Org.cuorg culturelture - KIIT

7/30/2019 Org.cuorg culturelture - KIIT

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Organizational Culture&

Ethics

Dr. Sumita [email protected]@gmail.com
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Organization Culture is the set of shared values & normsthat controls organization members interaction with eachother and with people outside the organization

Organizational Culture

o Values are general criteria, standards or guiding principles thatpeople use to determine which types of behavior, events,situations & outcomes are desirable or undesirable

1. Terminal Values 2. Instrumental ValuesDesired End States

/outcomes (highquality, excellence

Desired modes ofbehavior (beinghelpful, working

hard, conservative)

Values exist in norms. Norms are standards or styles of behavior thatare considered acceptable for a group of people (Courteous topeople etc.)


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Org. Culture Iceberg

Observable symbols, ceremonies,Stories, behaviors, dress, physicalSettings etc.

Underlying values, beliefs, attitude& feelings

Org. Culture serves mainly-to integrate (internally) members so thatthey relate to one another

-to help the org. adapt (externally) tothe environment by guiding behaviortowards goals


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Rites

Org.Socialization Stories

Symbols

Language


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Org.Socializatio

n

Org. socialization is the process by which memberslearn & internalize the values & norms of an orgs

cultureo Van Mannen & Schein identified 12 tactics of

socialization through a process of role orientationo Role orientation is the characteristic way in which new

comers respond to a situationo Institutionalized vs. Individualized Role Orientation

1. Inst. Meaning ExampleRole Orientation (Tactics) (Arthur Anderson)

Collective Common learning experience toproduce a standard response

Indoctrination of newcomers as a group

Formal Segregation of newcomers during

socialization

Training of new comers

at a training centerSequential Explicit Information about the sequence

in which they perform activitiesSequenced Timetable

Fixed Time table of training process Six week course & 8hr. a day classes

Serial Org. Models as role models

Divestiture Newcomers receive vesocial support

Indoctrination by org.members


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2. Individualized Meaning ExampleRole Orientation (Tactics) (VDS India)

Individual Newcomers learn new uniqueresponses

No formal training

InformalNewcomers are socialized on the

jobTraining of new comers

on the job

Random Training is based on the needs &interests of the individual

On selection of job portfoliosind. are trained

Variable Newcomers learn as when required Informal buddy

sessionsDisjunctive Individuals figure out their own

behaviorNo org. role models

Investiture Newcomers receivepositive social

support


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Institutionalized Role Orientation

StrengthsFormation of a strong org. culture

Weaknesses

-Organization Isomorphism-Adaptation to environment changes becomes an issue

Individualized Role Orientation

Strengths-Balance of innovation vis--vis creativity

-Quick response to environment issues

Weaknesses-chaotic training & socialization


Org.

Socialization


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RitesOrg rites & ceremonies are elaborate, planned

activities that make up a special event & areconducted for the benefit of an audience. They areused as examples to indicate what a company values

o Four types of rites appear in organizations

Type of Rite Example Consequences

Passage Induction, BasicTraining

Transition of peopleinto roles that arenew to them

Enhancement Annual Awards Night,Convocation

Increase socialidentities & statuses

Renewal Appraisals, Inspections Improve org.functioning

Integration Holiday Parties, Picnicsetc.

Revive common feelingsto bind people tothe org.


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Org. stories are narratives based on trueevents that are frequently shared amongorg. employees and told to new employees toinform them about the org.

-Stories are about company heroes (Narayan Murthyat Infosys)

-Stories are considered legends when the events arehistoric & may have been decorated with fictionaldetails (Infosyss rise to power)

-Stories which are consistent with the values of the

org. but are not supported by facts are myths (Theadvertisement campaigns of soft-drink majors suchas coke & Pepsi)


Stories


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Org. symbols are certain things that representthe core values indirectly.

-Stories, rites, ceremonies are all symbols.

