Question

II. Corporate Culture Case

Address the questions in the case using concepts and theories from the text to support your argument.

Corporate Culture

You are a corporate vice president of one of the largest units in your organization. Unfortunately, you have noticed over the past few years that your unit has developed a singular focus on profits, since employees’ performance appraisals and resulting compensation increases are based in significant part on “making the numbers.” Though the unit has done well in this regard, you have noticed that people have been known to cut corners, to treat others less respectfully than you would like, and to generally disregard other values in favor of the bottom line. While this might be beneficial to the firm in the short run, you have grave concerns about the long-term sustainability of this approach.

Questions:

1. What are the ethical issues involved in striving to define or impact the culture of a unit?
2. How might you go about defining the culture of your unit so that employees might be able to understand your concerns?
3. What will be the most effective means by which to alter this culture?
4. What stakeholders would be involved in your suggestion in response to the previous question? How might the different stakeholder groups be impacted by your decision on this process?
5. How can you act in order to ensure the most positive results? How will you measure those results or determine your success? Will you measure inputs or outcomes, responsibilities, and rights?

Answer 1

1. What are the ethical issues involved in striving to define or impact the culture of a unit?

Importance to Personal interest over organizational well being; Individual value framework / Morality; Professional codes; Responsibility towards community, forceful compliance of culture, role played by external or internal agents who will impact culture.

2. How might you go about defining the culture of your unit so that employees might be able to understand your concerns?

I will take following steps for defining ethical culture in my unit, so that my employee thinks I am concerned about their existing behavior.

I will give them clarity about what are my expectations from them and what is right and wrong for the unit.

I will walk my talk (modelling). I will myself engage in ethical conduct.

I will use reinforcement strategy. I will reward employees those who show ethical behavior. (Operant learning) Bring modifications in existing performance appraisals and resulting increments in compensation in line with display of ethical behavior

I will organize ethical training for employees.

I will give open feedback in trust situation to employees for their unethical behavior

3. What will be the most effective means by which to alter this culture?

It is reinforcement of employee ethical behavior. Research shows reinforced behavior is repeated by employee and has been successfully used for behavior modification.

4. What stakeholders would be involved in your suggestion in response to the previous question? How might the different stakeholder groups be impacted by your decision on this process?

Customers will get better products as ethical employee will focus on increasing value for customer and not just cut corners for maximizing sales to get their increments.

Other employees will benefit out of development of mutual respect among them, development of trust and collaborative working. Stress will go down.

Community will benefit as environment friendly products will be produced.

Owners (shareholders) good reputation of company will ensure long term benefits and stable revenues.

Suppliers, financiers: Everyone wants to work with ethical people to contain their losses. The corporation due to its good reputation will easily get funds and enjoy financial flexibility. Suppliers will be happy to get timely payments and be ready for vendor partnership that’s could contain cost, improve quality and ramp revenues for the firm.