Organizational Culture Ronald R. Sims

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Organizational CultureRonald R. Sims
Distinguished Professor, William and Mary
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Serves 7 functions

• specifies importance of organization
• dictates how resources are used
• establishes what is to be expected
• defines where power lies, and how used
• selects and prescribes what behaviors to do
• sets tone for organization
• instructs how to treat and deal with others

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Some Organizations

• reinforce illegal activity
• recruit and promote those with ? values
• socialize to engage in illegal acts

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Put a moral rationalizerHurrying to succeedIn a
seductive positionGive him ignoble
expectationsAnd upside-down incentiveAnd walk
away...Brumback, 1991, p. 355.
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Climate conducive to unethical ..

• Rationalization
• Impatient Ambition
• Seductive Positions
• Ignoble Expectations
• Upside-down Incentives
• Unguarded Trust

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Internal danger signs

• short term revenues
• results versus performance
• ignores or violates codes of ethics
• simple solutions/quick fixes
• victims mentality
• no solution if it means money
• internal environment discourages ethical behavior

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• Keep up with Joneses...no matter what...
• ethics means compliance with laws and rules
• ethical form above substance to i\enhance image
• employees are not treated equitably
• unfair performance standards

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• No clear-cut policies for handling ethical
  problems.
• no plan for bringing forth problems
• ignores the interests of everyone except
  shareholders
• employees leave your ethical problems at home.
• management by loyalty, prohibits difference of
  opinion.

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The Nature of Decision Making in Organizations

• Sims

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Cognitive Biases in Decision Making

• Framing Errors -- interpretation of history,
  present context, and consequent definition of
  relevant image elements
• Heuristics - attempting to simplify the complex
  decisions , using simple rules of thumb as guides

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Heuristics

• Availability --Using limited information to make
  a judgment
• Representative --stereotypical perceptions

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Organizational impediments..

• Time constraints
• face saving
• bounded discretion --everybody else...

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Obstacles to Group Decisions...

• Group Think
• Risky-shift behavior
• Commitment errors
• Goal-setting challenges
• Abilene Paradox

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Group Think

• Conscious behavior not apparent
• creates esprit de corps
• group is greater than the individual
• sneaky in the sense that the individual is lost
  in the group...

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Risky Shift Behavior

• make riskier decisions because individual members
  do not fear personal retribution.

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Commitment Errors

• Live up to commitments no matter what...

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Goal Setting Challenges

• Groups setting goals

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Abilene Paradox

• Conscious partakers
• causes malaise
• less than the sum
• Speak up for self