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Leadership, Personal Values and Organizational Culture

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DOI: 10.1007/978-3-319-77622-4_3

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Leadership, Personal Values
and Organizational Culture

Oznur Gulen Ertosun and Zafer Adiguzel

Abstract Organizational culture creates a sense of identity and belonging for

employees and also has importance in desired organizational behaviors by overlapping
organizational values with individual values (Smircich, Administrative Science Quar-
terly, 28, 339–358, 1983). On the other hand, the individual values, beliefs, anticipa-
tions, attitudes, behaviors and actions that employees have are considered important
factors in shaping and adopting organizational culture (Daft, Organizational theory
and design. West Publishing, 1986). Values are immensely substantial with regard to
influencing organizational dynamics, especially at a management level (Chusmir and
Parker, Journal of Social Psychology, 132, 87–100, 1992). Personal values set stan-
dards about thought and sense unclear besides shaping the decisions and behaviors of
managers thus constituting an ideology and consequently an organizational culture
(Russell, Leadership & Organization Development Journal, 22, 76–84, 2001).
Because of the mentioned critical importance, this study aims to holistically
examine the association among culture, leadership, and values. For that purpose,
this chapter continues in the following manner; (i) The importance of organizational
culture and effect on the decisions and behaviors in an organization (ii) Elements
contributing to organizational culture (iii) Personal values and importance within
management (iv) Leadership and association with organizational culture, and finally,
(v) The effects of a leader’s personal value on organizational culture.

1 Introduction

In order to understand organizational life, we need to examine the concept of culture.

Social culture defines the acceptable and unacceptable behaviours either consciously
or unconsciously. Culture also ensures that the needs of the individuals and the

O. G. Ertosun (*) · Z. Adiguzel

School of Business and Management Sciences, Istanbul Medipol University, Istanbul, Turkey
e-mail: [email protected]; [email protected]

© Springer International Publishing AG, part of Springer Nature 2018 51

H. Dincer et al. (eds.), Strategic Design and Innovative Thinking in Business
Operations, Contributions to Management Science,
https://doi.org/10.1007/978-3-319-77622-4_3
52 O. G. Ertosun and Z. Adiguzel

community are in line with each other, providing guidance and creating norms of
behaviour (Hofstede 1980; Smircich 1983).
It is possible to explain the concept of organizational culture with two different
approaches. According to the first one, culture is regarded as a subsystem within the
organization that allows individuals to adapt to their environment. This is an
explanatory approach and accepts that every organisation has a culture, and it is
usually enough to make a list of some characteristics of the organization. The second
approach regards the organisational culture as an information system within which
each member can interpret themselves. This approach allows the social system to
have a dynamic structure in all its complexity and then leads to the concept of
corporate identity (Koźmiński and Obłój 1989, p. 202).
Organizational culture regulates the behaviours of the participants within the
organization and plays an important role in ensuring, in extreme cases, that the
organisation acts as a whole. If the organization operates in a similar and steady way
for a period of time, gaining goals and achievements, the members of the organisa-
tion learn certain behavioural styles and accept some successfully accepted stan-
dards. For this reason, organizational culture also means the “idealization of a
common experience” (Daft 1986). Organizational culture can, therefore, effectively
support or hinder collaboration, information exchange, experience and ideas. For
example, the culture that promotes the creativity and participation of all team
members provides a favourable environment for employees to be effective in their
initiative (Schein 1983).
Similarly, values have a very important role in forming organisational culture and
determining an employee’s behaviour and judgment. The interactions between
values, attitudes, beliefs and behaviours are stated in many studies in literature. A
value system can be considered as a relatively permanent frame of perception that
shapes and influences the general nature of an individual’s behaviour. Values are
similar to attitudes, but they are more naturally rooted, permanent, and stable.
Furthermore, a value appears to be more general and less connected to any particular
object. Values are closer to ideology or philosophy rather than attitude. At a more
concrete level, the values are principles that direct an individual’s desires, feelings,
and actions (Bernthal 1962; Shah 1985).
Also, values predict most of the behaviours at a particular level. But, if the values
are not based on prior cultural learning, they can be seen as merely advocated values
and do not reflect on employees’ behaviours. If the accepted values are logically
compatible with the basic assumptions, these values can then be transformed into
philosophy, which can bring the group together, establishing an identity and creating
basic tasks (Ouchi 1981). Values start at the individual level, thus, the values of a
few individuals constitute the values of the group, and the values of a group
constitute the values of the organisation (Harrison 1975).
An organizational culture, as well as its values and leadership, are frequently
mentioned in the literature as closely related concepts. One of the most known
theories is Schein’s (2004) culture and leadership theory, which emphasizes the
role of leaders in creating, sustaining, and modifying the content of an organizational
culture. Schein’s theory states that cultural content starts with the decisions taken by
Leadership, Personal Values and Organizational Culture 53

the leaders. In this context, the leader is the one who can create more effects on
his/her followers rather than how they influence him/her.
Leadership is extremely important for the organizations in terms of achieving
certain common goals because the leaders have a strong influence on the behaviours
and performance of individuals and groups. In addition, the aims of the group are also
the targets that are approved or requested by the leader (Şimşek 1997). As a result, the
leader has an important role in acquiring a new corporate identity during the
re-institutionalization processes by supporting certain approaches, attitudes, under-
standings, values, and behaviours (Merih 2002). Otherwise, if the conflicts of values
emerge, it may cause the re-examination of the organizational values, or the establish-
ment of new mechanisms for harmonization, or a change in leadership style.
Additionally, as specified by Schein, the cultural characteristics can be modified
according to needs- like behavioural patterns. In the case of strategic conflicts in
values, norms, philosophy, organizational rules and organizational culture, the need
for the organizational renewal may arise (Schein 1984). It is believed that this study
will contribute to the literature by summarizing the critical relationship between
these elements and clarifying the conceptual framework.

