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Business Ethics in Today's Corporate World
How the culture of an organization can impact the effectiveness of the organization
Determnants Of Organizational Culture
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Recommended: Business Ethics in Today's Corporate World
Organizational Culture and Structure
Successful organizations recognize the impacts of organizational culture and its influence on many facets of business. Strong culture serves to support a business’ structure and furthers its efficiencies by keeping the focus where it belongs. Organizational structure uses the company’s culture as a moral and visionary compass. Both organizational culture and organizational structure play significant roles in a company’s resulting ethics, job performances, and retention rates.
Ethical Effects
Organizational culture is the basis for which ethical behaviors are established. The recognized levels to which ethical behaviors are or are not acceptable come directly from an organization’s culture. Organizations must lead by example in this area.
Working conditions in respect of ethical standards, represent a guarantee for achieving the desired business success. Contemporary successful managers work on highly professional managerial level, respecting business ethics. That means, truly successful business people are those who take care of the needs of their employees. (Rakichevikj, Strezoska & Najdeska, 2010, p. 1176)
Both managers and employees draw directly from the defined culture to determine what acceptable behaviors are.
Structure also affects an organization’s ability to perform ethically. Inevitably, employees are likely to encounter a questionable ethical issue. Structure is an important component of alleviating the issue. Employees should know how to address such concerns with confidence and ease. Structure also is important in establishing the ethical rights of employees as it relates to safety and of a professional nature.
Job Performance
Organizational culture plays an enormous r...
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... culture and structure allow managers to focus on the continual improvements of both the business and its employees. A strong culture and an appropriate business structure serve as the foundation for positive results from satisfied employees who are making the best possible decisions for the organization.
Works Cited
Nonaka, I., & Takeuchi, H. 1995. The knowledge-creating company: How Japanese companies create the dynamics of innovation . New York: Oxford University Press
Rakichevikj, G., PhD., Strezoska, J., PhD., & Najdeska, K., PhD. (2010). Professional ethics - Basic component of organizational culture. Faculty of Tourism and Hospitality Management in Opatija Biennial International Congress Tourism & Hospitality Industry, 1168-1177.
Robbins, S., Decenzo, D., & Coulter, M. (2013). Fundamentals of management. Upper Saddle River, NJ: Pearson Education, Inc.
Ethics or rather morals entail mechanisms that defend, systematize as well as recommend conceptions of right or wrong. Many organizations develop ethical codes to ensure employees and employers understand the difference in doing good or bad. In that respect, ethics are an essential aspect of successfully running of any organization or government. Ethics ensure employee’s productivity levels are up to the required standards. It also assists them to know their rights and responsibilities. Additionally, employers, as well as any persons in management, are guided by them to ensure they provide transparent leadership. Ethics also defines how customers should be handled. Ethical codes govern the relationship between customers and an
Organizational culture is the system of shared beliefs and values that develops within an organization and guides the behavior of its members, while organizational structure is an expression of social and economic principles of hierarchy and specialization (Kinicki, 2015). Both the culture and the structure of an organization are important things for management to understand in order to successfully set and achieve an organization’s goals. Companies who excel in highly competitive fields can attribute their successful economic performance to a cohesive corporate culture that increases competitiveness and profitability. This culture is best utilized in an organization that has the necessary structure to allow its employees to coordinate their actions to achieve its goals.
In business, organizational culture is the shared assumption, values and beliefs with dictates the behavior of those within the organization. Three levels of culture interact with one another and influence behaviors in organizations: observable artifacts, espoused values, and enacted values (Baack, 2012). Every organization develops and maintains its own unique culture which serves as base for guidelines and boundaries for influencing member behavior. In my current employment with The Salvation Army, the organizational culture -- beyond the religious side -- continues to embody what founder William Booth wanted to accomplish --meet human needs.
Organizational culture is a reflective view of the inner workings of an organization. This culture reflects hierarchical arrangements as it pertains to the lines of authority, rights and obligations, duties, and communication processes. Organizational structure establishes the manner in which power and roles are coordinated and controlled amongst the varying levels of management. The structure of an organization is dependent upon their goals, objectives, and strategy. Determining organizational structure best suited for an organization is generally found within the six key elements of organizational structure and choosing those to implement those best suited for the organization. The six key elements include:
The concept of organizational cultures was first raised in 1970s, and soon became a fashionable topic. Organizational culture is the shared beliefs, values and behaviours of the group. Theorists of organizations believe that organizational culture represents the pattern of behaviours, values, and beliefs of an organization. Hence, studies around organizational culture have been seen as great helpful and essential for understanding organizations and their behaviours. Additionally, organizational culture has been considered to be an important determinant of organizational success. Therefore, leaders and managers pay more than more attentions on this topic, focusing on constructing and managing organizational cultures.
