Leadership and organisational culture: formula sheet

Key formulas

Kotter: management

Management = coping with complexity (planning and budgeting, organising and staffing, controlling and problem solving)

Short-term, process focused, aims for order and consistent results.

Kotter: leadership

Leadership = coping with change (setting direction, aligning people, motivating and inspiring)

Long-term, people focused, aims for useful change and commitment.

Common contrast

Leaders do the right things; managers do things right

A memorable contrast, not an absolute rule. Both roles overlap in practice.

French and Raven bases of power

Legitimate, Reward, Coercive, Expert, Referent (plus Informational added later by Raven)

The original model has five bases. Say clearly that informational power is a later addition.

Handy's types of power

Physical, Resource, Position, Expert, Personal, Negative

Use Handy's labels when the question names Handy. Do not mix them with French and Raven's labels without saying so.

Power versus authority

Authority = power + legitimacy (accepted right to act)

Authority is a form of power that followers accept as rightful. Power does not need acceptance.

Power and likely response

Coercive/legitimate → compliance; expert/referent → commitment (typical, not certain)

This is a general tendency. State it as likely, not as always true.

Schein's three levels

Artefacts → Espoused values → Basic underlying assumptions

Moves from visible to hidden. The deepest level is the hardest to change and the most influential.

Handy's four cultures

Power | Role | Task | Person

Link each to structure, decision speed and suitability. Zeus (power), Apollo (role), Athena (task), Dionysus (person) are the usual god labels.

Hofstede's dimensions

Power distance | Individualism-collectivism | Masculinity-femininity | Uncertainty avoidance | Long-term orientation | Indulgence-restraint

National culture, not organisational culture. Use as tendencies and avoid stereotyping.

Cultural web elements

Paradigm at centre, surrounded by: Stories, Symbols, Power structures, Organisational structures, Control systems, Rituals and routines

Describe the current web, then the desired web, then the gap to be closed.

Cultural web elements

Paradigm + Stories + Symbols + Power structures + Organisational structure + Control systems + Rituals and routines

Use all seven where the scenario gives evidence. Do not invent evidence for elements the case is silent on.

Schein's three levels

Artefacts (visible) → Espoused values (stated) → Basic assumptions (deep, taken for granted)

Useful when stated values differ from real behaviour. Change at the deepest level is the hardest.

Handy's culture types

Power (Zeus) | Role (Apollo) | Task (Athena) | Person (Dionysus)

Use to judge fit with strategy, for example role culture suits stable environments but struggles with fast change.

Culture–strategy fit test

Required behaviours for the strategy vs actual behaviours in the culture = cultural gap

The size of the gap shows how hard implementation will be and how much change is needed.

Core causal chain

Leader behaviour → culture and signals → ethical climate → employee behaviour → stakeholder outcomes

Use this as the spine of your answer. Each link needs evidence from the scenario.

Test of tone at the top

Words (stated values) vs Actions (decisions, rewards, tolerance of breaches)

A gap between the two is the usual source of an ethical problem in scenarios.

Cultural web elements

Stories, symbols, rituals and routines, power structures, organisational structure, control systems, paradigm

Use as a checklist for evidence of culture. You do not need to cover all seven.

Levers leaders can use to shape ethics

Role modelling, codes of conduct, training, reward and appraisal, speak-up channels, consistent discipline, governance oversight

Match recommendations to the weakness found in the scenario.

Quick revision

• Leaders set direction and inspire; managers plan, organise and control to deliver results.
• Styles are not good or bad in themselves; the best choice depends on the task, people and situation.
• Match style to context: more directive when people are inexperienced or time is short, more participative when people are skilled.
• Power comes from several sources, and authority is power that people accept as legitimate.
• Culture is the shared assumptions and behaviours that show how things are really done.
• Use culture models as lenses: each highlights different layers or features of culture.
• Look for the cultural web evidence: stories, symbols, power structures, control systems, rituals and organisational structure.
• A strategy that conflicts with culture is at risk, so test fit before recommending it.
• Cultural change is slow and needs visible leadership, aligned systems, reward changes and communication.
• Expect resistance to change and plan how to address it with engagement and clear reasons.
• Leaders set the tone for ethics, and culture decides whether ethical policies are followed in practice.
• Always end with a specific, justified recommendation tied to the case facts.

Common mistakes

• Treating leaders and managers as two different people or job titles. Fix: Say that leadership and management are roles. One person can do both. Judge by what they do, not their title.
• Saying leadership is good and management is bad (or the reverse). Fix: Follow Kotter: both are needed. Explain what the organisation loses without each.
• Listing the five bases with definitions but no case evidence. Fix: Quote or paraphrase the scenario for every base and explain its effect on the people and the organisation.
• Treating power and authority as the same thing. Fix: State that authority is legitimate power attached to a role and accepted by others. Show a case where they differ.
• Describing the model without using the scenario. Fix: Allow no more than a quarter of your answer for theory. Every point needs a case fact attached.
• Treating espoused values as the real culture in Schein's model. Fix: Look for behaviour that contradicts stated values. That gap points to the real underlying assumptions.
• Drawing the cultural web without applying it to the strategy. Fix: After the diagnosis, always state how each key element helps or blocks the strategy, then move to recommendations.
• Listing web elements with generic definitions and no case evidence. Fix: Use one scenario quote or fact per element. If the case has no evidence for one, skip it.
• Writing a general essay on ethics or leadership theory without using the scenario. Fix: Quote or paraphrase scenario facts in every paragraph and say what each fact shows.
• Treating a code of conduct as the solution on its own. Fix: Explain that a code only works if leaders model it, staff are trained, and breaches are handled consistently.

Exam tips

• Always use Kotter's two sets of three headings, then apply them to named people or units in the case.
• Do not give a long theory list. Markers reward application and judgement, which also supports professional skills marks.
• Show balance. Say which of the two the organisation needs more of at this point and why.
• Link to other topics where relevant, such as leadership style, culture or change, to show integrated thinking.
• Always tie each power base to evidence in the case. Marks go for application, not definitions.
• Name the model the question uses. If it says Handy, use Handy's types and do not rely on French and Raven alone.
• Discuss both the benefit and risk of each power source, and say whether it creates compliance or commitment.
• Distinguish clearly between power and authority when the scenario involves a person with a title but no real influence, or the reverse.