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Nick Venditti Cody Ritchie Organizational culture and Ethical values.

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Presentation on theme: "Nick Venditti Cody Ritchie Organizational culture and Ethical values."— Presentation transcript:

1 Nick Venditti Cody Ritchie Organizational culture and Ethical values

2 Identifying key aspects of Organizational Culture and its make up Examine the types of cultures typically found and how they influence the GSS framework Diagnosing a maladaptive culture, and difficulties in M&A Discuss ethics and values and how they shape organizational structures/systems Leadership and its impact on culture/values, and aligning with the strategy of an organization Analytical Highlights

3 GSS Framework Organizational culture

4 Social capital: quality of interactions, shared perspective Values, norms, & beliefs Cultivates people to buy into an identity SERVES TWO CRITICAL functions: 1. integrate members 2. enable adaptation to external environment Organizational Culture


6 Cloud-service industry, main competitors Google & Amazon How would you describe Microsoft as a company? What do you think their GSS is? Do you foresee any difficulties for Microsoft based on their current culture and their new GSS? Do you think its possible to change the culture of Microsoft and if so how would you change the surface or deeper level characteristics? DISCUSSION

7 Organizational Culture Rites/ceremonies, stories, symbols, & language Type of RiteexampleSocial consequence PassageBasic training, orientation Facilitates transition EnhancementAwards night, employee of the month Increase status of employees RenewalOrganization development activities Improve on functioning IntegrationOffice holiday partyReinforce commitment


9 Organizational Culture its importance is severely underestimated Misalignments can exist when; Goals changeStrategy ChangeStructure Change Culture DOES NOT change


11 -strategic focus on the external environment through flexibility and change to meet customer needs -detects, interprets, and translates signals from environment into behaviour responses -creates environmental change Adaptability Culture


13 -emphasis on a clear vision of the organization’s purpose and on achievement of goals -serve specific customers in the external environment -needs a stable environment Mission Culture


15 -primary focus on involvement of organization’s members and on rapidly changing expectations -satisfy employee needs to make them as productive as possible Clan Culture


17 - internal focus and a consistency orientation for a stable environment -methodical approach to doing business -employees must follow established policies and practices -success is determined by level of efficiency and integration Bureaucratic Culture



20 CASE Example: Goal: Resource/Market type/Employee development goals Strategy: Focused Low- Cost Structure: Horizontal, decentralized Clan Culture

21 -Level 5 Leadership: leader who lacks personal ego, and has strong will for company success -The Right Values: leaders must build a culture based on freedom and responsibility -The Right People In The Right Jobs: getting people who embody the value of the company -Knowing Where To Go: what can we be the best at, what are we passionate about, and what makes economic sense Culture Of Discipline

22 Strong Cultures- Frequent use of ceremonies, symbols, stories, heroes (S.E.A.L forces) Subcultures- develop as a result of common problems, goals, experiences within teams, departments or the like. (Accounting vs Marketing) Merger & Acquisition difficulties culture clash a frequent cause of M&A difficulty/failure use of passage/integration rituals Extension, collaborative, and redesign type mergers realigning goals, strategy, and structure Organizational Culture

23 Healthy CultureMaladaptive Culture Encourages adaptation to the external environment, flexible direction Encourages rigidity and stability Bigger picture focus, less boundaries between parts of the organization No outward focus, subcultures may interfere with the success of an organization Risk taking, change, and improvements are encouraged Keeps status quo Managers concerned with stakeholdersManagers concerned with immediate group work, value short term gains. Climate is supportive of employee development, participation, and creativity Climate restricts employee creativity, resist change, ideas pushed down hierarchy Cultural Adaptation


25 Your CEO of company A who is in direct competition with Company B. Both plan to release a new smartphone to market. You find out competitive intelligence about the price, the new features, the launch date before public release. The means in which this information was obtain was not illegal but was through unethical actions. The company prides itself on the integrity of its operations and the integrity of its products. You have to decide what to do with this information, whether or not you will use it to gain a competitive advantage over Company B? DISCUSSION: Ethical Dilemma

26 Principles and values that govern the behavior of a person or group with respect to what is right and wrong Culture influences ethical actions Ethical standards are a guiding source for those actions not covered by the law history  to societal morality  local environment  individual ethics Ethics

27 The Corporation: The pathological pursuit of profit & power Compared side by side the DSM-IV the criteria of a psychopath and the characteristics of organizations explicitly classifying them under this methodology Believes organizations are relentless in increasing its bottom line Pursue socially & environmentally responsible actions for strategic reasons intended to enhance its image and performance. Organizational Psychopathology


29 What are some of the current trends you see changing organizational culture? Does social networking affect org’ culture & ethics? Selfie generation? Reducing carbon footprints is a new value instilled in recent years, how does it affect on strategy and structure? Will Fair Trade be something that will become a standard in some industries as opposed to a higher-order of business dealing? How does this influence a companies strategy? Emerging Trends

30 relationship between leaders and followers that is based on shared, strongly internalized values that are advocated and acted upon by the leader leader must demonstrate a clear vision must have the respect of the employees for vision to be encompassed by all Value-Based Leadership

31 Structure: creating ethics departments or committees to coordinate all corporate ethics activities Disclosure Mechanisms: policies and procedures to protect and support whistleblowers Code of Ethics: formal statement of the company's values concerning ethics and social responsibility Training Programs: ensure that training programs have the corporate values instilled in new employees Formal Structure And Systems

32 Complexity of an environment (ch.4) creates a greater potential for ethical issues The influence of multiple nationality and various norms/values on an organizations culture The need for boundary spanners and local experts to have a unified vision of specific norms and know how to interlock the organizational culture accordingly Multicultural perspective, status based on merit, openness to new ideas, understanding of the different cultures without being limited by them Social Audit, similar to the ISO 9000 quality auditing system Global perspective on Culture

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