Leadership and People

Management

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Table of Contents
Introduction......................................................................................................................................1

1. Critically discussing the roles of organisational leaders may play in developing a strong
organisational culture (valuing cultural diversity, organizational-citizenship- behaviour).............2

1.1 Discussing the cultural implications of managing today’s organisations and the employees'
relationship..................................................................................................................................2

1.2 Critically describing the relationship between leadership and organisational culture...........3

1.3 Discussing the leadership styles concerning the strong organisational culture.....................5

1.4 Critically discussing the role of organisational leaders in developing strong organisational
culture considering cultural diversity and organisational-citizenship behaviour.........................7

2. Critically discussing the roles of organisational leaders may play in managing organisational
performance.....................................................................................................................................9

2.1 Critically evaluating the linkage between leadership approach and organisational
performance.................................................................................................................................9

2.2 Discussing the responsibilities of leaders managing talent to achieve high performance...10

2.3 Critically discussing the role of leaders managing organisational culture to drive firm
performance...............................................................................................................................12

Conclusion.....................................................................................................................................14

Reference.......................................................................................................................................15

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Introduction
Leadership describe the skill of motivating a team of people to work toward gaining shared goal
while in business it considers the direction of employees and colleagues with the strategy to
reach organisational needs (Clark, 2018). People management discuss the course of training and
inspiring employees to get optimal workplace output and professional development and in
organisations, leaders use it supervise workflow and enhancement employee performance. It
assists the leaders to know the dynamics of human behaviours and the implementation of
communication transparency in the organisations. This report discusses the implications of
culture running the organisations and contains the critical describing of the relationship between
leadership and organisational cultures. This report also includes the roles and approaches of
leaders in evolving the organisational culture which considers the organisational-citizenship-
behaviours and cultural diversity in the organisations. Then it deals with the evaluations of
linkage between leadership styles and firm performance and leaders roles in handling high
performing teams. Finally, it discusses how leaders manage organisational cultures to drive
organisational performance.

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1. Critically discussing the roles of organisational
leaders may play in developing a strong
organisational culture (valuing cultural diversity,
organizational-citizenship- behaviour).
1.1 Discussing the cultural implications of managing
today’s organisations and the employees' relationship.
Culture in organisations indicates the mode of behaviour within the company which include the
shared beliefs, norms and values created by the leaders (Barth, 2016). Organisational culture
established the background for everything the company does that strengthened through the
influencing employees' perceptions, understanding and behaviour. Culture in organisations aids
the leader to develop the way of interacting with employees which include the communication
medium and standards between the employer and employees (Shelby, 2018). Warren East, CEO
of Rolls Royce, a UK based car manufacturing company said that a healthy culture in the
organisation influences the employees to remain loyal and motivated to high performance
directed toward the organisation's goals. However, the company’s culture often gets collided with
the norms of the locals especially in Asian regions in the fields of grooming and that the
understanding of communications that disrupts the flow of relation with team leaders and
employees. The organisational culture develops a work-oriented environment in the
organisations which make the employees more competitive in the workplace (Kalu, 2018).
Besides, the leaders often set the culture of rewarding and recognising through their
performance. Therefore, the employees in the organisations attempt the level best to perform to
adapt in a competitive environment that aid them to get positive appreciation from leaders.

Organisational culture manages the employees' duties through the setting of work guidelines.
Therefore, the individual in the organisation remains clear about the roles and responsibilities
and the way of accomplishing the tasks ahead of the deadlines (Trivellas, 2018). Roll Royce
signifies the organisational culture as it indicates the predefined policies in the company’s
environment. Therefore, it aids the company to create the awareness of sensing direction and
administrating the employees in the workplace. Culture in organisations helps to become
distinctive from the competitors as no two organisations can have the same culture (Sorensen,

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2013). Therefore, the organisational culture can create the brand image for the organisations
which also provides a unique identity to the company. Culture in organisations enables the
leaders to get the best out of each team member in which culture of reporting system of
individual performance makes the employees effective at the workplace rather than forcing
anyone to work.

