Organizations can become “institutionalized” by means of their culture.

1. Culture defined:A complex pattern of norms, values, beliefs, expectations, understandings shared by members of an entity

2. Organizations can become “institutionalized” by means of their culture. Cultures can transcend organization founders, leaders, clients/consumers, and other aspects of the organization.

3. A dominant role of leaders is the shaping and maintaining of culture Leaders at all levels influence culture

4. As leaders, we care about culture because it facilitates in two general ways: • Dealing with environmental demands • Achieving internal integration

5. How does an organization’s culture help deal with its external environment? • helps legitimize the organization in the eyes of external constituents • helps create a sense of identity for the organization that lets external constituents understand the organization and identify with it

6. Leaders enable through culture • norms for collaboration • instill climate or sense of trust • provides clarity on acceptable behavior and expectations

7. Leaders encourage through culture • values that employees subscribe to • gives feeling of belonging and identity • provides sense of being unique • what is rewarded and recognized

8. Leaders empower through culture • norms around the sharing of power • values of employee development • values of job impact and meaning

9. Leaders envision and inspire through culture • sense of who we are • beliefs about our destiny • sense that we are unique • sense that what we do is meaningful

10. LEADERS SHAPE AND MAINTAIN CULTURE MOST BY: • What they pay attention to and measure • Reaction to critical incidents & crises • Behaviors they model • What they reward / punish • Who they hire / fire • Stories, symbols, language • Design of organization’s structure & processes

11. Sometimes culture does notserve the organization…Sometimes strong cultures are dysfunctional

12. When is culture a liability?