Managers and leaders differ in attitude towards goals, conception of work and relations with others, according to an HBR study cited in the post. Managers treat goals passively and focus on how work gets done, while leaders set goals actively and take fresh approaches. Leaders also shape organisational culture through what they measure, reward and role-model.
Last updated · Bodhih Insights team · reviewed by Siddharthan VGJ, Founder

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Attitude towards goals – Managers tend to adopt a passive attitude towards goals. Managerial goals arise out of necessities rather than desires. Leaders, on the other hand, take a more active role in goal setting. The net result of this is a change in people’s perception about what is desirable, possible and necessary.
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Conception of work – Managers tend to view work as an enabling process involving some combination of people and ideas. Leaders work in the opposite direction. Leaders take fresh approaches to problems and explore new options.
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Relations with others – Managers prefer to work with people and avoid solitary activity. The main difference is between attention to how to get things done and a leader’s to what the events and decisions mean.
To determine whether leaders shape company cultures or vice- versa, the role that leaders play in shaping the culture of an organisation is as below:
- What leaders pay attention to – measure, control?
- Leaders reaction to critical events
- Criteria for resource allocation
- Role modelling, coaching and teaching
- Observed way of allocating rewards and status
- Criteria for recruitment, selection, promotion, retirement and ex-communication
If organisational culture is a major determinant of organisational effectiveness, then the influence of leadership is seen in the symbols, beliefs, rituals, language and ideology that one sees in the organisation.
Quick answers
How do leaders shape organisational culture?
Leaders shape culture through what they pay attention to, measure and control, how they react to critical events, how they allocate resources, rewards and status, their role modelling, coaching and teaching, and their criteria for recruitment, selection, promotion and exit. Their influence shows in the organisation's symbols, beliefs, rituals and language.