2 Organizational Culture

Individuals constitute societies who are trying to satisfy their needs and expectations
and to find solutions to the problems they are experiencing. As a result, the
individuals living in the society jointly create ideas, traditions, and rules to regulate
their relationships with each other. This phenomenon, consisting of all these factors,
is called culture (Erdoğan 1994).
Culture reflects the lifestyles of the societies and therefore different communities
have different cultural characteristics (Baymur 1994). Culture does not differ only
among societies. Organizations operate in the same social systems and are also
influenced by the values, traditions, customs and beliefs of their communities
(Apulgan 1996). Organizations try to survive like any living creature and not only
for a certain limited period of time. In line with this, organizations form a culture
mosaic consisting of individuals with different beliefs and traditions (Ersen 1997).
The existence of “culture” in organizations is a binding element for communication
and interactions between employees. Naturally, individuals who participate in a
particular culture bring along their own beliefs and traditions (March and Simon
1958).
Although organizational culture is an abstract concept, it affects the employees
and organizational processes and plays a significant role in companies. A positive
culture is not only a factor for the success or failure of a business, but also can bring
significant competitive advantage.
Organizational culture studies began in the USA during the nineteenth century.
And, specifically, in the book titled “Institutional Cultures: Rituals in the Life of the
Institution”, the concept and understanding of positive organizational culture was
widely presented (Deal and Kennedy 1982). Since then, organizational culture has
54 O. G. Ertosun and Z. Adiguzel

become an integral part of much research, especially in the context of studying

business strategies of institutions. It is clear that organizational culture has become
an important element for the senior managers; therefore, discussions were carried out
regarding the continuity of organizational culture and leadership, notably about
leadership and communication methods.

2.1 Definition of Organizational Culture

Organizational culture is a difficult term characterizing the quality of the social

climate within an organization that determines the working conditions of all
employees. Clearly, it represents a phenomenon related to emotions rather than the
rational minds of an observer (Mohelska and Pitra 2012). In addition, the individuals
and societies are continuously influenced by their environment and time unclear, and
it directly affects concepts of culture thereby making it difficult to define culture
within a single expression (Erdoğan 1994).
Yet, it is possible to define organizational culture as a kind of genetic code which
leads to the reproducibility of both individual and collective behaviours, images,
emotions and attitudes. But, also, it can be defined as a set of symbols, ceremonies,
and myths which help members of an organization to understand organizational
assumptions and values (Koźmiński and Obłój 1989).
According to Weis and Wiest, organizational culture consists of a system that
includes typical values, norms, and symbols of a company. An organisational culture
develops over a long period, as a result of the best practices of the whole social
group, creating a hierarchy of certain values (West 2000).
Zbiegień-Maciąg (1994) describes organisational culture as a way of perceptions,
thoughts, feelings, and reactions that are shared by company employees and often
stay deeply hidden and unrecognized in the human mind. It emphasizes what they
have in common, what unites them, and what reduces uncertainty. It is accepted as
the product of the way employee’s live together, interact, and cooperate.
An organizational culture is formulated by Schein (1990) and defined as the
whole of basic assumptions that a particular group learnt, discovered, and developed
while adapting to their environment or solving problems during internal integration.
Although a culture has various definitions and is difficult to make a joint
description about, there are some common characteristics shared by communities.
O’Reilly et al. stated seven different characteristics which drive members of an
organisation to collectively pursue the aims of an organization (O’Reilly et al. 1991).
1. Innovation and Risk Taking: The level of the incentives provided to help the
organizational members to take risks and create innovation within an organization.
2. Attention to detail: The level of importance given to details by the employees
when fulfilling their responsibilities, as well as their ability to analyse.
3. Result-Oriented: If the management of the organisation is result-oriented, they
will focus on the level of realization and the final result, rather than on how the
duties are performed.
Leadership, Personal Values and Organizational Culture 55

4. People-Oriented: The level of importance given to how the decisions of the

management will affect the members of an organisation
5. Team-Oriented: The level of the importance attached to tasks that are organised
as team-based, rather than individually-based.
6. Aggression: The level of how aggressive the competitive aspects of the members
of the organization are, rather than on members having submissive behaviour.
7. Stability: The level of stability of the activities carried out in the organisation,
rather than continuous development.

