible future.

Design. It transform dreams into realities. This includes making decisions what the organization
needs to do in alter to be what its want to be.

Destiny. It is time to act or implement. It translates the ideas in above stages into a concrete
action plan.

Leading for Innovation

We need to generate ideas, ideas leads towards creativity.

Creativity. Generation of ideas that are both no & useful for improving efficiency & effective for
organization. Leaders may clear what the company stand for, consistently promote vision & clarify
specific goals.

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Idea Incubator. Many organization setup a separate department or ventures to come-up with
ideas, call ideas incubator. It is save place where ideas of employees throughout organization can be
developed with the interference of company bucearacy.

FIVE ELEMENTS OF INNOVATIVE ORGANIZATION

Alignment. For creative acts that benefit organization to occur consistently. The interests & actions
of everyones should be aligned with organization purpose, vision or goals.

Creative Values. Good leaders find ways to unlock employees motivation for creativity &
innovation, so that people feel free & participate.

a. Corporate Entrepreureship It can produce higher than average number of innovation. One
important outcome is to facilitate ideas champion are people who belief on an idea & fight to
overcome nature co-resistance & convice other to accept it.
b. Change doesnt happen until persons energy is needed to create new ideas or create change.

Unofficial activity. For creativity to flourish, employees need to empower & discover outside.
From regular J.D leaders can give employees that are not officially.

Open Culture. Leaders motivate workers to rotate jobs it encourages to open work system.
Highly innovative companies maintain open culture & look everywhere to new idea, leader can
encourage people by rotating people to different jobs. In volunteer activities giving them opportunities
to mix with people different from themselves.

Open Innovation. It include customers, strategic partners, suppliers & outsiders directly involve in
innovation process.

Team Collaboration. Although many individuals have creative ideas but more innovations
generated by group of people working together, rather people stuck there individual department
cellos.
BRAIN STORMING

Techniques that uses face to face group to spontaneously suggests broad range of ideas to solve a
problem. Electronic brain storming, Bringing people together in an interactive group or a computer
network refer as bran writing. The key to effective brainstorming is:

a. No criticism (always welcomed ideas) group member shouldnt criticize or develop ideas.
b. All ideas are considered valuable.

Free wheeling is Acceptable. People should impress any idea that comes to mind, no matter how
weird or offensive. A brainstromer shouldnt be trimmed about impressing, creating & thinking.

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Quantity Desire. Goal can generate as many ideas as possible. The more ideas are better, large
quantity of ideas increased likelihood of finding. Combining ideas also encourage. All ideas belong
to the group & members & members should modify & intend ideas as possible.

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