1 Chapter Ten Organizational Culture and Ethical Values

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

3 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), Used with permission.

4 Organizational Chart for Nordstrom Board of Directors Store Mgrs, Buyers, Merch Mgrs Dept Managers Sales & Sales Support Customers

5 Relationship of Environment and Strategy to Corporate Culture Needs of the Environment Strategic Focus Adaptability Culture Clan Culture Bureaucratic Culture Mission Culture Flexibility External Internal Stability 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): ; 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).

6 Organizational Design and Culture Adaptability Culture Mission Culture Clan Culture Bureaucratic Culture Culture Strength and Organizational Subcultures

7 Sources of Ethical Values in Organizations Personal Ethics Organizational Culture Organizational Systems External Stakeholders

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

9 Formal Structure and Systems Disclosure Mechanisms Code of Ethics Training programs

10 Shop ‘Til You Drop Workbook Activity Culture Item DiscountStoreDepartment Store Store 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: