Download Organizational Culture and Ethical Values * Chapter 10

Organizational Culture and
Ethical Values – Chapter 10
Culture is the set of values, norms, guiding
beliefs and understandings that is shared by
members of an organization and taught to new
members as the correct way to think, feel and
behave. It represents the unwritten, feeling part
of the organization. Everyone is a culture being,
but culture generally goes unnoticed.
Culture is like an iceberg!
Observable symbols, ceremonies,
stories, slogans, behaviors, dress,
physical settings.
Underlying values, assumptions, beliefs,
attitudes, feelings
Culture provides people with a sense of
organizational identity and generates in them a
commitment to beliefs and values that are larger
than themselves. They usually begin with a
founder or early leader who articulates and
implements particular ideas and values as a
vision, philosophy, or business strategy. (376)
Internal Integration –members develop a
collective identity and know how to work
together effectively. Guides day-to-day working
relationships and determines how people
communicate within the organization, what
behavior is acceptable or not acceptable, and
how power and status are allocated. (377)
External Adaptation – how the organization
meets goals and deals with outsiders. Culture
helps guide the daily activities of workers to
meet certain goals. It can help the organization
respond rapidly to customer needs or the moves
of a competitor. The right culture can help
transform an organization’s performance from
average to truly great. (377)
Interpreting Culture – To identify and interpret
culture requires that people make inferences
based upon observable artifacts. Examples
include rites and ceremonies, stories, myths,
heroes, legends, symbols, organizational
structures, power relationships, and control
systems.
Symbols
Rites and
Ceremonies
Stories
and
Myths
Organizational
Culture
Organization
Structures
Control
Systems
(378)
Power
Relationships
Adaptability Culture – Characterized by strategic
focus on the external environment through
flexibility and change to meet customer needs.
Example is Google (382)
Mission Culture – Concerned with serving
specific customers in the external environment,
but without the need for rapid change. InBev
NV, the Belgian-Brazilian brewing giant is one
example. (383)
Clan Culture – Primary focus on the involvement
and participation of the organization’s members
and on rapidly changing expectations from the
external environment. Wegman’s (71
supermarkets) is an example.
Bureaucratic Culture – has an internal focus and
a consistency orientation for a stable
environment. (Pacific Edge Software)
(384)
Ethical Values and Social Responsibility
Recent study: Of the 100 largest U.S. corporations,
40% have recently been involved in activities that
can be considered unethical. Other countries have
had similar problems.
Ethics refers to the code of moral principles and
values that governs the behaviors of a person or
group with respect to what is right or wrong.
Ethical values set standards as to what is good or
bad in conduct and decision making.
(389)
The notion of Corporate Social Responsibility
(CSR) is an extension of the idea of managerial
ethics and refers to management’s obligation to
make choices and take action so that the
organization contributes to the welfare and
interest of all organizational stakeholders, such
as employees, customers, shareholders, the
community and the broader society.
(392)
There seems to be a positive relationship
between ethical and socially responsible
behavior and financial results. There is also
evidence that people prefer to work for
companies that demonstrate a high level of
ethics and corporate social responsibility, so
these companies can attract and retain highquality employees.
(393)
A survey of 13-25 year-olds found that 79% say they
want to work for a company that cares about how it
affects or contributes to society.
In a study of ethics policy and practice in successful
companies such as J&J and General Mills, no point
emerged more clearly than the role of top
management in providing commitment, leadership
and examples for ethical behavior. (393)
Values-based Leadership
Organizational values are developed and
strengthened primarily through values-based
leadership, a relationship between a leader and
followers that is based upon shared, strongly
internalized values that are advocated and acted
upon by the leader. Employees learn about values,
beliefs and goals from watching managers, just as
students learn which topics are important for an
exam, what professors like and how to get a good
grade from watching professors. Values-based
leaders “walk their talk”!!!
• Chuck Williams, Sonoma-Williams Company
• Nordstrom Department Stores
• John Tu and David Sun – Kingston Technology
Company
Personal Actions and
Expectations
Hold self to high ethical
standards.
Strive for honesty, humility,
integrity.
Accept responsibility for ethical
failings.
Interpersonal Behaviors
Treat people with care
Be helpful and kind
Support others
Maintain positive
relationships
ValuesBased
Leadership
(395)
Fairness with Others
Treat everyone equitably
Never be condescending
Accept others’ mistakes
Organizational Leadership
Articulate and communicate
ethical vision
Hold people accountable
Put ethics above short-term
interests
Who (or what) a person is
(character, integrity) will
ultimately determine if their
brains, talents, competencies,
energy, effort, alliance-building
abilities, and opportunities will
succeed.
The Humility Dynamic
+
Results
=
in
Patience
Showing self control
Kindness
Giving attention, appreciation and
encouragement
Being authentic and without pretense or
arrogance
Humility
Respectfulness
Treating others as important people
Selflessness
Meeting the needs of others
Forgiveness
Giving up resentment when wronged
Honesty
Being free from deception
Commitment
Sticking to your choices
Results: service and sacrifice
Setting aside your own wants and
needs; seeking the greatest good
for others
Code of Ethics
Formal statement of the company’s values
concerning ethics and social responsibility; it
clarifies to employees what the company stands
for and its expectations for employee conduct.
(397)
Social audit – measures and reports the ethical,
social and environmental impact of a company’s
operations. (399)
Whistle-blower. Tell me about it!
•
•
•
•
What is it?
Who does it?
Why are companies trying to protect them?
When safe-guards are not in place, what
happens to a whistle-blower?