Organisational culture creates the manner fo treating individuals equally in the organisations.
Therefore, it facilitates the leader to supervise every employee and no one remain left out at the
workplace (Erez, 2016). Rolls Royce top management in discussing equality in the workplace
states that it is the culture which brings all the employees on a common platform. The company
although sometimes fails to maintain equality as the employees get treated according to the
educational background rather than the performances. In today, some organisations often follow
a culture which manages the employees to step on time regardless of their positions. Therefore,
the organisational culture provides a sense of unity at the workplace which unites employees
rather than of the backgrounds, mentalities and attitudes. Culture in organisations manages the
new hires by assisting with onboarding (The Guardian, 2020). The new entrants in the
organisations often fail due to the poor delivery and adjustment with the organisation culture and
expectation. Therefore, a well functioning culture might help in aligning the organisation with
new employees appropriate onboarding programs.

1.2 Critically describing the relationship between

leadership and organisational culture.
Leadership and organisational culture link together in building and controlling the organisations
which enhance the firm performance through proper integration. Usually, organisational culture
revolves around the leader how the leader may comprise the culture in the organisation to leading
the organisation (Barth, 2016). However, leadership often get affected by the organisational
culture through the strongly established norms. Rolls Royce top management often revises its
culture with new vision after the understanding of organisations shared value, standards and
traditions and therefore, the team leaders in the company do follow the standard and also
instructs the employees to maintain the values in works. In another way, leadership can be seen
as the element of the organisational culture which forms the values and assembling the social
reality through the leader to make an effective culture (Shelby, 2018). The leader can operate the

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organisation based on the existing culture or changing the current principles. Leadership pattern
in the organisation can be differentiated based on how the employees of the organisation values
and follow the organisational culture.

Organisational culture and leadership can be related to strategical thinking and tactical as it
requires to create and build the organisations vision. The vision takes hold within the
organisational cultural setting and therefore, vision can often regulate the features of the
company culture (Erez, 2016). However, leadership integrate the creative insight, persistence and
energy for the strategical direction toward the organisations' vision. Rolls Royce builds an
innovative and satisfying organisational culture where the top management assumes employees
being trustworthy and focused, having unique involvement and solutions at the possible lowest
level. Therefore, Leadership in positive organisational culture display a sense of vision and
purpose which allow the leaders enables others to take greater responsibility for gaining the
vision (Cooper, 2017). However, employees may cross the restrictions of the culture in this
setting through the leaders making mechanisms for the fortification of rules and behaviours and
cultural development.

Leadership may be defined as the medium of developing the qualities and characteristics of the
organisational culture where the followers accept the culture gradually (Kippenberger, 2018).
Since Rolls Royce follows the extreme management style in all the department and the
department head in the organisation does not consider any deviation in from standard operation
procedures among employees. Therefore, this approach does not allow the company to have out
of box thinkings and contributions from the employees. Thus, leaders responding to the
problems, crisis and punishing followers is related to the organisational culture and how a leader
is seen inside by staffs and outside by the customers (Kalu, 2018). In short, culture and
leadership both share equal impacts. Organisations with more autonomy power at lower levels
backed by the strong cultures, values and internal guides can avert the top management from
imposing more authority at the middle level of the administration (Erez, 2016). Leaders in
relation to culture required to be conservativeness in managing the beliefs, morals and rites,
otherwise it may arise obstruction to change the organisation.

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1.3 Discussing the leadership styles concerning the strong
organisational culture.
Leadership is not a static style which can immediately fit with the organisational culture. The
leaders required to have a thorough understanding of leadership frameworks and styles which
enable the leader to accept the approach more suitable with the environment (Proeller, 2015).
Therefore, the leaders acquainted with more styles may qualify them to make flexible decisions
in the organisations.

Figure 1 Leadership Styles

Source: (Kippenberger, 2018)

Directive leadership maintains the stability where the leaders form specific values and
behavioural patterns and employees are likely to follow. The organisations use the directive
leadership applying power structure to flow power from top to down (Clark, 2018). Rolls Royce
uses this approach where the instructions and tasks are sent to the lower level from the
management. However, this leadership approach often delays the decision making and therefore,
team leader and employees remain confused and become dependent on the top management.
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However, directive leadership does not inspire the cultural alliance in which leaders follow
openness and flexible working culture rather than creating class divisions grounded on the
organisational hierarchy. Transformational leadership defines the exploring of organisational
culture by making changes to improve the environment (Denton, 2017). This approach identifies
the challenges and opportunities for employees and also set the employees personal goals and
aspirations. However, the transformational style sets the habits of continual communication and
consistent feedback to the employees and leaders often force the employees to agree to avoid
constant feedback and inspections. Department head in Rolls Royce often follows
transformational leadership which allow the company to get honest feedback of personal and
organisational achievement through bringing team member together (Barth, 2016). The overall
aim of this style to create a competitive organisational culture through inspiring transformational
tendencies among employees.

In servant leadership, the leader creates an environment where everyone serves as the leader and
the leaders works in setting the organisation idealistic goals and tactical direction. This
leadership approach establishes three common pillars for creating strong organisational culture
such as trust, pride and enjoyment among the employees (Erez, 2016). The managers provide the
provision to gain the organisational objectives and it allows the employees through assuming that
support role helps the organisation to achieve aims. However, this style makes a culture where
decisions remain in holding and roles of leaders less due to the multiple participation. Though
leaders make the final decision in this approach, leaders often make compromise and
collaboration to engage the team members (Cooper, 2017). Research and development team head
of Rolls Royce get benefitted using the approach to involve the employees in decision making of
product development for the young customer that enable the company to meet the demand of the
targeted customer set. Therefore, participative leadership generates an openness in the
organisational culture where employees feel comfortable to take risks and sharing opinions. In
authoritative leadership, employees are enlightened about the parts and standard operation in the
organisation and the leaders set the organisational direction and objectives (Kippenberger, 2018).
It develops the rank and file culture in organisations which discourage the innovation,
professional development and association and employees are not expected to perform beyond
organisational hierarchical authority.

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1.4 Critically discussing the role of organisational leaders
in developing strong organisational culture considering
cultural diversity and organisational-citizenship behaviour.
Leaders in the organisations show the thrive for continuous learning to have in-depth knowledge
of operations and it may enhance the employees' performance by creating a competitive work
environment (Kippenberger, 2018). Efficient organisational leaders realize the emphasis of
diversity in the workplace which allows the organisations to have different viewpoints and
experiences to come together to achieve the company aims. To develop diversity at workplace,
leaders require to show the value of diversity through the actions and behaviours as employees
often do not show extra involvement being in the fear of losing the job (Kalu, 2018). Marketing
team head of Rolls Royce builds a team with employees from different backgrounds that benefit
the company to understand the tastes and preference of car from the various demographic group.
Leaders often discourage diversity in the team because of having too many opinions against the
idea in the name of participation and also for language and social barriers among team members.
Being supportive of the diversified culture, the leaders often discriminate the employees based
on sex, religion and origin which often lead undesirable work environment. Therefore, the
leaders should treat individual equally and zero tolerance to the discrimination to build a culture
acceptance in the organisation (Trivellas, 2018). The leaders often remain not inclusive in
managing organisations which discourage the diversified culture by ignoring the opinions of
different individuals. Leaders need to encourage and have a thorough understanding of the
culture's customs and traditions to embrace diversity in the work environment.

In organisations, leaders often expect the employees being respectful and performing extra to
contribute the organisational success and efficiency. Leaders need to sample the type of
behaviours which the employees should follow to develop organisational-citizenship-behaviours
(Marzolf, 2016). On the other hand, it also includes behaviours that may damage organisational
culture. Leaders in organisations encourage the teamwork to signify the interpersonal
relationships and co-worker bonds through developing of organisational-citizenship-behaviour.
CEO of Rolls Royce instructs team leaders in the organisation to become considerate and
jumping in guiding the employees so that they become motivated to show the same behaviour
with colleagues (Bloomberg, 2020). However, organisational citizenship behaviours provide

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chances to the employees in the company to save from the misconduct and discrepancies of work
in future. Leaders link the qualities such as politeness, carefulness and sportsmanship with the
organisations' values and goals to emphasis the organisational-citizenship-behaviours
demonstrating the organisational culture (Nayacakalou, 2014). However, organisations often
regulate the organisational-citizenship-behaviour as a part of the job that often hampers the
performance of the employees in maintaining those behaviours. Therefore, leaders create the
impression of expecting standard behaviours rather than making mandatory to follow (Barth,
2016). To create strong organisational culture, leaders practice feedback mechanisms to maintain
the standard behaviours in the organisations in which adopt threat of punishment to make
employees follow the norms of the company and reward for proper implementation of
organisations procedures for the company's growth.