-Physical symbols are powerful as they focus attention ona specific item

Symbols of status & power at ENRON (bidding forpremium parking spaces)


Symbols


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Language

Companies use a specific saying, slogan,metaphor or other form of language to conveya very special meaning to employees

Having a baby Changes everything This slogan emphasizes J&Jsvalues of caring & support toparents

You can make wild ducks tame, butyou can never make tame duckswild again (T.J.Watson, IBM)- useof the metaphor wild ducks tosymbolize values of freedom &opportunity at IBM
http://muse.jhu.edu/journals/asr/v007/images/7.2u07f04bath.jpg


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Org. Culture

1. People withinthe org.

2. PropertyRights

System

3. Org.Structure

4.Org. Ethics


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-People & Org. match

-Over time people become more & more similar in theirvalues & the culture of the company becomes more &more distinct

-Role of Founder Members in initiating org. culture

AOL & Steve Chase (entrepreneurial culture throughcreativity & hard work)

1. People withinthe org.



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Property rights are the rights that an organizationgives to its members to receive & use organizationresources

-Stakeholders & Top Management have the maximumproperty rights in an org. (Stock options, large salaries,

Decision Making)-Employees too have property rights (Severance payments,lifetime employment, pension & benefits, employeestock option plans, participation in decision making

-Top management influences org. culture throughinstrumental values by laying down the policies ofproperty rights

-Microsoft & Apple (Concept of an Apple Fellow, Rewardingof employees through ownership of stock) to ensurethe terminal values of creativity, hard work &excellence


2. PropertyRights

System


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3. Org.Structure

-Mechanistic vs. organic structures encourage theformation of certain cultures

-Centralization vs. Decentralization of authority &decision making

-Four types of cultures

STABILITY

FOCUS

Adaptability CultureValues: Entrepreneurship,

Innovation (VDS India)

EXTERNAL

Mission CultureValues: Competitiveness,

Performance, cust.Orientation (PepsiCo)EXTERNAL

FLEXIBILITY

Clan CultureValues: Productivity,

Cust. Needs, employeecare(web based companies)

Bureaucratic CultureValues: Consistency,collaboration, obedience

INTERNAL


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4.Org. Ethics

The moral values, beliefs, & rules that establish theappropriate way for org. stakeholders to deal withone another & with the org. environment

-Managerial ethics are principles that guide the decisions& behaviors of managers with regard to whether theyare right or wrong in the moral sense (Socialresponsibility)

HIGH

Social Responsibility Approaches

LOW

ObstructionistApproach

-Unethicalbehavior

-Suspected useof pesticidesby colamajors

DefensiveApproach

-Stay withintheboundariesof law

-Commitment toethicalbehavior

AccommodativeApproach

-Acknowledgethe need forsoc.responsibility

-Balancingstakeholderinterests

ProactiveApproach

-Managers goout of theirways to besociallyresponsible

-J&J (TylenolCrisis)


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Value BasedLeadership

-Value Based Leadershipis a relationshipbetween leaders & followers that is based onshared, strongly internalized values that areadvocated & acted upon by the leader

-The notion of walk the talk-J& J (Tylenol Story)

FormalStructures &Systems

1. Formal Structure of the Organization2. Disclosure mechanisms

3. Code of Ethics4. Training programmes


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1. Formal Structure of the Organization

-Manages can assign responsibility for ethical valuesto a specific position.-Allocates org. time & energy to a problem or ethical

dilemma but also stresses upon the importanceof ethics

-Ethics Committee, Chief Ethics Officer, Ethics

Hotline

2. Disclosure Mechanisms-Allowing individuals to speak up if

they suspect illegal orunethical activities

-The example of whistle blowing-Whistle Blowing is employee

disclosure of illegal, immoral &unethical activities to the org.

-Risk associated with whistleblowing


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3. Code of Ethics

-Is a formal statement of the companys valuesconcerning ethics & social responsibility; itclarifies to the employees the companyexpectations for employee conduct

-Legitimizes ethical values-Signing of the written code of conduct at Tata

Refractories Ltd.

4. Training Programmes-Written code of ethics can be supplement by

regular raining programmes-Ethics programmes also include frameworks for

ethical decision making-TRL & Texas Instruments


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Documents

Org.cuorg culturelture - KIIT