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Organizational Culture
Ronald R. Sims
Distinguished
Professor, William
and Mary
Sport Business Ethics
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Jim Leach…
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http://www.nytimes.com/2009/12/31/sports/
ncaafootball/31leach.html
Sport Business Ethics
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Serves 7 functions
specifies importance of organization
 dictates how resources are used
 establishes what is to be expected
 defines where power lies, and how used
 selects and prescribes what behaviors to do
 sets tone for organization
 instructs how to treat and deal with others
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Some Organizations
reinforce illegal activity
 recruit and promote those with ? values
 socialize to engage in illegal acts
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Put a moral rationalizer
Hurrying to succeed
In a seductive position
Give him ignoble expectations
And upside-down incentive
And walk away...
Brumback, 1991, p. 355.
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Climate conducive to unethical ..
Rationalization
 Impatient Ambition
 Seductive Positions
 Ignoble Expectations
 Upside-down Incentives
 Unguarded Trust
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Internal danger signs
short term revenues
 results versus performance
 ignores or violates codes of ethics
 simple solutions/quick fixes
 victims mentality
 no solution if it means money
 internal environment discourages ethical
behavior
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Keep up with Joneses...no matter what...
 ethics means compliance with laws and
rules
 ethical form above substance to i\enhance
image
 employees are not treated equitably
 unfair performance standards
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No clear-cut policies for handling ethical
problems.
 no plan for bringing forth problems
 ignores the interests of everyone except
shareholders
 employees leave your ethical problems at
home.
 management by loyalty, prohibits difference
of opinion.
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The Nature of Decision Making
in Organizations
Sims
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Cognitive Biases in Decision
Making
Framing Errors -- interpretation of history,
present context, and consequent definition
of relevant image elements
 Heuristics - attempting to simplify the
complex decisions, using simple rules of
thumb as guides
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Heuristics
Availability --Using limited information to
make a judgment
 Representative --stereotypical perceptions
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Organizational impediments..
Time constraints
 Face saving
 Bounded indiscretion --everybody else...
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Obstacles to Group Decisions...
Group Think
 Risky-shift behavior
 Commitment errors
 Goal-setting challenges
 Abilene Paradox
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Group Think
Conscious behavior not apparent
 creates esprit de corps
 group is greater than the individual
 sneaky in the sense that the individual is
lost in the group...
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Risky Shift Behavior
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make riskier decisions because individual
members do not fear personal retribution.
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Commitment Errors
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Live up to commitments no matter what...
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Goal Setting Challenges
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Groups setting goals
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Abilene Paradox
Conscious partakers
 causes malaise
 less than the sum
 Speak up for self
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