2.2 The Factors that Constitute Organizational Culture

Schein (1990) explains the formation of the organization culture by dividing the
organization culture into three layers. The top layer consists of observable objects
that can be felt by five senses and are the most openly accessible. The second layer
contains norms and values. This part is generally described as a foundation stone and
reflects the philosophy, functioning, general aims, and ideals of the organization
showing itself in the behaviours of its members. The last layer consists of assump-
tions. According to Schein (1990), assumptions constitute the core of an organiza-
tional culture. This factor is abstract and more difficult to observe, often including
perceptions of organizational members about functional problems and solutions.
Organizational culture includes visible cultural items: ceremonies, parades, rit-
uals, stories, myths, symbols, slogans, language, leaders and heroes (Güçlü 2003). It
is accepted that common beliefs and assumptions are the invisible dimension of the
organisational culture lying at the heart of an organization; however, symbols,
heroes, language, and symbols are actually the visible dimension of organisational
culture, which are more presentable (Schermerhorn et al. 2000).
The organizational culture is shaped under the influence of very different vari-
ables and these variables are categorized in different dimensions in the related
literature (Pettigrew 1979; Berberoğlu 1991). In our study, the effects of values
and leadership on the formation of culture are examined, and other factors of culture
formation are briefly explained as they are frequently discussed in the literature.

2.2.1 Values

Values provides a framework for understanding the beliefs, goals, attitudes, ethics,
self-concept, behaviour, and other elements of the individual system; additionally
they also help to evaluate the dynamics of an organizational culture (Bernthal 1962).
Past studies define the organizational values in various forms. For example,
O’Reilly et al. (1991) describe the values of an organization as “the elements that
revolve around norms, symbols, rituals, and other cultural activities.” Johnson and
Jackson (2009) describe organizational values as the standards that determine
member behaviours and organizational success.
56 O. G. Ertosun and Z. Adiguzel

Organizational values are based on the ability of directing and influencing the
preferences, priorities, actions, and attitudes of an institution and its members (Toh
et al. 2008). Chatman (1989) states that the values of an organisation provide a
detailed and general justification for the activities and functions of a system and for
the appropriate behaviours of its members.
Shared values are the primary focus of organizational culture research, and it is
thought that they facilitate effective interaction between members and provide
integration. In the literature, there are cultural values that are believed to represent
organizational culture. Organizational culture theorists argue that organizations have
a relatively narrow set of values and certain values are useful in understanding
organizational processes (Meglino and Ravlin 1998).

2.2.2 Leadership

A leader is the person who brings his/her followers together and directs them
towards their desired goals. The leader may have an innate ability to influence others
or may have charismatic aspects generated by a number of personal characteristics
that are highly valuable for his/her followers (Bingöl 2006). It is also possible that
the authority is legal (formal).
It can be said that leadership is the most common concept among the factors that
constitute culture. In the literature, it is accepted that the organizational culture and
leadership have reciprocal effects on each other; therefore they are considered highly
related concepts in organizational life (Schein 2004). It is also believed that senior
leaders have a primary influence on the creation and development of an organiza-
tional culture (Schein 2004; Trice and Beyer 1993).

2.2.3 Other Factors

The level of culture in an organisation is the ultimate determinant of perceptions,

language, opinions, emotions, accepted values, and the behaviours of a group. If a
group has a common past, they may also have a common culture and therefore many
subcultures form within an organization. When we examine the organizational
symbols, stories, legends, and other factors of these subcultures, we should know
how they relate to fundamental assumptions, and we should be aware of the fact that
we might make incorrect deductions (Pondy et al. 1983, 1988; Wilkins 1983)
because the meaning of an organizational culture is closely related to the meaning
of these factors. Although different studies have had different titles in the literature,
they include many factors (rituals, symbols, stories and legends, material symbols,
language and metaphors, architectural characteristics and organizational identity,
organization history, environment, technology, size) when providing meaning for an
organisational culture.
Leadership, Personal Values and Organizational Culture 57

Ceremonies and Symbols

In the literature, ceremony is accepted as the expressions for a planned event or

object that is meaningful and special for a certain group of people (Varol 1989).
They are the significant key activities of organisation that enable its members to
identify themselves with the organization (Kamoche 1995). Symbols are also con-
sidered to be indicative of cultures (such as ceremonies, slogans, logos, emblems,
and mascots) and are accepted as symbols used to represent culture.
Also, cultural structures have their own symbols and ceremonies. Flags and
religions are considered effective unifying symbols for individuals forming a society
(Dönmezer 1994). Each culture has its own unique symbols, but the degrees of
importance given to the symbols are different for each culture. For this reason, the
effect of symbols on a culture changes accordingly. Therefore, it is very important
that leaders use symbols effectively in order to be successful in the process of
creating and changing cultures (Kamoche 1995).
Ceremonies and symbols can be listed as the meetings and dinners arranged by an
organisation; greeting styles of the employees; uniforms or a dress code; events
organised to celebrate a foundation day or the founder of the organization; events
organised for retiring personnel; the title attached to special moments; the pennants
and badges representing the organization; social signs to determine the distance
between senior management; and, employees within the organization (Varol 1989).

Stories and Legends

Since the establishment of organizations, stories and myths as culture bearers emerge
as a result of the recounting of the past events with exaggerated expressions used to
influence employees. The most important feature of stories and legends is that the
heroes and symbols serve as a cultural bridge contributing to the adoption of
symbols and values among employees (Daniel and Robert 1978). The stories and
myths, usually include sections from the life of founders of the organisation, stories
of those who break the rules in the organization, those who start from the lower level
and reach the top of the hierarchy, or those who started in poverty but become rich
(Boje 1991; Deutsch 1991; Seiling 2003).

