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Lecture 12 ETHICSAND ORGANIZATIONAL CULTURE For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Philosophy and ethics Ethics - Doing the right thing Philosophy - the critical evaluation of assumptions and argument Moral philosophy - ‘a philosophical inquiry about norms or values, about ideas of right and wrong, good or bad, what should and what should not be done’ Four major approaches to the basis of moral decision making: • Naturalism • Rationalism • Utilitarianism • Formalism For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Philosophy and ethics For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Ethical perspectives in organizations Utilitarian approach: • Act utilitarianism • Rule utilitarianism Contract approach: • Restricted contractarianism • Libertarian contractarianism For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Corporate governance Mahoney (1997) - reasons why businesses take interest in ethics: • Following fashion • Response to pressure • Pursuit of profit • Stakeholders consider that it is right • Mixture of reasons above For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Social responsibility The role of business in society Positive and negative impact - social responsibility Johnson and Scholes • Internal aspects • External aspects Web of relationships For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Cross cultural perspectives on ethics Leisinger (1995) Moral common sense rules: • Avoid harming others • Respect the rights of others • Do not lie or cheat • Keep promises and contracts • Obey the law • Prevent harm to others • Help those in need • Be fair • Reinforce these imperatives in others For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Ethics and antisocial behaviour Giacalone and Greenburg (1997) For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Ethics and antisocial behaviour Punch identifies three categories of variable: • Structure • Culture • Personality/identity Kohlberg/Snell: Avoid punishment; obey those in authority • Seek personal gain; avoid losing out • Earn the approval of others by being nice to them • Conform to rules, laws, codes and conventions • Follow principles based on respect of others rights, organisms and the greater good • Continually question your own actions and principles Snell - four psychic prisons: • Being in possession of limited ethical reasoning dilemmas • Stereotypical assumptions • Holding restricted levels of organizational responsibility • Constraints by moral ethos For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Ethics and management For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Ethics and management For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Ethics and management • The role of work in society • Corporate and public interest • Obligations at work • Privacy • Working at home and work-life balance • Whistleblowing For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Defining organizational culture Kroeber and Kluchohn (1952) - 164 different meanings of culture Some writers suggest the concept has no real value because the variety of meanings is so diverse Kilman et al (1985) - culture reflects the ideologies, shared philosophies values, beliefs, assumptions, attitudes, expectations and norms of an Organization Deal and Kennedy (1988) - symbolism and leadership Thompson and McHugh (1990) - significance of personnel management in achieving and maintaining new and more appropriate cultures For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Levels of analysis Cray and Mallory (1998) Naïve comparative Culture free Culture bound For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning For use with Organizational Behaviour, Second Edition Copyright © John Martin 2001. ISBN 1-86152-583-4 The dimensions of culture Schein (1985) - six dimensions: • Behavioural regularities • Dominant values • Norms • Rules • Philosophy • Climate For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Handy’s four types of culture Plus - Person culture For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Peters and Waterman’s excellence and culture Based on ‘shared values from the McKinsey 7-S framework: • Bias for action • Being close to the customer • Autonomy and entrepreneurship • Productivity through people • Hands on, value driven • Stick to the knitting • Simple form, lean staff • Simultaneous loose-tight control For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Deal and Kennedy’s cultural profile • Work and play hard • Process culture • Macho culture • Bet your company culture For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Trice and Beyer’s organization culture A Company communications • Stories • Myths • Folk tales • Symbols B Company practice • Rites • Ritual • Ceremonial C Common language D Physical culture • Artefacts • Layout For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Sub and countercultures Culture is a differentiating feature of organizational life Informal groups Countercultures exist where one or more groups are disaffected and have objectives counter to those of the dominant group For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning The determinants of culture • History and ownership • Size • Technology • Goals and objectives • Environment • People For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Hofstede’s perspectives on culture • Individualism-collectivism • Power distance • Uncertainty avoidance • Masculinity-femininity For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Trompenaar’s perspective on culture Seven dimensions of culture: • Five deal with the way in which people interact • The sixth with people’s perspective on time • The seventh with the approach to moulding the environment These combine to create different corporate cultures including: • Family • Eiffel Tower • Guided missile For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Globalization and culture Yip (1989) - three stage process • Developing a core strategy as the basis of competitive advantage • Internationalization of the home country strategy • Globalization through integration of the largely separate country based international strategies Bartlett and Ghoshal (1989) • International organization • Transnational organization Two options available to an organization in its approach to culture: • Polycentric • Ethnocentric For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Managing culture Cartwright - nine factor test For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Managing culture Trompenaar and Wooliams (1999) • Universalism v participation • Individualism v communitarianism • Specific v diffuse • Neutrality v affectivity • Inner directed v outer directed • Achieved status v ascribed status • Sequential time v synchronic time For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning Changing organizational cultures Lundberg (1985) - six stage programme • External • Internal • Pressures • Visioning • Strategy • Action For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1 Copyright © 2005 Cengage Learning
