Factors Shaping Organizational Culture & Creating an Ethical Culture

1. Factors Shaping Organizational
Culture & Creating an Ethical Culture
Dr. G C Mohanta, BE, MSc(Engg), MBA, PhD(Mgt)
Professor

2. 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

3. 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

4. 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

5. Creating an Ethical Culture
A 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

6. 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