THE RELATIONSHIP BETWEEN LEADERSHIP AND ORGANIZATIONAL CULTURE
THE RELATIONSHIP BETWEEN LEADERSHIP AND ORGANIZATIONAL CULTURE

Summary/Abstract: An organization’s leader creates the organizational culture according to their own traits, values, and style. Managing organizational culture is an integral part of organisational management. A leader’s ability to drive action for performance improvement depends on the organization’s culture. Organizational culture is considered one of the key segments of organizational behaviour, and its influence on employee behaviour during work processes is highly significant. Cultural differences impact the vision of leadership intended for implementation and the effectiveness of leadership actions, behaviours, and styles. All organizations possess an invisible quality, a certain character, and a way of functioning. This organizational character and operational mode can be stronger than any individual or formal system. To understand an organization’s soul, one must go beyond written rules and structure into the hidden world of organizational culture. This paper is a theoretical attempt aimed at establishing the mutual relationship between leadership and organizational culture. The research results show that leadership significantly influences the creation and shaping of organizational culture. Consequently, organizational culture has a strong impact on the behaviour of its members, their motivation, work performance, and the overall success of the organization.

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