Chapter Ten

Organizational Culture
and Ethical Values

Thomson Learning
© 2004 10-1
 Levels of Corporate
Culture
Observable Symbols
Ceremonies, Stories, Slogans,
Behaviors, Dress,
Physical Settings

Underlying
Values,
Assumptions,
Beliefs, Attitudes,
Feelings

Thomson Learning 10-2

© 2004
 A Typology of Organizational Rites and Their
Social Consequences

Type of Rite Example Social Consequences

Passage Induction and basic training; Facilitate transition of person
US Army into new social roles and
statuses
Enhancement Annual awards night Enhance social identities and
increase status of members

Renewal Organizational development Refurbish social structures

activities 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.

Thomson Learning 10-3

© 2004
 Relationship of Environment and
Strategy to Corporate Culture
Needs of the Environment
Flexibility Stability
External
Adaptability
Strategic Focus

Culture Mission
Culture

Clan Bureaucratic
Culture Culture
Internal
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 Thomson Learning 10-4
And Competing Demands of High Performance (San Francisco:
Jossey-Bass, 1988). © 2004
 Ethical Values in
Organizations
 Ethics

 Rule of Law
 Managerial Ethics
 Social Responsibility
 Ethical Dilemma

Thomson Learning 10-5

© 2004
 Forces That Shape
Managerial Ethics
Personal Ethics Organizational Culture

Beliefs and Values Rituals, Ceremonies

Moral Development Stories, Heroes
Ethical Framework Language, Slogans
Is Symbols
Decision Founder, History
or Behavior
Ethical and
Socially
Responsible?
Organizational Systems External Stakeholders

Structure Government Regulations

Policies, Rules Customers
Code of Ethics Special Interest Groups
Reward System Global Market Forces
Selection, Training
Thomson Learning 10-6
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Formal Structure and Systems of
the Organization
 Ethics committee
 Chief Ethics Officer
 Whistle-blowing
 Code of ethics
 Training programs

Thomson Learning 10-7

© 2004
Workbook
Activity

Shop ‘Til You Drop

Culture Item Discount Department
Store 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:

Thomson Learning 10-8

© 2004