The document discusses organizational culture, size, life cycles, and decline. It describes what organizational culture is and how it exists at both observable and underlying levels. It also explains that organizational culture serves two critical functions: internal integration and external adaptation. The document then discusses how organizations grow through stages of an organizational life cycle and may develop bureaucratic characteristics as they increase in size. Finally, it addresses how organizations can experience decline over time due to factors like environmental changes or increased competition.

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Organiza(onal Culture and
Ethical Values
©2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Organiza(on Theory and Design
Twel%h Edi+on
Richard L. Da%
2
What is Culture?
• Values, norms, guiding beliefs, and
understandings that are shared by members
of an organiza+on

2. – Taught to new members as the correct way
to think, feel, and behave
• Organiza+onal culture exists at two levels
– Observable symbols
– Underlying values
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website, in whole or in part.
Levels of Corporate Culture
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website, in whole or in part.
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Emergence and Purpose of Culture
Provides sense of organiza/onal iden/ty
Two cri+cal func+ons in organiza+ons:
• To integrate members so they know how to
relate to one another

3. • To help organiza+on adapt to external
environment
Internal Integra/on– collec+ve iden+ty and know
how
to work together
External Adap/on – how the organiza+on meets
goals
and dealswith outsiders
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website, in whole or in part.
5
Observable Aspects of
Organiza+onal Culture
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website, in whole or in part.
6
Organiza+onal Chart for
Nordstrom
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4. scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Organiza+onal Design
and Culture
Managers want a
corporate culture
that reinforces the
strategy and
structural design
the organiza(on
needs to be
effec(ve within
environment.
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
7
Culture Strength and
Organiza+onal Subcultures
• Culture strength is the degree of agreement
among members of an organiza+on about
specific values

5. • Subcultures reflect the common problems,
goals, and experiences of a team or
department
• Different departments may have their own
norms
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website, in whole or in part.
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Organiza+onal Culture, Learning,
and Performance
• Culture is important to learning and innova+on
during challenging +mes
• Strong cultures include construc/ve adapta+on
with the following values:
- Concern for employees and customers
- Flexible behavior
- Encouragementof risk taking, change,
and improvement

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website, in whole or in part.
Construc+ve Versus
Non-Construc+ve Cultures
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accessible website, in whole or in part.
11
Ethical Values and Social Responsibility
Ethics
– the code of moral principles and values that govern
the behaviors of a person or group with respect
to
what is right or wrong
Managerial Ethics
– Ethical decisions go beyond behaviors governed by
law
– Managerial ethics guide the decisions and
behaviors
of managers

7. Ethical Dilemma
─ a situa+on concerning right and wrong in
which
values are in conflict
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Corporate Social Responsibility
• Corporate Social Responsibility
management’s obliga+on to make
choices and
take ac+on so that the organiza+on
contributes to the welfare and
interest of all
organiza+onal stakeholders- employees,
customers, shareholders, the
community, the
broader society
• Sustainability
environmental efforts woven into all
decisions
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scanned, copied or duplicated, or posted to a publicly accessible

8. website, in whole or in part.
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13
Rela+onship between the Rule of
Law and Ethical Standards
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website, in whole or in part.
14
Corporate Social Responsibility (CSR)
• Does it pay to be good?
• Extension of the idea of managerial ethics
• Increase in social responsibility
• Customers and public are paying closer
aden+on to what organiza+ons do
• Social responsibility can enhance a firm’s
reputa+on
• Companies measure nonfinancial factors that
create value
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.

9. 15
How Managers Shape
Culture and Ethics
• Value-Based Leadership
• Formal Structure and Systems
– Structure
– Disclosure Mechanisms
– Code of Ethics
– Training Programs
• Managers play key role in providing leadership
and examples of ethical behavior
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Manager Rankings of Ethical Values by
Genera+on
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website, in whole or in part.
16

10. 17
Characteris+cs of
Values-Based Leaders
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website, in whole or in part.
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Corporate Culture and Ethics in a
Global Environment
• The global environment presents tough ethical
challenges
• A global supply chain is an area of
growing ethical
concern
• Countries have varied ahtudes and beliefs
• Components that characterize a global culture:
– Mul+cultural rather than na+onal values
– Basing status on merit rather than na+onality
• Some companies work closely with overseas

