Organizational Culture and Ethical Values Chapter Ten Organizational Culture and Ethical Values Thomson Learning © 2004

Levels of Corporate Culture Observable Symbols Ceremonies, Stories, Slogans, Behaviors, Dress, Physical Settings Underlying Values, Assumptions, Beliefs, Attitudes, Feelings Thomson Learning © 2004

A Typology of Organizational Rites and Their Social Consequences Type of Rite Example Social Consequences Passage Induction and basic training; US Army Facilitate transition of person into new social roles and statuses Enhancement Annual awards night Enhance social identities and increase status of members Renewal Organizational development activities Refurbish social structures and improve organization functioning Integration Office holiday party Encourage and revive common feelings that bind members together and commit them to the organization Source: Adapted from Harrison M. Trice and Janice M. Beyer, “Studying Organizational Cultures through Rites and Ceremonials,” Academy of Management Review 9 (1984), 653-659. Used with permission. Thomson Learning © 2004

Relationship of Environment and Strategy to Corporate Culture Needs of the Environment Flexibility Stability External Adaptability Culture Mission Culture Strategic Focus Clan Culture Bureaucratic Culture Internal Sources: Based on Daniel R. Denison and Aneil K. Mishra, “Toward a Theory of Organizational Culture and Effectiveness,” Organization Science 6, no. 2 (March-April 1995): 204-23; R. Hooijberg and F. Petrock, “On Culture Change: Using the Company Values Framework to Help Leaders Execute a Transformational Study,” Human Resource Management 32 (1993): 29-50; and R. E. Quinn, Beyond Rational Management: Mastering the Paradoxes And Competing Demands of High Performance (San Francisco: Jossey-Bass, 1988). Thomson Learning © 2004

Ethical Values in Organizations Ethics Rule of Law Managerial Ethics Social Responsibility Ethical Dilemma Thomson Learning © 2004

Forces That Shape Managerial Ethics Personal Ethics Organizational Culture Beliefs and Values Moral Development Ethical Framework Rituals, Ceremonies Stories, Heroes Language, Slogans Symbols Founder, History Is Decision or Behavior Ethical and Socially Responsible? Organizational Systems External Stakeholders Structure Policies, Rules Code of Ethics Reward System Selection, Training Government Regulations Customers Special Interest Groups Global Market Forces Thomson Learning © 2004

Formal Structure and Systems of the Organization Ethics committee Chief Ethics Officer Whistle-blowing Code of ethics Training programs Thomson Learning © 2004

Shop ‘Til You Drop Culture Item Discount Store Department Workbook Activity Shop ‘Til You Drop Culture Item Discount Store Department 1. Mission of store: 2. Individual initiative: 3. Reward system: 4. Teamwork: 5. Company loyalty: 6. Dress: 7. Diversity of employees: 8. Service orientation: 9. Human resource development: Thomson Learning © 2004