Business Studies

Strategic Management Topic 6 Q2 What can strategic leaders do to develop and sustain an effective organizational culture? What actions can a strategic leader take to establish and maintain ethical practices within a firm?

ANSWER

Strategic Management

The ways strategic leaders establish organizational culture are as follows:

• Embracement of transparency: Transparency improves positivity among employees. Thus, strategic leaders need to embrace transparency in the operational activities of an organization.
• Modern communication tool: instead of using conventional communication equipment, leaders need to motivate the organization to use updated communication equipment like slack, skype, hangout tools, Trello and virtual teams for round the clock communication (Arifin et al., 2018). The updated tools should be used to maintain secure contact for promoting organizational cultures.
• Reward and recognition: employees should be rewarded and recognized for their excellent performance. All the employees should be equally treated during the award where the performance should be the ultimate parameter for compensation instead of employee background.
• Cultivating strong workers partnership: String workers partnership should be promoted with the highest value. The intercultural relationship among workers is one of the most effective approaches to develop a robust organizational culture.

Actions to establish ethical practices are as follows:

• Diversity maintenance: Adequately maintenance of diversity is a significant way to build ethics in the organization. Hiring people from different countries, regions, or cultures, or races allows an organization to have a pool of talent and increase its maintenance of employees since it is much easier for workers to tolerate each other when they come from diverse backgrounds (Arifin et al., 2018). All the employees should be equally respected and assisted by the organization in the workplace irrespective of their socio-cultural aspects.
• Human rights: The organizations should ensure human rights to all the employees and managers in the organization to establish ethics. They should be given the freedom to work in a free environment without any certain biases.
• The clarity in the report: All the organizational reports, including stakeholders report, budget report and auditing report should be clear and easy understandable. It promotes ethics and transparency.

Reference

Arifin, I., Juharyanto, Mustiningsih, & Taufiq, A. (2018). Islamic crash course as a leadership strategy of school principals in strengthening school organizational culture. Sage Open, 8(3), 2158244018799849.