Académique Documents
Professionnel Documents
Culture Documents
Kamran Majeed
University of east London, United Kingdom
Ijaz Ur Rehman
Riphah International University, Islamabad Pakistan
E-mail: ijazurrehman@yahool.com
Tel: +92-333-5359741
Arshad Rizwan
Riphah International University, Islamabad Pakistan
E-mail: arizwan2007@hotmail.com
1. Introduction
In today’s fast moving business environment there has been a realization that static leadership,
management and organizational paradigms can stifle economic growth. Most organizations seek to
change and adapt new culture and leadership style according to their business environment with the
objective of gaining an increased competitive advantage. The study of leadership, culture and
employee motivation determining organization performance has become more complex in recent years
as the understanding of the nature of organizations has advanced towards globalization. Many
organizational corporate cultures are now viewed by researchers as being central component in the
organizations. This gives rise to the question as how does one try to define and apply such a subjective
term as ‘culture’ and ‘leadership’ and what implications does it have for management practitioners?
The issue of organizational culture and different leadership is currently the subject of much
empirical research as the increasing complexity of the subject area has become apparent in recent
years. Senior (1997) argues that change is a progressive experience that is best understood by
considering the metaphor of strong and weak winds. Throughout the history there have been times
when the wind of change has given birth to strong forces which have caused enormous changes to how
organization works. Examples of these times would be the shift from agriculture age to the industrial
age, and more recent one is the influx of the information technology age. These periods have brought
along significant change, which has forced organizations to adapt to severe consequences that are
coupled with stagnation. Similarly there have been times when relative calm and the winds of change
have been light in nature. However when the need for change accelerates, it brings with it new
challenges and opportunities. The advent of the information technology age has these elements as we
© Research Journal of Internatıonal Studıes - Issue 17 (November, 2010) 102
have stepped into the 21st Century. The pace of change is constantly accelerating and organizations are
adapting to the challenges that an integrated global communication and information system are
bringing to the international business environment. Burnes (1992) argues that to properly initiated
change, one has to have a full understanding of the nature of an organization. Gaining this
understanding has sparked much debate as how an organization actually operates.
If we do not have this knowledge then decisions are made using false assumptions rather than
informed judgment.
The topic of leadership and organizational culture is one that has sparked fierce debate among
business and management circles due to its very subjective nature. As will be discussed in depth later
in the thesis, there is no single agreed definition of what “Leadership and organizational culture”
actually is or what connotation it has in the wider business context. Senior (1997) states the culture can
fundamentally be interpreted from two different perspectives; the “objectivist” or “interpretive”
perspective. The former perceives culture as a variable that can be changed or manipulated to aid
organizational performance. The interpretive perspective used culture as something that an
organization actually is, as opposed to something that it has. Culture from this perspective is highly
complex and un-quantifiable and thus impossible to change or manipulate. According to Lakomski
(2001) an organization’s resistance to change in the face of environmental pressures and uncertainty as
Schein (1985, 1992) argue that at root it is the organization’s culture that causes resistance and needs
changing. In order to change an organizational learning process needs to take place which pushes the
organization beyond its currently held understandings of itself and its ways of dealing both with its
internal and external reality (Lakomski, 2001). The prime mover of change is the leader who
transforms the current stagnating culture into a productive one (Schein, 1985). The perception and
understanding of leadership and culture is central to how one would view the issue of organizational
change. It is this central debate that forms the basis of this study.
2. Literature Review
Impact of Leadership on Organization Culture
2.1. Leadership and Culture
Leadership is interpreted in various ways by different authors. Leadership is defined as an influence,
that is, the art or process of influencing people so that they will strive willingly and enthusiastically
toward the achievement of group goals. (Cole 1996). Ideally, people should be encouraged to develop
not only willingness to work but also willingness to work with zeal and confidence. Zeal is ardour,
earnestness and intensity in the execution of work; confidence reflects experience and technical ability.
Armstrong (1990) suggests that leadership happens: when there is an objective to be achieved or task
to be carried out and when more than one person is needed to do it. Sandra Dawson (1996, pg: 216)
offers the following definition of what is involved in leadership
“Leadership exists when someone (the leader) exercises influence over others (the followers) in
their group or organization. Their influence may be wide ranging or narrowly focused but within
formal organizations particular emphasis is given to influence over:
• Values which are espoused
• Directions in which future developments are guided and the manner in which everyday
tasks are accomplished”.
