1. Chapter 17: Organizational Culture and Ethical Behavior
Understanding
And
Managing
Organizational
Behavior
4th Edition
Chapter 17: Organizational Culture and Ethical Behavior
JENNIFER GEORGE
& GARETH JONES

2. Chapter Objectives
Distinguish between values and norms and discuss how they are the building blocks of organizational culture
Appreciate how a company’s culture is transmitted to employees through its formal solicitation practices and through informal “on the job” learning

3. Chapter Objectives
Discuss five main factors that shape organizational culture and explain why different organizations have different cultures
Appreciate how differences in national culture affect the culture of organizations within a particular society
Understand the importance of building and maintaining an ethical organizational culture

4. Opening Case: How 3M Built a Culture for Innovation
How does 3M’s culture affect creativity?
Cultural values and norms
Empowerment
Recognition
15% of time for personal projects

5. Building Blocks of Organizational Culture
Characteristics of people within the organization
Organizational ethics
Employment relationship
Organizational structure
National culture

6. What is Organizational Culture?
Set of shared values, beliefs, norms that influence the way employees think, feel, and behave towards each other and towards people outside the organization
Pattern of shared basic assumptions

7. What are Organizational Values?
Guiding principles people use to determine which types of behaviors, events, situations, and outcomes are desirable or undesirable
Terminal
Instrumental

8. Terminal and Instrumental Values
Terminal Values
Desired end states of outcomes
Instrumental Values
Desired modes of behavior

9. Figure 17.2 Where an Organization’s Culture Comes From
Characteristics of people within organization
Nature of employment relationship
Organizational ethics
Design of organizational structure

10. Figure 17.3 Ways of Transmitting Organizational Culture
Formal socialization practices
Ceremonial rites and ceremonies
Organizational language
Signs, symbols, stories

11. Ceremonial Rites Rites of passage Rites of integration
Rites of enhancement

12. Figure 17.4 Sources of Organizational Ethics
Social Ethics
Professional Ethics
Individual Ethics

13. Hofstede’s Model of National Culture
Individualism vs Collectivism
Power Distance
Achievement vs Nurturing Orientation
Uncertainty Avoidance
Long-term vs Short-term Orientation

14. Table 17.2 Culture Dimensions

15. Creating an Ethical Culture
Establish rules and norms that outline organization’s ethical position
Demonstrate commitment to following rules
Reduce incentives for unethical behavior
Develop fair and equitable HR procedures
Provide access to upper-level managers
Encourage employees to voice concerns
Create a strong board of directors

16. Why Does Unethical Behavior Occur?
Lapses in Individual Ethics
Ruthless Pursuit of Self-Interest
Outside Pressure