Culture And Ethical Values in Business
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Published: Tue, 25 Apr 2017
This report explores ideas about culture and ethical values which influenced by organization. In this report we will describe the nature of culture, its purpose .then we turn to ethical values in organization. We will also discuss about external and internal factor which influenced organizational cultural.
Culture of an organization is the typical way of doing things in the organization. It particularly relates to behaviour patterns and relationships. The culture of an organization develops over time. It is created by the people that work for the organization its manager and workforce. Any company’s values and beliefs depend on cultures which are shared across the business. Company organization’s also effect on its strategy and focus on the consumer. A key factors of the new approach has to change the corporate culture and build an atmosphere within the company those values : consumer facility which focus given that an skill that is agreeable and sociable as well as efficient team work, for the reason that this lead to superior support and the contribution of greatest training attractive ownership used for decision as a result to facilitate manager explain problems themselves rather than pass them on to others respecting every one thus everyone feel they be able to contribute having the cut-throat will to succeed thus each person is aim to develop and be successful.
Organizational culture: – every organizational achievement or unsuccessful is cognized to culture. Culture is the set of ethics, attitude, understanding and behaviour of opinion that is shared with partners as correct. (W. Jack Duncan, 1989).Organizational culture is example of shared essential features that was adopt by groups because its difficulty of outside adjustment and inside integration, which have work well adequate to be measured suitable and transmitted to new members (Schein 2004, p.17)
Determinants of culture:-
The environment and key success factors: – the organization must do well if it is to be an effective competitor. Innovation and fast delivery are example quoted. The values that the strategic leader considers important and wishes to see adopted and followed in the organization. These should relate to the key success factors and to employee reward systems.
Heroes: the visionaries who create the culture. They can come from any background and could be, for example product or services innovators, engineers who the appropriate quality into the product or creative marketing people who provide the slogans which make the product or brand name a household word.
Rites and rituals: the behaviour patterns in which the culture is manifest. Again there are any number of ways in which this can happen, including employees helping each other out when there are difficulties, the way in which sales people deal with customers and the care and notice that go into output.
The cultural networks: – the communications system around which the culture revolves and which determines just how aware employees are about the essential issues.
Culture, structure and styles of management: —Charles Handy (1993), developing an idea Roger Harrison, distinguished four cultures, which he designated power, role, task and person culture and this is:-
Power culture: – power culture is that culture where individual’s performance effectively affected t by a superior central from. So many businesses activate in that system with a small number of rules but with well realize and know how to work with implicit of codes.
Role culture: – A role culture is those culture in which individual’s performance are powerfully affected by clear and complete work images and other proper signal as to what is usual of them.
Typical characteristics of these cultures are occupational images or the course of action. Manager defines what they expect in clear, detailed job descriptions. They choose those people for job which fulfilled specific requirements. Actions direct how people and departments act together. If all individuals used the rules coordination straightforward person’s location determines authority.
Task culture those culture in which power of presentation is towards affecting a job. People cost each for what they can add and be expecting everybody to help as essential. The significance is on attainment the capital and persons for the employment and then relying on their promise and interest. People will usually work in teams to unite various skills into ordinary goals.
Person culture:-A person culture is that culture in which action is powerfully influenced by the desires of the persons who are part of the organization. The individual is at the centre and any structure or system is there to serve them. The form is unusual
small professional and artistic organizations are probably closest to it, and perhaps experiments in communal living. They exist to meets the needs of the professionals or the members, rather than some larger organisational goal.
Importance of culture:-
Places where persons understand the vision of creation it large is call an organization. Each organization has its exceptional method of working which frequently contribute to its culture. The values, ideology, main beliefs and principles of business variety its culture. The culture of the organization controls the method of workers act between them as well as with individual’s external the organization.
The culture decides the way of workers which help at their place of work. A strong culture encourages the workers to keep on work and faithful towards the management.
The culture the place of work also goes a long way in support strong rivalry at the place of work. Workers try their level most excellent to do improve than their fellow workers and earn praise and enjoyment of the superiors. It is the culture the place of work which really motivates the workers to do work.