Culture can be defined as “A pattern of basic assumptions invented, discovered or developed by a given group as it learns to cope with its problems of external adaptation and internal integration that has worked well enough to be considered valid, and therefore to be taught to the new members as the correct way to perceive, think and feel in relation to those problems”. Schein (1988). Organizational culture can be defined as a system of shared beliefs and values that develops within an organization and guides the behavior of its members. It includes routine behaviors, norms, dominant values, and feelings or climates. The purpose and function of this culture is to help foster internal integration, bring staff members from all levels of the organization closer together, and enhance their performance.
Several researches have been carried out on the effects of corporate culture on organizations and to examine the extent of its ability to influence employee behaviour. Denison (1990) found a correlation between an organizations values, beliefs and norms and its performance and Kotter and Heskett (1992) believe that corporate culture has a long term effect on organizational performance.
Importance of organisational culture Organisational culture is one of the most valuable assets of an organization. Many studies state that the culture is one of the key elements that benefits the performance and affects the success of the company (Kerr & Slocum 2005). This can be measured by the income of the company, and market share. Also, an appropriate culture within the society can bring advantages to the company which helps to perform with the demand of the industry environment. For example, a company with a flexible, and innovative organisational culture will create competitive advantages that benefit the organisation's performance.
Ethics are the driving force behind good business. Every ethical choice made by a professional can and will have a much different outcome than any unethical choice. Bad ethics can ruin many aspects of a business and as (Gaye-Anderson, 2007) states how quite easily the lives and professional reputation of the employees can even be severally damaged (para. 3). Everything from morale to motivation can be severely affected by poor ethical choices. Customers will take their business elsewhere. Employees will abandon ship. Other, competing businesses reap the benefits of the bad moral choices. Ultimately, the entire business can be brought down by one poor ethical choice.
Organizational Culture Organizational culture is important in a business. The culture are the norms under which the company operates and are often found in stories, rituals, symbols and language (Robbins and Judge, 2012). The Court transfers culture by way of stories, ritual and language. As a new hire in the court, orientation includes an explanation of how and why the court system was established and to embrace changes a given constant.
Each employee or individual will also have their personal code of Ethics and it’s vital to also take time to understand those Ethics and respect each individual views related to Ethics. Ethics are usually influenced by religion and culture and it’s vital that an individual ethics and respect their codes of ethics. This requires for a neutral interaction between the individual which will ensure they accumulate adequate information regarding each person ethics thus boosting their ability to abide by each individual ethics. It’s important to understand each person’s ethics so as to provide the individual with a stable atmosphere which will help retain a positive attitude and assist them remain comfortable (Welfel,
Organizational culture is imperative to the success of the organization. The strength and core values of the organization is supported by the organizational culture. This allows for organization to operate in a specific manner that is specific to that organization and can pave the path for success. Company founders are passionate about their vision and mission and they elude that passion into their employees. When that passion and mission is successfully implied to the employees the company strives in it 's path to success.
The concept of organizational culture is one of the most debated topics for researchers and theorists. There is no one accepted definition of culture. People even said that it is hard to define culture and even more change it. It is considered a complex part of an organization although many have believed that culture influences employee behavior and organizational effectiveness (Kilmann, Saxton, & Serpa 1985; Marcoulides & Heck, 1993; Schein, 1985a, 1990).
Organizational culture is the key to organizational excellence and leadership is a function to create and manage culture (Chen 1992). Organizational researchers have become more aware of the importance of understanding and enhancing the cultural life of the institution. "This study is one of a group of companies with high-performance in North America, interest in organizational culture is an important element in organizational success. Tesluk et al (1997). Looking at the" soft "of the organization, the researchers claim that" the organizational culture may be suitable for a means to explore and understanding of life at work, and make them more humane and more pronounced (Tesluk et al, 1997), and the graves (1986) also stressed the importance of corporate culture, and the need for research strategies and methods of investigating the various elements and processes of the organizational culture. He argued the culture that meets the basic needs of belonging and security in an attempt to describe this gathering that culture is "the only thing that distinguishes one company from another gives them coherence and self-confidence and rationalises the lives of those who work for it. Standard that may seem random, is to enhance the life to be different, and safe to be similar, and culture is a concept that provides the means to achieve this compromise (p. 157).
, Love and Kindness, Courage and Integrity (Kerns, 2003). Furthermore, the key to success in developing and maintaining the culture is constantly measuring, tracking, and enhancing organization’s practice of ethical behavior. Executives and organizations that do not make an ethical culture an enduring precedence risk long-term business complications. Ethical culture is the single major element in discouraging misconduct, and bad conduct by even a small number of employees can jeopardize a company (Ethics Resource Center,