Leaderships Role in Shaping Organizational Culture

Leaderships Role in Shaping Organizational Culture

Jennifer E. Cannon

Walden University

October 24, 2015

Leaderships Role in Shaping Organizational Culture

        The role of leadership begins with the introduction of humans into a group, thereby creating an organization of people with values, behaviors, and assumptions (Jain & Jain, 2013). Latham (2014) highlighted the fact, humans possess a “variety of personalities, capabilities, motivations…when combined into groups” countless changes result (p. 13). According to Tutulea (2010), the individual leading the group must possess a certain intellect in order to comprehend his or her role and responsibility in leadership (p. 317). Jain and Jain (2013) explained leaders are the key component in organizational design that determines the organizational culture (p. 44). The research conducted by Jain and Jain (2013) established support for the idea that the type of leader chosen determined the type of culture developed. Furthermore, the chosen leader can take changeable roles in shaping organizational culture by how the leader motivates people of different backgrounds and beliefs to attain goals (Karaszewski, 2010; Jain & Jain, 2013; Vroom and Jago, 2007). It is the leaders’ guidance and strategy to resolve problems in productivity and performance that lead to group development of ideas (Jain & Jain, 2013). As the group develops ideas, these begin to relate to the organization, and with repetition of the process, learning begins and culture takes shape (Jain & Jain, 2013; Jung & Takeuchi, 2010). The role of leadership continually shapes the organizational culture through managing change (Ionescu, 2014). The challenge facing leadership is the ability to facilitate change through an appropriate leadership style, adopting the right behaviors, and understanding their responsibilities within the organizational culture (Ilies, Judge, & Wagner, 2006; Jain & Jain, 2013; Kane-Urrabazo, 2006).  

The Importance of Leadership Style

The best leadership style is the one in which employees are motivated, engaged, and encouraged to express organizational citizenship behaviors (OCB) (Euwema, Wendt, & van Emmerik, 2007; Xu & Thomas, 2011). Facilitating change through leadership style is a challenge in that; the leader must consider the organizational realities and the individuals subject to the style choice (Schultz, 2014). For example, in the path-goal model of leadership, leaders will regulate their style to a situation based on the input from the organizational environment (Silverthorne, 2001). Directive, supportive, participative, and achievement-oriented are different leadership styles associated with the path-goal model (Silverthorne, 2001). According to Prasad (1990), a leader basis leadership style selection on the perspective of tasks versus subordinate needs (as cited in Silverthorne, 2001). For example, a poor-defined task will require extensive rules and specific guidance or detailed directions necessitating a directive style of leadership (Silverthorne, 2001). Contrary, if the task is not the dominate need but the subordinates’ are, and the task is well defined, the leader might prefer a relationship based approach and chose the supportive leadership style (Silverthorne, 2001). However, the goal of the leadership style choice is to select one in which employees identify with the style and motivate to perform (Ilies et al., 2006). Much of the literature supports transformation or charismatic leadership style as the best fit (Ayman & Korabik, 2010; Ilies et al., 2006; Ismail, Mohamad, Mohamed, Rafiuddin, & Zhen, 2010; Simosi & Xenikou, 2010). According to Wofford, Goodwin, & Whittington (1998), a transformational leadership style is motivation by leaders to guide followers towards a common organizational goal. A leader implementing a transformational leadership style motivates followers to “high[er] levels of effort and dedication” (Ayman & Korabik, 2010). Ilies et al., (2006) investigated the theory and determined leaders effect change in their followers through an understanding of the followers emotions. In addition, the leader’s emotions linked with their vision inspire the followers’ emotions that are the basis for the employee motivation to complete organizational tasks (Ilies et al., 2006). Therefore, the importance in choosing a leadership style is crucial in promoting employee motivation. A leader can sway this motivation to encourage employees to reach benchmarks (Jain & Jain, 2013). Leadership that encompasses constant benchmarking makes for strong, adaptive organizational cultures (Jain & Jain, 2013).

Although leadership style influences employee motivation, it is also critical in creating engaged followers with a desire to use their individual strengths in performing their work (Xu & Thomas, 2011). Kahn (1990) posited an approach to understanding the relationship between leadership style and employee engagement (as cited in Xu & Thomas, 2011). The approach, psychological conditions of engagement, outlines the notion of an employee with needs and the psychological link the employee feels in satisfying those needs through job satisfaction in order to feel engaged with the work (Xu & Thomas, 2011). Xu and Thomas (2011) stressed the importance of engaged employees being commitment. If employees fully commit, they are positive, happy, productive, and retain employment with the organization (p. 401). Xu and Thomas (2011) examined literature on the subject of leadership and engagement and found employee engagement is achievable with different leadership approaches. Certain leadership approaches such as supportive or inspirational leadership will foster specific behaviors enabling engagement (Xu & Thomas, 2011). Stanislavov and Ivanov (2014) deduced that different leadership approaches have the potential to create different cultures and as a result vary the levels of employee engagement (p. 32). Additionally, employee engagement affects the performance of the organization (Stanislavov & Ivanov, 2014). To underscore the importance of leadership with employee engagement, Carasco-Saul, Kim, and Kim (2015) summarized twenty studies researching leadership and employee engagement (pp. 42-45). Therefore, it is essential for a leader to understand how their leadership style influences employees in order to provide the optimal environment for employee engagement.

An organizational culture is not only about motivated or engaged employees. The culture is about groups of people with similar behaviors working together for the same goal (Jain & Jain, 2013). In order to create an identity that is culture, a leader will require the selection of a leadership style that he or she can sway wanted individual behaviors in order to continue the culture and meet the desired vision (Jain & Jain, 2013). Building individual behaviors into a collective group behavior is the concept of group organizational citizenship behaviors (GOCB) (Euwema et al., 2007). Euwema et al., (2007) researched the link between societal culture and GOCB to determine the relevance leadership styles have on developing GOCB. The work conducted by Euwema et al., (2007) evaluated two leadership styles, directive and supportive, and the relation to GOCB. The findings of the research confirmed the hypotheses regarding directive and supportive leadership styles and GOCB (Euwema et al., 2007). Directive leadership negatively relates to GOCB and supportive leadership positively relates to GOCB (Euwema et al., 2007). The significance of this research is that leadership styles influence group behaviors. Therefore, it is essential leaders select a leadership style that will bind individual behaviors to a collective group behavior to build the desired organizational culture for the fulfilment of their vision.