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Organizational Culture Ronald R. Sims Distinguished Professor, William and Mary Sport Business Ethics 5/22/2017 1 Jim Leach… http://www.nytimes.com/2009/12/31/sports/ ncaafootball/31leach.html Sport Business Ethics 5/22/2017 2 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 Sport Business Ethics 5/22/2017 3 Some Organizations reinforce illegal activity recruit and promote those with ? values socialize to engage in illegal acts Sport Business Ethics 5/22/2017 4 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. Sport Business Ethics 5/22/2017 5 Climate conducive to unethical .. Rationalization Impatient Ambition Seductive Positions Ignoble Expectations Upside-down Incentives Unguarded Trust Sport Business Ethics 5/22/2017 6 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 Sport Business Ethics 5/22/2017 7 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 Sport Business Ethics 5/22/2017 8 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. Sport Business Ethics 5/22/2017 9 The Nature of Decision Making in Organizations Sims Sport Business Ethics 5/22/2017 10 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 Sport Business Ethics 5/22/2017 11 Heuristics Availability --Using limited information to make a judgment Representative --stereotypical perceptions Sport Business Ethics 5/22/2017 12 Organizational impediments.. Time constraints Face saving Bounded indiscretion --everybody else... Sport Business Ethics 5/22/2017 13 Obstacles to Group Decisions... Group Think Risky-shift behavior Commitment errors Goal-setting challenges Abilene Paradox Sport Business Ethics 5/22/2017 14 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... Sport Business Ethics 5/22/2017 15 Risky Shift Behavior make riskier decisions because individual members do not fear personal retribution. Sport Business Ethics 5/22/2017 16 Commitment Errors Live up to commitments no matter what... Sport Business Ethics 5/22/2017 17 Goal Setting Challenges Groups setting goals Sport Business Ethics 5/22/2017 18 Abilene Paradox Conscious partakers causes malaise less than the sum Speak up for self Sport Business Ethics 5/22/2017 19