Management Paper on Leadership and Organizational Culture

Abstract

Leadership and organizational culture help in the definition of the ethics and morality of the activities and priorities of an organization. This makes it the responsbility of every organization, through its management, to take initiatives of promoting ethical behavior among employees through its organizational culture. This can be facilitated by introducing job-screening policies within the department of human resource that ensure that an organization hires ethical personnel. Enron Company collapsed because the employees, while mimicking the behavior of the top management, got involved in unethical behavior to meet their aggressive compensation targets. This could have been prevented through an effective leadership philosophy based on moral responsibilities and ethics.

 

 

Leadership and Organizational Culture

Introduction

Leadership quality in any organization plays an essential role in determining the nature of organizational culture. This is because through the policies of a leader, employees within an organization adopt the virtues and qualities of morality that define the ethics of their practice. However, failure by leadership often results in organizational failure. This is an indication that leadership philosophy, which defines an organization’s culture, is integral in ensuring an all-inclusive ethical process defining organizational activities.

Leadership and organizational culture

Leadership and organizational culture are two most important aspects that enhance organizational growth from the perspective of the management. This is because through leadership it is possible for the management to ensure that it implements policies that define an organizational culture (Steve, 2013). Organizational culture helps in defining the activities and priorities of an organization. Furthermore, through organizational culture it becomes easier for the stakeholders of an organization to understand the definitive and underlying polices that are integral for the execution of organizational responsibilities (Steve, 2013). Unethical behavior win any organization emanates from the inability of the management to align it leadership responsibilities with the organizational culture that define the standards of operations.

The importance of leadership and organizational culture is inherent in the ethical and moral responsbility of the management. This makes it the responsbility of every organization through its management to take initiatives of promoting ethical behavior among employees through its organizational culture (Steve, 2013). This can be facilitated by introducing job-screening policies within the department of human resource that ensure that an organization hires ethical personnel. Furthermore, an effective leadership will engage employees in the design and implementation of effective code of ethics and ethics reporting system (Rampersad & Hussain, 2014). This approach to leadership will not only empower the employees but will also result in the development of a culture that promotes integrity and accountability in execution of employment responsibilities.

Enron Company is considered as one of the greatest failures in the history of US financial market. This is because the company, through its leadership, was engaged in suspicious accounting practices. Ineffective leadership was therefore one of the reasons for the company’s failure. The leaders of the company were responsible for its failure because they did not act according to their ethical and moral responsibilities (Rampersad & Hussain, 2014). This is because the management destroyed Enron’s organizational culture passing the wrong message to employees. This explains why, while mimicking the behavior of the top management, employees at Enron were involved in unethical behavior to meet their antagonistic compensation targets (Rampersad & Hussain, 2014).

An overall outlook at Enron indicates that the top management was involved in the creation of a culture of cheating and fraud, which infiltrated the organization hence encouraging unethical behavior. This could have been prevented through an effective leadership philosophy based on moral responsibilities and ethics (Rampersad & Hussain, 2014). These could have been realized if the leadership embraced moral virtues such as honesty, integrity, and fairness in their operations.

Conclusion

Through effective leadership, it is possible for the management to ensure that it implements policies that define an organization’s culture. Organizational culture helps in the definition of the ethics and morality of activities and priorities of an organization. Enron collapsed because the leadership was engaged in dubious accounting practices, which were contrary to their ethical and moral responsibilities. Their activities contravened the organizations culture.

 

 

References

Rampersad, P. D. H., & Hussain, M. B. A. S. (2014). Authentic Governance: Aligning Personal

Governance with Corporate Governance. Cham: Imprint: Springer.

Steve, M. (2013). Case studies in organizational communication: Ethical perspectives and practices.

Thousand Oaks, Calif: Sage.