Leadership Styles and Its Affect on Corporate

7/31/2019 Leadership Styles and Its Affect on Corporate

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LEADERSHIP STYLES IN CORPORATE

LEADERSHIP DEFINED

Leadership is complex. It is not something easily defined, nor can it be explainedby simple gimmicks (Kotter, 1988 ) or parlor tricks. According to Peter Northouse(2010 ) Leadership is a process whereby an individual influences a group of individuals to achieve a common goal. Based on this definition leadership can bedescribed as what you do and how you do it to affect change. According to JamesM. Kouzes and Barry Z. Posner,

Leadership development is self- developmentThe quest for leadership is first aninner quest to discover who you are. Through self-development comes theconfidence needed to lead. Self-confidence is really awareness of faith in your ownpowers. These powers become clear and strong as you work to identify anddevelop them (Kouzes & Posner, 2007, p. 344 ).

Based on the framework of self-awareness and self-development the more talentsare identified, the greater the organizational potential (Clifton & Harter, 2003 ). It isin this self-centric environment that leadership and culture are created. Accordingto Kouzes and Posner (2007 ) everyone in the organization can be a leaderregardless of position or title. It is the leaders who create culture (Schein, 2010 ).Therefore, culture is the aggregate of all members of an organization.

LEADERSHIP STYLES

Since the beginning of time man has been trying to figure out what leadership

characteristics make the best leader. Over the years several styles have beendefined to help better clarify the impact of a leaders style within an organization.With how quickly the world is changing, in order to remain competitive in the

work environment it is vital to understand the framework of leadership and howthe differing styles affect the cultural impacts of the organization (van Eeden,Cilliers, & van Deventer, 2008 ).
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STYLE APPROACH

One of the researchers at the forefront of leadership studies was Ralph M.Stogdill. While at Ohio State University, Stogdill (1957 ) along with Alvin E.Coons, studied leadership vociferously and postulated that there are two primaryelements of leadership:

1) Initiating structure, which deals with task behavior.

2) Consideration for workers, which concerns relationships.

Robert S. Blake and Jane S. Mouton further clarified (1967 ) their previous researchfrom 6 years previous that leadership conduct should be viewed in a three-dimensional plane rather than the previously defined two-dimensional plane.According to Blake there are three definitive planes; 1) the horizontal axis focuseson production; 2) the vertical axis deals with concern for people; and 3) thethickness or depth of a given style (Blake & Mouton, 1967 ). Similar in nature toStogdills definition of leadership, Blake and Mouton enhanced the current thoughtwith the added dimension. Figure 1 depicts the three-dimensional managerial gridas represented by Blake and Mouton.

The managerial grid is based on a set of coordinates. In the lower left corner (1,1)

the style has the least concern for people and production. The upper left corner(1,9) has high concern for people, but low concern to production. The lower rightcorner (9,1) has high concern for production, but low concern to people. Theupper right corner (9,9) has both a high concern for people and production. In themiddle (5,5) it is a middle -of-the- road style that seeks balance of production andpeople (Blake & Mouton, 1966 ). Each of these styles can be used to motivate andcontrol others by showing inte rest and using praise, or negatively, criticizing andusing punishment (Blake & Mouton, 1966 ). According to Blake (1966 ) a carelessor even controlling manipulative manager can change the culture and tempo of theorganization by utilizing and understanding the different styles indicated on theGrid.

Figure 1. The Three-Dimensional Managerial (Leadership) Grid (Blake & Mouton,1967 )
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THREE MAJOR LEADERSHIP STYLES

Although there are several theories and styles of leadership, there are three stylesthat have been studied and considered the major leadership styles: 1) laissez-faire,2) transactional, and 3) transformational ( Avolio, 2011 ; Bass & Stogdill,1990 ; Zagorsek, Dimovski, & Skerlavaj, 2009 ). The three major leadership stylescan be considered on a continuum where the least people concerned style islaissez-faire, and the transformational is designed to help employees achieve theirgoals (Antonakis, Avolio, & Sivasubramaniam, 2003 ). Although the studies havefocused primarily on leadership traits, it is believed that the more effective leadershave a combination of the three styles as depicted by Bass (van Eeden, et al.,2008 ).