Language

The most important part of a culture is the “language” that helps to carry the culture
among the individuals. Culture that is carried through language between individuals
is transferred from generation to the generation and helps the continuation of social
relations between individuals (Eroğlu 1996). From the moment that an organization
is established, the individuals and sub-units who join organisations begin to use a
common language that indicates that they accept and adopt the organisational culture
58 O. G. Ertosun and Z. Adiguzel

and are, hence, integrated into the culture. This common language covers the terms
used by employees in relation to work (Robbins and Judge 2013).
As the languages used by societies are made up of signs and voices, the concept
of “language” falls within symbols (Robbins and Judge 2013). However, the impact
on culture must be addressed separately because the language used within the
organization is meaningful for individuals working within the organization. Natu-
rally, each organization has its own “special” language that makes sense to them. For
this reason, the language used within the organization does not make sense to the
external individuals and organizations.

Customs and Manners

Customs and manners are described as the rules affecting the daily lives, attitudes,
behaviours, and lifestyles of the individuals generated by the influence of the
environment. People may obey those rules, rules which appear or disappear instinc-
tively (Dönmezer 1994).
Manners are the behaviours that are constantly repeated for a period of time, but
the majority of the population does not feel obligated to implement. Yet, customs,
unlike manners, include punishments if people do not obey and follow the rules.
Since the opposition to customs is only moderately tolerated, rules are stricter than
manners (Köse et al. 2001).
Schein (1983) points out that an organizations’ existing customs and manners
largely depend on both what was done before and the success achieved in this way.
This leads us to the ultimate source of the organization culture: Founders of the
Organization. There are many ways to create a culture, but the most basic beginning
is the beliefs of the founders of the organization and those employees who come after
them. It is evident that the personalities of the founders are reflected in the organi-
zational culture in terms of training of the employees and their adaptation to customs
and manners.

Norms

Norms are defined as orders and rules that individuals, who have adopted a specific
role in the organization, must comply with (Erdoğan 1994). Norms constitute the
general culture of the communities; therefore, executives who are involved in the
formation of organizational norms have an important task. They must create princi-
ples and rules of management according to the cultural norms of their employees
(Özkalp 1995).
Additionally, norms represents the information that should be obeyed by indi-
viduals. It is certain that everybody is informed about the norms through communi-
cation between people- sooner or later, directly or indirectly. The norms have an
influence on the actions of the participating members and if the norms of organiza-
tion are known, it would be clearer what information is needed by the employees or
Leadership, Personal Values and Organizational Culture 59

groups and what they can do to forward this information to others (Stamper and
Liu 1994).
In organizations, a constant change of norms depends on the mutual interaction
between employees: employees observe their environment and reflect, diversify, and
change the norms. Norms, in turn, are used to improve the learning ability of
organizations as an organizational concept, especially in transforming organizations
(Andersen 1995).
It would be possible to obtain very detailed information about organizational
change and organizational learning if we had sufficient information about the norm
structure of the organisations and the process of creating and changing norms
(Stamper et al. 2000).
Socializing is carried out with an aim to help new employees blend into an
organisation and adapt to the organisational culture (Cable and Parsons 2001). The
basic philosophy of organizational socialization is to ensure that employees become
a member that embraces and sustains the organisational culture (Can 1997). Espe-
cially important, senior management, due to their position in decision-making
mechanism, should spend more time and effort to organise socialization activities
for employees.
Socialization is examined in three stages, with the main purpose of each stage
examining how long it will take the members to settle into the organisation or how
long it will take them to leave (Robbins and Judge 2013). The first stage is called the
pre-accession stage. Pre-access refers to the fact that new recruits join the organisa-
tion with a number of expectations (Collins 2007). It is possible to predict the
attitudes and behaviours of the employees by referring to the attitudes and behav-
iours they have shown in the past. Therefore, it is necessary give significant
importance to the socialization process for pre-accession (Wangm et al. 2011).
The Encounter is the stage of clarification between the expectations of the new
employees and the organisational environment. If the expectations are met, the
individuals socialize faster in the organization (Morrison 2002). Transformation is
the stage that employees willingly go through while adapting to the organisation, and
specifically, if they realise that the organisation does not comply with their expec-
tations (Bauer et al. 2007).

3 Personal Values

Values are the primary elements that enable individuals to control themselves and
the community to control individuals. Consequently, values are influential in deter-
mining the status of the individuals within the community. Through these values, an
individual can communicate effectively with other people and create a suitable
infrastructure for the determination of his/her social position. According to Rokeach
(1973), values are the determinants of all important behaviours: social activity,
attitudes, ideology, evaluation, moral judgment, and legalization (Cheng and
Fleischmann 2010).
60 O. G. Ertosun and Z. Adiguzel

Socio-psychological values are important factors and the key predictors for
human and social dynamics in explaining individual decisions. In fact, in various
fields, the importance of values for describing individual and organizational behav-
iour has been emphasized. In the literature of personality, it is stated that values are
related to personality (Allport 1961). According to Giberson et al. (2009), personal
values are the dimension of personal characteristics—the same as personality traits.
In related literature, it specifically states that values are an element t governing and
motivating one's behaviour (Locke 1976) and managing strong individual differ-
ences—such as personality (McClelland 1985; Giberson et al. 2009). In sociology,
values are seen as significant variables in defining community consciousness (Durk-
heim 1960). In the organizational behavioural field, it is stated that values affect
strategic organizational decisions and organizational commitments. In political
science, personal values are the factor that influences governments, laws, parties,
and also institutions (Schwartz 2006; Cheng and Fleischmann 2010).
New social arrangements emerge as an inevitable consequence of socio-economic
developments, and it is important that new arrangements should be compatible with
the values of the individuals in order to ensure healthy functioning. Accordingly,
values should be examined in detail to understand communities better and to achieve
social and political success (Kağıtçıbaşı and Kuşdil 2000; Çetin 2004).

