Levels of Corporate Culture

1
Levels of Corporate Culture
Observable Symbols Ceremonies, Stories,
Slogans, Behaviors, Dress, Physical Settings
Underlying Values, Assumptions, Beliefs,
Attitudes, Feelings
2
Functions of culture

• Culture emerges from
• Vision and values of top management and other
  employees
• Interaction
• Strategy and structure

• Internal integration working relationships and
  communication
• External adaptation meeting goals and dealing
  with outsiders

3
Relationship of Environment and Strategy to
Corporate Culture
Needs of the Environment
Flexibility
Stability
External
Mission Culture - measured goals
Adaptability/ Entrepreneurial Culture 3M
Strategic Focus
Clan Culture
Bureaucratic Culture
Internal
See exhibit 2.9 effectiveness models
4
Culture

• Cultural strength
• Subcultures
• Learning culture one organization with few
  boundaries, value of equality and questioning of
  the status quo

5
Ethical Values in Organizations

• Ethics
• Rule of Law
• Managerial Ethics morally right or wrong within
  the organization
• Social Responsibility to the greater society
• Ethical Dilemma right or wrong not clearly
  identified

6
Forces That Shape Managerial Ethics
Personal Ethics
Organizational Culture
Beliefs and Values Moral Development Ethical
Framework
Rituals, Ceremonies Stories, Heroes Language,
Slogans Symbols Founder, History
Is Decision or Behavior Ethical
and Socially Responsible?
External Stakeholders
Organizational Systems
Government Regulations Customers Special Interest
Groups Global Market Forces
Structure Policies, Rules Code of Ethics Reward
System Selection, Training
7
Formal Structure and Systems of the Organization
for ethics

• No.1 factor Top management commitment,
  leadership and example sharing strong internal
  values (value-based leadership)
• Ethics committee
• Ethics ombudsperson
• Whistle-blowing
• Code of ethics
• Training programs