CORPORATE CULTURE AND VALUESUnderstanding the Theory and Design Design of Organizations

Organization Culture

What is culture? The set of values, norms, guiding beliefs,

and understanding that is shared by members of organization

Organization Culture

Emergence and Purpose of Culture Provide people with a sense of organizational

identity and generates in them a commitment to beliefs and values that are larger than themselves

Internal Integration Members develop a collective identity Know how to work effectively

External Integration How the organization meet goals and deals with

outsiders

Organization Culture

Interpreting Culture Rites and ceremonies Stories and myths Symbols Organization structures Power relationship Control Systems

Organization Design and Culture Managers want a corporate culture that

reinforces the strategy & structural design

The organizational needs to be effective within environment

Organization Design and Culture

The Adaptability Culture Characterized by strategic focus on the external

environment through flexibility and change to meet customer needs

The Mission Culture Characterized by emphasis on a clear vision of the

organization’s purpose and achievement goals The Clan Culture

An important value is taking care of the employees and making sure they have whatever they need to help them satisfied as well as productive

The Bureaucratic Culture Has an internal focus and consistency orientation for a

stable environment

Organization Design and Culture Culture Strength and Organizational

Subcultures Culture strength refers to the degree of

agreement among member of an organization about the importance of specific values

Subulture develop to reflect the commong problems, goals, and experiences that members of a team share

Organizational Culture, Learning, and Performance

Strong adaptive culture often incorporate : The whole is more important that the parts Equality and trust are primary values The culture encourages risk taking, change,

and improvement

Ethical Values and Social Responsibility Sources of Individual Ethical Principles

Ethics refers to the code of moral principles and values that governs the behaviors of a person of group with respect to what is right and wrong

Managerial Ethics Principles that guide the decisions and

behaviors of managers with regard to whether they are right or wrong

Ethical Values and Social Responsibility

Corporate Social Responsibility ( CSR ) An extension of the idea of managerial

ethics and refers to management’s obligation to make choices and take action so that the organization contributes to the welfare and interest of all organizational stakeholders

How Leaders Shape Culture and Ethics

Value-Based Leadership A relationship beteween a leader and

followers that is based on shared, strongly internalized values that are advocated and acted upon by the leader.