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SOCI110 Module 9 - CULTURE & ETHICAL VALUES
0. OBJECTIVES
In this module we discuss
-
the nature and functions of organizational culture
-
the observable aspects of culture, including rites and ceremonies, stories,
symbols, and language
-
the relationship between culture and organization design, and the related
4-fold classification of cultures into adaptibility/entrepreneurial, mission,
clan, and bureaucratic cultures
-
the role of ethical values in organizations
-
sources of ethical values in personal ethics, organizational culture, organizational
systems and external stakeholders
-
the reinforcement of managerial ethics through the use of systems including
structural devices, disclosure mechanisms, codes of ethics, and training
programs
1. ORGANIZATIONAL CULTURE
Minicase: SAS Institute (Daft 7e p. 313). SAS
culture is like "an oasis of calm in a world of frantic competition".
People and human relationships are highly valued; employees are encouraged
to balance work and family in their life; employee benefits include a day-care
center, a fitness center, and a cafetaria where the family is welcome,
etc.
1. What is Organizational Culture?
-
Culture = values, guiding beliefs, understandings, ways of thinking
shared by members of an organization and taught to new members as correct
(NOTE: the same definition of culture works for entire human societies,
as well as for organizations.)
Organizational culture exists at 2 levels
-
visible (overt, observable behaviors)
-
invisible (set of underlying beliefs)
The visible part of culture may be thought of as the "tip of the iceberg"
of culture:
2. Functions of Culture
Culture has 2 main functions
-
internal integration: so members know how to relate to one another
-
external adaptation: to help organization adapt to external environment
3. Observable Aspects of Culture
To study organizational culture one must interpret observable clues to
the underlying culture. There are 4 observable aspects of culture:
rites & ceremonies, stories, symbols, and language.
(1) Rites & Ceremonies
These are are planned activities that make up a special event and are often
conducted for the benefit of an audience. There are 4 types of rites
& ceremonies.
4 types of rites & ceremonies, and their social consequences
(or functions) (Daft E9.2 p. 316, modified)
| Type of Rite |
Example |
Social Consequences (Functions) |
| Passage |
Induction & basic training, U.S. Army; customs surrounding promotion
to officer rank in a bank |
Facilitate transition of persons into social roles and statuses that
are new for them |
| Enhancement |
Annual awards night; Spring Sociology depatment picnic; Mary Kay giving
pink Cadillac to top consultants |
Enhance social identities and increase status of employees |
| Renewal |
OD activities; McDonald's national best hamburger contest |
Refurbish social structure and improve organization functioning |
| Integration |
Office X-mas party; cheers such as WAL~MART cheer; team cheers at sport
events; slogans chanting in political demonstrations |
Revive feelings of solidarity and commitment to the organization among
members |
(2) Stories
Stories are narrative that are often based on true events, are often retold
among employees, often incorporating heroes to serve as models.
Stories can be legends (based on embellished facts) or myths (no facts
at all)
EX: FedEx story about the employee who, having misplaced the key to
the drop box, uprooted the whole box and brought it to the sorting station
The 7 Types of Organizational Stories (Martin, Feldman, Hatch,
and Sitkin 1983)
In a classic article Martin, Feldman, Hatch, and Sitkin (1983) find
that they can classify organizational stories on the basis of similarity
into 7 categories.
-
Rule-breaking - high level executive breaking a rule is taken to account
by a low level employee, who is later congratulated
-
Is the big boss human? - anecdotes showing a warm aspect of high level
executive
-
Little person rises to the top - employee starting in low level position
reaches the top
-
Firing stories
-
Moving office stories
-
Boss reacting to employee mistakes - boss forgives mistake of junior executive
-
Organization dealing with obstacles - agency employees in DC no longer
freezes to conserve energy when new president is elected
|
(3) Symbols
A symbol is something that represents another thing, such as an organizational
value.
EX:
(4) Language
Includes sayings, slogans, metaphors, or other uses of language to convey
special meanings to members.
EX:
-
a previous chairman of the Sociology department popularized expressions
such as "pen to paper", "the PhD is not a marathon, it is a 100 yards dash"
to emphasize importance of productivity
-
"With a name like Smucker's, It's Got to be Good!"