Hence leadership is mandatory for achieving goals because someone has to point the way…
ensure that everyone concerned gets there … a leader’s aim is to get people to do what he wants by
obtaining willing co-operation, not unwilling submission. According to Martin (2001) “A standard
definition of culture would include the system of values, symbols and shared meanings of a group
including the embodiment of these values, symbols and meanings into material objects and ritualized
practices. The ‘stuff’ of culture includes customs and traditions, historical accounts be they mythical or
4.9. Adaptive Vs Un-adaptive Cultures - Research conducted by Kotter and Heskett (1992)
The components of adaptive and un-adaptive cultures were described in the literature review. In this
section one is going to analyze the research that Kotter and Heskett (1992) utilized to form their view.
The research starts from the premise that only firms whose management care about all the key
constituencies (customer, stockholders and employees) will be able to adapt successfully to the
5. Conclusion
5.1. Concluding Comments
It is quite evident from the wealth of evidence that has been collected and analyzed during the course
of this study, that organizational culture is a very complex topic. There is much disagreement amongst
researchers as to how it should be defined, interpreted and utilized. The Interpretive perspective sees
culture as something that an organization is as opposed to something that it actually has. The
objectivist argument views culture from the other end of the spectrum, as a tangible resource that can
be manipulated and changed to enhance the performance of the organization. Therefore the way one
views culture, will directly influence whether one believes that it can be changed and manipulated or
not. The study argues that what is required is to conceptualize culture change in a different way. Rather
that perceiving it as a black and white, yes or no, a middle ground should be sought. The ‘realist’
argument proposed by Ogbonna and Harris (2002) and supported by the research findings, suggests
that there needs to be acceptance that culture exists on different levels and the ease at which it can be
changed is dependent on numerous separate factors that each in turn have an influence on each other.
Some of these factors are controllable and others are not.
Both the internal and external environments that an organization is exposed to will impact its
ability to successfully manage cultural change. This has particular connotations for International
organizations, due to research indicating that national cultures can have a significant impact on
corporate culture. The study argues that different organizational cultures are easier to change than
others, due to the vary nature of the companies themselves. It was subsequently argues that it was
© Research Journal of Internatıonal Studıes - Issue 17 (November, 2010) 123
possible to deliberately change a corporate culture to facilitate enhanced organizational performance.
The unresolved issue is the level to which these cultures can be altered. Culture change is in itself a
very complex process, which is hard to predict and quantify. As a result, the extent to which a
corporate culture can be purposefully changed will vary greatly from organization to organization,
from industry to industry and from country to country.
The study has also indicated that there are distinct types of cultures that are both desirable, and
to some extent necessary if an organization is to survive and be competitive in today’s fast moving
business environment. Organizations with bureaucratic structures, top-down hierarchies and rigid
managerial paradigms are classified as having un-adaptive cultures, that are resistant to change, which
can result in under performance. The research has indicated that a desirable culture is one that
embraces change and has a focus on utilizing the intellectual capital that exists within an organization.
There is a move towards more de-centralized structures that devolves power down the hierarchy and
empowers the members of staff. This culture fosters creativity, innovation and learning, which allows
for it to adapt to the changes in the external operating environment. This study argues that the
organizations, which can achieve this type of culture, will ultimately be the ones who survive and
prosper.
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Appendix 1
A Model of Organisational Change and Development
Appendix 4
Adaptive and Unadaptive Cultures
Appendix 7
The Main Points of Lindstrom’s ‘Blue Pamphlet’
• Very hard work is needed, but this could and should be pleasurable.
• Like riding a bicycle, BAHCO needs momentum, has to move forward, must be energized or it
will wobble and fall.
• BAHCO needs ideas. Ideas are the stuff business is made of. They release energy, advance
knowledge, generate initiative and stimulate al of us. Never mind whether they are good, get
them on the table where we can all assess them.
• Ideas are a currency. If we share money between us, each can only have a small part. But ideas
generate ideas and they belong to anyone who can use them. You still retain your own ideas
even after giving them to others.
