Chapter Nine

Organizational Culture and Ethical Values

©2000 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e

9-1

Levels of Corporate Culture
Observable Symbols Ceremonies, Stories, Slogans, Behaviors, Dress, Physical Settings

Underlying Values, Assumptions, Beliefs, Attitudes, Feelings

©2000 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e

9-2

Relationship of Environment and Strategy to Corporate Culture
Needs of the Environment
Flexibility External Stability

Strategic Focus

Adaptability/ Entrepreneurial Culture

Mission Culture

Internal

Clan Culture

Bureaucratic Culture

Sources: Based on Daniel R. Denison and Aneil K. Mishra, “Toward a Theory of Organizational Culture and Effectiveness,” Organization Science 6, no. 2 (March-April 1995): 204-23; R. Hooijberg and F. Petrock, “On Culture Change: Using the Company Values Framework to Help Leaders Execute a Transformational Study,” Human Resource Management 32 (1993): 29-50; and R. E. Quinn, Beyond Rational Management: Mastering the Paradoxes And Competing Demands of High Performance (San Francisco: Jossey-Bass, 1988).

©2000 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e

9-3

Ethical Values in Organizations
• Ethics
– – – – Rule of Law Managerial Ethics Social Responsibility Ethical Dilemma

©2000 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e

9-4

Forces That Shape Managerial Ethics
Personal Ethics
Beliefs and Values Moral Development Ethical Framework

Organizational Culture
Rituals, Ceremonies Stories, Heroes Language, Slogans Symbols Founder, History

Is Decision or Behavior Ethical and Socially Responsible?

Organizational Systems
Structure Policies, Rules Code of Ethics Reward System Selection, Training

External Stakeholders
Government Regulations Customers Special Interest Groups Global Market Forces
©2000 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e

9-5

Formal Structure and Systems of the Organization
• • • • • Ethics committee Ethics ombudsperson Whistle-blowing Code of ethics Training programs

©2000 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e

9-6

Workbook Activity

Shop ‘Til You Drop
Culture Item
1. Mission of store: 2. Individual initiative:

Discount Store

Department Store

3. Reward system:
4. Teamwork: 5. Company loyalty: 6. Dress: 7. Diversity of employees: 8. Service orientation: 9. Human resource development:
©2000 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e

9-7