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Organization Culture and Ethics

  1. Topic: Organizational Culture and Ethics Presented By:- Tribhuwan Singh Rajpurohit Ph.D Ext. Edu.
  2. 1) Introduction & Elements of Organizational Culture 2) How Employees Learn Culture/How it is “reinforced”. 3) Functions of Organizational Culture 4) Types of Organizational Culture. 5) Values and its types 6) Organizational Ethics Content of the presentation
  3.  Culture is the unique dominant pattern of shared beliefs, assumptions, values, and norms that shape the socialization, symbols, language and practices of a group of people.  The attitudes and approaches that typify the way staff carry out their tasks.  Culture is developed and transmitted by people, consciously and unconsciously, to subsequent generations.
  4. Organizational culture includes an organization’s expectations, experiences, philosophy, as well as the values that guide member behavior, and is expressed in member self-image, inner workings, interactions with the outside world, and future expectations.
  5. 16– 18 • Stories • Rituals • Material Symbols • Language
  6. How Employees Learn Culture/ How it is “reinforced” Material Symbols Language Rituals
  7.  Social prescriptions of desired (undesired) behavior  Provides a realistic human side to expectations  Most effective stories and legends: Describe real people Assumed to be true Known throughout the organization Are prescriptive
  8.  Rituals programmed routines (eg., how visitors are greeted)  Ceremonies planned activities for an audience (eg., award ceremonies)
  9.  Building structure -- may shape and reflect culture  Office design conveys cultural meaning Furniture, office size, wallhangings
  10.  Artifacts are the physical things that are found that have particular symbolism for culture  The purpose of Artifacts are as remindersand triggers  EX.- Button, Jewelry, clothing
  11.  Language is a shared system of vocal sounds, written signs, and/or gestures used to convey meaning among members of a culture. The Nike swoosh was inspired by the Greek goddess Nike, the winged goddess of victory. The swoosh symbolizes her flight. It conveys the meaning of a brand of sports shoes
  12.  Innovation and Risk Taking  Attention to Detail- Ability to efficiently allocate  Outcome and Results  Team Orientation- extent to which an individual enjoying working with others  Aggressiveness- Competitiveness  Stability
  13.  Culture provides a sense of identity to members and increases their commitment to the organization  Culture is a sense-making device for organization members  Culture reinforces the values of the organization  Culture serves as a control mechanism for shaping behavior
  14. • Defines the boundary between one organization and others • Facilitates the generation of commitment to something larger than self-interest • Enhances the stability of the social system • Serves as a control mechanism for fitting employees in the organization Continued
  15.  The basic types of organizational culture are: 1) Bureaucratic 2) Clan 3) Market 4) Entrepreneurial
  16.  In this type of culture the behaviour of employees is governed by formal rules and standard operating procedures.  Such a culture creates stability.  Organizations with bureaucratic culture tend to produce standardized goods and services, examples: Government ministries Fast food establishments
  17.  In a clan culture the behaviour of individuals is shaped by tradition, loyalty, personal commitment, extensive socialization and self- management.  A clan culture achieves unity through socialization.  Long-term employees serve as mentors  Members share feelings of pride in membership.  Ex.-Adobe, Warby Parker
  18.  In a market culture, the values and norms reflect the significance of achieving measurable and demanding goals mainly concerning those that are financial and market based.  Companies with a market culture tend to focus on: Sales growth Profitability Market share  In a market culture the relationship between individuals and the organization is contractual (previously agreed).  Ex.-Amazon jeff Bezos.
  19.  Organizations existing in the context of an entrepreneurial culture are characterized by high levels of risk taking and creativity.  There is a commitment to experimentation, innovation Steve Jobs –Apple
  20. 21 Core Values Subcultures Dominant Culture
  21. 22 Core Values The primary or dominant values that are accepted throughout the organization Strong Culture A culture in which the core values are intensely held and widely shared
  22. 23 Dominant Culture Expresses the core values that are shared by a majority of the organization’s members Subcultures Minicultures within an organization, typically defined by department designations and geographical separation
  23. 24 • Decision Making (Central/Decentralization) • Safety vs. Risk • Individual vs. Group Rewards • Informal/Formal Procedures • Organizational Loyalty • Co-operation vs. Competition • Time Horizons- Long or Short • Stability Innovation
  24.  Values.- are basic and fundamental beliefs that guide or motivate attitudes and actions. They help us to determine what is important to us.  Values are the motive behind purposeful action.  Values such as  Freedom  Pleasure  Self-respect  Honesty  Obedience  Equality.
