Corporate Culture and Values 2010 SouthWesternCengage Learning All
- Slides: 16
Corporate Culture and Values © 2010 South-Western/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 is 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 © 2010 South-Western/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 © 2010 South-Western/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 organizations: 1. To integrate members so they know how to relate to one another 2. To help organization adapt to external environment • • Internal Integration – collective identity and know how to work together External Integration – how the organization meets goals and deals with outsiders © 2010 South-Western/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 © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5
Organizational Chart for Nordstrom’s structure reflects the emphasis the department store chain puts on empowering and supporting lower-level employees. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6
Organizational Design and Culture • Adaptability Culture • Mission Culture • Clan Culture • Bureaucratic Culture • Culture Strength and Organizational Subcultures Managers want a corporate culture that reinforces the strategy and structural design the organization needs to be effective within environment. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7
Organizational Culture, Learning, and Performance • Culture is important to learning and innovation during challenging times • Strong adaptive cultures often incorporate the following values: 1. The whole is more important than the parts 2. Equality and trust are primary values 3. The culture encourages risk taking, change, and improvement © 2010 South-Western/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
Ethical Values and Social Responsibility • Individual Ethical Principles – Ethics refer to the code of moral principles and values that governs 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 © 2010 South-Western/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
Sources of Individual Ethical Principles and Actions © 2010 South-Western/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
Relationship between the Rule of Law and Ethical Standards © 2010 South-Western/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 • Does it pay to be good? • Extension of the idea of managerial ethics • Management’s obligation to make choices and take action that positively impact stakeholders • Increase in social responsibility • Customers and public are paying closer attention to what organizations do • Social responsibility can enhance a firm’s reputation © 2010 South-Western/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
How Leaders Shape Culture and Ethics • Value-Based Leadership • Formal Structure and Systems – Ethics Committee – Chief Ethics Officer – Ethics Hotline • Disclosure Mechanisms – Whistle-blowing Managers play key role in providing leadership and examples of ethical behavior • Code of Ethics • Training Programs © 2010 South-Western/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
Characteristics of Values-Based Leaders © 2010 South-Western/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
Corporate Culture and Ethics in a Global Environment • The global environment present tough ethical challenges • Countries have varied attitudes and beliefs • Components that characterize a global culture: – Multicultural rather than national values – Basing status on merit rather than nationality • Managers must think broadly about ethics • Social audits measure and report ethical, social and environmental impact of a company’s operation © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15
Design Essentials ü Cultural and ethical values contribute to success ü Culture is the key values, beliefs, and norms shared by members of an organization ü Organizational culture reinforce strategy and structure ü Strong cultures can be adaptive or nonadaptive ü Managerial ethics is a critical issue for organizations ü Leaders can shape culture and ethics ü The global environment present new ethical challenges ü Social audits are important tools for companies © 2010 South-Western/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
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