thomson learning © 200410-1 chapter ten organizational culture and ethical values
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Thomson Learning© 2004 10-1
Chapter Ten
Organizational Cultureand Ethical Values
Thomson Learning© 2004
10-2
Organizational Culture
Def: the set of values, beliefs, understandings and ways of thinking that are shared by org members & taught to new members as correct
Surface level Underlying level
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Levels of Corporate Culture
Observable
Underlying Values,
Assumptions,Beliefs, Attitudes,
Feelings
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Interpreting Culture
Rites & Ceremonies - expressive events
Stories - history & folklore
Symbols - deeper values
Language - ingroup vocabulary
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A Typology of Organizational Rites and Their Social Consequences
Type of Rite Example Social Consequences
Passage Induction and basic training; US Army
Facilitate transition of person into new social roles and statuses
Enhancement Annual awards night Enhance social identities and increase status of members
Renewal Organizational development activities
Refurbish social structures and improve organization functioning
Integration Office holiday party Encourage and revive common feelings that bind members together and commit them to the organization
Source: Adapted from Harrison M. Trice and Janice M. Beyer, “Studying Organizational Cultures through Rites and Ceremonials,”Academy of Management Review 9 (1984), 653-659. Used with permission.
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Relationship of Environment and Strategy to Corporate Culture
Needs of the EnvironmentS
trate
gic
Focu
s
AdaptabilityCulture
ClanCulture
BureaucraticCulture
MissionCulture
Flexibility
External
Internal
Stability
Sources: Based on Daniel R. Denison and Aneil K. Mishra, “Toward a Theory of Organizational Culture and Effectiveness,”Organization Science 6, no. 2 (March-April 1995): 204-23; R. Hooijberg and F. Petrock, “On Culture Change: Using the CompanyValues Framework to Help Leaders Execute a TransformationalStudy,” Human Resource Management 32 (1993): 29-50; and R. E. Quinn, Beyond Rational Management: Mastering the ParadoxesAnd Competing Demands of High Performance (San Francisco:Jossey-Bass, 1988).
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Forces That Shape Managerial Ethics
IsDecision
or BehaviorEthical and
SociallyResponsible?
Beliefs and ValuesMoral DevelopmentEthical Framework
Rituals, CeremoniesStories, HeroesLanguage, SlogansSymbolsFounder, History
Government RegulationsCustomersSpecial Interest GroupsGlobal Market Forces
StructurePolicies, RulesCode of EthicsReward SystemSelection, Training
External StakeholdersOrganizational Systems
Personal Ethics Organizational Culture
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Ethical Issues in Business Ethics: the study of
morals and principles of conduct
Right vs. Wrong Human consequences
associated with decisions and actions
Higher standards than prescribed by the law
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Ethical Frameworks
The Ethical / Legal Framework:
When are actions legal but unethical, or illegal but still ethical?
The Moral Philosophy Framework:
What are underlying assumptions?
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The Ethical / Legal Framework
Legal+Ethical? Do it!
Illegal+Unethical? Don’t do it!
But… legal, but unethical?
Or… illegal, but ethical?
Ethical dilemmas
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The Moral Philosophy Framework
1) Utilitarian: Consequential
theories cost/benefit analysis maximize ‘good’ and
minimize ‘harm’ Limitations: Measurement issues Whose utility curve?
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The Moral Philosophy Framework
2) Categorical Imperative:
Rule-based theories Absolute or universal
law… Bible, Koran Limitations: Whose
interpretation? Just following
orders...
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The Moral Philosophy Framework
3) Cultural Relativism:
Cultural theories Situational ethics “When in Rome…do
as the Romans do.” Limitation: Which Romans?
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Formal Structure and Systems of the Organization
Ethics committee Chief Ethics Officer Whistle-blowing Code of ethics Training programs
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Shop ‘Til You Drop
WorkbookActivity
Culture Item Discount Store
Department Store
1. Mission of store:
2. Individual initiative:
3. Reward system:
4. Teamwork:
5. Company loyalty:
6. Dress:
7. Diversity of employees:
8. Service orientation:
9. Human resource development: