This document discusses organizational culture and leadership climate. It defines organizational culture as comprising of the core beliefs and assumptions, values and norms, and artifacts of an organization. The core beliefs and assumptions shape the values and norms, which then influence behaviors and artifacts. Leadership climate refers to the beliefs and perceptions of organizational members regarding leadership, which are shaped by what leaders pay attention to, how they react to situations, and how they role model behaviors. The document provides examples of how leaders can establish a positive leadership climate through actions such as communicating a vision, encouraging initiative, rewarding risk-taking, sharing decision-making, and modeling high ethical standards.

1. Organizational Culture and Leadership Climate
MGMT 560 – Organizational Leadership

2. Organizational Culture
• The personality of an organization
comprised of beliefs/assumptions,
values/norms, and artifacts (Schien,
2017).
– Beliefs & Assumptions (invisible)
• The core of culture; taken for granted
• Represent what members believe to be reality
• The unquestioned “truth”
2
Ref: Schein, E.H. (2017). Organizational culture and leadership (5th Ed.).
Hoboken, NJ: Wiley & Sons.

3. Organizational Culture
• How to define an organization’s core assumptions:
– What is the “correct” way for members to behave (dominant,
harmonizing, passive)?
– What is the organization’s relationship to its environment (dominant,
submissive, harmonizing, searching out a niche)?
– How is truth determined (pragmatic test, reliance on wisdom, social
consensus)?
– Is time oriented on the past, present, or future?
– Are people (& other organizations) basically good, neutral, or evil?
– What is the “correct” way for people to relate to each other, to distribute
power (competitive or cooperative)?
– Is the organization highly diverse or homogeneous; are members
encouraged to innovate or conform?
3

4. Organizational Culture
• Values & Norms (greater level of awareness):
– Values – social principles, goals, and standards held
within a culture to have worth
• Define what members care about, such as
freedom, democracy, tradition, wealth or loyalty
• Basis for defining what is right and wrong
– Norms – unwritten rules that allow members of a
culture to know what is expected of them in a wide
variety of situations
– Values define what is valued, while norms define
what is considered normal or abnormal
4
Ref: Schein, E.H. (2017). Organizational culture and leadership (5th Ed.).
Hoboken, NJ: Wiley & Sons.

5. Organizational Culture
• Artifacts (visible, but often undecipherable)
– Visible, tangible, and audible remains of behavior
grounded in cultural norms, values, and assumptions
– Categories:
• Physical manifestations (logo, décor, dress,
physical layout)
• Verbal manifestations (anecdotes, names, history,
metaphors)
• Behavioral manifestations (ceremonies,
traditions/customs, rewards and punishments)
5
Ref: Schein, E.H. (2017). Organizational culture and leadership (5th Ed.).
Hoboken, NJ: Wiley & Sons.

6. Organizational Culture
• According to Shein:
– “The essence of culture is its core
assumptions and established beliefs. This
core reaches outward through values and
behavioral norms that are recognized,
responded to, and maintained by members of
the culture. The values and norms, in turn,
influence the choices and other actions taken
by cultural members. Finally, culturally
guided action produces artifacts.”
6
Ref: Schein, E.H. (2017). Organizational culture and leadership (5th Ed.).
Hoboken, NJ: Wiley & Sons.

7. Leadership Climate

8. Leadership Climate
• Beliefs and perceptions held by members of an
organization as a result of leadership actions
• Culture-embedding mechanisms that define Climate:
– What do leaders pay attention to?
– How do leaders react to incidents and crises?
– What criteria is used to distribute resources?
– How do leaders role model, teach, and coach?
– What criteria is used to allocate awards?
– What criteria is used for recruitment, promotions,
retirement, and excommunication?
8
Ref: Schneider, B., Ehrhart, M.G. & Macey, W.H. (2013). Organizational
Climate and Culture. Annual Review of Psychology. 10(21), 361-388.

9. What are some Positive Leadership
Climate Indicators?

10. Positive Climate Indicators
• Trust exists in the organization
• Teamwork, fair play, and information sharing
• Open, candid communications
• Project team member job satisfaction
• Team members (and families) attend social activities

11. Establishing a Positive
Leadership Climate
• Determine the “health” of your team
• Identify climate areas you want to influence
• Establish clear goals & objectives for each area
• Execute plan; leadership climate is created from
the TOP down

12. Actions You Can Take
• Communicate a sense of vision or focus
• Establish high, attainable, clearly understood
standards
• Encourage competition against standards
rather than each other
• Allow subordinates freedom to exercise
initiative
• Establish accountability at appropriate level

13. • Show confidence in subordinates
• Encourage & reward prudent risk-taking
• Achieve high performance through positive
motivation and rewards
• Underwrite honest mistakes
• Share decision making with subordinates
• Give clear tasks with boundaries of
autonomy
Actions You Can Take

14. Actions You Can Take
• Listen to subordinates and seek ideas
• Demonstrate concern about the welfare of
subordinates
• Establish and model high ethical
standards
• PRACTICE WHAT YOU PREACH