Bernard Bass and Bruce Avolio developed the Multifactor LeadershipQuestionnaire (MLQ and MLQ 5X) to measure where along the leadershipcontinuum a leader resides as it relates to employee satisfaction.

Laissez-faire Leadership

The term laissez-faire in French literally means to let people do as they choose(Merriam-Webster Inc., 2005 ). This style of non-leadership has not been studiedas fervently as other leadership styles, but it is an active method of leading

nevertheless (Skogstad, Einarsen, Torsheim, Aasland, & Hetland, 2007 ). BernardM. Bass and Bruce J. Avolio (1990 ) have defined laissez-faire leadership as:

the absence of leadership, the avoidance of intervention, or both. With Laissez -faire (Avoiding) leadership, there are generally neither transactions nor agreementswith followers. Decisions are often delayed; feedback, rewards, and involvementare absent; and there is no attempt to motivate followers or to recognize and satisfytheir needs (p. 20 ).

This form of leadership can be destructive to the organizational culture. AndersSkogstad et al ., (2007 ) state that the laissez-faire leader creates an environment thatelicits increased employee role stressors, role conflict and ambiguity, high conflict,and bullying techniques. The overall impact of this leadership type is a detrimentto the organizational culture as a whole.
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One form of non-leadership is leading by bullying ( Skogstad, et al., 2007 ). JulianBurke et al ., (2005 ) state that leaders who are abusive, aggressive, or punitive area clear source of stress for individuals in the workplace (p. 99 ).

Figure 2. Path diagr am of leadership style affect on employees. Adapted from TheDestructiveness of Laissez- Faire Leadership Behavior, by Skogstad, A., Einarsen,S. l., Torsheim, T. r., Aasland, M. S., & Hetland, H. (2007), Journal of Occupational Health Psychology, 12 (1), 80-92. doi: 10.1037/1076-8998.12.1.80

Transactional Leadership

Transactional leadership is rooted in the belief that leaders exchange promises of rewards and benefits to subordinates for the subordinates fulfillment of agreements with the leader (Bass & Stogdill, 1990, p. 53 ). The leadership style is

one in which the leader does not individualize employee needs, nor do they focuson employee development (Northouse, 2010 ). Rather, employees are rewardedbased on performance (Sarros, Gray, & Densten, 2002 ).

There are three main styles of transactional leadership: contingent reward, activemanagement-by-exception, and passive management by exception (Northouse,2010 ;Sarros, et al., 2002 ).

Contingent reward is based on a set of goals and deliverables. As an employeeachieves their goals, their reward is contingent on how well they met or exceeded

the stated goals. Contingent goals could be set based on piece-rate work, or longerterm goals. A key to employee success is to set realistic goals that both theemployee and leader agree upon ( Hollander, 1978 ).

Management-by-exception is either active or passive. In this style the leader onlyacts, or manages, when there is an issue or behavior that needs correcting orcommending. Leonard Reber, the head of a drafting department at a manufacturingfirm is an example of this leadership style:

He assigns projects to each of his people, with instructions to come to him if theyhave any problems. And they do. But he never goes to them, or hears from themwhen no problems arise (Bensahel, 1975 ).

Although this tends to be successful in curbing improper behavior or techniques, itdoes not recognize those in the organization that are exceeding expectations.
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Active management-by-exception is conceptualized by a manager who scoursreports, or listens for actions that are not within policy, then approaches theemployee with changes. The swiftness of corrective action based on open, faircommunication is good, appropriate, and helps change culture by eliciting opendialog (Connors & Smith, 1999 ;Patterson, 2002 ).

Passive management-by-exception tends to materialize in a manner that is notupfront and immediate. This style is apparent when a manager does not sayanything to the employee until a yearly review (Northouse, 2010 ) and can bedamaging in the long run. According to Bass ( 1990 ) the passive approach is aprescription for mediocrity.

Both of these styles, active and passive, although can be effective, also have risksassociated. When management-by-exception is exercised it can create a culture

that is based on negative feedback and in turn lowers employee morale (Bensahel,1975 ). Transactional leaders also do not appear to be concerned with the emotionalneeds of their employees (Bass, 1990 ).