• BAHCO is short of money – very short – so we must generate as much as we can in the shortest
time. Choose the best alternative to ease this shortage and the morale of everyone will rise.
• You must be sincere and honest with each other, even if it hurts. The situation is too serious for
evasion. You can start with me : I am largely dependent on your experience in industries I do
not know technologically. Let’s create a balance between your experience and your ideas.
• Let’s go one small step at a time. The road to success is paved with small mistakes from which
we learn. We can’t afford big mistakes in our position.
Appendix 8
Cultural Values Related to Leadership Research Conducted by Kotter & Heskett (1992)
Appendix 9
Cultural values related to Serving Customers, Stockholders and Employees Research
Conducted by Kotter & Keskett(1992)
(Scale: 7=absolutely yes; l=defmitely not)
GL Is there anyone in business that you look at and say ‘I’ m a lot like that, or I’d like Model myself on that
person’. Somebody that was a real leader, someone that really achieved something?
M4 Yeah, The only person that I was like that was this guy who ran Tel Labs, it’s a pretty good-sized
telecommunications company round the world. And they were small, and I started calling on them when they
opened up. They are now, half-a-billion dollars, something like that, and er MB1 is the guy’s name, he has
built a really progressive company, willing to change and take chances. They were the first people to involve
themselves with TQM, and the first company to take on ISO.9000. They were the first company in Chicago
to have a JIT programme, they were under directive from Hewlett Packard, who were the leaders of that in
the States anyway, and they are just progressive, constantly progressive and it’s a real open organisation.
GL So you modelled yourself on some of their characteristics?
M4 Well, I don’t think I modelled myself after them, if I look around and I think that company is run the way I
think company should be run and that present-day company is a real good role model. People want to know
‘how to be good leader’ follow that guy, he’s really good in every respect. And he happens to be a nice guy
too!
GL So what elements do you think you need to have a really successful company?
M4 Well that’s the biggie ain’t it (laughs). You can’t be afraid to take risks, you’ve have courage in your
convictions, to stick you neck out. You gotta look after your people – at the end of the day, your people are
your company so you gotta look after them.
GL And what do you think the reason was for the commitment you felt towards the Company that you worked
for?
M4 You know, that’s funny, these guys and I we’d get together and once in a while we’d talk about it… We
haven’t figured out … We really haven’t figured out what it was that drove us... The only thing that I can
come up with .. is that somehow we felt like we were so committed because we felt that what we were doing
was so vital to this company, like we had ownership even though we didn’t have ownership, err, and pay was
pretty low at the time.. but it must have been something like that, and we felt, and we felt so important..
GL You had ownership of certain decisions, or certain initiatives
M4 Yeah…
GL But not ownership of the company
M4 Yeah, you just felt you were so vital to where the company was going and how it was run; that’s the only
reason that I can think of. And the guy. This JCI who’s the President now he worked harder than anybody, he
was in there at 5.30 and he’d be there until 7.00..the guy was just driven, absolutely driven, he led by
example
M4 The people in the company could express their opinions and he didn’t have a problem with that. He
encouraged a lot of it
GL Do you think its necessary to take a lot of risks in business?
M14 Well I don’t think I’m a big risk taker… I guess I’m in some ways because I started a Company and I’ve
done some things that I worry about, consequences as such, but I think I’d be considered, if there is such
thing, as a conservative risk-taker. I’d make sure that the odds are kind in my favour before I jump off.
GL In contrast to your experiences at All-American and Alpha, how would you say they were different?
M14 Well at Alpha, the owners and top management at least you could talk to them, you could give suggestions,
and a lot of times they would listen. And other times they won’t listen, but that’s just part of it.
GL Do you think it is necessary to delegate responsibility down to the lower management?
M14 Definitely, it makes a lot of sense. People will give more to the company if they feel like they have some
control over what goes on… If people feel that they are not valued then you will not get the best out of
them… its human nature.
GL How much emphasis is placed on innovation?
M14 Definitely a lot…you need to be innovative to be any good..you need ideas and innovation or you can’t move
forward, you kinda get stuck just doing the same as you’ve always done. You need to try new things or you
won’t stay ahead of the game for too long