Organizational Ethics What is Organizational Culture Gareth Morgan
- Slides: 15
Organizational Ethics
What is Organizational Culture?
Gareth Morgan has described organizational culture as: � "The set of beliefs, values, and norms, together with symbols like dramatized events and personalities, that represents the unique character of an organization, and provides the context for action in it and by it. “ From: http: //www. organizationalculture 101. com
Edgar Schein's definition of organizational culture is: � "A pattern of shared basic assumptions that the group learned as it solved its problems that has worked well enough to be considered valid and is passed on to new members as the correct way to perceive, think, and feel in relation to those problems. ” From: http: //www. organizationalculture 101. com
Organizational Culture � The values, beliefs, and norms that are shared by all of employees of that organization. � It represents the sum of all policies and procedures (both written and informal) from each of the functional departments in the org.
Samples of organizational culture � In the late 1980 s, IBM were completely concerned with internal measures, internal goals, and proving production and believed that "everything we're doing is right. ” � While, Microsoft's entire organizational culture was not focused on bureaucracy, but on getting things done. The bottom line was a better product, followed by an even better product, and so on.
Let’s have a look at the major functions in organization
What is the role of each function? � Research & Development � Manufacturing � Marketing � Public Relations � Human Resources � Finance
Ethics in R&D � Role: responsible for the quality, safety and reliability of product design � Dilemma Sample: Do we use the best materials available or the second best to save some money?
Ethics in Manufacturing � Role: Manufacture product from product design of R&D function and meet all required specifications � Dilemma Sample: Do you want it built fast, or do you want it built right?
Ethics in Marketing � Role: Create and maintain customer interest and loyalty. Also determine and manage the firm’s advertising and truthfulness of data and info. they issue to public about products and services � Dilemma Sample: When you were asked to promote unsafe products or to implement advertising campaigns that are untrue or not in consumer’s best benefits.
Ethics in Public Relations (PR) � Role: transmit, receive, and interpret information about employees, products, services, and the company which reflect firm’s public credibility and image. � Dilemma Sample: When you were asked to defend company false actions to the public.
Ethics in HR � Role: recruit, hire, fire, promote, evaluate, reward, discipline, transfer, and counsel employees � Dilemma Sample: When unfair hiring or firing decision has to be made according to corporate self-interests.
Ethics in Finance � Role: handle the flow of money throughout organization, keep track of all financial transaction in document form, report accurately financial documents to the related parties � Dilemma Sample: When you were asked to change company financial statement figures for covering your boss false spending, in order to get promoted.
Summary � Faulty products or bad services can lead to not only putting consumers at risk or unsatisfied customer need, but also automatically result in bad organization reputation by media exposure. Further, organization could possibly cost by expensive lawsuit. � All functions in organization have to balance personal ethics and professional pressure (corporate profit)
