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Organizational culture and ethical values
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Organizational Culture and Ethical Values
Introduction
Team
Introduction
Organizational Culture
Organizational Culture
Ethical Values
- Nada Hamdy Mohamed
- Nada Ashraf Abdelmongy
- Mohamed Sabry Mohamed
- Hesham Fouly Mahmoud
- Mohamed El-Sayed Fahim
- Mohamed Desoki Mahmoud
Team
The term of Organizational Culture was first introduced by Dr. Elliot Jaques in 1951 in his book (The changing culture of a factory)
The term of Organizational Ethics appeared in the mid of 1970s, the society of business ethics established in 1980, By the mid-1980s at least 500 courses in business ethics reached 40,000 students, European business schools adopted business ethics after 1987
Ethical Values
Is the set of values, beliefs, attitudes, systems, and rules that outline and influence employee behavior within an organization.
What is Organizational Culture
- Edgar Schein's model
- Johnson and Scholes model
Models of culture
Edgar Schein's model
physical layout of the workspace, dress code, symbols, rituals, and observable behaviors
Artifacts
Values
Mission and Vision statements, Company Values and Principles and Team contracts and agreement
Assumptions
Beliefs about decision-making ,Assumptions about collaboration and teamwork, deeply ingrained attitudes towards risk and innovation
Johnson and Scholes model
The past events and people talked about inside and outside the company. Who and what the company chooses to immortalize says a great deal about what it values, and perceives as great behavior.
Stories
The daily behavior and actions of people that signal acceptable behavior. This determines what is expected to happen in given situations, and what is valued by management.
Rituals and Routines
Symbols
The visual representations of the company including logos, how plush the offices are, and the formal or informal dress codes.
Organizational Structure
This includes both the structure defined by the organization chart, and the unwritten lines of power and influence that indicate whose contributions are most valued
Control Systems
The ways that the organization is controlled. These include financial systems, quality systems, and rewards (including the way they are measured and distributed within the organization).
Power Structures
The pockets of real power in the company. This may involve one or two key senior executives, a whole group of executives, or even a department. The key is that these people have the greatest amount of influence on decisions, operations, and strategic direction.
- Quinn and Cameron 4 types
- Charles Handy 4 types
Types of culture
Quinn and Cameron
Quinn and Cameron
Clan / Family
Clan
Functions through a united group of people.
- Bond like one big family
- Might have the same interests
- Trust
- Team work
- Collaboration
"let's do it together"
Adhocracy / Creative
Adhocracy
- Risk taking
- Innovation
- Continuous improvement
"let's do it first"
Hierarchy / Control
Hierarchy
- Bureaucratic
- Formal
- Stability
"let's do it right"
Market / Task
Market
- Result is the only thing that matters
- Employees are often aggressively competitive
- Leaders with high expectations
"let's just do it "
Charles Handy
Charles handy
Power
Power
A centralized culture which focuses on key decision makers. May occur in small businesses
- Few rules and regulations
- Who have power make the decisions
- Tough
- Focus on performance
- Fast responsive
Role Culture
More formalised culture with jobs having clear rules and procedures. Individuals know their position within the hierarchy.
- government agency
Role
Task Culture
Task
focus on specific tasks and projects
- Performance.
- Task orientation.
- Organisations such as design and advertising agencies
person culture
Person
Individuals have considerable freedom to act independently
- individuals have high levels of specialist technical expertise
- may occur in organisations such as legal or medical practices
Company culture statistics confirm how introducing a positive culture can skyrocket performance and improve employee well-being.
Organizational Culture Measurement Determinants
- 86% of job seekers avoid companies with a bad reputation.
- 82% of surveyed people feel that culture is a competitive advantage.
- Culture attracts high-caliber employees and leads to a 33% revenue increase.
Source: A 2016 survey by Deloitte
Building A Company Culture & The Value Of Employer Branding articles on Forbes
Key Metrics to track Company Culture
- Retention and Turnover Rates
- Engagement and Collaboration
- Innovation and Productivity Rates
Retention and Turnover Rates
When employees have a positive employee experience, they’ll likely stay there for the long haul and even recommend others to join them. However employees frequently resigning or quitting their job are usually an indicator of various problems in your workplace, including negative company culture. This makes it an important metric to keep track of.