3.1 Definition of Personal Values

Indeed, the concept of value is a difficult issue. Values add different characteristics to
different people, so it is appropriate to start the analysis of this concept with a few
meaningful definitions. Values are accepted as normative standards influenced by
the choices of individuals, individuals who selected from several perceptions of
alternative actions (Bernthal 1962). Values can thus be seen as an open or implicit
understanding of the choice of actions of an individual, group or organization
selected from existing alternative modes (Harrison 1975).
“Value” as a term, refers to our standards and principles that constitute our
judgment for objects, people, ideas, situations, and actions—such as good, bad,
desirable, undesirable (Halstead and Taylor 2000).
Values are the principles that guide human behaviours (Gutman 1982), as well as
the tendencies to behave in certain ways according to individual preferences (Grey
2005). Also, values are preferences or standards of each individual (Ramos 2006),
and the belief that individuals prefer certain situations to others (Choi 2005), beliefs
regarding desirability or undesirability (Byrd 2002).
More broadly, value is defined as beliefs that are long-lasting causing certain
behaviours and goals to be preferable to others (Solomon 1996). Rokeach defines
value as a constant personal or social belief compelling the preference of particular
behaviours or purposes to others (Cheng and Fleischmann 2010). According to
Rokeach, each individual has constant values that he/she prefers more than others
thereby affecting his/her behaviours. The total value of each person is called a
“values system”. S value system is a set of persistent beliefs that are related to
Leadership, Personal Values and Organizational Culture 61

one’s purpose of existence or preferred behaviours (Rokeach 1973). Kluckhohn

(1951) states that values are not rooted from simple desires but from desires that are
possible to reach; in other words, they are not just something we want, but things we
feel are right and appropriate to desire for ourselves and others (Silah 2005). In
literature, the emphasis is put on definitions of how values differ; in contrast,
Rokeach and Schwartz say a value is defined as “a constant belief”. At the same
time, Kluckhohn, Guth and Tagiuri define values as an “understanding”, Braithwaite
and Blamey define a value as “principles” (Cheng and Fleischmann 2010).
Values are one of the core elements of identity (Schwartz 2000; Hitlin 2003), a
key part in a continuing process of presentation that includes consciously designing
targets (Bilsky and Schwartz 1994), which, in turn affect an individual’s behaviour
(Debatts and Bartelds 2006; Lipponen 2004). Values are social representatives of
purposes; they act as guiding principles and motivate people (Rokeach 1973;
Schwartz 1992; Rohan 2000). These guiding principles can be expressed as an
individual’s choice of actions, his/her evaluation criteria of other individuals and
events, and methods of explaining their own assessments (Schwartz and Sagiv 2000;
Gandal and Roccas 2002; Altıntaş 2006).
Hofstede (2001) stated that values are standards of belief related to the right-
wrong distinction of individuals. In this sense, values have an impact on the positive
or negative attitudes and behaviours of individuals in relation to certain events or
results (Rokeach 1973; Mayton et al. 1994; Feather 1995).
Due to the relation between the beliefs and emotions of individuals (Hansson
2001), Wiener (1988) defined values as “internalized normative beliefs”. Similarly,
Özen (1996) stated that values are the “special state” of beliefs, and this particular
state gives value the potential to influence the selection of a certain behaviour
towards particular people, objects or events—due to the its normative patterns.
Whiteley (1995) described values as thoughts and emotions deeply related to a
particular subject. He also indicated that behaviours are observable but values are
not, rather they guide behaviours that are not observable. Therefore, values are
concepts that are accepted by individuals in the form of behaviours (Guth and
Taguiri 1965; Ericson 1969; Elizur et al. 1991; Schwartz 1990). Accordingly, the
values represent the “ideal targets” that are desired, not the easily possible targets.
The preference of a target is determined by the benefits presented by the subjects or
events in the individual’s environment (Bozkurt 1997; Altıntaş 2006).
Organizational values play a critical role in influencing a members’ behaviours
and actions (Newnam et al. 2008; Robert and Wasti 2002). As Williams (2002)
points out, organizational values shape every action and decision made by
employees; also, empirical studies show that employees easily adapt rewarded
values within their organizations (Chatman 1989). Studies suggest that a value-
oriented approach should be adopted to understand organizational behaviour better
(Voss et al. 2000).
62 O. G. Ertosun and Z. Adiguzel

