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Understanding Organizational Culture and Ethical Values in Business

This chapter from Daft's "Organizational Theory and Design" explores the profound impact of organizational culture and ethical values on business effectiveness. It examines the observable symbols and underlying beliefs that shape corporate culture, such as ceremonies, stories, and behaviors. The text discusses various cultural types, including clan and bureaucratic cultures, and highlights the relationship between strategy, external adaptability, and corporate culture. Additionally, it delves into ethical dilemmas, managerial ethics, and the influence of personal and organizational beliefs on decision-making and social responsibility.

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Understanding Organizational Culture and Ethical Values in Business

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  1. Chapter Nine Organizational Culture and Ethical Values ©2000 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e

  2. Levels of Corporate Culture Observable Symbols Ceremonies, Stories, Slogans, Behaviors, Dress, Physical Settings Underlying Values, Assumptions, Beliefs, Attitudes, Feelings

  3. Relationship of Environment and Strategy to Corporate Culture Needs of the Environment Flexibility Stability External Adaptability/ Entrepreneurial Culture Mission Culture Strategic Focus Clan Culture Bureaucratic Culture Internal Sources: Based on Daniel R. Denison and Aneil K. Mishra, “Toward a Theory of Organizational Culture and Effectiveness,” Organization Science 6, no. 2 (March-April 1995): 204-23; R. Hooijberg and F. Petrock, “On Culture Change: Using the Company Values Framework to Help Leaders Execute a Transformational Study,” Human Resource Management 32 (1993): 29-50; and R. E. Quinn, Beyond Rational Management: Mastering the Paradoxes And Competing Demands of High Performance (San Francisco: Jossey-Bass, 1988).

  4. Ethical Values in Organizations • Ethics • Rule of Law • Managerial Ethics • Social Responsibility • Ethical Dilemma

  5. Forces That Shape Managerial Ethics Personal Ethics Organizational Culture Beliefs and Values Moral Development Ethical Framework Rituals, Ceremonies Stories, Heroes Language, Slogans Symbols Founder, History Is Decision or Behavior Ethical and Socially Responsible? Organizational Systems External Stakeholders Structure Policies, Rules Code of Ethics Reward System Selection, Training Government Regulations Customers Special Interest Groups Global Market Forces

  6. Formal Structure and Systems of the Organization • Ethics committee • Ethics ombudsperson • Whistle-blowing • Code of ethics • Training programs

  7. Shop ‘Til You Drop Workbook Activity

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