  25.  Values lay the foundation for our understanding of people’s attitudes and motivation and influence our perceptions.  We enter an organization with preconceived notions of what “ought” and “ought not” to be.  These notions are not value-free; on the contrary, they contain our interpretations of right and wrong and our preference for certain behaviors or outcomes over others.  As a result, values cloud objectivity and rationality; they influence attitudes and behavior.
  26. TERMINAL VALUES  Refers to desirable end- states. These are the goals a person would like to achieve during his or her lifetime. EXAMPLES-  Prosperity and economic success  Freedom  Health and well-being  World peace  Social recognition  Meaning in life. INSTRUMENTAL VALUES  Refers to preferable modes of behavior, or means of achieving the terminal values. EXAMPLES-  Self-improvement  Autonomy and self-reliance  Personal discipline  Kindness  Ambition  Goal-orientation.
  27. 1. Person–Job Fit 2. Person–Organization Fit
  28.  A theory that identifies six personality types and proposes that the fit between personality type and occupational environment determines satisfaction and turnover.  The effort to match job requirements with personality characteristics is best articulated in John Holland’s personality–job fit theory. Holland presents six personality types and proposes that satisfaction and the propensity to leave a position depend on how well individuals match their personalities to a job.
  29.  If an organization faces a dynamic and changing environment and requires employees able to readily change tasks and move easily between teams, it’s more important that employees’ personalities fit with the overall organization’s culture than with the characteristics of any specific job.  The person–organization fit essentially argues that people are attracted to and selected by organizations that match their values, and they leave organizations that are not compatible with their personalities.
  30.  One of the most widely referenced approaches for analyzing variations among cultures was done in the late 1970s by Geert Hofstede.  He surveyed more than 116,000 IBM employees in 40 countries about their work- related values and found that managers and employees vary on five value dimensions of national culture:
  31.  Power distance  Individualism versus collectivism  Masculinity versus femininity  Uncertainty avoidance  Long-term versus short-term orientation.
  32. •Organizational Ethics
  33. • Ethics is knowing the difference between what you have a right to do and what is right to do. • Ethical behavior depends on the person’s frame of reference. • Many employees feel pressured to cut corners, break rules, and engage in other questionable practices. • Increasingly they face ethical dilemmas and ethical choices, in which they are required to identify right and wrong conduct.
  34.  Ahimsa -- Non-violence.  Satya -- Truthfulness.  Asteya -- Non-stealing.  Brahmacarya -- Sexual responsibility.  Aparigraha -- Abstention from greed
  35. Principles of creating Ethical Culture and Ethical training ● Be a visible role model. ● Communicate ethical expectations. ● Provide ethical training. ● Visibly reward ethical acts and punish unethical ones. ● Provide protective mechanisms
  36. 14– 40 • Ethical considerations should be an important criterion in all organizational decision making. • 2 ways to frame decisions ethically: 1. Utilitarianism 2. Deonance
  37. 14– 41 • Utilitarianism: A system in which decisions are made to provide the greatest good for the greatest number • It proposes making decisions solely on the basis of their outcomes. • This view dominates business decision making. It is consistent with goals such as efficiency, productivity, and high profits. • Example- Footbridge incident
  38.  Utilitarianism has been accused of looking only at the results of actions, and disregarding the desires or intentions that motivate them.
  39. 14– 43 • Deonance- A perspective in which ethical decisions are made because you ‘ought to’ in order to be consistent with moral norms, principle, standards, rules and laws. • This criterion is to impose and enforce rules fairly and impartially to ensure justice or an equitable distribution of benefits and costs.
  40. • Whistle-blowers are Individuals who report unethical practices by their employer to outsiders. .
  41.  Lying is deadly for decision making.  Lying demotivate individuals  Change environment of workplace  Starting of unethical behaviour.  Raises stress and conflicts
  42. • “Ethical leaders speak to us about our identity, what we are and what we can become, how we live and how we could live better.” • Ethical Leadership is to believe that we are not in the business of surviving but in being good, and to admit to ourselves that we are good in order to survive
  43.  Ethical leadership is knowing your core values and having the courage to live them in all parts of your life in service of the common good.
  44. "A person cannot do right in one department whilst attempting to do wrong in another department. Life is one indivisible whole. "
  45. “Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws.” Plato
  46. Thank You