Organizational Culture and Ethics: Definitions and Key Concepts

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Organizational Culture and Ethics Definitions
and Key Concepts

• Presented at the 9th annual conference of
  EPAC/APEC Québec
• May 30th, 2007
• By Magalie Jutras, M.A. Éthique

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Outline of the presentation

• Scheins model
• One of the key authors in management with regards
• to organizational culture
• His field of research organizational behaviour
• Scheins model helps us bridge two concepts
  organizational culture and ethics
• Scheins definitions
• Organizational climate
• Organisational culture ( three levels)
• Scheins model in a context of pluralism

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Organizational Climate

• The organizational climate is a reflection of the
  organizations culture
• The way things are done and the way people
  interact in the organization are elements of the
  organizations climate that reflect a deeper
  aspect, its culture.
• The study of both culture and climate are
  necessary to understand what goes on in the
  organization

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Organizational cultures three interrelated
levels

• Level 1-- Artefacts
• Level 2 Espoused beliefs and values
• Level 3 Underlying assumptions

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Level 1 Artefacts

• The surface level, most visible
• Visible manifestations of the two other levels of
  culture
• Organizational practices, structures, systems,
  products, as well as the manners of address,
  language, symbols, its observable rituals and
  ceremonies, etc.
• Organizational climate is one of these artefacts
  
• Artefacts are easy to observe, but difficult to
  decipher.

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Level 2 Espoused beliefs and values

• Explicit level
• These beliefs / values are normative and focus on
  what is judged to be important, what is valued
  and what is considered to be unacceptable.
• These values are not necessarily put in writing,
  but may be, in particular in the organizations
  value statement, mission or strategy. They can
  also be observed in the management philosophy.

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Level 3 Underlying assumptions

• The most difficult level to reach
• Underlying assumptions and principles formed
  mainly from values that have been integrated with
  time, which unconsciously orient our perceptions
  and our reasoning
• unconscious, taken-for-granted beliefs,
  perceptions, thoughts and feelings concerning the
  nature of reality, humankind, human activity,
  human relations, and the relationship with the
  environment , etc. ultimate source of values and
  action.
• What makes the basic assumptions so powerful is
  that they are less subject to discussion and
  identification than espoused beliefs and values

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Level 3 Underlying assumptions (2)

• The espoused values do not all become underlying
  assumptions
• Only those that work repeatedly in solving the
  groups problems will be transformed into such
  basic assumptions over time
• According to Schein, it is from looking at the
  divergence between the artifacts and the espoused
  values that one can infer the unconscious
  underlying assumptions.

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Scheins model in a context of pluralism

• When all three levels are in agreement, a
  homogeneous culture can be observed
• For Schein, a homogeneous organization should
  perform better than than those that are
  culturally divided
• Schein recognizes however the existence of
  sub-cultures
• An organization will inevitably see, with time,
  sub-cultures emerge their own learning
  experiences, their own members and leaders, and
  their own culture

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Scheins model in a context of pluralism (2)

• Practical examples
• Structural sub-cultures
• By function / discipline
• By divisions / department
• By geographical region
• By type of services or products, etc.
• Relational sub-cultures
• Intergenerational
• Men / Women
• Merger / acquisitions contexts
• Public / private sector, etc.

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References

• A summary of the literature on organisational
  culture and sub-cultures used for this
  presentation is available on the EPAC/APEC web
  site in the document Climat, cultures et sous
  -cultures organisationnelles-Document synthèse
  (in French but with many English references)
• www.epac-apec.ca

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Organizational culture

•  Organizational culture is the pattern of basic
  assumptions that a given group has invented,
  discovered or developed in learning to cope with
  its problems of external adaptation or internal
  integration, and that have worked well enough to
  be considered valid, and therefore, to be taught
  to new members as the correct way to perceive, to
  think, and feel in relation to those problems  .
  
• (Schein, 1984, Coming to an new awareness of
  organizational culture, p.3)