Every organization must have set strategy for the workers to work accordingly that strategy. The culture of an association represents many rules which guide the workers and give direction at the place of work. Every person is known about his roles and tasks in the organization and knows how to achieve the tasks in front
Two dissimilar organizations cannot have the same work culture. Because of culture organizations makes it differ from others. The work culture goes an extended method in creating the product picture of the business. The work culture gives a personality to the business. In other words, a business is identified by its culture.
The business culture brings all the workers on an ordinary stage. The workers have to be treated similarly and no one should feel ignored or absent out at the place of work. It is necessary for the workers to adjust best in the business culture for them to distribute their level best.
The culture of work unites the workers who are or else from dissimilar from back grounds, families and include varied attitudes and approach. The culture provides the workers a sense of unity at the place of work.
Many organizations follow that culture where all the workers irrespective of their designations have to action into the place of work on time. Such a culture motivates the workers to be on time which finally compensation them. Culture makes well skilled workers.
Each member of staff is obvious with his roles and everyday jobs and strives hard to achieve the aims within the required time organization as per the locate strategy.
Presentation of policies is never a complexity in business where persons go behind as a set culture. The new workers also try their level best to know the work culture and create the business a superior place to work.
Culture of the business which extracts the best out of each team member. In a culture where organization is very exacting about the treatment structure, the workers though active they are would mail their information by finish of the daytime. No any individual has to force anybody to labour. The culture a practice in the people which makes them action well at the place of work.
Elements which affect culture:-
Nowadays, the external surroundings changes quickly and continuously. Competition for resources and customers is now worldwide, and equipment changes as fast as computer chips will allow. Environment analysis is important because it help in developing sustainable competitive advantages, identifies opportunities and threats and provides opportunities for productive co-operation with other organizations. Strategy may influence all elements of an organization strategies and performance. Environment analysis can be used to provide a practical strategy result or emphasize a reflex strategic situation that will need to be monitored.”The external environment includes all elements existing outside the boundary of the organization that have the potential to affect the organization”. Richard L.Draft, organization theory and Design, 8th ed. (Cincinnati, Ohio: south Western, 2004):136-140. The environment includes competitors, resources, technology and economic that influences the organization. Which factors affect organizational culture explains below:
PESTEL stands for political, economical, social technological, environmental and legal. These factors are not independent each other. They are linked each other. For example the technology development change the method that people work, their living standards and lifestyle.PESTEL analyses can be used for forecast of the future
Environment influence on organizations can be explained within six categories such as: political Government support for nation development Taxation policy Restriction on migration stability Economic GDP TRENDS Inflation Interest rates unemployment money supply etc. Social shifts in values and culture change in lifestyle distribution of income levels of education attitudes to work and leisure Technological government expenditure on R&D speed of technology transfer new patents and product government focus on technological effort Environmental protection laws waste disposal energy consumption Legal competition law employment low health and safety product safety PESTEL is used for look at the future impact of environment factors which may be different from the past impact. It should be emphasized that while it is useful to examine the individual elements, they have close relationships with each other and the impact of one may be the result of earlier activity elsewhere.
Example: – every company which engage persons from military or defence background tend to follow a strict culture where all the workers stand for by the set rule and policies. The workers are hardly late to work. It is the state of mind of the workers which form the culture of the place. Organization with popular of young people support strong competition at the workplace and workers are forever on the toes to perform superior than the fellow workers.
National cultural:-The national cultural influences the expectations of stakeholders directly. For example, Hofstede and Schneider and Brasseux showed how attitudes to work authority, equality and a number of other important factors differ from one location to another. Values in organization:-People in any society hold certain persisting core beliefs and values.
For example the more specific attitudes and behaviours found in everyday life. Morals values are given by parents to children and are also they get values by schools, churches, business and government. Values and principles are more open to change. Values govern the behaviours of a person or team members with regard to what is accurate or incorrect. Ethical values set standard as to what is good or bad in conduct and decision making. (Gordon Fishes)
Aspects of culture:-
Aspects of culture discussed below:-
Manifestations of culture:-Edgar Schein (1985) contended that it is important to consider culture as having a number of levels, some of which are essentially manifestations of underlying beliefs.