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2. Critically discussing the roles of organisational
leaders may play in managing organisational
performance.
2.1 Critically evaluating the linkage between leadership
approach and organisational performance.
Leaders as the key decision-maker in the organisation regulate the acquisition, development and
the distribution of the organisational assets intending to improve company performance. When
the leadership of the organisation focus on the development of employees through improving
moralities and skills, its positively impact the organisational performance (Denton, 2017). The
transformational leaders boost and enrich the overall development of employees by meeting the
emotional need which stimulates the employees' performance. Manufacturing and logistics team
head of Rolls Royce emphasis on the individual development in the team and it improves the
employees' productivity in terms of quality and consistency. In organisations, leaders develop the
vision and strategy and the individuals in the company are asked to follow and accomplish the
vision (Kippenberger, 2018). Therefore, the standard of organisational performance primarily
depends on the leaders approaches to long term accomplishment and strategical making.
However, in charismatic leadership, the employees become fully reliant on the leaders and
without the leaders, the employees remain directionless which may result in the satisfied
employee but few future leaders in the team.

Leaders in the organisations often practice democratic leadership to improve the performance of
the firm where leaders motivate the employees to express and implement the creative ideas and
take part in the decision-making procedures (Proeller, 2015). However, in this style, the
employees get the false assumption that they have an equal stake in the organisation. This
leadership trains the employees to be the future leaders which enable employees to take lower-
level decision to facilitate team performance (Kippenberger, 2018). Leaders use the reward
mechanisms like pay rise and new responsibilities in exchange of getting expected performance
from the employees Though transactional leadership offer benefits to the employees, they often
feel the burden to meet the expectation of the management (Trivellas, 2018). This style positively

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impacts organisational performance and individual capabilities as the employees always want to
gain tangible and intangible rewards from the company.

Leaders impose the strict regulation in the organisations to get the optimal output from the
employees where the subordinates work according to the instructions of the leaders (Wood,
2017). The team head of Rolls Royce service team forces the employees to proper
implementation of rules in the department so that it can ensure satisfied services for the
customers. However, the company often become less efficient in getting innovative performance
from the employees as the leaders control the authority of the individuals. Therefore, as this style
centralised the power in the organisation, it negatively impacts the employees and organisational
performances. Leaders following the bureaucratic leadership guidance the performance of
employees through designing the guidelines and procedures (Sorensen, 2013). This style does
not effectively impact organisational performance as the leaders focus on developing policies
ignoring the value of human assets. However, Bureaucratic leadership benefits the organisation
in longer projects due to efficient policy development.

2.2 Discussing the responsibilities of leaders managing

talent to achieve high performance.
The organisational leaders take responsibilities of attracting and holding high-quality employees
through skill development and continuous motivation to improve the performance. To manage
the talent employees, the leader needs to aware of the employees next step in which area of the
company the employees want to be expertise (McCann, 2017). Therefore, the leaders move the
high performing employees to another team for skill maximisation in different fields. Rolls
Royce often shifts the high performing marketing employees to research and product
development team and the employees also become expert with multiple skills and knowledge. In
organisations, the leaders often share part of authority with talent employees to engage them with
the works (Denton, 2017). Through the delegations of power, the top employees can feel more
confidence which enables them to provide speedy and efficient performance to the organisations.

In order to get optimal performance from the star employees, the leaders offer regular and
productive feedback to the employees. However, top employees often go overboard with the
positive feedback from the leader and then, the employees provide less effort in performance as
they already in the favour of leaders (Cooper, 2017). Therefore, the leaders to manage the talent

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employees inspires to improve the performance further rather than giving continuous feedback.
Rolls Royce CEO motivates the employees to perform that benefits the company with improved
productivity in standard quality. Therefore, the leaders provide flexibility to the talent employees
with the trust that they can get the work done. The leaders in the organisations get more careful
with the workload distribution of the top-performing employees (Proeller, 2015). The leaders
provide realistic workloads to the employees which qualify them to perform better in quality
works for the organisations rather than giving growth in quantity.