Engagement and Collaboration
Everything from daily communications to collaborations on projects and competition among employees can reflect your company’s culture health. The easier the communication between employees of different teams and departments, the healthier the company culture, and vice versa, so it counts as a valuable metric to understand the culture of your workplace.
A positive company culture where efforts are appreciated encourages employees to perform at a high level.
Innovation and Productivity Rates
- Employee Surveys
- Performance Management Tools
- Exit Interviews
- Organizational Assessment Systems
Measurements of Organizational Culture
Employee Surveys
The most reliable method to gauge your company’s culture is to let your employees share their thoughts and feelings through surveys, especially anonymous ones where they can express their opinions without worrying about consequences.
Performance Management Tools
By extrapolating the data obtained from these techniques, you can have a clearer image of the work environment and culture in your company, these tools include:
- Key performance indicators (KPIs)
- 360-degree feedback
- Personal development plans (PDP)
Exit Interviews
Employees leaving for new opportunities are great resources to get honest feedback because they're more likely to be honest about the culture in your company than current employees may be. Designing your exit interviews to include analytical questions about company culture can help you understand where your culture might be lacking and what steps you need to take to improve.
Organizational Assessment Systems
Organizational Culture Assessment Instrument (OCAI), which is a culture tool that can help you distribute 100 points across the 4 major competing values, which are:
- Clan
- Adhocracy
- Hierarchy
- Market
Organizational Ethics refers to the principles and values that guide the behavior and decision-making processes within an organization. These ethics are defined by the organization's leadership and serve as a framework for creating a positive and ethical work environment.
Organizational Ethics
1- work Ethics:
Personal set of values that determines how an employee behaves in the workplace.
2- Personal Character:
Also means Personal Ethics
the ethics that a person identifies with in respect to people and situations that they deal with in everyday life
Professional Ethical Life
3- Ethical Behavior at work:
Behaviors in workplace includes obeying the company’s rules, effective communication, taking responsibility, accountability, professionalism, trust and mutual respect for your colleagues at work.
1. Integrity: upholding of honesty and transparency in all organizational activities.
2. Respect: treating all individuals with respect and recognizing their rights and worth.
3. Fairness: ensuring equal opportunities and fair treatment for all employees regardless of their gender, race, or religion.
4. Responsibility: know your obligations towards the organization and community and fulfill them.
5. Accountability: ensuring that the employees adhere to Ethical standards.
6. Trustworthiness: building relationships based on trust both internally and externally.
7. Compliance: following legal and regulatory requirements.
8. Social Responsibility: an Ethical framework in which a person cooperates with others for the benefit of the community.
9. Leadership: promoting and encouraging ethical behavior and ethical decision-making at all levels of the organization.
Components of Organizational Ethics
The importance of Organizational Ethics
1- Builds a strong reputation.
2- Attracts talented employees.
3- Enhances customer relationships.
4- Gains a competitive advantage.
5- Improves financial performance.
6- gain employee and customer satisfaction.
- Clarity
- Congruency of management
- Transparency
- Feasibility
- Discussability
- Supportability
- Sanctionability
Measurements of Organizational Ethics
Source: The Ethics of Organizations: A Longitudinal Study of the U.S. Working Population (ResearchGate).
Clarity
The extent to which the ethics values are clear and understandable to the managers and employees
Congruency of Management
How the board, administrators and local managers behave in accordance with the ethics and rules of the organization
Transparency
If the ethical and unethical behavior and Its dependences are visible to the managers and employees or not
Feasibility
the extent to which the organization offers sufficient time, budget, equipment and information to enable the management and employees to do their responsibilities
Discuss-ability
The ability to discuss ethical and unethical issues internally among the managers and employees
Supportability
The extent to which the organization encourages managers and employees to be committed with the organization’s ethics
Sanction-ability
The extent to which the managers and employees believe that the ethical behavior will be rewarded, the unethical will be punished
Measurements of the Effectiveness of Organizational Ethics
- Monitor productivity rates across the company.