11. factories to improve working condi+ons
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
19
Design Essen+als
v Cultural and ethical values help determine
the organiza+on’s social capital
and can
contribute to success
v Managers can use rites and ceremonies,
stories, symbols, structures, control systems,
and power rela+onships to influence culture
v Subcultures may emerge even in strong
cultures
©2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Design Essen+als
v Strong cultures can be construc+ve or non-

12. construc+ve
vManagerial ethics and corporate responsibility
are important aspects of
organiza+onal values
v Managers can shape culture and ethics
through formal systems
v Global companies face challenges in
establishing strong cultural and ethical values.
©2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part
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C
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p
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Organiza(on Size, Life Cycle,
and Decline

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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Organiza(on Theory and Design
Twel%h Edi+on
Richard L. Da%
Organiza+on Size:Is Bigger Be=er?
Pressures for Growth
– Industry consolida+on, global expansion, and
diversifica+on have made firms grow
– Size enables companies to take risks
Dilemmas of Large Size
– Large organiza+ons can get back to business more
quickly following a disaster
– Large companies are standardized, mechanis+c,
and complex
– Small companies are flexible and responsive
– Many companies want a big company/small-
company hybrid
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accessible website, in whole or in part.

14. Differences Between Large and
Small Organiza+ons
3
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Stages of Life Cycle Development
• Entrepreneurial Stage- company is created
Crisis: need for leadership

15. • Collec(vity Stage- iden+fying with the mission
Crisis: need for delega1on
• Formaliza(onStage- use of rules/procedures
Crisis: too much red tape
• Elabora(on Stage- collabora+on/teamwork
Crisis: need for revitaliza1on
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accessible website, in whole or in part.

16. 4
Organiza+onal Life Cycle
5
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website, in whole or in part.
Organiza+on Characteris+cs During
Four Stages of Life Cycle
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website, in whole or in part.
6
What is Bureaucracy?
• Weber defined bureaucracy as
─ a threat to
liberty
─ the most efficient
system for organizing
─ ra+onal control
─ a new form of

17. organiza+on
• Bureaucracy includes:
– Rules and standard procedures
– Clear tasksand specializa+on
– Hierarchy of authority
– Technical competence
7
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website, in whole or in part.

18. 8
Weber’s Dimensions of Bureaucracy
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website, in whole or in part.
Size and Structural Control
• Formaliza1on – rules, procedures, and wri=en
documenta+on
• Centraliza1on – level of hierarchy with
authority to make decisions
• Personnel Ra1os – clerical and professional
support staff ra+os

19. 9 ©2017 Cengage Learning. All
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posted to a publicly accessible website, in whole or in part.
Percentage of Personnel Allocated to
Administra+ve and Support Ac+vi+es
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website, in whole or in part.
10
Bureaucracy in a Changing World
• Bureaucracy worked for the industrial age
• The system no longer works for today’s
challenges
• Organiza+ons face new challenges and need to
respond quickly
• Over-bureaucra+za+on is evident in the

20. inefficiencies
of largeU.S. government organiza+ons
• Narrowly defined jobs and rules limit crea+vity,
flexibility, and rapidresponse
• Organiza+ons use temporary structures for crises
11
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21. Approaches to Bus+ng Bureaucracy
• Google uses bullpen sessions every
a%ernoon
• Small geographic based teams
• Increasing authority of workers
• The increasingprofessionalism of
employees is a=acking bureaucracy
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accessible website, in whole or in part.
Three Organiza+onal
Control Strategies
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accessible website, in whole or in part.
Examples of Rules at a Yacht Club

22. 14
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website, in whole or in part.
Organiza+onal Decline and Downsizing
The decrease of an organiza+on’s
resources over +me is caused by:
– Organiza+onal atrophy
– Vulnerability
– Environmental decline or compe++on
Downsizing refers to inten+onally reducing
the size of a company’s workforce

23. 15 ©2017 Cengage Learning.
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or posted to a publicly accessible website, in whole or in part.
16
Stages of Decline and the Widening
Performance Gap
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website, in whole or in part.

24. 17
Downsizing Implementa+on
Establish Criteria for future work needs
Search for Alterna+ves
Communicate more not less
Provide assistance to displaced workers
Help the survivors thrive
©2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Design Essen+als
vOrganiza+ons experience pressures to grow
v Organiza+ons evolve through stages of the
life-cycle
v Larger organiza+ons usually adopt
bureaucra+c characteris+cs
v All organiza+ons require systems for
control
v Many organiza+ons experience decline

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accessible website, in whole or in part.
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