1. Chapter Three Organizational Culture and Ethics
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2. Chapter Three Outline
3-1a
Organizational Culture - Organizational Values: The Foundation of Organizational Culture - Four Functions of Organizational Culture
Developing High-Performance Cultures - Developing an Adaptive Culture - How Cultures are Embedded in Organizations
Socialization & Mentoring
Ethics & Organizational Behavior
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3. Organizational Culture Is
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Organizational Culture Is
“The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments.”
- Edgar Schein
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4. Organizational Culture
Influences behavior.
Is learned, usually implicitly—it is passed on to new members through socialization, including mentoring.
Operates at different levels:
Artifacts: visible, on the surface
Behaviors: norms, rituals, language
Values & Beliefs: deeply held, invisible

5. A Model for Observing and Interpreting General Manifestations of Organizational Culture
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Figure 3-2
Culture • Important shared understandings
Interpret • Infer meanings
Objects • Shared things
Talk • Shared sayings
Generate
Receive • Ask • Observe • Read • Feel
Behavior • Shared doings
Emotion • Shared feelings
Source: “Implications of Corporate Culture: A Manager’s Guide to Action,” by Vijay Sathe.

6. Four Functions of Organizational Culture
3-7
Figure 3-3
Four Functions of Organizational Culture
Organizational
identity
Sense-making
device
Collective
commitment
Organizational
culture
Social system
stability
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7. Values Values are the core of organizational culture.
Values can be espoused or enacted.
Espoused: what we say we value
Enacted: what we really do
Gap between them may need to be closed
Value systems: pattern of values

8. Values and Organizational Change
Values are relatively stable over time – they are resistant to change.
Organizational change is difficult if the organization’s values are inconsistent with employees’ individual values (= poor alignment ).
Organizational change may be needed when the organization’s values are inconsistent with values in the larger environment. ( diversity, global)

