Ch. 16 Organizational Culture

Manuel is a manager for a manufacturing company in which managers are expected to fully document all decisions and in which it is important to provide detailed data to support any recommendations. Also, out-of-the-box thinking is dissuaded. Which characteristic of organizational culture describes this aspect of Manuel’s job?low risk taking
Danny’s boss is apathetic as to whether Danny works at home, at the office, or from his beach house. All he cares about is that the project is completed on time, on budget, and with exemplary quality. Which characteristic of organizational culture describes this aspect of Danny’s job?high outcome orientation
Which of the following characteristics of an organization’s culture indicates the degree to which management decisions take into consideration the effect of outcomes on employees within the organization?people orientation
Stability is one of the seven primary characteristics that capture the essence of an organization’s culture. It indicates the degree to which ________.organizational activities emphasize maintaining the status quo in contrast to growth
The key characteristic of organizational culture that addresses the degree to which people are competitive rather than easygoing is termed ________.aggressiveness
Which of the following statements best describes the difference between organizational culture and job satisfaction?Organizational culture is descriptive, whereas job satisfaction is evaluative.
Porco Rosso, an aircraft manufacturer with a strong presence in the United States, is looking to expand its market overseas. The firm currently sells its aircraft to several airlines in the United Kingdom but now wants to establish manufacturing units there as well in order to acquire a bigger share in the European market. Hence, it plans to merge with QueenAir, a British aircraft manufacturer. Which of the following, if true, would weaken the company’s decision to merge with QueenAir?There is a striking difference in the organizational cultures of the two firms.
Which of the following statements is true regarding an organization’s culture?A dominant culture expresses the core values shared by a majority of the organization’s members.
Cultures that tend to develop in large organizations to reflect common problems or experiences faced by the members in the same department or location are often called ________.subcultures
Jean works for Fahrenheit Publishing, which is a publisher of scientific journals. The company is dominated by low risk taking and high attention to detail. Jean’s department is committed to high team orientation and provides many team-building activities in which Jean and other department members work together and socialize. Which of the following statements best describes Jean’s department?Jean’s department has developed a subculture.
________ are indicators of a strong organizational culture.Widely shared values
The primary or dominant values that are accepted throughout the organization are known as ________.core values
Which of the following is most likely to result from a strong organizational culture?low employee turnover
A strong culture should reduce employee turnover because it results in ________.cohesiveness and organizational commitment
A strong culture can act as a substitute for which of the following?formalization
A culture that expresses the core values that are shared by a majority of the organization’s members is known as a(n) ________ culture.dominant
Rogue Vogue Corp. is an apparel company. To keep up with the latest changes in the fashion industry, the company has to come up with innovative designs and follow strict timelines. The culture of the company values aggressiveness, innovation, and risk taking. The members of the organization accept these cultural values. They know exactly what is expected of them, and these expectations go a long way in shaping their behavior. In addition to this, the culture of the marketing department is outcome oriented and the finance department emphasizes attention to detail. The organizational culture of Rogue Vogue Corp. is an example of a(n) ________.dominant culture
Aggressiveness, innovation, and risk taking are called the ________ of the culture at the Rogue Vogue Corp.core values
In addition to the organizational culture at Rogue Vogue Corp., the finance department emphasizes attention to detail. In this example, attention to detail is a part of the ________ of the organization.subculture
Based on the information in the scenario, we can say that Rogue Vogue Corp. ________.has a strong culture
Aggressiveness is one of the seven primary characteristics of organizational culture that capture the essence of an organization’s culture. It indicates the degree to which employees are encouraged to be innovative and take risks.FALSE
Attention to detail is a primary characteristic of an organization’s culture that indicates the degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve them.FALSE
Individuals with different backgrounds or at different levels in the organization will tend to describe the organization’s culture in similar terms.TRUE
Subcultures act to undermine the dominant culture.FALSE
A dominant culture expresses the core values a majority of members share and that give the organization its distinct personality.TRUE
A strong culture tends to reduce employee turnover.TRUE
Big data is an effective decision aid only when it’s paired with a consistent and thoughtful culture, one that acknowledges the need for human decision making and individual judgments.TRUE
What are the seven primary characteristics that capture the essence of an organization’s culture?The seven primary characteristics that capture the essence of an organization’s culture are:
1. Innovation and risk taking: The degree to which employees are encouraged to be innovative and take risks.
2. Attention to detail: The degree to which employees are expected to exhibit precision, analysis, and attention to detail.
3. Outcome orientation: The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve them.
4. People orientation: The degree to which management decisions take into consideration the effect of outcomes on people within the organization.
