All cultures have accepted ideas about appropriate behavior: Norms
– Grease social machinery
– Don’t have to think about them
(culture shock)
Personal space
– Highly adaptive and functional
What is Organizational Culture?
Creating and Maintaining
Organizational Culture
Founder
Founder values valuesand and preferences preferences Industry
Industry
demands demands AttractionAttractionselection-attrition selection-attrition Early
Earlyvalues,
values, goals, goals, assumptions assumptions
New
Newemployee
employee onboarding onboarding
Leadership
Leadership
Organizational
Organizational
Culture
Culture
Reward
Rewardsystems
systems
Culture Creation
Culture Maintenance
Leadership
Executive
Leaders Create Culture
(Jefferson:UV, Disney: What would Walt do?) Leaders
Maintain or Change Culture
(Arthur Anderson)
What is an Ethical Leader?
Ethical
Leader
– Transforms ethical organizations from what they are to what the leader would have them become – 1) Dissatisfaction with the status quo
– 2) A vision of what should be done
– 3) A proactive and goal-oriented approach for bringing about change
11-8
Pillars of Reputation for
Executive Ethical Leadership
Moral Person
– Traits
honesty, integrity, trust – Behaviors
openness, concern for people, personal morality
– Decision-making
values based, fair
Moral Manager
– Role modeling
visible ethical action – Rewards/Discipline
hold people accountable for ethical conduct
– Communicating
an ethics message
Ethics and Leadership
Ethical Culture
1.
Proactively develop
2. Best way to fix is to take a culture change approach
3. Evaluate ethical culture of organization before joining
11
Cookie Cutter Approach?
Does not work
– One-day training, cynicism (Dow Corning)
Real reason for a system & minimum require
Need to systematically analyze all aspects of organization’s ethical culture and aligning them so they support ethical behavior and discourage unethical behavior Formal and informal: support ethical behavior
12
Formal Cultural Systems
Selection
Systems
Organizational Structure (bureaucratic)
– Authority, responsibility, and ethical culture
– New organizational structures
Values,
Codes
Mission Statements, Policies and
– (Did I provide you outstanding…) vs. integrity, respect, passion and service
Reward
Systems
– Designing a performance management process
– The reward system and whistle-blowers
More about Formal Cultural
Systems
Orientation
and Training Programs
Decision-Making Processes
– Over-reliance on Quantitative Analysis
– Burden of Proof (Challenger: prove safe vs. prove unsafe)
Code
must not only be distributed, but must be enforced and consistent w/ other culture systems
Informal Cultural Systems
What
behaviors are really rewarded, how decisions are really made, and what organizational leaders really care about and expect
People believe the informal cultural system over the formal
– This is what really influences ethicsrelated behavior
15
Informal Cultural Systems
Informal
Norms: “The way we do things around here” (actual behavior real people)
Heroes and Role Models (Gates, Kelleher)
Rituals (e.g., Parade, songs, activities, outings, ceremonies)
Myths and Stories (IBM & Tom Watson)
Language (Business Ethics is an oxymoron), comfortable, more ethical talk act in more ethical ways (Nazi Germany: final solution, evacuation, special treatment)
Organizational Ethics
A Cultural Approach
Formal Systems
Informal Systems
Leadership
Norms
Structure
Rules/Policies
Reward System
Ethical/
Unethical
Behavior
Heroes
Rituals
Selection System
Myths/Stories
Orientation/Training
Language
Decision Processes
Changing Organizational
Ethics?
Very
difficult and/or slow process
Unethical culture feeds on itself
Most often comes from the outside
(stockholders, government, regulators, public) Usually comes from within only
