Otd ch-10-orgs-cult-ethic-values

1. Organization Theory n Design
Organizational Culture n
ethical Values
Ch. 10
By
Kaleem a. Barlas

2. 16-2
Learning Objectives
Organizational Culture
What is culture, emergence n purpose of culture, interpreting culture
Organizational design n Culture
The adaptability culture, the mission culture, the clan culture, the
bureaucratic culture, cultural strength n organizational sub-culture
Organizational culture, Learning n Performance, Ethical Values n
Social Responsibility
Sources of individual ethical principles, managerial ethics n social
responsibility, does it pay to be good
Sources of Ethical Values in Organizations
Personal Ethics, Orgs. Culture, Orgs. Systems, External Stake holders

3. 16-3
Continued
How leaders shape culture n ethics
Value-based leadership, Formal Structure n Systems

4. 16-4
Organizational Culture
What is Culture?
• Set of values
• Guiding beliefs
• Understanding that is shared by all the members
• Taught to new members
• It represents the un-written feeling part of the
orgs.

5. 16-5
Continued
Visible culture
• The way people dress
• They way they act
• Symbols
• Stories n ceremonies
• People share

6. 16-6
Continued
Invisible culture
• Values
• Assumptions
• Beliefs
• Thought process

7. 16-7
Emergence n Purpose of Culture
• Culture provides members with sense of orgs. Identity
• Generates in them the commitment for their beliefs n values
• It generally begins with founders
• Early leaders who implement;
1) Ideas
2) Values
3) Vision
4) Philosophy
5) Business strategies

8. 16-8
continued
Culture serves two cortical functions
• To integrate members so that they know how to
relate to one an other
• To help orgs. Adapt to external environment
• Internal integration means collective identity
• External adaptation how orgs. Deals with
outsiders
• guides employees DM in absence of written
rules

9. 16-9
Interpreting Culture
• Rites n Ceremonies
• Celebrating special events
• Sharing an important understanding
• Rites of passage facilitate employees into new social roles
• Rites of renewed reflect training n development activities
• Rites of integration create common bond n good feelings

10. Stories

11. 16-11
• Narratives based upon true events
• About co. heroes who served as models
• Legends
• Myths
Example
Employees at IBM are told a story about a
female security guard who stopped IBM
Chairman to enter the premises because
he was not carrying security tag. She
was appreciated by the chairman rather
than be reprimanded
stories

12. 16-12
Symbols
An other tool for interpreting culture is
Symbols. Ceremonies , stories, slogans,
And rites are all symbols. Physical
Symbols like special parking lots,
Computers , can interpreted what
Culture is being followed

13. 16-13
Language
The final technique for influencing culture is
language. Many co;s. use specific sayings ,
slogans, jargons, to convey special meaning to
employees
Like Savour in Pakistan used for rice, sirf tum e tu
ho etc.
Organization Design n Culture
The correct relationship among cultural value,
orgs. Strategy, structure, and the environment
can enhance orgs performance

14. 16-14
Contiuned
• Culture can be assessed by many dimenssions such as;
• Collaborations vs. isolation among people n departments
• Importance of control n where the control is focused
• Orgs. Time orientation short term or long term
• The extent to which the competitive environment requires flexibility
or stability
• The extent to which the org,s strategic focus or strengths are

15. The Adaptability Culture
16-15
• Focus on external environment
• Flexibility n change to meet customers
needs
• Entrepreneurial values, norms, n beliefs
• IBM has shifted to adaptability culture to
support a new strategy that requires
flexibility, speed n innovation
• Theta now believe in team work, creativity
n innovation

16. 16-16
The Mission Culture
• The mission culture is focused
on clear vision, purpose n
goals such as;
• Sales growth
• Profitability
• Market share
• Employees achieving orgs
goals are duly rewarded

17. 16-17
The Clan Culture
• Taking care of employees
• They must have what ever they need
to perform
• Employees satisfaction is key factor
For any business success
Employees commitment is also very
important

18. 16-18
• internal focus for
consistency, n stability
• Methodical approach
• Established policies
• High level of integration n
involvement of lower
levels
The Bureaucratic Culture

19. Cultural Strength n Orgs. Sub-
culture
16-19
• Strength mean degree of
agreement among employees
about importance of specific
values
• If wide spread consensus
exists the culture is strong
• Otherwise its weak
• Strong cultures is linked with
linked with symbols,
ceremonies' n stories

20. 16-20
Organizational Culture , Learning n
Performance
Culture can play a role in orgs. Learning,
innovation, n facing challenges
It energizes, motivates, people to achieve
higher standards of performance
It leads to collectivism,
Equality, change management
N breaking status quo

21. 16-21
Ethical values n Social
Responsibility
• Sources of individual
ethical principles
• Ethics are personal
• What is wrong n what is
right
History , local environment,
Society, individual ethics

22. 16-22
Managerial Ethics n CSR
Strict ethical standards are becoming
Part policies n informal culture of
Many organizations its becoming legal
requirement

23. 16-23
Does it pay to be good
• Sources of ethics
• Personal ethics
• Orgs. Culture
• Orgs. System
• External stake holders
• How leaders shape culture n ethics
• Value-based leadership
• Formal structure n systems
• Structure
• Disclosure mechanism
• Code of ethics
• Training program S