Organisation leadership & culture
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Organisation leadership & culture

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Organisation leadership & culture Organisation leadership & culture Presentation Transcript

  • Organizational Leadership Organizational Leadership Involves: The ability to anticipate, envision, maintain flexibility and empower others to create strategic change Multi-functional work that involves working through others Consideration of the entire enterprise rather than just a sub-unit
  • Organizational Leadership The ability to influence those with whom you work within your organization to voluntarily make decisions on a day-to-day basis Organizational Leadership defined: The result is that the long-term viability of the organization will be enhanced while, at the same time, the short-term financial stability of the organization will be maintained
  • Strategic Leadership and the Strategic Management Process Effective Leadership and Influence Strategic Intent Strategic Mission Shapes the formation of Successful Strategic Actions Formulation of Strategies Implementation of Strategies Strategic Competitiveness Above Average Returns Yields View slide
  • Organizational Leadership Presumes: An ability to influence co-workers Leader understands the emergent strategy process Visionary leadership entails many characteristics, such as a willingness to take risks Managerial leadership entails many characteristics, like an intended rational way of looking at the world Visionary leadership & managerial leadership can co-exist That strategic leadership synergistically combines visionary leadership and managerial leadership A faith in their ability to change their firms in a way that the environment they operate in will change View slide
  • M anagerial L eaders, S trategic L eaders , V isionary L eaders Want stability & to preserve the existing order Guide without a strategic vision. Constrained by values & by using explicit knowledge Guide knowledge creation by encouraging contradictory capabilities (e.g. individual, group, and organizational tacit & explicit knowledge) Are comfortable handling Short-term day-to-day activities Define boundaries by use of metaphors, analogies & models to allow for a mix of contradictory concepts Manage the paradox created by use of managerial & visionary leadership models Control by social- ization & sharing common norms, values & beliefs Are not dependent on the organisation for their sense of who they are Are future-oriented concerned with risk-taking Want stability & to preserve the existing order Guide without a strategic vision. Constrained by values & by using explicit knowledge Are comfortable handling Short-term day-to-day activities Want stability & to preserve the existing order Guide without a strategic vision. Constrained by values & by using explicit knowledge Are comfortable handling Short-term day-to-day activities Control by social- ization & sharing common norms, values & beliefs Are future-oriented concerned with risk-taking Are not dependent on the organisation for their sense of who they are Control by social- ization & sharing common norms, values & beliefs Are future-oriented concerned with risk-taking Are not dependent on the organisation for their sense of who they are
  • Role of the CEO
    • Provide Executive Leadership & Strategic Vision
    • Manage the Strategic planning process
    • Articulating a Strategic Vision
    • CEO presents a role model
    • Communicating performance standards & Implementing them
  • Top Management Teams Top management teams are comprised of the key managers who are responsible for formulating and implementing the organization’s strategies A top management team must also be able to function effectively as a team in order to implement strategies A heterogeneous team makes this more difficult A heterogeneous top management team with varied expertise and knowledge can draw on multiple perspectives when evaluating alternative strategies and building consensus
  • Effective Organizational Leadership Determines Strategic Direction Developing a long-term vision of the firm’s Strategic Intent Exploits & Maintains Core Competencies Leaders must ensure that the firm’s core competencies are emphasized in strategic implementation efforts Develops Human Capital No strategy can be effective unless the firm is able to develop & retain good staff to carry it out Sustains an Effective Organizational Culture Leaders play a critical role in shaping and reinforcing the firm’s culture Determines Strategic Direction Exploits & Maintains Core Competencies Develops Human Capital Sustains an Effective Organizational Culture
  • Effective Organizational Leadership Determines Strategic Direction Exploits & Maintains Core Competencies Develops Human Capital Sustains an Effective Organizational Culture Emphasizes Ethical Practices honesty & ethical practices among employees Leaders set the tone for creating an environment of mutual respect,
