Unit 3: Organizational Culture, Diversity, and Ethics
In this unit, you will look at organizational culture and how it provides a company with its own workplace climate and personality. Organizational culture includes attitudes, values, and work styles which, when managed properly, can lead to a highly productive workforce.
A diverse workforce brings together people from different backgrounds. Each individual brings his or her own experiences and expertise to the table. The blending of these backgrounds can enhance productivity by allowing for the free flow of new ideas and creativity. This unit will explore the importance of a diverse workforce, and how managers can make the most of their employees' individual knowledge and approaches in order to reach corporate goals.
Management sets the tone not only for a corporate climate; it also sets the standard for personal behavior. In this unit you will also learn about the importance of ethics – that is, "doing what is right" or "doing the right thing". In light of recent major business scandals borne out of unethical behavior, almost all business schools have devoted aspects of their curricula to the study of ethics. In order to understand how to apply ethics to different circumstances, you must understand how ethics can vary based on differences in society, culture, and politics. There are a number of different philosophies purporting to explain how to apply ethics to decision-making, but none of them are absolute. However, understanding these various philosophies can help you reach workplace decisions that are more ethically grounded.
This unit will conclude with an exploration of business ethics in the modern-day workplace environment. An organization and its managers have duties, including legal and ethical responsibilities, that they must uphold as part of their service to their stakeholders, including investors, vendors, employees, and the communities in which the organization operates.
Completing this unit should take you approximately 20 hours.
Upon successful completion of this unit, you will be able to:
- examine the changing nature of a diverse workforce and how it can enhance the work environment;
- apply the essential concepts of ethical practices in business;
- explain the importance of corporate culture in the business environment; and
- demonstrate an understanding of the role that cultural factors play in the workplace.
3.1: Corporate Culture
3.1.1: Work Culture Case Studies
Read this article, which explains how Yahoo! changed its corporate culture by eliminating its previous policy encouraging telecommuting and enforcing a new, stricter workplace policy that requires all employees to work on site in company offices. Consider how this change may impact productivity at Yahoo!, as well as how it may set a precedent for work cultures in other organizations. This case study will introduce you to some of the dilemmas faced by corporations and managerial staff in the 21st century.
Read the introduction and section 8.1, which briefly introduces the world of Google. As a real-life business application of the concepts you have learned in this course, this description of Google provides you with an understanding of how a modern, rapidly expanding company creates its own organizational culture.
3.1.2: Why Managers Need to Understand Organizational Culture
Read this section, which discusses assumptions, values, and artifacts as they apply to organizational culture. You will learn how to identify elements of organizational culture and develop an understanding of why it has become such an important aspect of a manager's success. It discusses the layers of organizational culture and how you can better understand and interpret each one.
3.1.3: How Managers Can Measure and Identify Organizational Culture
Read this section, which explains the seven dimensions of organizational culture and discusses how to use these dimensions to identify the impact of cultural strengths within an organization. The goal of studying this information is to help you better recognize the roles and functions that a manager must fulfill in order to make a successful impact on productivity, which in turn supports the achievement of organizational goals and objectives. Carefully examine Figure 8.6, which provides an illustrated profile of organizational cultures.
Read this article, which explains the essence of corporate culture and the different types of cultures that exist within organizations.
3.1.4: How Managers Form and Maintain Organizational Cultures
Read this section, which discusses strategies that will assist you in better understanding organizational culture in the workplace. Several of the key points are expressed through visual models to help you understand how to create and maintain a productive culture.
Listen to this audio clip featuring former Shell Oil executive Anita Burke, who considers controversial issues that have led to dramatic changes in corporate culture.
3.1.5: Managers Have To Be Aware of Organizational Cultural Changes
Read this section, which introduces a six-step process that managers can use to support and implement cultural change. As an organization grows and develops, so does its culture. A manager must be prepared to assist in adjusting organizational culture as needed. Pay careful attention to this model for change, especially under the headings in the text titled "Creating a Sense of Urgency" and "Role-Modeling".
3.1.6: Check Yourself: Do I Fit In?
Read this section, which further elaborates on the idea of employee fit. Usually, when a company decides to employ someone, it should be understood that the hiring managers have taken the time to assess the candidate's ability to fit within the organization's structure. It shows how to make similar decisions about an organization you may be joining. Focus on how to proactively assess an organization's environment to determine whether or not your skills, personality, and character dynamic fit, and the factors you should consider before joining a new organization.
3.1.7: Building Organizational Culture in a New Business Venture
Read this article and consider the following questions: How important is a company's culture to its bottom line? How do the eight guiding principles foster a positive company culture? Does the company you work for, or one you are familiar with, have a positive company culture? If yes, how so? If not, how do you think implementing these eight principles could help change the culture for the better?
- Make forum posts: 1
3.2: Diversity
Read this article and consider the following questions: How important is it for an organization to incorporate diversity into every facet of its business? Why have many businesses chosen to adopt only a couple practices in support of diversity and change? What do all five examples of diversity champions have in common? How do you think their outstanding diversity efforts have contributed to their success?
3.2.1: Managing a Diverse Workforce
Read this section, which explains how diversity is changing the workforce.
Read this section, which includes a discussion of the challenges and benefits of diversity, and the tools you can use in your work as a manager to address various aspects of diversity.
Read this article and consider the following questions: What is the impact of changing demographics on the workforce in New Zealand? And, as demographics change worldwide, how should organizations respond in terms of their hiring practices? Do you think the outcomes of this case study could be applied to other industries besides education? In conjunction with the findings within the education industry, do you think that educating all employees about diversity is beneficial to a business' success? If so, how?