The first and most visible terms ‘ARTEFACTS’. These include the physical and social environment and outputs of the organization. Written communications, advertisements and the reception that visitors receive are all included. Values are the second level, and they represent a sense of ‘what ought to be’ based on convictions held by certain key people. For example if an organization has a problem such as low sales or a high level of rejections in production, decisions might be made to advertise more aggressively or to use high quality but more expensive raw materials. These are seen initially as the decision maker s values, which can be debated or questioned. Many of the strategies followed by organizations start in this way, and many will reflect values held by the strategic leader. If the alternative is successful it will be tried again and again until it becomes common practice. In this way the value becomes a belief and ultimately an assumption about behaviours practised by the organization.
These basic underlying assumptions are Schein’s third level, and they represent the taken -for- granted ways of doing things or solutions to problems. One belief accepted by employees within a bank might be that all lending must be secure. A football team could be committed to always playing attractive, open football. A university might be expected to have clear beliefs about the relative importance of research and teaching, but this is likely to be an issue where employees ‘agree to disagree leading to fragmented culture. Examples of behaviours are fast new manufactured goods progress, long functioning hours, official organization meeting and usual informal meetings or contracts with colleagues, suppliers and customers. It is also important to appreciate that certain organizations may state that they have particular values, but in reality these will be little more than verbal or written statements or aspirations for the future.Schein argues that culture paradigms are formed which determine how ‘organization members perceive, think about, feel about, and judge situations and relationships and these are based on a number of underlying assumptions.
People and culture: – culture is a sample of approach and faith joint by the organization’s associate and which create norm that strongly form the presentation of people and group in the organization.’ They argue that the beliefs held by the company are seen as major aspects of company policy as they grow from communications and turn form policy towards, the marketplace. As a result, rules or norms for internal and external behaviour are developed and both performance and reward systems will be affected. These aspects of the culture are often transmitted through stories of past events, glories and heroes.
Communications is an essential aspect of culture. The organization force is seen as open or closed, formal and informal. Ideally, employees from changed parts of the business and at different level in the hierarchy will think prepared and capable to speak honestly through every one , contribution in trouble, information and knowledge .” doors should be left open”.
Employees should be reliable and empower to the suitable level. Superior communication can stop malicious surprise. Communication is cooperative if workers identify how healthy competitor is working, where they are chiefly well-built, so they can do themselves too far above the ground level of achievement in order to do better than their rivals. Interactions are clearly efficient interior and external architecture. The strategic leader’s vision for the organization must be communicated and understood; events and changes affecting the organizations also need to be communicated widely. Managers should be encouraged to look for out new opportunities by learning about new technology and customer expectations and to innovate. The organization should help them to share their experiences and their learning.
Cultural differences: – there are several cultural differences between nations and ethnic groups. This influences the extent to which both individuals and the organizations are judged on their track record and on their promise. These differences are important because business is conducted across frontiers and because many organizations have bases in several countries. Organizations have to adjust their style for different customers and markets and accept that there will be cultural differences between the various parts of the organization. This reality affects the ability of the strategic leader to synthesize the various parts of the organization and achieve the potential synergies. Kantor (1991) research drew out different perspectives on competitive success between the leading nations, where she argued that these stemmed from national cultures and educational differences. Her conclusion indicate the following priorities:-Japan product development management product quality USA customer service product quality technology Germany workforce skills problem solving management these conclusions may be summarized by in dispute that Japan is driven by a commitment to innovation, America by customers and Germany by engineering. The power of culture should not be underestimated, both for a company’s success and if it is inappropriate, in frustrating change. Values, strategies, systems organization and accountabilities- the components of culture- are a very strong mix which can either make a company successful or alternatively, lead to its decline. The task of corporate leadership is to apply energy and judgement to the corporate culture to ensure its relevance. (Allen Sheppard. The task of corporate leadership is to apply energy and judgement to the corporate culture to ensure its relevance. (Allen Sheppard)
Conclusion:-Business plays an important role in any culture. The specific role it plays is the result of society’s expectations. Some believe that the only social role business should play is to maximise profits. Society, applying legal and political power, has demanded greater social and ethical sensitivity from business. It has required that business takes into account the community of individuals whose lives are affected by its decisions.
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