Chapter Two

Cultivating Organizational

Culture and Ethical

Behavior

2-1a

Chapter Two Outline

Foundation of Organizational Culture

•Layers of Organizational Culture

•Four Functions of Organizational Culture

•Types of Organizational Culture

•Outcomes Associated with Organizational Culture

•How Cultures are Embedded in Organizations

Embedding Organizational Culture Through

Socialization Processes and Mentoring.

•A Three-Phase Model of Organizational Socialization

•Practical Application of Socialization Research

•Attitudes

•Using Mentoring to Your Advantage

2-1b

Chapter Two Outline (continued)

Fostering Ethical Organizational

Behavior

A model of Ethical Behavior

Do Moral Principles Vary by Gender?

How to Improve the Organization’s Ethical

Climate

McGraw-Hill/Irwin ©2002, The McGraw-Hill Companies, Inc. All Rights Reserved

2-2

Organizational Culture Is

“The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments.”

- Edgar Schein

2-3

Figure 2-1

The Layers of Organizational Culture

Observable

Artifacts

Espoused

Values

Basic

Underlying

Assumptions

Source: Adapted from E H Schein, Organizational Culture and

Leadership, 2 nd ed (San Francisco: Jossey-Bass, 1992), p 17.

2-4

Figure 2-2

Four Functions of Organizational Culture

Organizational identity

Sense-making device

Organizational culture

Collective commitment

Social system stability

2-5

Table 2-1a

Types of Organizational Culture

Type of

Culture

Constructive

Constructive

Constructive

Constructive

Normative

Belief Characteristics

Achievement Goal and achievement oriented

Self-actualizing Value self-development and creativity

HumanisticParticipative, employee encouraging centered, and supportive

Affiliative High priority on constructive interpersonal relationships, and focus on work group satisfaction

2-6

Table 2-1b

Type of

Culture

Passive-

Defensive

Types of Organizational Culture (cont)

Normative

Belief Characteristics

Approval Avoid conflict, strive to be liked by others, and approval oriented

Passive-

Defensive

Passive-

Defensive

Conventional

Dependent

Conservative, bureaucratic, and people follow the rules

Nonparticipative, centralized decision making, and employees do what they are told

Passive-

Defensive

Avoidance Negative reward system and avoid accountability

2-7

Table 2-1c

Types of Organizational Culture (cont)

Type of

Culture

Aggressive-

Defensive

Aggressive-

Defensive

Aggressive-

Defensive

Aggressive-

Defensive

Normative

Belief Characteristics

Oppositional Confrontation and negativism rewarded

Power Nonparticipative, take charge of subordinates and responsive to superiors

Competitive Winning is values and a winlose approach is used.

Perfectionistic Perfectionistic, persistent, and hard-working

2-7a

Embedding Organizational Culture

Formal statements of organizational philosophy, mission, vision, values, and materials used for recruiting, selection and socialization

The design of physical space, work environments, and buildings

Slogans, language, acronyms, and sayings

Deliberate role modeling, training programs, teaching and coaching by managers and supervisors

Explicit rewards, status symbols (e.g., titles), and promotion criteria

Stories, legends, and myths about key people and events

2-7b

Embedding Organizational Culture

(cont)

The organizational activities, processes, or outcomes that leaders pay attention to, measure, and control

Leader reactions to critical incidents and organizational crises

The workflow and organizational structure

Organizational systems and procedures

Organizational goals and the associated criteria used for recruitment, selection, development, promotion, layoffs, and retirement of people

2-8

Figure 2-3a

A Model of Organizational Socialization

Phases

Perceptual and Social

Processes

1. Anticipatory socialization

Learning that occurs prior to joining the organization

Anticipating realities about the organization and the new job

Anticipating organization’s need for one’s skills and abilities

Anticipating organization’s sensitivity to one’s needs and values

2-8b

Figure 2-3b

A Model of Organizational Socialization

(cont.)

Phases

2. Encounter

Values, skills and attitudes start to shift as new recruit discovers what the organization is truly like

Perceptual and Social

Processes

Managing lifestyle- versus-work conflicts

Managing intergroup role conflicts

Seeking role definition and clarity

Becoming familiar with task and group dynamics

2-8c

Figure 2-3c

A Model of Organizational Socialization

(cont.)

Phases

Perceptual and Social

Processes

3. Change and acquisition

Recruit masters skills and roles and adjusts to work group’s values and norms

Competing role demands are resolved

Critical tasks are mastered

Group norms and values are internalized

2-8d

Figure 2-3d A Model of Organizational Socialization (continued)

Outsider

Phases

1. Anticipatory socialization

2. Encounter

3. Change and acquisition

Behavioral Outcomes

• Performs role assignments

• Remains with organization

• Spontaneously innovates and cooperates

Socialized

Insider

Affective Outcomes

• Generally satisfied

• Internally motivated to work

• High job involvement

2-9

Hands on

Exercise

Have you Been Adequately Socialized?

Have you been adequately socialized?

Does your employer adequately socialize employees?

How do high levels of socialization impact a new employee’s job satisfaction? Explain.

What is a new employee’s role in the socialization process?

2-10

Mentoring

The process of forming and maintaining intensive and lasting developmental relationships between a variety of developers (i.e., people who provide career and psychosocial support) and a junior person (the protégé, if male; or protégée if female).

Functions of Mentoring

Career Functions

- Sponsorship

- Exposure and visibility

- Coaching

- Protection

- Challenging assignments

Psychosocial Functions

- Role modeling

- Acceptance and confirmation

- Counseling

- Friendship

2-11

Figure 2-4 Developmental Networks Associated with

Mentoring

Developmental relationship strength

Weak ties

Strong ties

•D2 •D2

Low range

D1•

Receptive

•P

D1•

Traditional

•P

High range

D1• •D2

P

D3•

Opportunistic

•D4

Key: D, developer; P, protégé.

D1• •D2

P

D3•

Entrepreneurial

•D4

Source: M Higgins and K Kram, “Reconceptualizing Mentoring at

Work: A Developmental Network Perspective,” Academy of

Management Review, April 2001, p. 270

2-12

Figure 2-5 A Model of Ethical Behavior in the

Workplace

Cultural Influences

- Family

- Education

-Religion

- Media/entertainment

Organizational Influences

- Ethical codes

- Organizational culture

- Role models

- Perceived pressure for results

- Rewards/punishment system

Individual

- Personality

- Values

- Moral principles

- History of reinforcement

- Gender

Political/legal/ economic influences

Ethical behavior

Ethical Behavior – Additional

Thoughts

Hiring right people, firing undesirables, modeling behavior, etc. not sufficient.

Example: Women in SUNAT and police women in Peru

Reduce opportunities for unethical behavior (through design of control systems and processes)