CHAPTER 3
What is Organizational Culture?
● Is the informal set of values
and norms that controls the
way people and groups in
an organization interact
with each other and with
people outside the
organization such as
customers and suppliers
(George and Jones 1997)
● Behaviors of employee can
be influenced by the
organization through the
development of values and
norms,
● Through aspects that can be
perceived such as wearing
of uniforms and shared
saying like “We value
quality; shared behavior
like smiling and greetings
customers and shared
feelings such as being
proud of the company”
● It affects all kinds of goals
the organization wishes to
achieve and how the
organization will pursue
them
What is Socialization?
Is the process by which an
organization bring new employees
in the culture. In this situation,
culture is transmittal of values,
assumptions and attitudes from the
older to the newer employees.
Culture – point show new
employees can “fit” into the culture
of the organization.
Socialization – tries to make fit or
comfortable for the employee and
the company, it also provide the
proper behavior observed inside the
organization
Socialization Stages
● Anticipatory Socialization
● Accommodation
● Role Management
Anticipatory Socialization
They want to know what
working for the
organization is like (to
know if they fit into a new
culture).
People want to know
whether they are suited to
the job in the organization.
As a new employee the
individual prepares for
entering the organization.
Getting information about
new organization and new
job.
Why should managers study
organizational behavior?
 Will make managers JUSTICE PERSPECTIVE – Males
understand how believe that moral principles must
organization is structured; be anchored on reciprocal rights
How they should manage; and that rules and regulations must
govern in any moral problem in an
Understand what
organization.
organization actually
They can witness the
CARE PERSPECTIVE –Women
organizations grow and
approach them in terms of
change
compassion.In response to need,
women would prefer attention than
It meant to improve our
rule and regulations
understanding of organization and
how to operate to survive. Also it
THE MAGNIFICENT SEVEN
prepares employees and managers
PRINCIPLES
what to expect once employed in the
1. Dignity of human life- the lives of
organization. Managers can cope
people are to be respected
with and manage organization
2. Autonomy- all persons are
effectively.
intrinsically valuable and have the
right to self-determination
Ethics
3. Honesty- the truth should be told
Ethics involves Moral Issues
to those who have a right to know it.
and choices. It reflects the
4. Loyalty- Promises, contracts, and
right versus wrong, good
commitments should be honored
versus bad.
5. Fairness- people should be
Is a branch of philosophy
treated justly
hat deals with morality of
6. Humaneness- our actions ought to
human decisions and
accomplish good and we should
actions, and business ethics
avoid doing evil
deals with them in a
7. The common good- actions
business settings.
should accomplish the greatest good
for the greatest number of people
Do moral principles vary by gender?
Carol Gilligan a well- known
Improving the Organization’s Ethical
psychologists identified one
Climate
underlying cause of these gender
Following actions for improving on
differences the Job ethics:
1.Behave ethically yourself–
Managers are potent role models
whose habits and actual behavior
send signals about the importance
of ethical conduct.
2.ScreenPotentialemployees–Integri
ty testing is more important to avoid
problemslater
3.Develop a Meaningful code of
Ethics
•They distributed to every
employee
•They are firmly supported
by top management
•They refer to specific
practices and ethical dilemmas
likely to
be encountered by the
target employees
•They are evenly enforced
with rewards and compliance and
strict penalties for
noncompliance
Rights, Duties, and
Layoffs(reductions)
There is general agreement that
humans have a right to live, and that
they have this right not because of
their citizenship in one country or
another, or because of their
membership in religion, or because
of their occupation or position in life
(Buckle, 1991).
1.Citizen who are atleast 18 years
old have the right to vote.
2.Joe is a manager, and as such he
has the power to hire or fire his
subordinates. His sight to fire his
subordinates is due to his position
as a manager.
Termination and Layoffs
Termination is different from
layoffs.
Termination – an employee who is
fired for stealing or fighting on the
job is not laid off but terminated for
cause
Attrition – is choosing not to fill
vacant positions.
Layoffs – Managers may choose to
lay-off employees because of so
many reasons such as bankruptcy,
financial crisis where companies
cannot sustain operation, or natural
calamities such as tsunami and
earthquake are done to improve an
already good
Developing Cultural Awareness and
Sensitivity
The starting point for better dealing
with people from different cultures
is to first understand your own
culture. But often, we are usually
unaware of our own culture until
welcome into contact with a very
different one.
Parochialism
Assuming that the ways of your
culture are the only ways of doing
things.
Example:
For them to think that anyone who
eats their business luncheon with a
spoon rather than a fork lacks
proper table
Ethnocentrism
Assuming that the ways of your
culture are the best ways of doing
things
Example:
Traveling English speaking business
people to insist that all of their
business contacts speak English
A Code of Ethics
Is a formal statement that acts as a
guide for the ethics of how people
within a particular organization
should act and make decisions. Code
of ethics commonly addresses issues
such as issues such as conflict of
interest, competitors, privacy of
information, gift giving, and
receiving political contributions to
business.
Members have guidelines
they need to determine
what is ethical and to act
accordingly
Cover all ethical and
unethical conduct within an
organization in one code
Managers may view this as
tools that must be
evaluated and refined
periodically so that they
will be comprehensive and
usable guidelines for
making ethical business
decisions efficiently and
effectively
Should have seminars and
orientation and promote
training to promote ethics
in the workplace