9. Types of Organizational Culture
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Table 3-1a
Type of Normative Culture Belief Characteristics
Constructive Achievement Goal and achievement oriented
Constructive Self-actualizing Value self-development and creativity
Constructive Humanistic- Participative, employee encouraging centered, and supportive
Constructive Affiliative High priority on constructive interpersonal relationships, and focus on work group satisfaction
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10. Types of Organizational Culture (continued)
3-9
Table 3-1b
Type of Normative Culture Belief Characteristics
Passive- Approval Avoid conflict, strive to be liked Defensive by others, and approval oriented
Passive- Conventional Conservative, bureaucratic, and Defensive people follow the rules
Passive- Dependent Nonparticipative, centralized Defensive decision making, and employees do what they are told
Passive- Avoidance Negative reward system and Defensive avoid accountability
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11. Types of Organizational Culture (continued)
3-10
Table 3-1c
Type of Normative Culture Belief Characteristics
Aggressive- Oppositional Confrontation and negativism Defensive rewarded
Aggressive- Power Nonparticipative, take charge of Defensive subordinates, and responsive to superiors
Aggressive- Competitive Winning is values and a win-lose Defensive approach is used
Aggressive- Perfectionistic Perfectionistic, persistent, and Defensive hard working
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12. A Typology of Organizational Values
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Figure 3-1a
A Typology of Organizational Values
Unequal or Centralized Power
Equal or Decentralized Power
Organization Power Structure
Elite
Endorsed Discouraged Values Values Authority Teamwork Performance Participation rewards Commitment Affiliation
Meritocractic
Endorsed Discouraged Values Values Performance Authority rewards Teamwork Participation Commitment Affiliation
Equitable
Organizational Reward Norms
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13. A Typology of Organizational Values (continued)
3-5
Figure 3-1b
A Typology of Organizational Values (continued)
Unequal or Centralized Power
Equal or Decentralized Power
Organization Power Structure
Leadership
Endorsed Discouraged Values Values Authority Participation Performance rewards Teamwork Commitment Affiliation
Collegial
Endorsed Discouraged Values Values Teamwork Authority Participation Performance Commitment rewards Affiliation
Egalitarian
Organizational Reward Norms
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14. Ethics at Work Key Issue:
3-3
Ethics at Work
Key Issue:
What do you do when corporate values are inconsistent with those of a local values?
Corporate: No nepotism
Local Indian: Guarantee job to
employee’s child
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15. Developing an Adaptive Culture
3-11
Figure 3-4
Developing an Adaptive Culture
Early business leaders create an implement a business vision
and strategy that fits the business environment well.
Firm succeeds.
Business leaders emphasize the importance of constituencies and leadership in creating the success.
A strong culture emerges with a core that emphasizes service to customers,
stockholders, and employees, as well as the importance of leadership.
Subsequent top managers work to preserve the adaptive core of the culture. They demonstrate greater commitment to its basic principles than any specific business strategy or practice.
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16. Embedding Organizational Culture
3-12
Embedding Organizational Culture
Formal statements of organizational philosophy, mission, vision, values, and materials used for recruiting, selection and socialization
Mission: Reason the organization exists
 Educate people
Vision: Long-term view of what an organization wants to become  Be the best university in the midwest.
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17. Embedding Organizational Culture
3-12
Embedding Organizational Culture
The design of physical space, work environments, and buildings
Slogans, language, acronyms, and sayings
Deliberate role modeling, training programs, teaching and coaching by managers and supervisors
Explicit rewards, status symbols (e.g., titles), and promotion criteria
Stories, legends, and myths about key people and events
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18. Embedding Organizational Culture (continued)
3-13
Embedding Organizational Culture (continued)
The organizational activities, processes, or outcomes that leaders pay attention to, measure, and control
Leader reactions to critical incidents and organizational crises
The workflow and organizational structure
Organizational systems and procedures
Organizational goals and the associated criteria used for recruitment, selection, development, promotion, layoffs, and retirement of people
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19. Mentoring: A Model of Organizational Socialization
3-14 Figure 3-5d
Mentoring: A Model of Organizational Socialization
Outsider
Phases
1. Anticipatory socialization
2. Encounter
3. Change and acquisition
Behavioral Outcomes
Performs role assignments
Remains with organization
Spontaneously innovates and cooperates
Socialized Insider
Affective Outcomes
Generally satisfied
Internally motivated to work
High job involvement
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20. A Model of Organizational Socialization
3-14 Figure 3-5a
A Model of Organizational Socialization
Perceptual and Social Processes
Phases
1. Anticipatory socialization Learning that occurs prior to joining the organization
Anticipating realities about the organization and the new job
Anticipating organization’s need for one’s skills and abilities
Anticipating organization’s sensitivity to one’s needs and values
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21. A Model of Organizational Socialization (cont.)
3-14 Figure 3-5b
A Model of Organizational Socialization (cont.)
Perceptual and Social Processes
Phases
2. Encounter Values, skills and attitudes start to shift as new recruit discovers what the organization is truly like
Managing lifestyle- versus-work conflicts
Managing intergroup role conflicts
Seeking role definition and clarity
Becoming familiar with task and group dynamics
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22. A Model of Organizational Socialization (cont.)
3-14 Figure 3-5c
A Model of Organizational Socialization (cont.)
Perceptual and Social Processes
Phases
3. Change and acquisition Recruit masters skills and roles and adjusts to work group’s values and norms
Competing role demands are resolved
Critical tasks are mastered
Group norms and values are internalized
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23. 3-15
Figure 3-6
Mentoring
The process of forming and maintaining an intensive and lasting developmental relationship between a senior person (the mentor) and a junior person.
Functions of Mentoring
Career Functions - Sponsorship - Exposure and visibility - Coaching - Protection - Challenging assignments
Psychosocial Functions - Role modeling - Acceptance and confirmation - Counseling - Friendship
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24. A Model of Ethical Behavior in the Workplace
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Figure 3-7
A Model of Ethical Behavior in the Workplace
Cultural Influences
- Family
- Education
-Religion
- Media/entertainment
Role Expectations
Individual
- Personality
- Values
- Moral
principles
- History of
reinforcement
- Gender
Organizational Influences
- Ethical codes
- Organizational culture
- Role models
- Perceived pressure for results
- Rewards/punishment system
Ethical behavior
Political/legal/
economic
influences
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25. General Moral Principles
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Table 3-3
General Moral Principles
Dignity of human life
Autonomy
Honesty
Loyalty
Fairness
Humaneness
The common good
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26. Ethics and Organizational Behavior
- Do Moral Principles Vary by Gender or Ethnicity?
 These are diversity issues
- Do Moral Principles Vary by National Culture?
 These are globalization issues
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