Read this section, which discusses cultural identity and how to better analyze culture in the business world using Dutch researcher Geert Hofstede's framework. Study this information to address the cultural impact on organizational behavior and become better equipped to make management decisions associated with culture filtered by understanding diversity.
Read sections 2.3 and 2.4, which discusses how to integrate the concepts of culture, diversity, and ethics into a cohesive thought process that can be used to support national and international management decisions. Be sure to click "Next Section" to read section 3.4.
Read this section, which provides a case study of the workplace environment at IBM. Think about how models and concepts of workforce diversity might apply to IBM and its efforts to promote a positive, fulfilling, and challenging work environment for its many employees.
3.2.2: Generational Diversity
Read this article and consider the following questions: How prevalent is generational diversity in today's organizations? What are some of the differences between each generation group? How important is it for a person to know his or her own generational tendencies as well as the generational tendencies of coworkers? What generation group do you belong to, and what generational tendencies do you notice in your own behavior? How do these tendencies affect your interactions with others?
- Make forum posts: 1
3.3: Business and Managerial Ethics 101
3.3.1: Defining Business Ethics
Read the introduction and section 2.1, which describes managerial duties in the workplace. Managers have a number of responsibilities when they take on the role of overseeing the resources of a company. As they carry out their tasks, managers must be ready and able to apply the core elements of ethics in the workplace.
3.3.2: An Individual Approach to Ethics for Managers
Read this section, which describes a variety of ethical approaches that managers can utilize in the workplace. You will learn the steps that a manager must use when making an ethical decision and how to solve particular ethical dilemmas or lapses. Review the key takeaways at the end of the section.
3.3.3: Identifying Ethical Issues
Read this section, which describes how ethical issues affect managerial decisions. Many business scandals revolve around individuals in powerful management positions who have made decisions laced with unethical behavior. In this section, you will learn how to analyze ethical behavior to appropriately address potential concerns as they may arise. Focus on concepts such as integrity and bribery, which help provide an ethical framework on which to base your managerial decisions.
Read the section and then review table on business ethics issues. After thoroughly studying these two resources, consider the following questions: Of the twelve ethical lapses mentioned in the article and table, which one is the most frequently broken in your own workplace? What actions might an organization take to fix these unethical behaviors? Do you think unethical behaviors are becoming more common in the workplace? If so, why?
3.3.4: Understanding Corporate Social Responsibility
Read this section, which defines corporate social responsibility and provides an introductory discussion about the numerous responsibilities that corporations carry out in service to their stakeholders.
3.3.5: What Is Environmentalism?
Read this section, which highlights various ways in which companies have adopted green environmental manufacturing processes. Managers are often responsible for working alongside engineers and scientists in order to establish and implement improvements that lead to a more environmentally friendly mode of output. New movements toward sustainability and clean energy have pushed corporations and small businesses to minimize the negative effects of production on their surrounding environments.
3.3.6: Responsibilities to Stakeholders
- Read this section, which introduces the five stages of corporate responsibility.
Read this article and consider the following questions: Who are the shareholders and stakeholders of a business that you are familiar with? What is the primary source of conflict between shareholders and stakeholders? Why is stakeholder responsibility so important? How does following the five stakeholder principles lead to stakeholder satisfaction?
3.3.7: Making CSR Work for All Stakeholders
Read this article and consider the following questions: How important is CSR to you as a consumer and a business professional? How can CSR positively and negatively impact a company? Do the benefits of CSR activities outweigh the drawbacks? If so, why?
3.3.8: Ethical Issues and Considerations
Read this section, which describes how unique business cultures help shape managers' and employees' professional lives. Codes of conduct and verbalized expectations are of tremendous importance in the 21st century. They help raise awareness about the issues and business practices that are of greatest concern to an organization. In this section, you will learn how companies use various means to promote ethical leadership. You will also see how a clear and concise code of conduct can be a significant asset to an organization.
Read this article and consider the following questions: What is values-based leadership? How is values-based leadership different from other leadership styles? Do you know any values-based leaders? If so, do they apply the key values-based leadership qualities noted in this article? In what ways do these leaders apply these qualities?
Watch these two short videos featuring Carly Fiorina, the former CEO of Hewlett-Packard (HP). She introduces some important points to consider when approaching company ethics, including the long-term advantages gained by a company that emphasizes ethically based work.
Read this article and think about examples of ethical companies you are familiar with. If you work for a company with strong ethics and values, how do you feel about working for this organization? Does your company have a code of conduct or code of ethics? Next, think about how you feel when you purchase products or services from companies with good ethical reputations. Also consider companies you are aware of that have exhibited poor ethical behavior; as a consumer, how do you feel about purchasing products or services from those organizations?
Read this article and answer the following questions: Does corruption exist in society today? If so, where? How widespread a problem do you consider corruption to be? Does the organization you work for, or one you are familiar with, implement any of the anti-corruption actions noted in this article? How can you make a difference in the war against corruption?
Read this article and consider how international laws and US courts provide jurisdictions over human rights violations. What position do you think the US Supreme Court should take on this issue? How can international entities, such as the United Nations Global Compact and the Office of the High Commissioner for Human Rights, continue to have a positive impact on corporate global human rights policies?
Unit 3 Assessment
- Receive a grade
Take this assessment to see how well you understood this unit.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.