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Organizational culture and ethical behavior
This document discusses organizational culture and its influence on ethical behavior. It defines organizational culture as the shared values, beliefs, and behaviors within an organization. A key aspect of culture is that it determines appropriate and expected behaviors. The document also examines how culture is shaped by founders and leaders, and reinforced through stories, rituals, and other symbols. Leaders play an important role in establishing an ethical culture by demonstrating ethical behavior and implementing ethics policies, training, and compliance mechanisms. An organizational culture with strong ethical values and guidelines can promote ethical conduct among employees.
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Organizational culture and ethical behavior
- 1. Organizational Culture AndEthical Behavior Dr. G C Mohanta, BE, MSc(Engg), MBA, PhD(Mgt) Professor
- 2. Organizational Culture Theshared values, principles, traditions and ways of doing things that influence the way organizational members act. The shared values, ways of thinking, attitudes and guiding beliefs relevant to and supportive of the organization and its goals. The characteristic set of values and ways of behaving that employees in an organization share. A common perception held by the organization’s members
- 3. Patterns of Behavior,Values and Beliefs Patterns of Behavior Ceremonial events, written and spoken comments, and actual behaviors of an organization’s members. Values and Beliefs Guiding standards of an organization that affirm what should be practiced, as distinct from what is practiced.
- 4. Components of OrganizationalCulture Signs and Symbols Practices and actions that create and sustain a company’s culture. Stories The repeated tales and anecdotes that contribute to a company’s culture by illustrating and reinforcing important company values. Rites and Ceremonies Traditional culture-building events or activities that symbolize the firm’s values and help convert employees to these values.
- 5. Organizational Rites &Their Social Consequences Type of Rite Example Social Consequences Passage Army induction and basic training Commencement Greek Pledge Period 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 School Picnic Homecoming Encourage and revive common feelings that bind members together and commit them to the organization
- 6. Purpose of Culture To help integrate organizational members so that they know how to relate and work together effectively. To help the organization to best adapt to its mission and to its environment.
- 7. Effects of Culture Determines how people communicate How people interact How people relate to one another What is appropriate behavior How power and status are allocated Guides day-to-day working relationships
- 8. Levels of CorporateCulture The Iceberg Analogy Observable Symbols Ceremonies, Stories, Slogans, Behaviors, Dress, Physical Settings Invisible Aspects Underlying Values, Assumptions, Beliefs, Attitudes, Feelings
- 9. Stories, Symbols, &Language They reinforce existing culture, but they don’t create culture by themselves. Employees learn more from observed behavior. Slogans, stories and symbols are useful in reinforcing desired behaviors. The really important thing is for managers to display the desired values and beliefs in their day-to-day behaviors.
- 10. How Leaders ShapeCulture By what they do The examples they set The types of people they hire By what they say Formal policies, codes of ethics, etc. By what the organization does Ethical training, ethics committees VALUE-BASED LEADERSHIP
- 11. What Do CulturesDo? Culture’s Functions 1. Defines the boundary between one organization and others 2. Conveys a sense of identity for its members 3. Facilitates the generation of commitment to something larger than self-interest 4. Enhances the stability of the social system 5. Serves as a sense-making and control mechanism for fitting employees in the organization
- 12. How Culture Begins Stems from the actions of the founders: Founders hire and keep only employees who think and feel the same way they do. Founders indoctrinate and socialize these employees to their way of thinking and feeling. The founders’ own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions.
- 13. Keeping Culture Alive Selection Concerned with how well the candidates will fit into the organization Provides information to candidates about the organization Top Management Senior executives help establish behavioral norms that are adopted by the organization Socialization The process that helps new employees adapt to the organization’s culture
- 14. How Employees LearnCulture Stories Anchor the present into the past and provide explanations and legitimacy for current practices Rituals Repetitive sequences of activities that express and reinforce the key values of the organization Material Symbols Acceptable attire, office size, opulence of the office furnishings, and executive perks that convey to employees who is important in the organization Language Jargon and special ways of expressing one’s self to indicate membership in the organization
- 15. Ethical Values Ethics Ethicsrefer to 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 far beyond behaviors governed by law Managerial ethics guide the decisions and behaviors of managers
- 16. How Managers ShapeCulture and Ethics Value-Based Leadership Formal Structure and Systems Structure Disclosure Mechanisms Code of Ethics Training Programs Managers play key role in providing leadership & examples of ethical behavior
- 17. What Influences Ethical BehaviorAt Work? Ethical Work Behaviors Individual Factors Organizational Factors Top Management Ethics Policies and Codes
- 18. How to FosterEthics at Work Emphasize top management’s commitment. Publish an ethics code. Establish compliance mechanisms. Involve personnel at all levels. Train employees. Measure results.