Chapter 10

LEADERSHIP OF CULTURE, ETHICS AND DIVERSITY

Effective LeadershipChristofer F. AchuaRobert N. Lussier

ORGANIZATIONAL CULTURE

All organizations have a culture, whether they acknowledge it or not.

An organization’s culture is manifested in the values, norms, and expectation that

leaders preach and practice, and its employee ‘s attitude and behavior, in

ethical standards and policy.

The Organizational Culture

• The culture :• Culture is the characteristics of a particular group of

people, defined by everything from language, religion, cuisine, social habits, music and arts

(Kim Ann Zimmermann)

• Organizational culture :• Organizational culture defines a normative order that

serves as a source of concistent behavior within organization.

Organizational Culture

• Organizational culture is a system of shared meaning held by members that distinguishes the organization from other organization ( Stephen Robbin)

• Budaya organisasi adalah suatu sistem nilai (persepsi) bersama yang dianut oleh para anggota organisasi yang dapat membedakan organisasi/perusahaan itu berbeda dengan organisasi/perusahaan lain

CULTURE (BUDAYA)• Culture is that complex whole which includes

knowledge, beliefs, art, morals, law, customs, and any other capabilities and habits acquired by man as a member of soceity ( Stephen Robbin)• Budaya adalah suatu nilai kesatuan yang utuh

yang dihasilkan oleh manusia sebagai anggota masyarakat termasuk didalamnya pengetahuan, kepercayaan, seni,hukum,adat istiadat,kebiasaan dan segala daya kemampuan yang dihasilkan mereka• Budaya adalah suatu nilai-nilai yang diolah,

dikerjakan dan dikembangkan oleh seseorang atau sekelompok orang

The essence of an organization’s culture ( Stephen Robbin)

• Innovation and risk taking• Sejauh mana karyawan didorong agar inovatif dan berani mengambil resiko

• Attention to detail• Sejauh mana karyawan diharapkan bekerja cermat, analitis dan emmperhatikan hal2

detail• Outcome orientation• Sejauh mana manajemen memusatkan perhatian pada hasil bukan hal yang bersifat

teknis• People orientation• Sejauh mana setiap keputusan manajemen memperhatikan dampaknya pada

karyawan• Team orientation• Sejauh mana pekerjaan dilakukan bersama dalam Tim bukan individual

• Aggressiveness• Sejauh mana karyawan diharapkan kompetitif dan agresif bukannya santai

• Stability• Sejauh mana perusahaan memantapkan dulu organisasi (status quo) bukannya

pertumbuhan

The power of culture

Two functions of culture in organization :

1. Creates internal unity2. Help organization adapt to the external

environment

Internal Unity• Culture provides organizational members with a way of making sense

of their daily lives• Budaya telah mempengaruhi para karyawan dalam kehidupan sehari-hari terurtama di lingkungan kerjanya

( contoh : sapta marga TNI)

• A supporting culture provides a system of informal rules and peer pressures, which can be very powerful in determining behavior, thus affecting organizational performance.• Budaya merupakan aturan informal yang dipatuhi oleh pegawai tercermin dalam perilaku mereka ketika

berhadapan dengan sesama pegawai atau dalam menghadapi pelanggan dan sikap dan perilaku tersebut mampu mempengaruhi secara positif kinerja perusahaan ( contoh : Kejujuran sebagai Budaya organisasi Bluebird Taxi)

• Culture provides a shared understanding about the identify of an organization• Budaya ternyata mampu memberikan toleransi keberagaman sehingga memiliki saling pengertian dan

kebersamaan menuju keunggulan kinerja (contoh : Avon & Starbuck)

• A strong culture provides a value system in which to operate and its promotes strong employee identification with the organization’s vision,mission, goals and strategy.• Budaya dalam organisasi telah terbukti memperkuat visi, misi dan tujuan organisasi serta strategi

keberhasilan pencapaian tujuan ( Contoh : Avon, Starbuck, Bluebird, TNI dll)

External Adaption

• Culture determines how the organization responds to change in its external environment• Budaya menentukan bagaimana organisasi merespon perubahan

dalam lingkungan eksternal

• Culture plays a role in informing and supporting sense-making by employees when external changes are severe enaugh to force members to re-evaluated aspects of their organization identity and purpose.• Budaya berperan dalam menginformasikan dan mendukung sikap

dan antisipasi perusahaan / karyawan ketika perubahan eksternal dirasa cukup berat sehingga menekan para pegawai/ perusahaan untuk mengevaluasi identitas organisasi , tujuan dan strategi

