How Does Leadership Impact Organizational Culture?

Who sets the mood for the workday?

It’s a familiar scene: Monday morning. You commute to the office, greet your colleagues, make your cup of coffee, and settle in at your desk. Then, your first conversation with your manager goes one of two ways: 

1. You’re on the same page about your goals and challenges for the week. Your manager is communicative, helps you troubleshoot roadblocks, and asks how they can support you.
2. Your manager's expectations aren’t transparent. Processes are disorganized, deadlines are vague, and you feel like you’ve failed before you've ever started. You start the work week riddled with anxiety and ready to look for other jobs. 

While these are just two individual interactions, they’re indicative of something bigger: how leadership impacts organizational culture. A good organizational leader is crucial to motivating their team and driving a company’s success, but an ineffective leader can stop even the most productive employees in their tracks. 

Organizational culture can be hard to define, especially because it’s not established in a step-by-step, regimented way. Think of it as the values and behaviors that shape a company’s daily operations. 

Unlike a company’s mission statement, organizational culture tends to emerge naturally. It can’t be controlled or enforced. Because of that, it’s very evident to employees, and even the public, when organizational culture doesn’t align with the company’s outwardly expressed values.  

No matter your industry, you’ve likely experienced a different company culture in every workplace. A company that supports work-life balance and a welcoming, positive environment has a very different culture than one where lack of transparency, toxic competitiveness, and gossip are the norms. And if you've experienced both, you most likely preferred the first workplace over the second.

Organizational culture affects more than employee satisfaction. Since it's woven throughout a company’s daily operations, it can greatly impact employee retention, productivity, efficiency, reputation, and overall success of the company. 

Organizational culture doesn’t exist in vacuums. A company who states that they value innovation and collaboration, only to discourage new ideas or feedback from employees, isn’t reflecting their values in their company culture.

So how do organizations ensure that their mission aligns with their company culture? The answer is organizational leadership. 

An effective leader mirrors the organization’s mission and values in their management style. Think of it like a ripple effect: if a company prioritizes their employees feeling respected and valued, then it’s up to the leadership team to create that environment. 

That isn't to say that leaders alone impact organizational culture. Every member of an organization contributes to the day-to-day culture, but just like our initial example, it’s leaders who set the tone for everyone around them. 

Ineffective organizational leadership severs the connection between an organization’s culture on paper vs. in practice. Because of that, it’s crucial that those in leadership positions develop their skills accordingly. Otherwise, it could have a disastrous effect on employee engagement and profitability. 

We’ve highlighted several ways that ineffective leaders can create a negative organizational culture. What about effective leaders? Here are five ways they shape organizational culture for the better.

1. Establishing and Reinforcing Organizational Values
2. Fostering Trust Through Open Communication
3. Recognizing and Motivating Employees
4. Supporting Employee Growth and Development

As we’ve already discussed, leaders are responsible for upholding the organization’s values. This often starts with communication—as a leader, you ensure that employees understand your organization’s goals, pain points, and overall mission. Along with strengthening organizational culture, this also improves employee engagement. Employees who believe in the common goal of the organization—whether that’s saving lives or providing a positive customer experience—are more productive and invested in their work.

Especially at a large company, you may not have the opportunity to interact with every employee regularly. However, effective leaders can still create opportunities to connect with their employees—not just for occasional “team bonding activities,” but for difficult conversations, too. When you establish a standard for trust and open communication, other managers within your organization will follow suit, and employees will feel heard and valued.

Along with listening to employees, effective leaders also take time to recognize and motivate employees. They know good work when they see it; rather than taking credit for organizational wins, they’re quick to highlight every individual who made it a reality. This, in turn, motivates employees to stay engaged in their work, further boosting a positive organizational culture.

A major aspect of organizational culture is room for growth. Does the company have a high turnover rate, or are there enough opportunities to engage someone throughout their entire career? Effective leaders play a key role in supporting professional development. This might be through a commitment to employer-sponsored education benefits or through active mentorship of junior employees.

Organizational leadership is make-or-break, but luckily, it can be learned.

In fact, many deficiencies in organizational leadership are ultimately due to a lack of leadership development opportunities. According to Zippia, a recruitment services company, only 5% of organizations have implemented leadership development programs at all levels.  

Many individuals take matters into their own hands and pursue further leadership education. Workshops, professional coaching, and even degree programs make it possible to hone both hard and soft leadership skills, including:

• Strategic planning
• Financial management
  
• Data analysis
• Legal and regulatory compliance
  
• Communication
• Emotional intelligence
  
• Adaptability
• Conflict resolution 

Ultimately, you’ll only reach your full potential as an organizational leader by putting these skills to the test. That means utilizing them in the workplace, listening to your employees, and continuing to shape a positive organizational culture.

Whether you’re currently in a leadership role or have your sights set on becoming a manager, the University of Cincinnati’s online degree programs can help you go further.

UC’s online Bachelor of Arts in Organizational Leadership will equip you with the skills needed to influence organizational culture and lead your team toward success. It’s designed with busy adult learners in mind—meaning that you can earn your degree 100% without sacrificing your career or responsibilities at home.  

Your Enrollment Services Advisor is dedicated to your UC journey. They’ll offer personalized guidance and help you identify your next steps. Connect with us today and see where online learning can take you.