- Review financial records to identify lost profits.
- Measure the extent to which the managers and employees are satisfied with their job.
- Observe the results of employees' actions when the company able to establish and maintain a loyal and satisfied customer base.
Our Point of View
The so called unethical people are not necessarily ignorant of the ethical and moral values but they are so because of the culture they follow in the organization.
E.g. Corruption became a part of various government sectors because it was the culture that prevailed starting from politicians at the top level to the clerks and other bottom line workers.
Case Study
OVERVIEW
The Oriental Weavers Group was founded in 1979 by industrialist and entrepreneur Mohammed Farid Khamis. Listed on the Egyptian Stock Exchange (EGX) since 1997.
The Oriental Weavers Group is one of the world’s largest carpets, rugs, and related raw materials producers. Based in Cairo, the Group has manufacturing facilities in the United States and Egypt and distributes its products in more than 130 countries worldwide. Dedicated to innovative processes, inspired by the latest trends, and crafted to be accessible, the Oriental Weavers Group produces with a passion for value and happiness
Oriental Weavers figures
Products
- Deployment of corporate values is a critical process that involves the dissemination and integration of a company's core values throughout the organization. This process helps ensure that these values are not just words on paper but are actively practiced and embedded in the company's culture. Here is a step-by-step process for deploying corporate values
- Deployment of corporate values is an ongoing process that requires dedication, consistency, and adaptability. When effectively implemented, it can lead to a more aligned, ethical, and engaged workforce, ultimately contributing to the success of the organization.
Deployment of Corporate Values
Core Values
& Leadership Commitment
OW. way for deploying Corporate Values
OW. Deploying Corporate Values
- Define and Clarify Core Values:
Begin by clearly defining the core values that your company wants to promote. These values should align with the company's mission and vision.
- Leadership Commitment:
Ensure that senior leadership is fully committed to these values. Leaders should set an example by embodying these values in their actions and decisions.
Supporting Policies
Communication Strategy
- Develop Supporting Policies and Guidelines:
Create policies and guidelines that align with the core values. These could relate to employee behavior, customer interactions, ethics, or any other relevant areas.
- Communication Strategy:
Develop a comprehensive communication strategy for introducing the core values to employees. This could include town hall meetings, email announcements, company-wide memos, and intranet resources.
Training and Education
Integration into HR Processes
- Training and Education:
Provide training and educational resources to employees to help them understand and internalize the core values. This may involve workshops, seminars, or e-learning modules.
- Integration into HR Processes:
Align HR processes with the core values. This includes incorporating the values into the hiring process, performance evaluations, and recognition and rewards systems.
Behavioral Expectations
Empowerment
- Behavioral Expectations:
Clearly outline the behavioral expectations associated with each core value. What does it look like in practice? Provide real-world examples to make it tangible for employees.
- Empowerment:
Encourage employees to have a voice in the process by soliciting their input and ideas on how to incorporate the values into their work.
Leadership Development & Feedback and Evaluation
- Leadership Development:
Provide leadership development programs that help managers and supervisors learn how to lead by example and promote the values within their teams.
- Recognition and Rewards:
Implement a system that recognizes and rewards employees who consistently demonstrate the core values in their work. This can be through monetary incentives, public recognition, or other means.
Transparency
External Communication
- Transparency:
Maintain transparency in the process by regularly updating employees on the progress and challenges in embedding the core values.
- External Communication:
Ensure that the core values are reflected in your external communications, including marketing materials, press releases, and interactions with customers and partners.
- Celebrate Success:
Celebrate successes and milestones in the deployment of core values. This not only reinforces their importance but also boosts morale.
Celebrate Success
Campaign to solidate the concept of Values
Campaign to solidate the concept of Values
Vision
Continue to be the industry’s trendsetter and the world’s market leader of rugs and carpets, spreading happiness and warmth to every room in the world.
Mission
Enriching people’s lives through offering innovative, sustainable and value driven rugs and carpets crafted by passionate, creative minds.