The values and behaviors that contribute to the unique social and emotional environment of an organization is called organizational culture. The relationship of stakeholders and organization with each other is it the culture of organization. The ways the organization conducts its business, treats its employees, customers and the wider group of people. It affects people’s behavior, performance, confidence level and their internal abilities Types of organizational culture: The four main types of organizational cultures are as follows. 1.
Introduction Individuals need attention and expect to be understood and respected in their workplace. They also like to belong to an organization in which honesty, righteousness and trustworthiness is the common culture. To create such a milieu, an ethical leader is required whose actions reflect his/her own ethical capabilities and honesty as well as dignity in all aspects of life. In fact, ethical leadership includes administrative measures through which the dignity and rights of humans are respected and fulfilled. Since ethical leadership plays an important role in creating a healthy work environment and improves organizational and individual outcome[3, 4], it is of great interest in leadership studies.
Background Organizational culture is described by Robbins & Coulter  as the shared values, beliefs, or perceptions held by employees within an organization or organizational unit. Because organizational culture reflects the values, beliefs and behavioral norms that are used by employees in an organization to give meaning to the situations that they encounter, it can influence the attitudes and behavior of the staff . Understanding the organization’s core values can prevent possible internal conflict . In other management fields, empirical research of organizational culture has involved the functionalist perspective, providing impressive evidence of the role of organizational culture in improving performance .The pervasiveness of
Introduction Organizational culture comprised of values, beliefs and ethics which motivate the employees to communicate with people. The main stability and outcomes of people based on organizational culture. The employees are expected to adopt these assumptions and innovation for precise their attitude and behavior according to the best alternative orientation. In every organization there is a positive environmental factors and some negative factors as will for example every employee in a organization not performing well due to some behavioral factors and lack of organizational commitment. The behavior of employees at workplace changes at certain level and the spiritual attachment like the desire to connect with other peoples and fairness, orientation at workplace.
A strong corporate culture is one of the key components that propel most organizations to be successful. Since employees come from different cultural backgrounds, the organizational culture forms a basis that they can publicly be identified with. This may include innovation, logos, the organizations mission statement and leadership. There also exist sub-cultures within the organizations, which are not implemented by the managerial department but are developed by the employees. Enforcement of the values and norms implemented begin with those high up the hierarchy of an organization (the leadership).
Also, based upon the social learning theory (Bandura 1977), ethical leaders influence employee behavior by being role models. Hence, based upon the social exchange theory and the social learning theory, we think that ethical leaders have positive influences on employees’ task performance. Therefore, we propose the following
As a result, the corporate players, practitioners, and scholars in the ethical field have helped to shape, and communicate ethical behavior at the work place (Terris, 2005, p.48). Mechanisms such as punishment and reward systems have been historically used to inspire ethical behavior, and acceptable group behavior norms amongst employees at the work place (Mayer et al., 2012). In the event that unethical behaviors become part of an organization’s group norms, a successive sequence of ethical problems is likely to follow. This arises from the fact that employees in the organization will lack insightful directive from their leaders, and therefore pursue the unethical behavior without fear of reprimand. Importantly, the organization has to continually consider coming up with long-term ethical solutions to such oversights to keep employees from engaging in unethical
In line with this paper, under Codes of ethics the employee is accountable for the organization. Members of the organization know what is expected of them, they know to whom they might justify their behaviour and they understand the sanctions and the benefits associated with their behaviour (formal type). By contrast, Value based organizations focus on defining organizational values and encouraging employee commitment to ethical aspiration through personal self-governance. (informal type). Concerning influential types of management/leadership in ethical behaviour, findings contain mainly the following types- as they were described by Trevino & Brown (2004): Transformational leadership: these relationships entail future obligations that are unspecified and are enforced by norms of reciprocity.
Organization Culture Definition: First of all, a definition of organizational culture will be lay down in this paragraph in order to examine its importance in an organization. According to (Stephen P.R. and Timothy A.J., 2013), organizational culture refers to a system of shared meaning held by members that distinguish the organizations from other organizations. Seven primary characteristics seem to capture the essence of an organization’s culture which is innovation and risk-taking, attention to detail, outcome orientation, people orientation, team orientation, aggressiveness and also stability. Each of these characteristics exists on a continuum from low to high.
(Crane & Matten 2007, p. 202ff. )Managing (ethical) behaviour in business: Jacqueline Süral, Insa Tönnemann, 17/11/14 Principles of Service Operations & Organization, BUS110, Dr. Andreas E. Wagner 3.4 Informal ethics management approaches Some people like Trevino and Nelson think, that organizations should change their organization’s culture and thus their values in order to be more “ethical”. But the socalled culture change is a difficult approach, because values are resistant to change. The “cultural learning” brings the subcultural groups of an enterprise into focus.