ETHICSAND ORGANIZATIONAL CULTURE

1. Lecture 12 ETHICSAND ORGANIZATIONAL CULTURE

2. 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. Philosophy and ethics

4. Ethical perspectives in organizations • Utilitarian approach: • Act utilitarianism • Rule utilitarianism • Contract approach: • Restricted contractarianism • Libertarian contractarianism

5. 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. 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. 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. Ethics and antisocial behaviour Giacalone and Greenburg (1997)

9. 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. Ethics and management

11. Ethics and management

12. 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. 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

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

16. The dimensions of culture • Schein (1985) - six dimensions: • Behavioural regularities • Dominant values • Norms • Rules • Philosophy • Climate

17. Handy’s four types of culture Plus- Person culture

18. 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. Deal and Kennedy’s cultural profile • Work and play hard • Process culture • Macho culture • Bet your company culture

20. Trice and Beyer’s organization culture • A Company communications • Stories • Myths • Folk tales • Symbols • B Company practice • Rites • Ritual • Ceremonial C Common language • D Physical culture • Artefacts • Layout

21. 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. The determinants of culture • History and ownership • Size • Technology • Goals and objectives • Environment • People

23. Hofstede’s perspectives on culture • Individualism-collectivism • Power distance • Uncertainty avoidance • Masculinity-femininity

24. 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. 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. Managing culture Cartwright - nine factor test

27. 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. Changing organizational cultures Lundberg (1985) - six stage programme • External • Internal • Pressures • Visioning • Strategy • Action