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© 2004 10-1
Chapter Ten
Organizational Culture
and Ethical Values


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© 2004
10-2
Levels of Corporate Culture
Observable Symbols
Ceremonies, Stories, Slogans,
Behaviors, Dress,
Physical Settings
Underlying
Values,
Assumptions,
Beliefs, Attitudes,
Feelings
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A Typology of Organizational Rites and Their Social
Consequences
Type of Rite Example Social Consequences
Passage Induction and basic training; US
Army
Facilitate transition of person
into new social roles and
statuses
Enhancement Annual awards night Enhance social identities and
increase status of members
Renewal Organizational development
activities
Refurbish social structures and
improve organization
functioning
Integration Office holiday party Encourage and revive common
feelings that bind members
together and commit them to
the organization
Source: Adapted from Harrison M. Trice and Janice M. Beyer,
“Studying Organizational Cultures through Rites and Ceremonials,”
Academy of Management Review 9 (1984), 653-659. Used with permission.
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© 2004
10-4
Relationship of Environment and Strategy
to Corporate Culture
Needs of the Environment
S
t
r
a
t
e
g
i
c

F
o
c
u
s

Adaptability
Culture

Clan
Culture

Bureaucratic
Culture

Mission
Culture
Flexibility
External
Internal
Stability
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).
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Ethical Values in Organizations
 Ethics

 Rule of Law
 Managerial Ethics
 Social Responsibility
 Ethical Dilemma
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Forces That Shape Managerial
Ethics
Is
Decision
or Behavior
Ethical and
Socially
Responsible?


Beliefs and Values
Moral Development
Ethical Framework


Rituals, Ceremonies
Stories, Heroes
Language, Slogans
Symbols
Founder, History
Government Regulations
Customers
Special Interest Groups
Global Market Forces

Structure
Policies, Rules
Code of Ethics
Reward System
Selection, Training
External Stakeholders Organizational Systems
Personal Ethics Organizational Culture
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Formal Structure and Systems of the
Organization
 Ethics committee
 Chief Ethics Officer
 Whistle-blowing
 Code of ethics
 Training programs
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© 2004
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Shop ‘Til You Drop
Workbook
Activity
Culture Item Discount
Store
Department
Store
1. Mission of store:
2. Individual initiative:
3. Reward system:
4. Teamwork:
5. Company loyalty:
6. Dress:
7. Diversity of
employees:
8. Service orientation:
9. Human resource
development: