Chapter 17: Organizational Culture and Ethical Behavior

1. 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