3.2 Components and Characteristics of Values

The elements, emphasised by the leading scientists who study the distinctive features
of values (Rokeach 1973; Chusmir and Parker 1991; Zhao 1998) are:
1. Value is a preference: Value is a preference or request for a particular
behavioural rule. As a selective system, values select between behaviours and
behavioural systems and put forward some normative regulations.
2. A value is permanent: Values are permanent beliefs. However, they are not
completely stable.
3. Values are open to change. The priorities of values can change over time, in
order to meet new and emerging needs (Schwartz and Bilsky 1987).
4. A value is a belief: Values, like all beliefs, have cognitive, emotional and
behavioural dimensions. If we say that an individual has a value, it means that
he/she cognizes that he/she is correct, and he/she holds a characteristic that can
cause him/her to behave in a certain way.
5. Value is a form of behaviour or the ultimate state of being: in a way, a value is
the main purpose of human life. The possession of a value means that he/she has
beliefs about the desirable behaviours or the final result of the situation.
6. Values are related to the goals of the individual (such as equality) and to
behaviours performed in order to achieve these goals (being fair, being
charitable).
7. Values are above specific actions and situations. For example, the value of
obedience is valid at home, at work, at school, and in all of our relationships
with people we do not know.
8. Values serve as standards that guide the selection or change of behaviours,
people, and events.
9. Values are sorted among themselves according to their level of priority, creating
a ranking system that determines the priorities of values. Cultures and individ-
uals can be described by their value priority systems, and different societies may
have the same value but the level of importance given to those values can be
different. It is the element that separates people and societies from each other
and distinguishes values from norms and attitudes (Schwartz 2005).
10. Values shape the perspective of the individual about his/her environment and
also are very influential elements of culture that hold the members of a society
together (Altıntaş 2006).
11. A value is a mode of personally or socially choosing a preferable behaviour or
an eternal belief of the ultimate state of existence (Pang 1996).
12. A value is a great tendency to prefer certain relationships to others (Hofstede
1980).
13. A value is form of selective tendency indicating preferences, interests, motiva-
tions, needs, desires, goals, behaviours, and attitudes (Van and Scarbrough 1995).
14. A value is the rule-maker that differentiates results for the individual and others
(Carling 1999).
Leadership, Personal Values and Organizational Culture 63

15. It is the standard that helps people to choose between actions and behaviours and
motivates ideal behaviour (Kilby 1993).
16. A value functions as a positive situation or object that an individual tries to
acquire, apply, honour, proclaim, voluntarily consume, or bear the cost of
(Herriot 1976), therefore it influences the level of cooperation, selective percep-
tion, and informative comments of the individual.
17. Values limit the field of vision, play an important role in selecting between
alternatives, and serve as a plan or basis for decision-making, solving problem
and conflicts (Russell 2001).

4 Leadership

Studies about leadership theories include research about what characteristics leaders
possess, what they see as important, what actions they take against problems, how
their decision-making processes are, how they respond to needs and requests during
organisational activities, and how effective they are in affecting individuals and
groups (Turhan 2007).

4.1 Definition of Leadership Concept

It is difficult to generate one clear definition of the concept of “leadership” from

literature because leadership is a social, universal, and human phenomenon: a
concept that is enriched by the fact that individuals have different characteristics
and each characteristics carry different meanings (Bolat et al. 2008).
Leadership is the process of interacting with individuals, leading them in the
direction of the goals and objectives of the organization by influenced communica-
tion. In other words, if individuals freely follow a leader, creating their targets under
the influence of the leader, it can be said that is “leadership”. We can summarize the
concept of leadership as the ability to influence individuals and groups. Otherwise,
we can talk about “managerialism” but not the concept of “leadership” (Yulk 2013).
Krausz describes leadership as the power to influence the movements of individuals
who follow him/her (Krauzs 2003). According to a definition based on the relation
between leader and viewers, “a leader is the person who manages the process of
social interaction that affects the behaviours of viewers” (Dasborough and
Ashkanasy 2002). Another definition states that leadership is a state of being
superior to other members of the group as a result of having certain characteris-
tics—such as charisma, intelligence, and talent (Fielder 2005).

4.2 Leadership Theories

Although the act of leadership has existed for ages, the scientific research on this
speculative subject only began to be published at the beginning of the twentieth
64 O. G. Ertosun and Z. Adiguzel

Fig. 1 The characteristics

that leaders should possess
Be smart

Born to
Be
elite Leader confident
society

Be
visionary

century. Leadership types are popular fields of interest in literature and nearly a new
type of leadership is proposed every day. There is no consensus in the literature on
classifying types of leadership, but it can be addressed under different approaches
according to its focus points. Leadership approaches are summarized below, taking
into account the classification preferred by Yukl (1994) in his book.

4.2.1 Theory of Characteristics

Accepted as the first approach developed in relation to the concept of leadership, the
characteristics of a leader that influence the leadership process are considered the
most important factor. In other words, if an individual emerges as a leader, it means
that his/her personal characteristics influence his/her followers and give him power
to manage them. The leader, with these characteristics, has a different personality
from those who follow him (Koçel 2001). The main philosophy of this theory is
based on identifying and distinguishing successful and unsuccessful personality
traits of such an individual (Owens 1976).
In literature, one opinion is that “there is no school of leadership”, and it explains
that leader possesses some innate qualities and attributes that cannot be gained
through education. This is a way of summarising the Theory of Characteristics.
This theory is also called ‘the Great People Approach’, and it aims at distinguishing
characteristics of leaders from non-leaders—as the researchers make an effort to
explain leadership (Buono and Bowditch 1990).
The studies about theory of characteristics summarise the features that leaders
should possess as follows (Fig. 1).

