CHAPTER 10

LEADERSHIP OF CULTURE,
ETHICS AND DIVERSITY
 MOHD FATHI I16201313
 HAZIM HASHEM I16100957
 MUHAMMAD IHSAN I16101206
 NUR ATIQAH I17102007
 NUR AINA SYAQIRA I17101917
 NAIZATUL NADIRAH I17101983
 ANIS SORFINA I16101102
 ORGANIZATIONAL
CULTURE
Organizational culture is a system of shared assumptions, values,

and beliefs, which governs how people behave in organizations.

These shared values have a strong influence on the people in the

organization and dictate how they dress, act, and perform their jobs.

Every organization develops and maintains a unique culture, which provides

guidelines and boundaries for the behavior of the members of the

organization.
 THE POWER OF CULTURE

Internal Unity
• Organizational culture defines a normative order
that serves as a source of consistent behavior
inside an organization.

External Adaptation
• Culture determines how the organization
responds to changes in its external environment.
 HIGH PERFORMING
CULTURE
• A high-performance culture is a set of behaviors
and norms that leads an organization to achieve
superior results by setting clear business goals,
defining employees' responsibilities, creating a
trusting environment, and encouraging
employees to continuously grow and reinvent
themselves.
CHARACTERISTICS OF A LOW
PERFORMING CULTURE
• Weak cultures are associated with low
performance and strong cultures are
associated with high performance. The
characteristics of low-performance cultures
include insular thinking, resistance to
change, a highly politicized internal
environment, and poorly conceived
promotion or advancement practices for
employees.
CHARACTERISTICS CULTURE
CHARATERISTICS OF CHARATERISTICS OF
LOW PERFORMING HIGH PERFORMING
CULTURES CULTURES
• Insular thinking • Effective use of culture
• Resistance to change reinforcement tools.
• politiczed internal • Intensely people
environment oriented
• unhealthy promotion • Result oriented
practice • Emphasis on
excellence
 The leader’s role in influencing
culture
Substantive Action
• Replacing old- culture
members who are willing to
change with a new breed of
employees.
• Introduce new strategies to
perform well over long periods
of time.
• Tying rewards and incentive
programs directly to new
measure of strategic
performance.
• Leaders can design the
physical work enviroment.
Symbolic Actions
• Leaders can employ to
influence culture include
modelling expect behaviour,
recognizing and celebrating,
accomplishments and being
visible.
• Scheduleceremonies to
celebrate and honor people
whose action and
performance exemplify for
new culture.
• Leaders can use to influence
culture is simply being visible.
 TYPE OF CULTURE
COOPERATIVE • A leadership belief in strong, mutually
reinforcing exchanges and linkages
CULTURE between employees and departments.

• A leadership belief in active monitoring

ADAPTIVE of the external environment for emerging
CULTURE opportunities and threats and adapting to
them.

COMPETITIVE • A leadership mind-set that encourages

and value a highly competitive work
CULTURE environment

BUREAUCRACTIC • A leadership mind-set that values order,

CULTURE stability, status, and efficiency.
 NATIONAL CULTURE
IDENTITIES
Individualistic to collectivistic
High to low-uncertainty avoidance
High to low power distance
Long term to short term orientation
Masculine to feminine
Implications for leadership
Organizational Practice That Foster
An Ethical Work Environment

Training and
Codes of Ethics Disclosure
education
ethics committees mechanism
programs
Provide opportunity for
Effective leaders are everyone in the Encourage
Display the values and employees to report
also requiring the organization to be
principle governing
creation of ethics informed and educated any knowledge of
employee behaviour
committees on the company`s ethical violations
code of ethics

Whistle-blower is
Serve as benchmarks Ethics committees employee
Training teach disclosure of illegal
for judging both charged with resolving
employees how to
company decisions ethical violations and or unethical
incorporate ethics into
and actions and updating ethical practices on the
daily behaviour
individual conduct standards part of the
organization
 AUTHENTIC LEADERSHIP
• Authenticity is about genuineness.
• It is a psychological construct that focuses on
KNOWING, ACCEPTING, ACTING.
• Authentic leaders are mission driven and focused
on results.
• They are able to put the mission and the goals of
the organization ahead of their own self-interest.
• They do the job in pursuit of results, not for their
own power, money and ego.
• Authentic leaders focus on the long-term.
AUTHENTIC LEADERSHIP
CHARACTERISTICS

TRANSPARENCY CONSISTENCY

INTEGRITY LISTENING

MOTIVATE VISION
DIVERSITY LEADERSHIP

• Is the inclusion of all groups at all levels in an

organization.
• During the past three decades, the US workplace
has become more multiculturally diverse.
• A number of factors have contributed to this
trend.
• Among these are the civil rights acts, which out-
lawed most types of employment discrimination,
increased immigration.
 BENEFITS OF EMBRACING
DIVERSITY

• Embracing diversity cab offer a company a

marketing advantages.

• Will be able to recruit from a large pool.

• Can be cost effective

• May privide a broader and deeper base of

creative problem solving and decision making.
THE DOWNSIDE OF
DIVERSITY

Communication Lack Of Freedom

Issues Of Speech

Spend more time

Damage morale
and energy

Cost of training
increased
 Corporate Philosophy

Training and Education

Including
Diversity as a
Criterion for Pro-Diversity HR
Measuring Culture of Diversity
Policies and
Success Practices

Organizational Top Management

Communication on Support and
Diversity Commitment
The Effect of Globalization on Diversity
Leadership
Globalization has led firms to originate, produce and
market their products and services worldwide.

Corporation have to deal with a diverse cross-cultural

workforce, customers, competitors, suppliers and
financial institutions.

Collaboration among these companies is becoming the

most effective way to deal with global competition and
overcome the growing threat of nationalism – the
tendency to want to purchase products from one’s own
country rather than a foreign country.