Leadership plays a critical role in shaping organisational culture. Leaders’ behaviours, actions, and decisions are powerful influencers that trickle down throughout the organisation. How leaders communicate, make decisions, and interact with employees sets the tone for the organisational culture, influencing how employees perceive their work environment, behave, and interact with one another.
Research in psychology and leadership reveals the transformative power of effective leadership on organizational culture. Studies consistently show that leadership, characterised by vision, inspiration, and empowerment, is a catalyst for a culture of innovation, collaboration, and high performance.
One study conducted by Edgar Schein, a pioneer in the field of organisational culture, identified 3 levels of organisational culture: artefacts and symbols (visible manifestations of culture such as dress code and office layout), espoused values (stated beliefs and norms), and underlying assumptions (unspoken, deeply ingrained beliefs and values). Schein argued that leaders play a key role in shaping all three levels of culture through their actions, decisions, and communication.
Leadership behaviours that are consistent with espoused values and underlying assumptions can reinforce and strengthen the desired culture within an organisation. For example, if an organisation values transparency and open communication, leaders who model these behaviours by sharing information openly, soliciting employee feedback, and fostering a culture of dialogue can help embed these values into the organisational culture.
However, when leaders’ behaviours are incongruent with espoused values or underlying assumptions, it can create detrimental effects such as confusion, cynicism, and disengagement among employees. For instance, if an organization claims to value work-life balance but rewards employees who work long hours without regard for personal well-being, it sends mixed messages and undermines trust in leadership.
Let’s see some examples. Under Steve Jobs’ leadership, Apple cultivated a culture of innovation, creativity, and excellence, driven by Jobs’ relentless pursuit of perfection and his ability to inspire and challenge employees to think differently. Similarly, Google’s emphasis on a culture of collaboration, experimentation, and employee empowerment can be attributed to the leadership style of its founders, Larry Page and Sergey Brin, who prioritised innovation and creativity from the company’s inception.
Leadership is not just a role but a responsibility that significantly shapes organizational culture. By embodying the values, beliefs, and norms they wish to see reflected in the culture, leaders can foster a positive, cohesive, and high-performing organizational culture that drives employee engagement, innovation, and organizational success.