4.2.2 Behavioural Leadership Theories

The behavioural approach emphasizes how a leader behaves. It separates the qual-
itative approach that highlights the leader’s personal characteristics from the skills
Leadership, Personal Values and Organizational Culture 65

approach that highlights the leader’s talents. The behavioural approach focuses only
on what leaders do and how they behave. Researchers examining the behavioural
approach state that leadership is composed of two general types of behaviour: Task
Behaviours and Relationship Behaviours. Task behaviours help group members to
achieve their goals, while relationship behaviours help subordinates to feel comfort-
able in communicating with their supervisors and colleagues. The main purpose of
the behavioural approach explains the reasons a leader’s behaviour influences sub-
ordinates and helps achieve their aims (Northouse 2013).
In the behavioural leadership style, the leader has mutual communication with
his/her subordinates. This communication requires that the leader fulfil the wishes of
his/her subordinates in order to fulfil his/her own wishes. In other words, there is a
relation of mutual dependency. According to the behavioural approach, the relation-
ships are divided into two groups: low quality relations and high quality relations.
Low quality behaviours are based on rights (salary increase, social and personal
rights) between leader and subordinates, while high quality behaviours depend on
reciprocity between the leader and the subordinates (reward system) (Kuhnert and
Lewis 1987, p. 649).
Many studies have been conducted to investigate the behavioural approach.
Stogdill (1948) carried out research at Ohio State University, in the late 1940s,
which emphasized the importance of the characteristics of leaders in leadership
research. At the same time, another group of researchers at the University of
Michigan conducted a series of studies that investigate how leadership affects
small groups. A third research series was initiated by Blake and Mouton at the
beginning of the 1960s and studied how managers use task and relationship behav-
iours in the organizational environment (Blake and Mouton 1964).
While many studies can be categorized under the heading of Behavioural
Approach, the Ohio State studies, Michigan studies, and studies by Blake and
Mouton (1964, 1978, 1985) strongly represent ideas in this approach (Blake and
Mouton 1985).

4.2.3 Situational Contingency Theory

One of the more widely accepted approaches of leadership is the situational

approach introduced by Hersey and Blanchard (1969a, b), which is based on
Reddin’s (1967) three-dimensional management style theory. As the title implies,
situational leadership focuses on the leadership of the situations (Blanchard et al.
1993). The priority of the theory is that different situations demand different
leadership. In this sense, an effective leader should customise his or her style
according to the demands of different situations (Hersey and Blanchard 1977, 1988).
Situational leadership emphasizes that leadership has both a procedural and a
supportive dimension and that each must be applied appropriately for certain
situations (Blanchard et al. 1985). To identify what is needed in any situation, a
leader must evaluate his employees to decide how competent and determined they
are to perform a particular task. Situational leadership—based on the assumption that
employees’ skills and motivations change over time—suggests that leaders must
66 O. G. Ertosun and Z. Adiguzel

change to the degree necessary to meet the changing needs of subordinates

(Blanchard 1985). In short, the core of situational leadership is that leaders must
determine their style according to the ability and commitment of their subordinates.
Effective leaders are people who can identify what their employees need and set their
own style to meet these needs (Hersey and Blanchard 1969a, b).

4.2.4 Power/Influence Approach

This approach explains leadership through two aspects. The Power relations period
emphasizes the source, the amount of power, and how they used this power. In
todays’ organizations, a leaders dictatorial and authoritarian characteristics are
considered ineffective; however, it is prevalent to experience such managers in
organizations. The second aspect is the persuasion period. Instead of cooperation
and mutual interaction between the leader and the employee, a structural antagonism
emerges which is led by the leader of the employees. The biggest drawback of this
aspect is that an employee’s competency or ability to take initiative remains
undeveloped (Seters and Field 1990).

4.2.5 Modern Leadership Approach

Recently, researchers tried to define new types of leadership ethical, servant, spiri-
tual, and authentic leadership that are centered on different components. They
suggested that these types of leadership are more effective in meeting the demands
of the new business world and the current needs of employees. Leadership theorists
have studied integrative leadership theories containing multiple components: traits,
behaviors, influence processes, situational variables, and outcomes. However, new
leadership concepts are also insufficient to define all aspects and all required
properties of leadership (Yulk 2013).

5 The Relationship Between Leadership, Personal Values

and Organizational Culture

Everybody judges situations they encounter differently, which results in different

behaviours. The degree of importance given to values differs from person to person,
also affecting attitudes in business life (Cohen 2009). In this context, values also
have great importance at the management level in terms of organizational effective-
ness. Giberson and others carried out a study on the personalities of CEOs and stated
that their values not only affected their behaviours and decisions but also the social
environment of the organisation (for example, culture). They argue that the person-
alities of senior managers affect the new or existing members of the organisation and
Leadership, Personal Values and Organizational Culture 67

the relationship between the members as a result of making decisions or approving or

