Horizons, Vol. 60, No. 3, Pp. 395-404.: Singh, Poonam, 6585450

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Singh, Poonam, 6585450

MGNT803 SYD – Organisational Behaviour & Management

ASSESSMENT 3

Word count: 882 words

Warrick, Milliman and Ferguson (2016) define organisational culture as “the environment in which
people work and the influence it has on how they think, act, and experience work” (cited in Warrick
2017 p. 396). The purpose of his article is to help leaders understand the culture of an organisation
as he argues that leaders can provide guidelines to help strengthen, support and grow a healthy
culture in an organisation.

Azanza, Moriano and Molero (2013) researched that how flexiblity oriented organisational cultures
can breed authentic leadership styles in an organisation which in turn affects attitudes of
employees. Both the articles focus on organisational culture as being a key ingredient in the
success of an organisation.

Warrick, DD 2017, ‘What leaders need to know about organizational culture’, Business
Horizons, vol. 60, no. 3, pp. 395-404.

Warrick emphasises the importance of organisational culture in making strategies and how leaders
and managers need to recognise organisational culture while decision making. The author states
that strong healthy cultures are the driving force for the organisation and its people, and it is
important to strengthen and support them for the long run benefit of the organisation. Warrick
(2017) expresses the importance or maintaining healthy cultures in an organisation and also states
that healthy cultures can only be a result of effective leadership. The role of leaders is crucial
according to him. A wrong decision by any leader can result in a breakage of healthy culture. So
each managerial decision should be evaluated according to desired culture. He expresses that
cultures are prized treasures of an organisation when they drive the right behaviours and are
strong and healthy. Little things can make a big difference when it comes to culture. Renaming of
engineers as “imagineers” by Walt Disney helped shape Disney’s culture, and is one such
example. The author along with his arguments has given methods to improve organisational
culture. He suggests that organisations must have culture teams to monitor and manage the
culture.
Culture is evolved through new practices and processes.
Warrick (2017) has focused greatly on leaders to be aware of various aspects of culture which are:
• Leaders can shape organizational culture with their strategies, practices and leadership styles.
• Besides a prevalent dominant culture in the organisation, there also exists various sub cultures.
These cultures can be healthy or even unhealthy.
• Culture is shaped by both visible and invisible factors.
• Leaders should be aware of organisational teams, that are driven to perform and achieve a
certain organisational goal, but also of the informal groups that greatly affect the culture of the
organisation as it has greater impact on employees on the social front.
• With organisations becoming global, international differences in culture need to be taken into
note.
• Strong cultures are not always healthy and can lead to downfall of an organisation.

Azanza, G, Moriano, JA & Molero, F 2013, ‘Authentic leadership and organizational culture
as drivers of employees’ job satisfaction’, Journal of work and organizational psychology,
vol.29, pp. 45-50.

Daft (2005) organisational culture is defined as “the set of key values, assumptions,
understandings, and norms that is shared by members of an organisation and taught to new
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Singh, Poonam, 6585450

members as correct” ( cited in Azanza, Moriano & Molero 2013, p. 46). This article focuses on
studying the relationship between authentic leadership and organisational culture as well as role of
authentic leadership in shaping the organisational culture which affects job satisfaction levels of
employees. the authors have focused on flexibility oriented culture which is characterised by
employee confidence, innovation and welcoming new ideas.

Comparing and Contrasting both articles

In contrast to Warrick's article, Azanza, Moriano and Molero (2013) studies the opposite point of
view and examines how cultures shape leadership as opposed to leadership affecting the culture
of the organisation. The research aimed at studying four different hypothesis.
In doing the research Azanza, Moriano and Molero (2013) found all their hypotheses to be true and
supported. Their research concludes that as flexibility oriented cultures are related to openness to
new ideas and innovation, it does give rise to authentic leadership styles where leaders are able to
introduce change. When leaders are able to recognise the values of a flexibility oriented culture,
their decisions foster such culture and employees are more satisfied in their jobs.
Limitations of Warrick (2017) is that the theoretical framework is based on secondary data and no
primary research has been done. And for Azanza, Moriano and Molero (2013), the limitation of the
article lies in the research which is not free from bias on behalf of the respondents and that only job
satisfaction is the considered variable as an effect of authentic leadership and no other job-related
variable is being studied.
In conclusion, the importance of organisational culture and leadership and their interrelatedness
could not be stressed much by both the articles. It is important to sustain and support healthy
cultures through sound decision-making. Neglecting this aspect can cost organisations and it's
employees in the long run. Organisational culture is responsible for organisation success and
should be the focal point in hiring and training processes of new employees as well as leaders.
Besides skill fit and job fit, more emphasis should be put on culture-fit for the recruitment of
organisational personnel.

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