Transformational Leadership

To transform is to change and morph an entity into something different. Bass(1990 ) expressed that transformational leadership:

occurs when leaders broaden and elevate the interests of their employees, when

they generate awareness and acceptance of the purposes and mission of the group,and when they stir their employees to look beyond their own self-interest for thegood of the group.

This leadership style tends to focus on the organizational objectives by buildingemployee commitment (Stone, Russell, & Patterson, 2004 ; Yukl, 2002 ). Based onthe research of James MacGregor Burns (Burns, 1978 ), and then later Bernard M.Bass (Bass, 1990 ; Bass & Avolio, 1990 , 1994 ; Bass & U.S. Army ResearchInstitute for the Behavioral and Social Sciences., 1996 ; Northouse, 2010 ; vanEeden, et al., 2008 ) there are several traits that comprise transformationalleadership: idealized influence, inspirational motivation, intellectual stimulation,and individualized consideration. It is a combination of these factors that createtransformational leadership.

Idealized influence is also known as charisma (Bass, 1990 ) and is at the heart of this leadership style. Bass believed that:
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Transformational leadershi p can be learned, and it can and should be thesubject of management training and development. Research has shown that leadersat all levels can be trained to be charismatic in both verbal and nonverbal

performance (Bass, 1990 ).

When employees respect, admire, and trust the leader ( van Eeden, et al., 2008 ) they are more apt to follow the leaders directives and requests. The leadersbecome role models that employees desire to follow and thus have a higher degreeof trust in their leaders (Stone, et al., 2004 ). Change brings about fear, anxiety, andfrustration. Employees must trust their leader so as to be comforted during theelements of change (Kotter, 1996 ).

Idealized influence leaders also have the ability to have employees feel part of theorganization, and thus cultural development, by having a shared vision ( Jung &

Avolio, 2000 ). When leaders listen to their employees and followers, and areenthusiastically encouraging them to be successful in the vision, the organizationwill be more effective. In The Leadership Challenge , Kouzes and Posner (2007 ) postulate that it is imperative to enlist others as they appeal to common ideals andanimate the vision.

Successfully engaging in these two essentials can produce very powerful results.In our research we found that when leaders effectively communicate a vision whether its to one pers on, a small group, or a large organization constituentsreport significantly higher levels of job satisfaction, motivation, commitment,loyalty, team spirit, productivity, and profitability (p. 133 ).

The inspirational motivator is able to stimulate excitement through a shared visionand motivation (Northouse, 2010 ; Stone, et al., 2004 ; van Eeden, et al., 2008 ). Likea motivational speaker, the leader elicits an emotional bond between the leader,employees, and the organization. Through various communication methods,including written correspondence, one-on-one chats, team meetings, or companywide presentations, leaders communicate their vision, goals, and expectations (vanEeden, et al., 2008 ).

Through these inspirational communications the leader builds relationships whichcreate cultural bonds (Stone, et al., 2004 ). Communication isnt just importantinside the organization. According to Kouzes and Posner (2007 ):

leaders who a re dedicated to getting extraordinary things done are open toreceiving ideas from anyone and anywhereBecause they never turn their backs
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During the coaching phase the leader may delegate tasks (not to be confused withtransactional leadership) that cause the employee to grow and be challenged (Bass,1998 ;Northouse, 2010 ). Edgar H. Schein described this phenomenon as learning:

A paradox of learning leadership is that the leader must be able not only to leadbut also to listen, to involve the group in achieving its own insights into its culturaldilemmas, and to be genuinely participative in his or her approach to learning andchangeThe leader must recognize that, in the end, cognitive redefinition mustoccur inside the heads of many members of the organization, and that will happenonly if they are actively involved in the process ( Schein, 2010, pp. 382-383 ).

It is the individuals who make of the organization and its culture. When the leadersets the precedence and expectation, by creating a culture of openness andtransformation, the organization will grow through higher levels of motivation ( van

Eeden, et al., 2008 ).

Leaders who utilized transformational leadership tend to have employees andfollowers who trust and respect their leaders and therefor are willing to follow andyield power to them (Stone, et al., 2004 ). Studies have suggested that leaders whoexercise transformational leadership are perceived to be more effective than theleaders who only demonstrate transactional leadership (Lowe & Galen Kroeck,1996 ; Northouse, 2010 ).

