Ethics by yurtgc548


									                 Organizational Culture
I. Definition of Organizational Culture
                    Some definitions include:
         “the accepted way of thinking, feeling, and acting in an

     “shared beliefs about what is important and how things are done”

      “an interdependent set of values and ways of behaving that are
                   common in an organization”

       “social forces through which people learn norms and values.
      They are rewarded when they accept them and ostracized when
                            they do not.

       “social glue that binds members of the organization together
       through shared values, symbolic devices, and shared ideals”

                   “what goes on around here”
 II. Function of culture – what does it do to
  benefit the organization?
     A. Establishes Organizational Identity –
      Timberland, Southwest, “Hey, I work for one
      of the Big 5 Accounting firms.”
     B. Fosters Commitment – Sense of loyalty
      especially if rewards support ownership
     C. Promotes Stability – Not inertia, but a
      culture of expectations (norms and rules) and
      what to anticipate and how to behave
     D. Allows sense making – existing cultural
      practices allow for interpretation and
      anticipation of consequences and behaviors.
   III. How do you develop culture? You can get a
  competitive advantage by developing a strong culture.
    A. History – how it’s been in the past influences the future.

      B. Observation – people observe and consequently behave in a
       manner similar to current members’ behaviors and practices.
       Use modeling and communication to foster the environment
       you want to create

      C. Membership – Staffing!!! MARINERS ARTICLE Internal
       staffing improves positive expectations regarding future
       relationships with the organization. “People first values”
       from Fed Ex

      D. Interaction – socialization techniques and allowances
       regarding decision making can lead to a culture which
       enhances satisfaction consequently improving productivity

      E. Stories and rites – Hazing at SMU where student had to
       drink water. MBWA? Heroes, stories, slogans, symbols,
 IV. Levels of Culture
   A. Behavior – Observable, visible things done
    by people as well as tangible artifacts. Heroes,
    stories, slogans, symbols, and ceremonies are
    part of behavior-level culture.
   B. Values and Beliefs – Provide the operating
    principle for guiding behavior. The mission
    statement is a slogan that conveys values and
   C. Assumptions – understanding based on
    perception of, “That’s just the way it’s done
    around here!”
 V. Values – organization cultures include 2
  kinds of values:
 1) terminal value – a desired goal the organization
  seeks to achieve e.g. excellence, profitability,
  quality, morality (NATD), economy (UPS),
  innovation (3M, Apple);
 2) instrumental values – a desired mode of
  behavior the organization wants members to
  observe to achieve terminal values e.g. respecting
  authority and tradition (military), being
  conservative and cautious (Prudential), being
  honest, taking risks (3M), etc.
     What might be some terminal/instrumental
  values for SU and UW?
   VI. Strong versus Weak cultures
   Strong cultures have:
       A. cohesive sets of values and norms that binds
        members together and fosters commitment from
        employees to achieve organizational goals.
       B. employees who share assumptions, know values and
        beliefs, and behave as expected.
   Weak cultures have:
       A. little guidance about how employees should behave.
       B. rigid organizational structures that may substitute
        for a lack of implicit values and norms.
   One way to facilitate a strong culture is to obtain a good
    match between individual employees and organizational
 VII. Types of cultures – An organization can
  develop some kinds of cultural values to shape the
  way its members behave.
    A. entrepreneurial culture (Fedex)
    B. conservative culture (BofA; Prudential)
    C. ethical culture (Guardsmark)
    D. professional culture – avoid layoffs, invest
     in employees for future service to
     the company
    E. production culture – (UPS) short term
     employment, little investment, focus on costs
    F. personal wealth and little control
   VIII. Merging cultures? HP and Compaq
   IX. Measuring culture?
      - Employees could help develop it.
      - Is it static or dynamic?
      - Is there one best culture?
      - How can we measure it? Some instruments in
       “Gaining Control of the Corporate Culture” book
      - Kilmann-Saxton Culture Gap Survey for $6.50.
      - Do “cultural audits” which Bonneville Power
       Administration did with an OD consultant.
      - Sears did it; In 1992 they had worst financial
       performance for some time. “We had lost sight of our
       customers and employees” It was the revitalization of
       the Sears culture that has played a major role in the
       return to profitability.

 - standards of right and wrong that
    influence behavior

1. The golden rule – Act in a way you would expect others to
     act toward you.

2. The utilitarian principle – Act in a way that results in the
     greatest good for the greatest number of people.

3. The professional ethic – Take actions that would be viewed
     as proper by a disinterested panel of professional peers.
4. The TV test – Managers should always ask, “Would
    I feel comfortable explaining to a national TV
    audience why I took this action?”

5. The legal test – Is the proposed action or decision
    legal? Established laws are generally considered
    minimum standards for ethics.

6. The four- way test – Managers can feel confident that
    a decision is ethical if they can answer “yes” to the
    following questions: Is the decision truthful? Is it
    fair to all concerned? Will it build goodwill and
    friendship? Will it be beneficial to all concerned?
        Social Responsibility

What’s social responsibility?
- Go beyond the law to act responsibly for
    social concerns.
What’s the difference between social
    obligations vs. social responsiveness?
- Responsiveness is guided by social norms
    that can provide managers with a
    meaningful guide for decision making.
    How do managers become more
         socially responsible?
- Ethics- understood set of rules or principles that
   define right and wrong conduct.
- Use a code of ethics?
     - Document of primary values and ethical rules
     the organization expects managers and
     employees to follow. In isolation, they do
     little, but if management considers them
     important and reaffirms their content, ethics can
     provide foundation for effective program.

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