disapproving of members’ behaviours (Giberson et al. 2009).
Personal values bring certain standards to the thoughts and feelings of the
managers within the organizational culture and shape the behaviours and decisions,
thus creating an ideology for the organization. The concept of value is highly
influential in a managers’ decisions about their work, managerial success, and
other relationships (Russell 2001; Naktiyok 2002). Again, research on this subject
states that personal values influence strategies and behaviours such as selection and
reward system, organizational responsibility, adaptation to the job, superior-
subordinate relationship, amount of risk, decision style, productivity, service quality,
group behaviour, communication, and leadership and conflict level (Burke 1997;
Russell 2001). In addition, theorists on this subject state that value is related to
leadership types and managerial decision mechanisms (Altıntaş 2006). Life values
are considered to be the most important elements of economic, social, and political
theories in communities experiencing a rapid development process. When we take
into account the above mentioned effects of life values, it is clear that the satisfaction
of work life depends on the results of values because behaviours such as election and
reward system, organizational responsibility, adaptation to work, superior-
subordinate relationship, decision making style, group behaviour, communication,
leadership and conflict level are influenced by values and elements of job satisfaction
(Naktiyok 2002).
Organizational values constitute the framework of all other strategic decisions. It
shapes the professional roles and responsibilities of employees, as well as shaping
the company’s performance evaluations, training programs, business organization,
and key business decisions (Howard 1990, p. 143). Values contribute to the forma-
tion of organizational culture through these elements.
Studies have shown that the human resources department within an organization
is influenced by the core values of the organization. Toh et al. (2008) found that
organizational values are associated with the innovation, human orientation, and the
stability of the human resource practices adopted by an organization. Accordingly,
reformist organizations give importance to the employees’ risk taking, competitive-
ness, and ability to take advantage of potential opportunities. People-oriented orga-
nizations place emphasis on cooperation, support, information sharing, flexibility,
respect and tolerance. Lastly, stable institutions take notice of predictability and
continuity.
Multidimensional studies have been carried out on leadership and culture rela-
tions in literature. Some researchers have found relationships between the personal
characteristics of leaders and structural characteristics indicators of companies
(Miller 1986). Likewise, it has been pointed out in related literature that the behav-
iours of senior leaders who aim to improve performance or establish an institution
should also form the organizational processes and structural characteristics to
strengthen organizational cultures (Tsui et al. 2006). However, in addition to the
theoretical studies on the joint subject of culture and leadership, when these subjects
were considered separately, it is evident that leaders play an important role in
creating and sustaining the culture in organisations (Schein 1992). Furthermore, it
68 O. G. Ertosun and Z. Adiguzel

is important to both understand the culture and have the ability to perform success-
fully in this culture in order to increase the effectiveness of leadership (Hennessey
1998; Bakan 2009).
Organisational culture is a subject that interests researchers of leaderships, man-
agement consultants, and company managers. Organizational culture is also
described as the reason behind the failure of mergers and acquisitions and as a
management tool to create a competitive advantage and provide a base (Bennis and
Nanus 1985; Trice and Beyer 1993; Donahue 2001). The senior managers should
manage complex relationship in order to create a successful organizational culture
(Schein 2004; Trice and Beyer 1993). Although, there are a number of theories that
show that leaders are influential in their organizations, there are only a few studies
that examine the individual differences of the leaders, and their organizational
characteristics and achievements.
The research about leadership characteristics and organizational structures, espe-
cially with organizational culture, might be difficult due to the complications in
measuring and assessing psychological attributes such as individual personality
characteristics of leaders. In 1968, research conducted by L. K. Williams stated
that different disciplines have different interests at micro-levels as well as macro
levels e.g. personality traits. Williams notes that it is important to study the person-
ality, structure, and functioning of the organizational system concurrently in order to
understand organizational behaviours.
Schneider, Goldstein, and Smith (1995) state that organizational goals are gen-
erally generated from the personality characteristics of their executive leaders. Thus,
top-tier leaders, and especially founders, mirror their own characteristics onto
organisations by emplacing their own aims (Schneider 1987). In other words, the
content of organisational culture is not randomly formed but is formed by the key
strategic and operational decisions of the senior executives, which is a reflection of
the characteristics of senior executives. These decisions form the basis of shared
values and assumptions that have become the culture of the institution. For this
reason, there is a relationship between personal characteristics of senior managers
and cultures that emerge in their organizations.
Schein (2004) states that managers consciously and unconsciously place their
tendencies and preferences in their organizations through various mechanisms, such
as the criteria used to allocate rewards or personnel decisions. Leaders interact with
the individuals of the organisation and determine how the organization will reach its
targets; meanwhile, leaders also create cultural forms by behaving sensibly on how
the organization will work. Leaders further strengthen cultural content through
explanation or empowerment mechanisms such as stories, legends and official
statements—particularly during the decision process of organizational design.
Researchers who present their views on the causes of relationships between
organizational culture and leadership consider culture as a complementary part of
an organisation and argue that a leader has a significant influence on organizational
cultures since his/her emotions, thoughts and reactions shape the culture (Bass and
Avolio 1994; Schein 1992). In addition, Richard Hendrickson, in his 1989 study on
culture and leadership, notes that leadership is, in fact, a cultural expression. Both
Leadership, Personal Values and Organizational Culture 69

findings of empirical and theoretical studies and predictions show that these vari-
ables have complex relationships, thereby shaping one another.
As a result of these findings, it is understood that the personal values and
leadership are inevitably influential in the formation of an organizational culture,
which leads to the achievement of desired aims by determining common under-
standing and behaviours in an organization. For this reason, it is vital for an
organization to use these tools effectively in order to achieve positive outputs,
competition superiority, and ensure sustainability and continuity, which are the
basic principles of an organisation.

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