Functional Attributes Accompanying Attributes 1) Idealizedinfluence/charisma

VisionTrustRespectRisk-sharing

Integrity

Modeling2) Inspirational motivation Commitment to goals

CommunicationEnthusiasm

3) Intellectual stimulation RationalityProblem solving

4) Individualizedconsideration

Personal attentionMentoringListening
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Empowerment

Table 1. Transformational Leadership Attributes. Adapted from Stone, A. G.,Russell, R. F., & Patterson, K. (2004). Transformational versus servant leadership:

A difference in leader focus. Leadership & Organization Development Journal,25 (4), 349-361.

SERVANT LEADERSHIP

Similar in nature to transformational leadership, servant leadership focuses onstrengthening employees and followers. Introduced by Robert K. Greenleaf (1977 ) this form of leadership believes that a leader is only in their respective position to

serve those he or she leads. As a leader focuses on developing people rather thanprofits, organizational goals will be achieved (Stone, et al., 2004 ).

Chasing profits is peripheral; the real point of business is to serve as one of theinstitutions through which society develops and exercises the capacity forconstructive action (Harvey, 2001, pp. 38-39 ). In other words, businesses exist todevelop people and societal solutions. Since leaders are focused so heavily onemployee development, employees and followers tend to have a higher trust in theleader (Stone, et al., 2004 ).

Servant leadership and transformational leadership are similar in many facets andleader attributes. Table 2 lists some of the attributes of a servant leader.

Functional Attributes Accompanying Attributes Vision CommunicationHonesty, integrity CredibilityTrust CompetenceService StewardshipModeling Visibility

Pioneering InfluencePersuasion

Appreciation of others ListeningEncouragement

Empowerment TeachingDelegation
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Table 2. Servant Leadership Attributes. Adapted from Stone, A. G., Russell, R. F.,& Patterson, K. (2004). Transformational versus servant leadership: A differencein leader focus. Leadership & Organization Development Journal, 25 (4), 349-361.

Although transformational leadership and servant leadership are similar in manyaspects, their main difference is the focus of the leader (Stone, et al., 2004 ).Greenleaf (1977 ) believes that the purpose of the leader is to serve the followers,develop their talents, and help them to become future servants. Thetransformational leader is focused on developing the organization ( Stone, et al.,2004 ). Both are follower centric, and both tend to have organizational culturesbuilt around trust and innovation.

CULTURE BY LEADERSHIPThe creation of organizational culture is based on and defined by the leadershipstyles of the organization.

The connection between culture and leadership is clearest in organizationalcultures and microcultures. What we end up calling a culture in such systems isusually the result of the embedding of what a founder or leader has imposed on agroup that has worked out (Schein, 2010 ).

Simply stated, culture is based on the tone and style of leadership. Each leadershipstyle, every decision, and every person affects organizational culture.
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Four Factors of Leadership

There are four major factors in leadership (U.S. Army, 1983):

Leader

You must have an honest understanding of who you are, what you know, andwhat you can do. Also, note that it is the followers, not the leader or someoneelse who determines if the leader is successful. If they do not trust or lackconfidence in their leader, then they will be uninspired. To be successful youhave to convince your followers, not yourself or your superiors, that you areworthy of being followed.

Followers


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Different people require different styles of leadership. For example, a newhire requires more supervision than an experienced employee. A person wholacks motivation requires a different approach than one with a high degree of motivation. You must know your people! The fundamental starting point ishaving a good understanding of human nature, such as needs, emotions, andmotivation. You must come to know your employees' be, know, and do attributes.

Communication

You lead through two-way communication. Much of it is nonverbal. Forinstance, when you set the example, that communicates to your people thatyou would not ask them to perform anything that you would not be willing todo. What and how you communicate either builds or harms the relationship

between you and your employees.

Situation

All situations are different. What you do in one situation will not always workin another. You must use your judgment to decide the best course of actionand the leadership style needed for each situation. For example, you may needto confront an employee for inappropriate behavior, but if the confrontationis too late or too early, too harsh or too weak, then the results may proveineffective.

