2. Factors Shaping Organizational
Culture
The following factors are vital in shaping the
Organizational Culture:
Founders and owners
Beliefs, goals and values
Customers and the external parties
Goals and objectives of the organization
History and tradition of the company
The management and its style of handling the
empl0yee
Availability of resources
3. Factors Shaping Organizational
Culture (Contd.)
Information and management systems
Company environment (juridical, economic,
cultural, technological) and policies
Procedures, rules and regulations
Performance measurements and rewards systems
Nature of the business
Characteristics of people within the organization
Organizational characteristics
4. Factors Shaping Organizational
Culture (Contd.)
Socialization of the organization
Adherence of important values
Selection and placement of employee
Organizational ethics
Employment relationship
Organizational structure
National culture
5. Creating an Ethical Culture
A strong culture with high risk tolerance,
low-to-moderate aggressiveness and focus on
means, as well as, outcomes, is most likely to
shape high ethical standards.
Managers must be visible role models
Communicate ethical expectations
Provide ethical training
Visibly reward ethical acts and punish
unethical ones
Provide protective mechanisms
6. Creating an Ethical Culture (Contd.)
Establish rules and norms that outline
organization’s ethical position
Demonstrate commitment to follow rules
Reduce incentives for unethical behavior
Develop fair and equitable HR procedures
Provide access to upper-level managers
Encourage employees to voice concerns
Create a strong board of directors