Impact of Leadership on Organizational Culture: A Literature Review

This literature review examines the significant impact of leadership on organizational culture, drawing on various research studies and perspectives. The review highlights the varying perceptions of leadership across cultures, emphasizing the need for contemporary businesses to understand these nuances. It references the GLOBE study, which investigated leadership attributes across numerous cultures. The review underscores that leadership is a cornerstone in shaping organizational culture. It discusses how leaders influence employees' behaviors and actions, thus significantly determining the success of an organization. The review also explores the relationship between leadership styles and organizational culture and the importance of leaders in setting directives and fostering positive behaviors. The review concludes by emphasizing that effective leaders align values and behaviors to enhance organizational competency, ultimately contributing to organizational success. The review references several key sources that support the relationship between leadership and organizational culture.

Leadership Impact on Organisation Culture
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Literature Review
Perception of leadership differs across cultures hence perceptions are varied in global business
world (Sarros, 2008). Contemporary businesses need to understand and analyse nuances of
leadership that are applied onto various cultures. Global Leadership and Organizational
Behaviour Effectiveness Research Program (GLOBE) researched hypothesis of leadership
cultures across 60 cultures from major regions globally. GLOBE study was primarily focused on
understanding various key attributes that contributes culture based organisational leadership. A
best type of leader is one who is charismatic and can develop transformation style of leadership
for adapting to situations. Organisational culture are set of values, beliefs that exists within
organisations for a long period of time. Such also includes beliefs of staffs and leadership
behaviour is aimed at accomplishing mission of the organisation through such cultures. The
scope of this literature review discusses leadership impact on organisation cultures (Ofori, 2009).
Various researchers perceive culture and leadership as being two sides of same coin. Leaders
conduct themselves in a manner such that they can apply various aspects of organisational
culture for conducting their employees (Chang, 2007). While leaders often elevate interests of
followers for generating awareness amongst them, creating acceptance and awareness for
generating motivation and awareness amongst followers. Different leaders might impose varied
type of cultures for imposing effective leadership. Leaders hence impact organisations with their
actions and behaviours (Huey Yiing, 2009). An organisational culture is in fact created by action
and behaviours of leaders, matters they pay attention to, ways rewards and punishments are
mobilized and resource allocation methods. Every challenge that a leader faces and then
consecutive actions that are created arises from communications and course of action.
An organisational culture dramatically determines rate of success for an organisation, and a
leader’s central role is to achieve organisational success (knowledge.wharton.upenn.edu,
Retrieved on 12th August 2017). In every ways, a leader develops actions and behaviours such
that effectiveness can be enhanced. Implementation of poor organisational cultures can have a
plethora of problems associated with destructive behaviours. Poor performance of employees, in
appropriate behaviour and so on, culture being an element of success, a leader’s central role is to
apply such appropriately. Hence, relationship of leadership with that of culture is a contentious
issue that has their individual merits (www.eremedia.com, Retrieved on 12th August 2017).
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Leaders are able to generate a positive impact on their organisation, such that competency can be
reflected through aligning of values and behaviours that are within organisational cultural set-up.
An essential role of a leader is to set directives within organisational culture to achieve goals in
turn success for the organisation. Leaders enhance culture within the company by viewing the
same as an outcome of values and behaviours. Certain styles of leadership instill positive
behaviours that trickle down to team members and followers. Such behaviours in turn encourage
employees for taking initiatives and engage in constructive behaviour. Leaders who demonstrate
participative leadership attributes can reap benefits from engaged workplace. More is the success
in an organisation with more application of organisation culture by leader.
Reference Lists
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Chang, S. C. (2007). A study on relationship among leadership, organizational culture, the
operation of learning organization and employees' job satisfaction. The learning
organization, 155-185.
Huey Yiing, L. &. (2009). The moderating effects of organizational culture on the relationships
between leadership behaviour and organizational commitment and between
organizational commitment and job satisfaction and performance. Leadership &
Organization Development Journal, 53-86.
knowledge.wharton.upenn.edu. (Retrieved on 12th August 2017). Leadership impact on
Organizational Culture. http://knowledge.wharton.upenn.edu/article/how-cultural-
factors-affect-leadership/.
Ofori, G. (2009). Ethical leadership: Examining the relationships with full range leadership
model, employee outcomes, and organizational culture. . Journal of Business Ethics, 533.
Sarros, J. C. (2008). Building a climate for innovation through transformational leadership and
organizational culture. . Journal of Leadership & Organizational Studies, 145-158.
www.eremedia.com. (Retrieved on 12th August 2017). Leadership impact on Organiza tional
Culture. https://www.eremedia.com/tlnt/culture-and-leadership-theyre-simply-two-sides-
of-the-same-coin/.
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