1. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning ETHICSAND ORGANIZATIONAL CULTURE Lecture 12

2. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Philosophy and ethics Ethics - Doing the right thing Philosophy - the critical evaluation of assumptions and argument Moral philosophy - ‘a philosophical inquiry about norms or values, about ideas of right and wrong, good or bad, what should and what should not be done’ Four major approaches to the basis of moral decision making: Naturalism Rationalism Utilitarianism Formalism

3. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Philosophy and ethics

4. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Ethical perspectives in organizations Utilitarian approach: Act utilitarianism Rule utilitarianism Contract approach: Restricted contractarianism Libertarian contractarianism

5. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Corporate governance Mahoney (1997) - reasons why businesses take interest in ethics: Following fashion Response to pressure Pursuit of profit Stakeholders consider that it is right Mixture of reasons above

6. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Social responsibility The role of business in society Positive and negative impact - social responsibility Johnson and Scholes Internal aspects External aspects Web of relationships

7. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Cross cultural perspectives on ethics Leisinger (1995) Moral common sense rules: Avoid harming others Respect the rights of others Do not lie or cheat Keep promises and contracts Obey the law Prevent harm to others Help those in need Be fair Reinforce these imperatives in others

8. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Ethics and antisocial behaviour Giacalone and Greenburg (1997)

9. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Ethics and antisocial behaviour Punch identifies three categories of variable: Structure Culture Personality/identity Kohlberg/Snell: Avoid punishment; obey those in authority Seek personal gain; avoid losing out Earn the approval of others by being nice to them Conform to rules, laws, codes and conventions Follow principles based on respect of others rights, organisms and the greater good Continually question your own actions and principles Snell - four psychic prisons: Being in possession of limited ethical reasoning dilemmas Stereotypical assumptions Holding restricted levels of organizational responsibility Constraints by moral ethos

10. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Ethics and management

11. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Ethics and management

12. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Ethics and management The role of work in society Corporate and public interest Obligations at work Privacy Working at home and work-life balance Whistleblowing

13. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Defining organizational culture Kroeber and Kluchohn (1952) - 164 different meanings of culture Some writers suggest the concept has no real value because the variety of meanings is so diverse Kilman et al (1985) - culture reflects the ideologies, shared philosophies values, beliefs, assumptions, attitudes, expectations and norms of an Organization Deal and Kennedy (1988) - symbolism and leadership Thompson and McHugh (1990) - significance of personnel management in achieving and maintaining new and more appropriate cultures

14. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning

15. Levels of analysis Cray and Mallory (1998) Naïve comparative Culture free Culture bound

16. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning The dimensions of culture Schein (1985) - six dimensions: Behavioural regularities Dominant values Norms Rules Philosophy Climate

17. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Handy’s four types of culture Plus - Person culture

18. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Peters and Waterman’s excellence and culture Based on ‘shared values from the McKinsey 7-S framework: Bias for action Being close to the customer Autonomy and entrepreneurship Productivity through people Hands on, value driven Stick to the knitting Simple form, lean staff Simultaneous loose-tight control

19. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Deal and Kennedy’s cultural profile Work and play hard Process culture Macho culture Bet your company culture

20. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Trice and Beyer’s organization culture A Company communications Stories Myths Folk tales Symbols B Company practice Rites Ritual Ceremonial C Common languageD Physical culture Artefacts Layout

21. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Sub and countercultures Culture is a differentiating feature of organizational life Informal groups Countercultures exist where one or more groups are disaffected and have objectives counter to those of the dominant group

22. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning The determinants of culture History and ownership Size Technology Goals and objectives Environment People

23. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Hofstede’s perspectives on culture Individualism-collectivism Power distance Uncertainty avoidance Masculinity-femininity

24. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Trompenaar’s perspective on culture Seven dimensions of culture: Five deal with the way in which people interact The sixth with people’s perspective on time The seventh with the approach to moulding the environment These combine to create different corporate cultures including: Family Eiffel Tower Guided missile

25. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Globalization and culture Yip (1989) - three stage process Developing a core strategy as the basis of competitive advantage Internationalization of the home country strategy Globalization through integration of the largely separate country based international strategies Bartlett and Ghoshal (1989) International organization Transnational organization Two options available to an organization in its approach to culture: Polycentric Ethnocentric

26. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Managing culture Cartwright - nine factor test

27. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Managing culture Trompenaar and Wooliams (1999) Universalism v participation Individualism v communitarianism Specific v diffuse Neutrality v affectivity Inner directed v outer directed Achieved status v ascribed status Sequential time v synchronic time

28. For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN 1-86152-948-1  Copyright © 2005 Cengage Learning Changing organizational cultures Lundberg (1985) - six stage programme External Internal Pressures Visioning Strategy Action