To manage the talent employees, leaders in the organisations design the group dynamics
cautiously so that the employees can work without any intervention. Top performing employees
in a group with more mediocre employees slow the workflow of the talented employees and
often create jealousy in other members of the group (Wood, 2017). Rolls Royce makes the proper
ratio of talent and incompetent employees to maintain the flow of work and other employees also
learn from the talent employees which thrive high performance in the company. However, the
company faces the loss of potential talents as efficient employees often degrade the performances
working with average employees. The talent employees are the future for leading the company
and therefore, the leaders propose the leadership development programs to the employees which
aid the leaders to share the responsibility and create the efficient leaders for the organisations
(McCann, 2017). On the other hand, leaders in organisations make reward and incentivize
development for high performing employees to keep them attracted and loyal to the company.

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2.3 Critically discussing the role of leaders managing
organisational culture to drive firm performance.
The leaders in the organisations cultivate the positive organisational culture to show the activities
commenced to influence organisational performance which reflects in the output of the firm
(Cooper, 2017). The leaders use the organisational performance to express the results in the form
of productivity, profitability and growth measured against anticipated aims and objectives
created in the organisational culture (Shelby, 2018). The leaders manage the organisational
culture to empower the employees in the organisation. Through employees empower the leader
can increase the engagement and the skills of the employees which ultimately improves the
employees' performances directed toward the firm performances (Erez, 2016). The sales
department of head of Rolls Royce benefits by developing a culture in the department in the
growth of sales where the employees are given flexibility in maintaining rules and regulations.
Therefore, leaders through the management of positive organisational culture inspire the
employees to form a special bond with co-workers and organisation to enrich the working
experience to organisational success.

The leaders manage the organisational culture in a manner where the various departments
collaborate to get organisational success (Wood, 2017). Rolls Royce marketing and product
research and development often collaborate for the efficient development of the market suitable
product to increase the sales of car in the market. However, the frequent collaboration of
departments in the organisations often damages the workflow which negatively affects the
employees and firm performance (Trivellas, 2018). On the other hand, leaders also bring
diversity in the organisation through the mixing of different types in the organisational culture
which improves the organisational performance in terms of targeting different customer group.
Through the organisational culture, leaders can develop open communication in the organisation
and the employees can have a clear understanding of responsibilities that enable to improve
individuals and firm performances (Proeller, 2015). However, leaders developing the culture
where employees do not have proper communication may create confusion employees duties and
decrease the performance.

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Leaders in creating organisational culture largely affect the performance of the organisation
controlling the contribution of employees (Sorensen, 2013). Leaders build a competitive work
environment in the organisations which encourage the employees to improve the performance to
cope with the competition (Cooper, 2017). Rolls Royce sales team head creates a culture of
ranking the employees according to the sales contribution that cultivate the competitive
atmosphere in the department among the employees. However, the company may get degradation
in individual development since it focuses on the competitive strategy instead of developing
human assets of the company. In another way, organisational culture has larger impacts in
achieving the business goals as positive culture has more effect than strategy in the organisation
(Proeller, 2015). The leader may embrace weak strategy but supported by the strong culture has
the higher possibilities reach business aims. Therefore, in a strong cultural setting, both leaders
and employees can avoid error in the works which facilitate the organisational performance.

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Conclusion
Leaders play the responsibilities of making the organisational culture strong through the set of
rules and behaviours in the organisation. Organisational leadership values diversity in the
organisation environment which allow to different understandings and ideas in the organisations.
Leaders can make the organisation more diverse through accepting of cultural difference.
Leaders also set the proper structure for moral behaviours and norms that develop organisational-
citizenship-behaviour in the organisation. In strong organisational culture, the leaders can
improve the employees' performance as the employees have clear understandings of duties and
proper communication. Strong organisational culture promotes the firm performance by offering
the opportunities of professional growth and flexible workloads to the employees for optimising
the output.

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