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Organizational culture includes

values, norms, and artifacts (that influence and determine behavior)


Culture
gives the members of the organization meaning as well as the internal rules of behavior
All organizations, not just corporations, have a culture Values, beliefs, customs, rolls, and Sarah Moni's
that are excepted, shared, and circulated through the organization represent it's Culture 2 Values, beliefs,
customs, rolls, and Sarah Moni's that are excepted, shared, and circulated through the organization
represent it's Sarbanes-Oxley 404 Compliance section codified into law that leaders are responsible for
the actions of subordinates, and corporation should have ethical corporate cultures Section includes a
requirement that management assess the effectiveness of The organizations internal controls in
commission an audit of these controls buy an external auditor in conjunction with the audit of its
financial statements Section 404 Forces firms to adopt a set of values that must make up a portion of
the company's culture Forces firms to adopt a set of values that must make up a portion of the company's
culture Firms have different ways of measuring an ethical corporate culture, but the problem with these
measurements standards is they Focus more on RISK, compliance, and reporting
Culture God term that can have many different meanings (attitude of a student towards learning)
Upper management Culture
God term that can have many different meanings (attitude of a student towards learning)
Upper management
The culture of an organization may be explicitly articulated or left unspoken. Explicit statement of
values, beliefs, and customs usually come from
What are formal expression of an organization's culture Memos, written codes of conduct, handbooks,
manuals, forms, and ceremonies. How is corporate culture often expressed in formally Through
comments, both direct and indirect, that communicate the wishes of management
Tone at the top It's often cited as determining factor in creating a high integrity organization A) concern
for people B)concerned for performance What are the two basic dimensions to describe an
organization's culture Apathetic, caring, exacting, integrative.
What are the four organizational cultures that can be classified
Apathetic : Shows minimal concern for either people or performance
Caring: Exhibits high concern for people but minimal concern for performance issues
Exacting: Shows a little concern for people but a high concern for performance
Integrative: Combines high concern for people and for performance. An organization becomes this
when superiors recognize that employees or more than interchangeable parts
Cultural audit: Is an assessment of the organizations values it is usually conducted by outside
consultants but may be performed internally as well
Rewards and punishments: The _______________ imposed by an organization must reflect the culture
those at the top which to create
Compliance culture: Organized around risk. Type of culture uses a legalistic approach to ethics
Value-based culture: Approach to ethical corporate cultures relies upon an explicit mission statement
that defines the firm as well as how customers and employees should be treated
Crux: The _____ of any ethical culture is top down integrity which shared values, norms that provide
guidance for behavior, and visible artifacts such as code of ethics that provide a standard of conduct
Differential association: Refers to the idea that people learn ethical or unethical behavior while
interacting with others who are part of their rule sets or other intimate personal groups have a strong
influence on the ethics of their subordinates.
Superiors ; young__________ managers especially 10 to go along with their superiors moral judgments
to demonstrate loyalty
Whistle blowing: Means exposing and employers wrong doing to outsiders (external to the company)
such as the media or government regulatory agencies
Interpersonal conflict: Ensues when employees think they know the right course of action in a situation,
get their work group for company promotes or requires a different, unethical decision Sarbane's Oxley
act and the federal sentencing guidelines for organizations Have institutionalized internal
whistleblowing to encourage discovery of misconduct 2010 passage of the Dodd Frank act Proposed
additional incentives for whistleblowers
Qui tam realtor : If an employer provides information to the government about the companies
wrongdoing, under the federal false claims act, the whistleblower is known as Retaliation It's still a
concern for whistleblowers and they often have a difficult time winning their cases
InTernal whistleblowing: Most public companies are creating computer systems that encourage
reporting misconduct internally, also called
Immediate supervisors The majority of employees report misconduct to their Organizational leaders
Use their power and influence to shave corporate culture. _______ should be both effective and ethical
Power Refers to the influence that leaders and managers have over the behavior and decisions of
subordinates. An individual has __________ over others when his or her presence causes them to
behave differently. What are the five power bases from which one person may influence another Reward
power
Coercive power Legitimate power Expert power Referent power
Coercive power: Is essentially the opposite of reward power. Instead of rewarding a person for doing
something, ________ powered penalizes actions or behavior. _______ power breaks down relationships
in the long term Legitimate power Stems from the belief that a certain person has the right to exert
influence in that certain others have the obligation to except it. The titles and positions of authority that
organizations but still on individuals appeal to this traditional view of power
Expert power: Is derived from a person's knowledge (or the perception that the person possess