Also note that the situation normally has a greater effect on a leader's actionthan his or her traits. This is because while traits may have an impressivestability over a period of time, they have little consistency across situations(Mischel, 1968). This is why a number of leadership scholars think the ProcessTheory of Leadership is a more accurate than the Trait Theory of Leadership .

Various forces will affect these four factors. Examples of forces are yourrelationship with your seniors, the skill of your followers, the informal leaderswithin your organization, and how your organization is organized.

Boss or Leader?

Although your position as a manager, supervisor, lead, etc. gives you theauthority to accomplish certain tasks and objectives in the organization(called Assigned Leadership ), this power does not make you a leader, it simplymakes you the boss (Rowe, 2007). Leadership differs in that it makes the
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followers want to achieve high goals (called Emergent Leadership ), rather thansimply bossing people around (Rowe, 2007). Thus you get Assigned Leadership by your position and you display Emergent Leadership by influencing peopleto do great things.

Bass' Theory of Leadership

Bass' theory of leadership states that there are three basic ways to explainhow people become leaders (Stogdill, 1989; Bass, 1990). The first two explainthe leadership development for a small number of people. These theories are:

Some personality traits may lead people naturally into leadership roles.This is the Trait Theory.

A crisis or important event may cause a person to rise to the occasion,which brings out extraordinary leadership qualities in an ordinary

person. This is the Great Events Theory. People can choose to become leaders. People can learn leadership skills.

This is the Transformational or Process Leadership Theory. It is themost widely accepted theory today and the premise on which this guideis based.

Total Leadership


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What makes a person want to follow a leader? People want to be guided bythose they respect and who have a clear sense of direction. To gain respect,they must be ethical. A sense of direction is achieved by conveying a strongvision of the future.

When a person is deciding if she respects you as a leader, she does not thinkabout your attributes, rather, she observes what you do so that she can knowwho you really are. She uses this observation to tell if you are an honorableand trusted leader or a self-serving person who misuses authority to look goodand get promoted. Self-serving leaders are not as effective because theiremployees only obey them, not follow them. They succeed in many areasbecause they present a good image to their seniors at the expense of theirworkers.

Be Know Do

The basis of good leadership is honorable character and selfless service toyour organization. In your employees' eyes, your leadership is everything youdo that effects the organization's objectives and their well-being. Respectedleaders concentrate on (U.S. Army, 1983):

what they are [ be ] (such as beliefs and character) what they know (such as job, tasks, and human nature) what they do (such as implementing, motivating, and providing

direction ).

What makes a person want to follow a leader? People want to be guided bythose they respect and who have a clear sense of direction. To gain respect,they must be ethical. A sense of direction is achieved by conveying a strongvision of the future.

The Two Most Important Keys to Effective Leadership

According to a study by the Hay Group, a global management consultancy,there are 75 key components of employee satisfaction (Lamb, McKee, 2004).They found that:

Trust and confidence in top leadership was the single most reliablepredictor of employee satisfaction in an organization.

Effective communication by leadership in three critical areas was thekey to winning organizational trust and confidence:
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1. Helping employees understand the company's overall businessstrategy.

2. Helping employees understand how they contribute to achievingkey business objectives.

3. Sharing information with employees on both how the company isdoing and how an employee's own division is doing relative tostrategic business objectives.

So in a nutshell you must be trustworthy and you have to be able tocommunicate a vision of where the organization needs to go. The next section,

Principles of Leadership , ties in closely with this key concept.

Principles of Leadership

To help you be, know, and do, follow these eleven principles of leadership (U.S.Army, 1983). The later chapters in this Leadership guide expand on theseprinciples and provide tools for implementing them:

1. Know yourself and seek self-improvement - In order to know yourself,you have to understand your be, know, and do, attributes. Seeking self-improvement means continually strengthening your attributes. This canbe accomplished through self-study, formal classes, reflection, andinteracting with others.

2. Be technically proficient - As a leader, you must know your job andhave a solid familiarity with your employees' tasks.

3. Seek responsibility and take responsibility for your actions - Search forways to guide your organization to new heights. And when things gowrong, they always do sooner or later do not blame others. Analyzethe situation, take corrective action, and move on to the next challenge.