  • Ethical Practices Establish & transmit specific goals describing the firm’s ethical standards (e.g., develop / disseminate a code of conduct) Developing an ethical organizational culture: Continuously revise & update the code of conduct, based on inputs from stakeholders Disseminate a code of conduct to all stakeholders to inform them of the firm’s ethical standard / practices Develop & implement methods / procedures to use in achieving the firm’s ethical standards Have explicit rewards to recognize acts of courage (e . g ., using proper channels / procedures to report wrongdoing) Create a work environment in which all people are treated with dignity      
  • Top Management
    • Managing the Company:
    • Running the company as a whole rather than one segment
    • Guidance, Motivation & overall control
    • Setting Competitive Strategy:
    • Establishing Major Policy:
    • Calls for Broad Judgment
    • All Possible Trade offs
    • Affecting the entire company
    • Long Range Planning & Timing:
    • Timing & Magnitude of Future actions
  • Top Management
    • Changing Organization Structure:
      • Reorganization as per the environmental demands
    • Selecting Key Personnel:
      • Identifying & recruiting key personnel
      • Success or Failure of any Strategy
    • Approving Large Expenditures & Contracts
      • Specific Location, Capacity, Capital Allocation
    • Negotiating Mergers & Major Agreements:
      • Complex Matters involving Top Management
  • Top Management
    • Officially Representing the Company :
    • Approving Annual Budgets:
      • Financial Aspects of the company
      • Integration of Short run & Long run plans
    • Coordinating & Controlling:
      • Guiding Influence on current activities
  • Characteristics of Central Management Problems
    • Important
    • Long Range
    • Company Wide
    • Qualitative
  • Culture Defined
    • Organizational culture is the underlying values, beliefs, and principles that serve as the foundation for an organization’s management system.
    • In addition, it includes the management practices and behaviors that exemplify and reinforce these basic principles
  • Organizational Culture
    • A pattern of basic assumptions - invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration
    • That has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems (Schien, 1985)
  • Organizational Culture
    • Once established it may be resistant to change
      • Nurtured and sustained through hiring practices
      • Socialization of new hires
    • Organizational culture largely dictates issues like :
      • Formalization of rules
      • People/team orientation
      • Task orientation
      • Work hours and dedication to the company
      • Dress code
      • Ethical standards
  • Functions of Organizational Culture
    • Culture is the social glue that helps hold an organization together by providing standards for what employees say or do.
    • Culture provides boundary-defining roles.
    • Culture conveys a sense of identity for organization members
    • It serves as a “sense-making” and control mechanism that guides and shapes the attitudes and behavior of employees
  • Significant Components of Culture
    • Relationships
    • Language and communication
    • Institutional and legal systems
    • Values and value systems
    • Time orientations
    • Mindsets or world views
  • Organizational Culture
    • Five Basic Processes:
    • Cooperation:
      • Willingness to act
      • Contingencies
      • Intent, Goodwill & Mutual Trust
    • Decision Making:
      • Basic Assumptions & Preferences
      • Efficiency & Effectiveness
    • Control:
      • Formal Procedures & Clan Control
      • Shared Beliefs & Values
  • Organizational Culture
    • Communication:
      • Communication & Miscommunication
      • Assumptions reduces the needs
      • Guidelines & Cues to interpret messages
    • Commitment:
      • Sense of Identification
      • Salary, Prestige & Sense of Worth
  • Strategy- Culture Connection
    • A Sense of How to Behave, What they should do & Where to place priorities
    • Fill in Gaps b/w Formal Decreed & Actual happening
    • Implementation highly depends upon the same
    • US Airways
    • Wipro
  • Strategy- Culture Connection
    • Changes necessary to implement Strategy & The FIT b/w those changes & organizational Culture
    • Framework to manage the same
  • Strategy- Culture Connection
  • Strategy- Culture Connection
    • Link To Mission:
      • Companies adv of new opportunities
      • Proven Capabilities
    • Changes to Company Mission
    • Existing Personnel
    • Reward System
    • Attention to changes not compatible
  • Strategy- Culture Connection
    • 2. Maximize Synergy:
    • Take Advantage of Situation to reinforce & Solidify Company’s Culture
    • Usage of time of Relative Stability to remove organizational Roadblocks
    • 3. Manage Around Culture:
    • 4. Reformulate