-
"Good to the Last Drop!" (slogan of Maxwell House coffee company; also
a fraternity house at Duke)
4. Organizational Design & Culture
The contingency approach to organizational culture views the optimal organizational
culture as related to 2 dimensions:
-
the environmental requirement for flexibility vs. stability
-
the strategic emphasis of the organization on an external vs. internal
orientation
These 2 dimensions are arraged in a framework that yields a 4-fold typology
of cultures. This typology is almost the same as the Competing Values
approach to organizational effectiveness (see Module 2, in particular Exhibit
2.9 p. 71).
The framework results in 4 categories of cultures.
(1) Adaptability/entrepreneurial culture
Strategic focus: external; Environment need: flexibility (cf. open systems
model).
Culture values innovation, creativity, risk-taking for quick adaptation
to environmental changes.
EX:
-
music recording industry
-
3M
The adaptibility/entrepreneurial culture is characteristic of the so-called
learning organization.
Minicase: Netscape Communications Corp. (Daft p.
325) Netscape has an adaptive corporate culture which emphasizes
creativity, learning, equality (everyone works in cubicles), experimenting
and taking risks. For example, managers realize that some experiments
fail, so that employees are never punished for failures.
(2) Mission culture
Strategic focus: external; Environment need: stability (cf. rational goal
model).
Culture has a clear vision of purposes and how to achieve them in a
stable environment.
EX:
(3) Clan culture
Strategic focus: internal; Environment need: flexibility (cf. human relations
model).
Culture focuses on the needs of employees as as a route to high performance.
EX:
-
SAS
-
Ben & Jerry's
-
AA and other support groups
(4) Bureaucratic culture
Strategic focus: internal; Environment need: stability (cf. internal process
model).
Culture supports a methodical approach to business, integration &
efficiency.
EX:
-
Swiss bank, the London bank where the father works in Mary Poppins
5. Culture & Subcultures
Subcultures can develop in differentiated organizations (cf. Lawrence &
Lorsch).
Culture strength - degree of agreement about importance of values
among members.
Strong subcultures (i.e., low cultural strength) can lead to conflict.
2. ETHICS IN ORGANIZATIONS
1. Law & Ethics
-
Ethics - set of moral principles & values governing behavior;
ethical
values define what behaviors are good or bad
Ethical standards and legal requirements do not coincide.
What might be examples of
-
behavior that is legal but unethical?
-
behavior that is ethical but illegal?
Related notions are
-
managerial ethics
-
social responsability (contributing to welfare of society as a whole)
-
ethical dilemma (when each alternative has undesirable ethical consequences)
2. Sources of Ethical Values in Organizations
There are 4 main forces shaping the ethical values of organizations.
(1) Personal Ethics
Ethical values brought into the organizations by individual members; these
values originate in the family background, spiritual experience, and moral
development of the person.
Ethical values may be grounded in one or more ethical frameworks,
which are general ethical orientations grounded in philosophy:
-
utilitarian framework (generate the greatest benefit for the greatest number
of people; but how do you compare benefits across individuals?)
-
personal liberty framework (generate greatest possible freedom for individual;
freedom may relate to choice, free speech, privacy, due process)
-
distributive justice framework (generate equity, fairness in distribution
of rewards)
(2) Organizational Culture
Organizational culture strongly affects managerial ethics.
(3) Organizational Systems
Formal devices to reinforce ethical values that include structure, policies
and rules, codes of ethics, reward systems, and selection and training
of personnel (see 3. Formal Structure and System below).
(4) External Stakeholders
Include government agencies, customers, special interest groups, global
market forces.
3. Formal Structure and System
Managerial ethics can be shaped with the use of formal structure and systems.
There are 4 categories of formal structural devices used to influence managerial
ethics.
(1) Structure
Responsability for ethical values assigned to specific position(s).
EX:
-
ethics committee
-
ombudsperson
(2) Disclosure Mechanisms
EX:
-
protection of whistle-blowing
Q - What is "whistle-blowing"? Is whistle-blowing ethical?
(3) Code of Ethics
A study shows that 90% of Fortune 500 comanies have a formal code of ethics.
(4) Training Programs
EX:
-
to apply for a research grant at the National Institute of Health (NIH)
the Principal Investigator (PI) must take a workshop on research ethics
on the web.
Last modified 30 Oct 2001
