be ivory towers, because managers need feedback in order to continually improve
themselves. Power must not be isolated and must always remain in the service of
the organization – not in the service of the leader.
2.4.3 The Corporate Culture
Leadership does not take place in a vacuum. Rather it should always depend on the
values, the attitudes and the mindsets of the organization’s members. These are
formed by individual socialization and experiences, the culture of our environment
and by the spirit or culture of the organization itself. Management is always
anchored deeply in the culture. If a leader requests something from their employees
that they are not used to as part of their culture, that leader will fail. Similarly,
economic changes in a society will only be successful if the corresponding change
in culture has taken place beforehand (see Drucker 2002).
A leader has to be sensitive to the cultural reality of the organization and
the society. They have to be aware of the perhaps implicit rules of the system,
which values are lived out, and what social context the system is implemented in.
This is especially important for working abroad. The leader has to acknowledge the
culture at hand and its opportunities, even and especially if he or she wants to
change it.
Two approaches of leadership theory deal with the cultural factor: corporate
management and the theory of open systems. Corporate management investigates
structures and processes of leadership in different cultures of the world and exa-
mines the differences and similarities. The theory of open systems deals with the
question of how influences develop in organizations that determine the perceptions
and actions of the organizations’ members.
Also research results of neighboring disciplines show the effects of the cultural
environment, organizational environment and possible subcultures within the orga-
nization on leadership behavior and the success of leadership. Different cultures
determine different roles for the individual in a social system. They rely on different
elements of motivation. They lead to different structures of power and control. And
they produce different control systems shaping behavior. Conversely, the style of
leadership influences the culture of the organization. Therefore a strong interaction
exists between the philosophy of leadership and the culture of the organization,
where each can be both cause and effect (see Heinen 1998, p. 174).
As mentioned in Sect. 1.1.5, the environment plays an important part in the
certainty or uncertainty of completing a task, and is an important factor shaping
the leadership situation. “Just as people uphold certain values, organizations also
have values of their own. The values of the individual must harmonize with those of
the organization – otherwise they cannot work efficiently” (Drucker 1999a, p. 14).
Thus, corporate culture and leadership culture are closely connected and mutu-
ally dependent. The good leader is part of the corporate culture but also shapes it
with his or her values, conduct, communication and the rules he or she establishes.
112 2 Occupation or Calling: What Makes for Good Leadership?