4. Make sound and timely decisions - Use good problem solving, decisionmaking, and planning tools.

5. Set the example - Be a good role model for your employees. They mustnot only hear what they are expected to do, but also see. We must

become the change we want to see - Mahatma Gandhi6. Know your people and look out for their well-being - Know human

nature and the importance of sincerely caring for your workers.7. Keep your workers informed - Know how to communicate with not only

them, but also seniors and other key people.
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8. Develop a sense of responsibility in your workers - Help to develop goodcharacter traits that will help them carry out their professionalresponsibilities.

9. Ensure that tasks are understood, supervised, and accomplished -Communication is the key to this responsibility.

10 . Train as a team - Although many so called leaders call theirorganization, department, section, etc. a team; they are not reallyteams...they are just a group of people doing their jobs.

11. Use the full capabilities of your organization - By developing a teamspirit, you will be able to employ your organization, department,section, etc. to its fullest capabilities.

Attributes of Leadership

If you are a leader who can be trusted, then those around you will grow torespect you. To be such a leader, there is a Leadership Framework to guideyou:

BE KNOW DO

BE a professional. Examples: Be loyal to the organization, perform selflessservice, take personal responsibility.

BE a professional who possess good character traits. Examples: Honesty,

competence, candor, commitment, integrity, courage, straightforwardness,imagination.

KNOW the four factors of leadership follower, leader, communication,situation.

KNOW yourself. Examples: strengths and weakness of your character,knowledge, and skills.

KNOW human nature. Examples: Human needs, emotions, and how people

respond to stress.

KNOW your job. Examples: be proficient and be able to train others in theirtasks.

KNOW your organization. Examples: where to go for help, its climate andculture, who the unofficial leaders are.
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DO provide direction. Examples: goal setting, problem solving, decisionmaking, planning.

DO implement. Examples: communicating, coordinating, supervising,evaluating.

DO motivate. Examples: develop morale and esprit de corps in theorganization, train, coach, counsel.

Environment

Every organization has a particular work environment, which dictates to aconsiderable degree how its leaders respond to problems and opportunities.This is brought about by its heritage of past leaders and its present leaders.

Goals, Values, and Concepts

Leaders exert influence on the environment via three types of actions:

1. The goals and performance standards they establish.2. The values they establish for the organization.3. The business and people concepts they establish.

Successful organizations have leaders who set high standards and goals acrossthe entire spectrum, such as strategies, market leadership, plans, meetingsand presentations, productivity, quality, and reliability.

Values reflect the concern the organization has for its employees, customers,investors, vendors, and surrounding community. These values define themanner in how business will be conducted.

Concepts define what products or services the organization will offer and themethods and processes for conducting business.

These goals, values, and concepts make up the organization's personality orhow the organization is observed by both outsiders and insiders. Thispersonality defines the roles, relationships, rewards, and rites that take place.

Roles and Relationships
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Roles are the positions that are defined by a set of expectations about behaviorof any job incumbent. Each role has a set of tasks and responsibilities thatmay or may not be spelled out. Roles have a powerful effect on behavior forseveral reasons, to include money being paid for the performance of the role,there is prestige attached to a role, and a sense of accomplishment orchallenge.

Relationships are determined by a role's tasks. While some tasks areperformed alone, most are carried out in relationship with others. The taskswill determine who the role-holder is required to interact with, how often, andtowards what end. Also, normally the greater the interaction, the greater theliking. This in turn leads to more frequent interaction. In human behavior, itshard to like someone whom we have no contact with, and we tend to seek outthose we like. People tend to do what they are rewarded for, and friendship is

a powerful reward. Many tasks and behaviors that are associated with a roleare brought about by these relationships. That is, new task and behaviors areexpected of the present role-holder because a strong relationship wasdeveloped in the past, either by that role-holder or a prior role-holder.

Culture and Climate

There are two distinct forces that dictate how to act within an organization:culture and climate.

Each organization has its own distinctive culture. It is a combination of thefounders, past leadership, current leadership, crises, events, history, and size(Newstrom, Davis, 1993). This results in rites : the routines, rituals, and theway we do things. These rites impact individual behavior on what it takes tobe in good standing (the norm) and directs the appropriate behavior for eachcircumstance.

