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49056191-Strategic-Mgmt-ch12

49056191-Strategic-Mgmt-ch12 - Chapter 12 Leadership and...

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Chapter 12 Leadership and Culture 0Chapter Summary This chapter examines organizational leadership and organizational culture—two factors essential to the successful implementation and execution of a company’s strategic plan. Organizational leadership is guiding and sheparding an organization over time and developing that organization’s future leadership and its organization culture. Good organization leadership involves three considerations: clarifying strategic intent, building an organization, and shaping the organization’s culture. Leaders use education, principles, and perseverance to build their organization. Leaders start to shape organizational culture by the passion they bring to their role, and their choice and development of young manager and future leaders. Understanding seven sources of power and influence, rather than just the power of position and punishment, is a critical skill for effective future leaders to grasp. Organizational culture is the set of important assumptions, values, beliefs, and norms that members of an organization share in common. The organizational leader plays a critical role in developing, sustaining, and changing organizational culture. Ethical standards, the leader’s basis for differentiating right from wrong, quickly spread as a centerpiece between the leader and the organization’s culture. Leaders use many means to reinforce and develop their organization’s culture—from rewards and appointments to storytelling and rituals. Managing the strategy-culture relationship requires different approaches, depending on the match between the demands of the new strategy and the compatibility of the culture with that strategy. This chapter examines four different scenarios. 0Learning Objectives 1. Describe what good organizational leadership involves. 2. Explain the relevance of vision and performance in helping leaders clarify their strategic intent. 3. Describe how good leaders use education, principles, and perseverance to build their organization. 4. Define and illustrate the value of passion and selection/development of new leaders as means to shape their organization’s culture. 5. Briefly explain seven sources of power and influence available to every manager. 6. Define and explain what is meant by organizational culture, and how it is created, influenced, and changed. 7. Explain two roles of organizational leaders in an organizational culture. 8. Describe four ways leaders influence organizational culture. 9. Explain four situations typically encountered in managing the strategy-culture relationship. 10. Address the importance of ethical considerations relative to leadership and culture. 252
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0Lecture Outline I0. Strategic Leadership: Embracing Change A0. The blending of telecommunications, computers, the Internet, and one global marketplace has increased the pace of change exponentially during the past 10 years.
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