Characteristics of type of critical culture• Low performance culture• Insular thinking - Cara berpikir yang ter isolasi

• Resistance to change - Menolak perubahan

• Politized internal environment - Unit kerja sebagai kerajaan kecil

• Unhealthy promotion practice – promosi tidak sehat

• High performance culture• Culture reinvorcement tools - Budaya sebagai alat penguatan

organisasi

• Intensely people oriented - berorientasi pada manusia

• Result oriented – berorientasi pada hasil

• Emphasis on achievement and excellence - Menekankan pada prestasi dan keunggulan

Culture reinforcement tools

• Ceremonies• Symbols• Stories• Language (slogan)• Policies

Intensely People Oriented• Treat employee with dignity and respect• Grant employees enough autonomy to excel and contribute• Cultivate a relationship with employees based on mutual respect

and interdependency• Initiate unique one-to-one relationships with top performers• Give increased responsibility to the best employee• Implement mentor programs• Celebrate employee achievement• Hold manager at every level responsible for the growth and

development of the people who report to them• Use the full range or rewards and punishment to enforce highr

performance standard• Encourage employees to use their own initiative and creativity in

performing their jobs• Set reasonable and clear performance stabdards for all employees

Result Oriented

• All employee set a goals• There is commitment and motivation to achieve

a goals• These goal used a basis for performance

evaluatioan and feedback• Give awards to employees who successfully

reached the target (over target) in the form of pins,buttons, badges, certificate, medals

Emphasis on achievement and excellence

• Create an atmosphere in which there is constructive pressure to be the best• Management pursues policies and practices that

inspire people to do the best.• Achieving excellence requires a corporate culture

that bring about presistent per unit cost reduction, zero defect, improved product quality, and extra ordinary customer services

Leadership actions for shaping culture• Leader shaping as role model• Celebrating achievement• Interacting face-to-face with rank-and-file• Matching organizational Structure to Culture• Matching HR paractice to culture• Matching operating policies and practice to culture• Creating a strategy-culture-fit• Aligning reward/Incentive system with culture• Matching work environment desig to culture• Developing a written values statement

The example of Organizational Culture in Implementation

Karakteristik budaya organisasi ( Charles Hamden & Turner)

• Individu dapat menciptakan budaya organisasi dengan gagasan, perasaan dan informasi yang dilaksanakan secara konsisten

• Budaya organisasi dapat memberikan keunggulan yang didapatkan ( rewarding excellence), yaitu mewujudkan kebutuhan organisasi dan para anggotanya

• Budaya organisasi merupakan “penegasan” tidak ada organisasi yang memulai dengan “ketiadaan” anggota organisasi memerlukan “diilhami” dengan keyakinan dan penegasan terhadap sesuatu

• Budaya organisasi cenderung mendahulukan pemahaman diri anggotanya sebelum kepada pelanggan

• Budaya organisasi harus merupakan kesamaan pandangan para anggotanya

Starbuck’s Mission statementEstablish Starbuck as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.1. Provide a great work environment and treat each other with

respect and dignity2. Embrace diversity as an essential component in the way we do

business3. Apply the highest standards of excellence to purchasing,

roasting, and fresh delivery of our coffee4. Develop enthusiastically satisfied customers all of the time5. Contibute positivelly to our communities and our envorenment6. Recognized thta profitability is essential to our future success.

Ada 5 orientasi budaya organisasi yang diadaptasi dan diaplikasikan oleh pemilik starbuck yaitu:

1. Make it your own2. Everything matters3. Suprise and delight4. Embrace resistance5. Leave your mark

Sources :1. Starbuck Corporate Culture, Katies Brindley, Michelle Grant,

Evangelita Nez, Ryan S – University of Phoenix.2. The Starbuck Experience - Joseph Michelli

BLUEBIRD TAXI • Visi

• ‘Menjadi Perusahaan yang mampu bertahan dan mengedepankan kualitas untuk memastikan kesejahteraan yang berkelanjutan bagi para stakeholder’

• Misi

• ‘Tujuan kita adalah tercapainya kepuasan pelanggan, dan mengembangkan serta mempertahankan diri sebagai pemimpin pasar di setiap kategori yang kita masuki. Dalam transportasi darat, kita menyediakan layanan yang handal, dan berkualitas tinggi dengan penggunaan sumber daya yang efisien dan kita melakukannya sebagai satu tim yang utuh.’