The climate is the feel of the organization, the individual and sharedperceptions and attitudes of the organization's members (Ivancevich,Konopaske, Matteson, 2007). While the culture is the deeply rooted nature of the organization that is a result of long-held formal and informal systems,rules, traditions, and customs; climate is a short-term phenomenon created bythe current leadership. Climate represents the beliefs about the feel of theorganization by its members. This individual perception of the feel of theorganization comes from what the peop le believe about the activities that
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occur in the organization. These activities influence both individual and teammotivation and satisfaction, such as:

How well does the leader clarify the priorities and goals of theorganization? What is expected of us?

What is the system of recognition, rewards, and punishments in theorganization?

How competent are the leaders? Are leaders free to make decisions? What will happen if I make a mistake?

Organizational climate is directly related to the leadership and managementstyle of the leader, based on the values, attributes, skills, and actions, as wellas the priorities of the leader. Compare this to ethical climate the feel of

the organization about the activities that have ethical content or those aspectsof the work environment that constitute ethical behavior. The ethical climateis the feel about whether we do things right; or the feel of whether we behavethe way we ought to behave. The behavior (character) of the leader is the mostimportant factor that impacts the climate.

On the other hand, culture is a long-term, complex phenomenon. Culturerepresents the shared expectations and self-image of the organization. Themature values that create tradition or the way we do things here. Thingsare done differently in every organization. The collective vision and commonfolklore that define the institution are a reflection of culture. Individualleaders, cannot easily create or change culture because culture is a part of theorganization. Culture influences the characteristics of the climate by its effecton the actions and thought processes of the leader. But, everything you do as aleader will affect the climate of the organization.

For information on culture, see Long-Term Short-Term Orientation

The Process of Great Leadership

The road to great leadership (Kouzes & Posner, 1987) that is common tosuccessful leaders:

Challenge the process - First, find a process that you believe needs to beimproved the most.

Inspire a shared vision - Next, share your vision in words that can beunderstood by your followers.
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Enable others to act - Give them the tools and methods to solve theproblem.

Model the way - When the process gets tough, get your hands dirty. Aboss tells others what to do, a leader shows that it can be done.

Encourage the heart - Share the glory with your followers' hearts, whilekeeping the pains within your own.

Next Steps

Go to the next chapter: The Four Pillars: Leadership,Management, Command, and Control

Return to the main Leadership SitePerform a Leadership Activity:

Leadership Self-Assessment Survey (short version)

Leadership Self-Assessment Survey (long version)

Culture and Climate

References

Bass, Bernard (1990). From transactional to transformational leadership:learning to share the vision. Organizational Dynamics , 18, (3), Winter, 1990,19-31.

Ivancevich, J., Konopaske, R., Matteson, M. (2007). Organizational Behaviorand Management. New York: McGraw-Hill Irwin.
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Jago, A. G. (1982). Leadership: Perspectives in theory and research. Management Science , 28(3), 315-336.

Kouzes, James M. & Posner, Barry Z. (1987). The Leadership Challenge . SanFrancisco: Jossey-Bass.

Lamb, L. F., McKee, K. B. (2004). Applied Public Relations: Cases inStakeholder Management . Mahwah, New Jersey: Lawrence ErlbaumAssociates. Routledge.

Mischel, W. 1968. Personality and Assessmen t . New York: Wiley.

Newstrom, J. & Davis, K. (1993). Organization Behavior: Human Behavior atWork. New York: McGraw-Hill.

Northouse, G. (2007). Leadership theory and practice. (3rd ed.) ThousandOak, London, New Delhe, Sage Publications, Inc.

Rowe, W. G. (2007). Cases in Leadership. Thousand Oaks, CA: SagePublications

Stogdill, R. M.(1989). Stogdill's Handbook of Leadership: A Survey of Theory and Research . Bass, B. (ed.) New York: Free Press.

U.S. Army. (October 1983). Military Leadership (FM 22-100). Washington,DC: U.S. Government Printing Office.

S
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Leadership Styles and Its Affect on Corporate