Factors Shaping Organizational Culture & Creating an Ethical Culture

Dr. G C Mohanta, BE, MSc(Engg), MBA, PhD(Mgt)

Professor

Factors Shaping Organizational Culture

The following factors are vital in shaping the Organizational Culture:

Founders and owners

Beliefs, goals and values

Customers and the external parties

Goals and objectives of the organization

History and tradition of the company

The management and its style of handling the empl0yee

Availability of resources

Factors Shaping Organizational Culture (Contd.)

Information and management systems

Company environment (juridical, economic, cultural, technological) and policies

Procedures, rules and regulations

Performance measurements and rewards systems

Nature of the business

Characteristics of people within the organization

Organizational characteristics

Factors Shaping Organizational Culture (Contd.)

Socialization of the organization

Adherence of important values

Selection and placement of employee

Organizational ethics

Employment relationship

Organizational structure

National culture

Creating an Ethical CultureA strong culture with high risk tolerance, low-to-moderate aggressiveness and focus on means, as well as, outcomes, is most likely to shape high ethical standards.

Managers must be visible role models

Communicate ethical expectations

Provide ethical training

Visibly reward ethical acts and punish unethical ones

Provide protective mechanisms

Creating an Ethical Culture (Contd.)

Establish rules and norms that outline organization’s ethical position

Demonstrate commitment to follow rules

Reduce incentives for unethical behavior

Develop fair and equitable HR procedures

Provide access to upper-level managers

Encourage employees to voice concerns

Create a strong board of directors