Transcript Organizational Culture

Governance
Ethics , Culture, Leadership
Mr. Iftekhar Ghani
Date: 24-02-2010
Ethics
• The word ethics is derived from the Greek
word ethos, which means "character," and
from the Latin word mores, which means
"customs."
• Deals with what is good for the individual and
for society and establishes the nature of
obligations, or duties, that people owe
themselves and one another.
Ethics
• Moral standards by which people judge
behavior with respect to the rightness and
wrongness of certain actions and to the
goodness and badness of the motives and
ends of such actions .
• Ethics are often summed up in what is
considered the “golden rule”—do unto others
as you would have them do unto you.
Ethical Factors
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Honesty
Objectivity
Integrity
Carefulness
Openness
Respect for others
Ethical Factors
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Confidentiality
Social responsibility
Non-discrimination
Competence
Legality
Human subjects protection
Ethical Codes
• One of the earliest law codes developed, the
Code of Hammurabi, made Bribery a crime in
Babylon during the 18th century B.C.
• Although the law does influence the conduct
of some professions, many ethical issues
cannot be settled by the courts. The ethics of
a particular act is many times determined
independently of the legality of the conduct.
Ethics & Law
• Ethical issues and existing laws may be at
conflict at times.
• Decisive answers cannot always be given for
many ethical issues because there are no
enforceable standards or reliable theories for
resolving ethical conflicts such as creating a
dam that will dislocate ethnic population.
Evolution
Personal Value
• Never take any action that is not honest, open
and truthful and that you would not like to see
widely reported in the media.
Evolution
Religious Injunctions
• Never take any action that is not kind,
and that does not build a sense of
community, a sense of all of us working
together for a commonly good
acceptable goal.
Evolution
Utilitarian Benefits
• Never take any action that does not
result in greater good than harm for the
society of which you are a part.
Evolution
Universal Rules
• Never take any action that you would not
be willing to see others, faced with the
same or closely similar situation, also be
free and even encourage to take.
Evolution
Distributive Justice
• Never take any action in which the least
among us will be harmed in any way.
Evolution
Contributive Liberty
• Never take any action that will interfere
with the rights of others for selfdevelopment and self-improvement.
Ethical Issues
• Corporate Social Responsibility
• Corporate Governance.
• Political contributions made by corporations.
• Misleading financial analysis, Creative
accounting.
Issues
• Insider trading, securities fraud
• Executive compensation
• Bribery, kickbacks
Issues
• Discrimination issues such as gender, race, religion,
disabilities
• Issues surrounding the representation of employees
and the democratization of the workplace: union
• Issues affecting the privacy of the employee:
workplace surveillance, drug testing
Issues
• Issues affecting the privacy of the employer:
whistle-blowing
• Issues relating to the fairness of the
employment contract and the balance of
power between employer and employee:
employment law.
Issues
• Ethical relations between the company and
the environment: pollution, environmental
ethics
• Ethical problems arising out of new
technologies: genetically modified food
Issues
• Product testing ethics: use of economically
disadvantaged groups as test objects.
• Patent infringement, copyright infringement,.
• Ethical issues arising out of international
business transactions; e.g. bioprospecting and
biopiracy in the pharmaceutical industry
Issues
• Globalization
• Varying global standards e.g. the use of child
labor.
• Multinationals taking advantage of
international differences, such as outsourcing
production (e.g. clothes) and services (e.g. call
centres) to low-wage countries.
Culture
• Collection of
values and norms
that are shared by people and groups
in an organization
that control the way they interact
with each other and
with stakeholders outside the organization.
Values
• Beliefs and ideas about
what kinds of goals
members of an organizations should pursue
and about the
appropriate kinds of behaviour
organizational members should use
to achieve these goals.
Norms
• Guidelines that
prescribe appropriate kinds of behaviour
by employees in particular situations
&
control the behaviour
of organizational members
towards one another.
Culture Variants
• Adaptive Culture:
Encourage innovative and reward initiative by
middle and lower-level managers.
• Inert Culture:
Cautious and conservative.
Does not value initiative by the middle and
lower-level managers - even discourage such
behaviour.
Transmission:
myths & stories
• One way to transmit values and norms among
the members is stories and myths such as
Gandhi’s frugal approaches that reinforced the
national culture.
• Founders are known to have shaped national
culture through their individual style of
leadership such as the Martin Luther King.
Transmission:
socialization
• Socialization is how people learn about the
societal culture through interaction.
• Through socialization people internalize and
learn the norms and values of the culture so
that they become homogenized members.
Culture Variants
• Adaptive Culture:
Encourage innovative and reward initiative by
middle and lower-level managers.
• Inert Culture:
Cautious and conservative.
Does not value initiative by the middle and
lower-level managers - even discourage such
behaviour.
Leadership
• Leadership is not an exact science. Much of it
still stays shrouded in mystery.
• All attempts towards understanding
leadership has been through establishing a
cause-and-effect relationship.
- Leader is tall because de Gaulle is tall
- Leader is short because Napoleon is short
Leadership
elements
• Process
Transactional event that occurs between the
leader and his/her follower.
It implies that a leader affects and is affected
by followers.
Leadership
factors
• Influence
Leadership incurs influencing a group of
individuals who have a common purpose.
The group can be a nation, a community or an
organization.
Leadership
factors
• Group
Leadership involves directing a group of
individuals toward accomplishing some task.
Without a group of followers there is no
leadership and the relationship is reciprocal.
Leadership
factors
• Goal
Leading the group towards a common.
This is done through exercising power. Power of a leader is the
ability to influence the group of followers towards attaining a
goal.
• Power Variants
- Position power comes from holding an office or rank
- Personal power derived from followers through factors
such as being competent or considerate.
Leadership Survey
• Six different styles of leadership used in the survey
are as follows:
• Coercive leaders
Demand immediate compliance
• Authoritative leaders
Mobilize people towards a vision
• Affiliative leaders
Create an emotional bond
Leadership Survey
six styles
• Six different styles of leadership used in the
survey are as follows:
• Democratic leaders
• Pacesetting leaders
• Coaching leaders
Build consensus through
participation
Insisting on excellence and selfdirection
Develop people for the future.
Six styles
• Six organizational parameters used in
measuring efficacy of a style:
• Flexibility
How free employees feel to
innovate
• Sense of Responsibility
to the organization
• Level of Standards
people set on their work
Parameters
for evaluation
• Six organizational parameters used in
measuring efficacy of a style:
• Aptness of Rewards
and how people perceive it
• Clarity
people have about mission and
values
• Level of Commitment
people have to the goal
Results
• Most Effective
: Authoritative style
• Runner-up
: Affiliative style
• Consolation(tie)
: Democratic style
Coaching style