ADMS 2320 Lecture Notes - Lecture 21: Organizational Culture
30 Apr 2018
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ADMS 2320 Lecture 21 Notes – Creating an Ethical Organizational Culture
Introduction
• Top leadership defiitel refers to the orgaizatio’s hief eeutie, ut also ight
need to include all senior management positions.
• Young and small organization.
• The younger the organization, the less entrenched its culture will be.
• It’s also easier for aageet to ouiate its e alues he the orgaizatio is
small.
• Weak culture.
• The more widely held a culture is, and the higher the agreement among members on its
values, the more difficult it will be to change.
• Weak cultures are more open to change than strong ones.
• Below we discuss two specific kinds of cultural change
• Creating an ethical organizational culture and creating a positive organizational culture.
• The organizational culture most likely to shape high ethical standards among its
members is high in risk tolerance, low to moderate in aggressiveness, and focuses on
means as well as outcomes.
• This type of culture takes a long-term perspective and balances the rights of multiple
stakeholders, including the employees, stockholders, and the community.
• Managers are supported for taking risks and innovating, are discouraged from engaging
in unbridled competition, and guided to pay attention not just to what goals are
achieved but also to how.
• If the culture is strong and supports high ethical standards, it should have a very
powerful and positive influence on employee behaviour.
• However, examples of organizations that have failed to establish proper codes of ethical
conduct can be found in the media nearly every day.
• Some actively deceive customers or clients.
• The organization, the less entrenched its culture will be.
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