knowledge)
Referent Power: May exist when one person perceives that his or her goals or objectives are similar to
another's. The second person may attempt to influence the first to take actions that will lead both to
achieve their objectives. For this power relationship to be affective, some sort of empathy must exist
between the individuals
Referent Power
May exist when one person perceives that his or her goals or objectives are similar to another's. The
second person may attempt to influence the first to take actions that will lead both to achieve their
objectives. For this power relationship to be affective, some sort of empathy must exist between the
individuals
Reward power
Refers to a persons ability to influence the behavior of others by offering them something desirable
Motivation: It's a force within the individual that focuses his or her behavior towards achieving a goal
Job Performance Is considered to be a function of ability and motivation the job performance equals
ability x motivation, meaning that employees can be motivated, but resources and know-how are also
needed to get the job done To create motivation And organization offers incentives from purging place
to work towards organizational objectives Individuals hierarchy of needs May influence his or her
motivational and ethical behavior Related needs and growth needs After basic needs such as food,
working conditions, and survival are satisfied, ________ become important
Related needs: I'd buy social and interpersonal relationships
Growth needs: Related needs
I'd buy social and interpersonal relationships
Growth needs
Are satisfied by creative for productive activities
Centralized an decentralized: What are the two broad structures for organizations Decision making
authority is concentrated in the hands of top level managers, and little authority is delegated to lower
levels
Centralized organizations 2: Dress formal rules, Policies, and procedures backed up with elaborate
control systems Because they typically have a little upward communication Why will some ethical
concerns arise in centralized organization's
Decentralized organization: Decision making authority is delegated as far down the chain of command
as possible
decentralized organization 2: Have relatively few formals, and coordination and control are usually in
formal in and personal. They focus instead on increasing the flow of communication Centralized
organizations Because of the strict formalization and inflammation of ethics policies and procedures
these tend to be more ethical and their practices then Decentralized organization's
Centralized organizations (4): Centralized organizations
Because of the strict formalization and inflammation of ethics policies and procedures these tend to be
more ethical and their practices then Decentralized organization's
Centralized organizations (4)
May also exert more influence in their employees because they have a central core of policies and code
of ethical conduct
Decentralized organization (4): Give employees extensive decision making a Autonomy because
management empowers employees. This could create ambigity that may be confusing for new managers
however ______ may avoid ethical dilemmas through the use of affective codes of conduct and ethics
Formal group Informal group: What are the two main categories the group affected ethical behavior in
business
Formal group: Is defined as an assembly of individuals that has an organized structure excepted
explicitly by the group Formal group can be divided into Committees, work groups, and teams
Committee: Is a formal group of individuals assigned to a specific task
Work groups: Committee
Is a formal group of individuals assigned to a specific task
Work groups
Are used to subdivide duties within specific functional areas of the company
Teams: Bring together the functional expertise of employees from several different areas of the
organization for example - finance marketing and production - on a single project such as developing a
new product
Informal group: Is defined as two or more individuals with a common interest but without an explicit
organizational structure
InFormal group (2): Help develop and formal channels of communication, sometimes called the
grapevine, that are important in every organization
Grapevine: Is an important source of information for individuals to assess ethical behavior within their
organization
Group norms: Our standards of behavior that group expect of their members. They help define
acceptable and unacceptable behavior within a group
Norms: Have the power to enforce a strong degree of conformity among group members. At the same
time, they define the different rules for various positions within the organization
Group norms (2): Sometimes __________ Conflict with the values in rolls prescribed by the
organizations culture. For this reason, management must carefully monitor not only the corporate
culture but also the dorms of all the various groups within the organization
10, 40, 40, 10
About ______ of the employees take advantage of situations to further their own interests, about _____
go along with the work group on most manners, about _____ always try to follow company policies
and rules (but are not likely to speak out against those who choose to go with the work group), and
about ___ try to maintain formal ethical standards they believe are right in superior to the values of
others and even to the company's value system
Committees in formal and informal groups, not by individuals:
Ethical decisions within organizations are often made by
Individual ethics and organizational ethics
Have an impact on employees ethical intention. If there is an ethical congruence between individuals
ethics and the organizational as a culture, there is an increase in the potential for making ethical choices
and organizational decision making

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