Chapter Organizational Culture and Ethical Values 10 Organization

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Chapter Organizational Culture and Ethical Values 10 Organization Theory and Design Twelfth Edition Richard

Chapter Organizational Culture and Ethical Values 10 Organization Theory and Design Twelfth Edition Richard L. Daft © 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.

What is Culture? • Values, norms, guiding beliefs, and understandings that are shared by

What is Culture? • Values, norms, guiding beliefs, and understandings that are shared by members of an organization – Taught to new members as the correct way to think, feel, and behave • Organizational culture exists at two levels – Observable symbols – Underlying 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. 2

Levels of Corporate Culture © 2017 Cengage Learning. All Rights Reserved. May not be

Levels of Corporate Culture © 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. 3

Emergence and Purpose of Culture Provides sense of organizational identity Two critical functions in

Emergence and Purpose of Culture Provides sense of organizational identity Two critical functions in organizations: • To integrate members so they know how to relate to one another • To help organization adapt to external environment Internal Integration – collective identity and know how to work together External Adaption – how the organization meets goals and deals with outsiders © 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. 4

Observable Aspects of Organizational Culture 5 © 2017 Cengage Learning. All Rights Reserved. May

Observable Aspects of Organizational Culture 5 © 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.

Organizational Chart for Nordstrom 6 © 2017 Cengage Learning. All Rights Reserved. May not

Organizational Chart for Nordstrom 6 © 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.

Organizational Design and Culture Managers want a corporate culture that reinforces the strategy and

Organizational Design and Culture Managers want a corporate culture that reinforces the strategy and structural design the organization needs to be effective within environment. 7 © 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.

Culture Strength and Organizational Subcultures • Culture strength is the degree of agreement among

Culture Strength and Organizational Subcultures • Culture strength is the degree of agreement among members of an organization about specific values • Subcultures reflect the common problems, goals, and experiences of a team or department • Different departments may have their own norms © 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. 8

Organizational Culture, Learning, and Performance • Culture is important to learning and innovation during

Organizational Culture, Learning, and Performance • Culture is important to learning and innovation during challenging times • Strong cultures include constructive adaptation with the following values: - Concern for employees and customers - Flexible behavior - Encouragement of risk taking, change, and improvement © 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. 9

Constructive Versus Non-Constructive Cultures © 2017 Cengage Learning. All Rights Reserved. May not be

Constructive Versus Non-Constructive 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. 10

Ethical Values and Social Responsibility Ethics – the code of moral principles and values

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 Ethical Dilemma ─ a situation concerning right and wrong in which values are in conflict © 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. 11

Corporate Social Responsibility • Corporate Social Responsibility management’s obligation to make choices and take

Corporate Social Responsibility • Corporate Social Responsibility management’s obligation to make choices and take action so that the organization contributes to the welfare and interest of all organizational stakeholders- employees, customers, shareholders, the community, the broader society • Sustainability environmental efforts woven into all decisions © 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. 12

Relationship between the Rule of Law and Ethical Standards © 2017 Cengage Learning. All

Relationship between the Rule of Law and Ethical Standards © 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. 13

Corporate Social Responsibility (CSR) • Does it pay to be good? • Extension of

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 attention to what organizations do • Social responsibility can enhance a firm’s reputation • Companies measure nonfinancial factors that create value © 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. 14

How Managers Shape Culture and Ethics • Value-Based Leadership • Formal Structure and Systems

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 15 © 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.

Manager Rankings of Ethical Values by Generation © 2017 Cengage Learning. All Rights Reserved.

Manager Rankings of Ethical Values by Generation © 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. 16

Characteristics of Values-Based Leaders 17 © 2017 Cengage Learning. All Rights Reserved. May not

Characteristics of Values-Based Leaders 17 © 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.

Corporate Culture and Ethics in a Global Environment • The global environment presents tough

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 attitudes and beliefs • Components that characterize a global culture: – Multicultural rather than national values – Basing status on merit rather than nationality • Some companies work closely with overseas factories to improve working conditions © 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. 18

Design Essentials Cultural and ethical values help determine the organization’s social capital and can

Design Essentials Cultural and ethical values help determine the organization’s social capital and can contribute to success Managers can use rites and ceremonies, stories, symbols, structures, control systems, and power relationships to influence culture 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. 19

Design Essentials Strong cultures can be constructive or nonconstructive Managerial ethics and corporate responsibility

Design Essentials Strong cultures can be constructive or nonconstructive Managerial ethics and corporate responsibility are important aspects of organizational values Managers can shape culture and ethics through formal systems 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 20

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