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Leading Through Company Culture

In: Business and Management

Submitted By jkim7410
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Leading by Leveraging Culture

Managing culture will not guarantee organizational success. Neither will neglecting culture result in assured failure. Culture is only one of the leadership tools that helps success, but managing it will help an organization with its strategic objectives in the long term.
Why is Organizational Culture Powerful?
Focusing People Intensely on Strategy Execution
CEO’s fail when they are unable to fully execute on strategy. The key is in not only having a well-formulated strategy, but in also executing well on the strategy. Southwest Airlines has had a simple and transparent strategy of offering a high volume of short, low-cost flights. The strategy is well-known among employees and also aligned with their culture.
Culture is a system of shared values that identify what is important, and norms that identify appropriate attitudes and behaviors. It increases organizational performance by energizing employees with meaning in setting and reaching for goals. Also performance is increased by shaping and coordinating behavior. Culture as a leadership tool should be strategically relevant.
Formal Versus Social Control: The Power of Shared Norms
Culture is based on norms, which are socially shared standards of appropriate behavior. Norms guide the perception and interaction of members and how they approach decisions and solve problems. They also help to ensure conformity through positive and negative reactions. Research shows that group norms influence employee behavior more than monetary rewards or physical work environment. This is demonstrated when people alter their behavior with others in order to uphold shared social norms. Leadership through culture is effective when employees understand strategic objectives and the norms by which they can be achieved, and also must care about being able to or unable to deliver on the objectives. This…...

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