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17-1©2005 Prentice Hall 17: Organizational Culture and Ethical Behavior Chapter 17: Organizational Culture and Ethical Behavior Understanding And Managing.

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Presentation on theme: "17-1©2005 Prentice Hall 17: Organizational Culture and Ethical Behavior Chapter 17: Organizational Culture and Ethical Behavior Understanding And Managing."— Presentation transcript:

1 17-1©2005 Prentice Hall 17: Organizational Culture and Ethical Behavior Chapter 17: Organizational Culture and Ethical Behavior Understanding And Managing Organizational Behavior 4th Edition JENNIFER GEORGE & GARETH JONES

2 17-2 ©2005 Prentice Hall Chapter Objectives  Distinguish between values and norms and discuss how they are the building blocks of organizational culture  Appreciate how a company’s culture is transmitted to employees through its formal solicitation practices and through informal “on the job” learning

3 17-3 ©2005 Prentice Hall Chapter Objectives  Discuss five main factors that shape organizational culture and explain why different organizations have different cultures  Appreciate how differences in national culture affect the culture of organizations within a particular society  Understand the importance of building and maintaining an ethical organizational culture

4 17-4 ©2005 Prentice Hall Opening Case: How 3M Built a Culture for Innovation  How does 3M’s culture affect creativity?  Cultural values and norms  Empowerment  Recognition  15% of time for personal projects

5 17-5 ©2005 Prentice Hall Building Blocks of Organizational Culture  Characteristics of people within the organization  Organizational ethics  Employment relationship  Organizational structure  National culture

6 17-6 ©2005 Prentice Hall What is Organizational Culture?  Set of shared values, beliefs, norms that influence the way employees think, feel, and behave towards each other and towards people outside the organization  Pattern of shared basic assumptions

7 17-7 ©2005 Prentice Hall What are Organizational Values?  Guiding principles people use to determine which types of behaviors, events, situations, and outcomes are desirable or undesirable  Terminal  Instrumental

8 17-8 ©2005 Prentice Hall Terminal and Instrumental Values  Terminal Values –Desired end states of outcomes  Instrumental Values –Desired modes of behavior

9 17-9 ©2005 Prentice Hall Figure 17.2 Where an Organization’s Culture Comes From  Characteristics of people within organization  Nature of employment relationship  Organizational ethics  Design of organizational structure

10 17-10 ©2005 Prentice Hall Figure 17.3 Ways of Transmitting Organizational Culture  Formal socialization practices  Ceremonial rites and ceremonies  Organizational language  Signs, symbols, stories

11 17-11 ©2005 Prentice Hall Ceremonial Rites  Rites of passage  Rites of integration  Rites of enhancement

12 17-12 ©2005 Prentice Hall Figure 17.4 Sources of Organizational Ethics  Social Ethics  Professional Ethics  Individual Ethics

13 17-13 ©2005 Prentice Hall Hofstede’s Model of National Culture  Individualism vs Collectivism  Power Distance  Achievement vs Nurturing Orientation  Uncertainty Avoidance  Long-term vs Short-term Orientation

14 17-14 ©2005 Prentice Hall Table 17.2 Culture Dimensions

15 17-15 ©2005 Prentice Hall Creating an Ethical Culture  Establish rules and norms that outline organization’s ethical position  Demonstrate commitment to following 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

16 17-16 ©2005 Prentice Hall Why Does Unethical Behavior Occur?  Lapses in Individual Ethics  Ruthless Pursuit of Self-Interest  Outside Pressure


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