ORGANIZATIONAL CULTURE Bluebird Taxi

• SAFE, COMFORTABLE, EASY AND PERSONALIZED

• ANDAL ( AMAN, NYAMAN, MUDAH DAN PERSONALIZED)

• KEY SUCCESS IS HONESTY

• KEJUJURAN KUNCI KESUKSESAN

Strategic

ExternalCompetitive

CultureAdaptiveCulture

Focus

InternalBureaucratic

CultureCooperative

Culture

Types Organizational Culture

Degree of Environment Turbulence

Stable Dynamic

Types of Organizational Culture• Cooperative Culture : • Leadership belief in strong, mutually reinforcing exchanges and linkages

between employee and department ( the goal : policies,procedures, standards to encorage cooperations, teamwork, power sharing among the employee)

• Adaptive Culture :• Leadership belief in active monitoring of the external environment for

emerging opportunities and threats ( Made up policies,procedures and practice support employee ability to respond quickly to changing environmental conditions.)

• Competitive Culture :• Leadership that encourages and values a highly competitive work environment

(policies,procedures and work practice, rules and task are designed to foster both internal competition ( employee vs emplooye, department vs department, division vs division)and external competition ( company vs company)

• Bureaucratic Culture :• Leadership that values order, stability, status, and efficiency ( set rules, policies

and procedures which ensure an orderly way of business way.)

Valued-Based Leadership

• Values : generalized belief or behavior that are considered by an individual or a group to be important• Value based leadership examines the influence

of an executive’s value upon the strategic development of organization.• A leader’s decision and actions reflect his or her

personal values and belief.

The leader’s role in Advocating Ethical Behavior

The successfull companies are distinguished by their commitment to strong organizational values that

emphasize ethical behavior. (International Journal of Public Administration – March 2008)

The tools available leaders to use in enforcing ethical behavior :

Code of EthicsEthics CommitteTraining ProgramsDisclosure mechanism

Perubahan budaya korporat dapat terjadi apabila :

• Budaya yang sudah ada tidak sesuai lagi dengan lingkungannya• Organisasi akan selalu bersifat kompetitif dan

berubah• Organisasi yang berkembang sangat pesat• Organisasi tidak mampu berkembang

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The impact of globalization on diversityThe factor that had led companies to value and

manage diversity is globalizationThe economies of the world is interconnected Corporations are becaming increasingly globalGlobalizations has led firms to originated,produce,

and market their products and services worldwide.Global labor market is emerging (dominated India

and China)

Promoting Diversity

The benefits :• The opportunity to learn from one another, • Achieve better business performance • Connect with the widest range of consumers.• To deliver our business goals, it is vital we have people with the

right talent, skills and creativity. • Develop their full potential, • Understand and respond - better and faster • Diverse thinking across all levels and functions.

(From : Chapter 7)

Reason for embracing diversityDiversity makes for business good . -- Academic of Management Review (2007)

• Embracing diversity can offer a company a marketing advantage• Embracing diversity can help a company to develop and

retain talented people.• Embracing diversity can be cost effective.• Embracing diversity may provide a broader and deeper

base of creative problem solving and decision making.Note : Despite its benefit, diversity can also bring about negative outcomes if not effectively managed (damage morale, increase turnover, conflict and communication barrier)

Obstacle to Achieving DiversityoStereotypes and Prejudiceo Tendency to form of adverse opinion, assumpiton without evidence

(gender, race, religion, ethnicity)

oEthnocentrismo The belief that one’s own group or sub culture is naturally superior

to other groups and cultures

oPolicies and Practiceso Organizational policy and practices agains maintaining a diverse

workforce.

oThe Glass ceilingo Therefore an invisible barrier that separates women and minorities

from top leadership positions.

oUndfriendly Work Environmento Work environment for many minorities is a lonely, unfriendly and

stressfull place

The factors related to Diversity Success

TOP MANAGEMENT SUPPORT AND COMMITMENTSupport and commitment of senior management / CEO is critical to the

success of diversity

CORPORATE PHILOSOPHY Corporate philosophy is a strategic imperative strives to embed

diversity into daily practices and procedures operations

PRO-DIVERSITY HUMAN RESOURCES PRACTICESThe HR department is the gateway throgh which teh employees pass in

order to become members of an organizations

ORGANIZATIONAL COMMUNICATION ON DIVERSITYOrganizational effort to communicate the message of diversity are

important factors for diversity success (nesletter,poster,calendars etc)

INCLUDING DIVERSITY AS A CRITERIA FOR MEASURING SUCCESSPut the diversity objectives are included among the criteria to

measuring managerial performance.

THANK YOUBROTO MUDJIANTO

7617121192 ARIANI SELVIANA

7617121257DONY SUNARTO

7617121195ROHIDIN

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