Just as leaders influence organizational cultures in an organization, so does strong organizational cultures impact on organizations leaders and how they conduct their business to improve on such organizations. This can be illustrated through the case of a bank manager who started out as a teller at the bank and later rose to the position of bank manager. The bank was recording large amounts of profits every fiscal year from the time the current bank manager worked as a teller and it is admirable how the profits have doubled ever since he became manager.
It was a culture of the bank to always put their clients’ interests first, a head of making profits and any other interests a banking organization can have. This at times would pose grave challenges as the global economy and the consumer finance culture were always in oscillations; guaranteeing both good times and bad times for banking businesses. There was this time when the banks in America were charging onerous banking fees coupled with high interest rates on debts. Customers to these banks in these times could do nothing much about their predicament as all was attributed to the economy and thus lost little extra amounts in their dealings with the banks.
Having work as an understudy in a bank where the culture demanded that the interests of customers be considered first before even before the bank could think of profits, this influenced the bank manager in devising a means through which the customers interests would be well taken care of in such times while the bank remains profitable. He thus decided to formulate a new way through which the customers to the bank would make savings by contributing little sums periodically to a common pool that would secure them against hard economic times and also guarantee loans on fixed rates with the banking fees agreed upon between the bank and the customers.
The bank witnessed more savings from the customers and even attracted a host of new customers who were pleased with the saving program and the interests rates charged on loans by the bank. The bank also got finances to engage in other businesses which made it more profitable. Were it not for the strong culture that existed within the organization, the bank manager would have opted to hike interest rates and banking fees just to gain profits rather than adducing a plan through which the interests of the customers would be taken care first and profitability guaranteed later.
Leaders being driven by the organization culture and not always trying to create a culture within an organization has positive impacts on an organization. First, it is easier to create belief in the employees that together, there is commitment towards a common goal. The impact of this is that there will be quality services offered to the customers incase of a service oriented organization and the dedication by the employees will serve a great deal to beating competition from any possible competitors. An organizational culture defines an organization and those who are in it, if this defines the leaders of such organizations; then there is unity of purpose which serve to benefit the organization.
Further, in leadership driven by organizational culture, it is easier to take risks. In the case study provided, offering chances for savings by customers of the bank was a huge risk as it was not known at the time whether customers will take up the opportunity while the bank was likely to make losses from its banking activity. However, the confidence that doing the same had the backing of the organization’s culture and thus the support of the employees, it was easy to take the risk and it brought huge rewards to the bank and even greater fulfilment to the employees.
Schein, E. H. (2010). Organizational culture and leadership (Vol. 2). John Wiley & Sons.