5. Team orientation: The degree to which work activities are organized around teams rather than individuals.
6. Aggressiveness: The degree to which people are aggressive and competitive rather than easygoing.
7. Stability: The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.
Compare and contrast dominant culture and subculture.Organizational culture represents a common perception the organization’s members hold. A dominant culture expresses the core values shared by a majority of the organization’s members. Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences faced by groups of members in the same department or location. Subcultures include the core values of the dominant culture plus additional values unique to members of the respective department. If organizations were composed only of numerous subcultures, organizational culture as an independent variable would be significantly less powerful. It is the “shared meaning” aspect of culture that makes it such a potent device for guiding and shaping behavior.
Describe the characteristics of a strong culture.Strong cultures have a greater impact on employee behavior and are more directly related to reduced turnover. In a strong culture, the organization’s core values are both intensely held and widely shared. The more members who accept the core values and the greater their commitment to those values is, the stronger the culture is. A strong culture will have a great influence on the behavior of its members because the high degree of sharedness and intensity creates an internal climate of high behavioral control. One specific result of a strong culture should be lower employee turnover. A strong culture demonstrates high agreement among members about what the organization stands for. Such unanimity of purpose builds cohesiveness, loyalty, and organizational commitment. These qualities, in turn, lessen employees’ propensity to leave the organization.
“Formalization and culture are two different roads to a common destination.” Explain the statement.High formalization creates predictability, orderliness, and consistency. A strong culture achieves the same end without the need for written documentation. Therefore, we should view formalization and culture as two different roads to a common destination. The stronger an organization’s culture, the less management need be concerned with developing formal rules and regulations to guide employee behavior. Those guides will be internalized in employees when they accept the organization’s culture.
Discuss the difference between strong and weak organizational cultures and discuss the effect that a strong culture can have on an acquisition or merger.Strong cultures have a greater impact on employee behavior and are more directly related to reduced turnover. In a strong culture, the organization’s core values are both intensely held and widely shared. The more members who accept the core values and the greater their commitment to those values is, the stronger the culture is. A strong culture will have a great influence on the behavior of its members because the high degree of sharedness and intensity creates an internal climate of high behavioral control. One specific result of a strong culture should be lower employee turnover.
A strong culture demonstrates high agreement among members about what the organization stands for. Such unanimity of purpose builds cohesiveness, loyalty, and organizational commitment. These qualities, in turn, lessen employees’ propensity to leave the organization. In recent years, cultural compatibility has become the primary concern. All things being equal, whether the acquisition actually works seems to have more to do with how well the two organizations’ cultures match up. The primary cause of failure is conflicting organizational cultures, when people simply don’t match up. Therefore, when considering an acquisition or merger, management would need to carefully evaluate the cultures of each organization.
Which of the following statements is true regarding the functions of culture in an organization?It conveys a sense of identity for organization members.
When formal authority and control systems are reduced, the ________ provided by a strong culture ensure(s) that everyone is pointed in the same direction.shared meaning
In ________ organizations, the lack of frequent face-to-face contact makes establishing a common set of norms very difficult.virtual
Which of the following statements is true regarding the establishment of the organizational culture and its effects on the organization?Culture acts as a control mechanism and guides the behavior of employees.
________ refers to the shared perceptions organizational members have about their organization and work environment.Organizational climate
Grace works for a pet store where everyone is committed to the happiness of the animals. Often employees, bosses, and hourly workers alike come into the store “off the clock” and spend time training the animals. Everyone loves the store, the animals, and their jobs. This attitude of her co-workers inspires Grace to do her best. Based on this information, we can say that Grace is experiencing the effects of ________.organizational climate
A(n) ________ organization is an organization that takes on a life of its own, apart from its founders or members; it is valued for itself and not for the goods or services it produces.institutionalized
Culture is most likely to be a liability when ________.the organization’s environment is dynamic
Rainbow Corp. hires a new secretary, Polonova, who differs from the vast majority of the company’s employees in terms of her ethnicity. The company has a collectivist culture with a culturally diverse workforce and several policies to support the minorities. Yet, after a few weeks, she quits the company. Which of the following, if true, helps explain why she quit?Polonova has a strong sense of personal ambition and independence.
Which of the following is not one of the five most prevalent climate categories making up the ethical dimensions of organization culture?dependence
In which of the following climates do managers operate under the expectation that their decisions will positively affect the greatest number of stakeholders?caring
Sustainability refers to practices that can be maintained over very long periods of time because the tools or structure that support the practices is not damaged in the process.TRUE
Instrumental climates are positively associated with employee job satisfaction and organizational commitment.FALSE
Systematic reviews of the research literature show a generally positive relationship between sustainability and financial performance.TRUE
To create a truly sustainable business, an organization must develop a long-term culture and put its values into practice.TRUE
Explain the concept of organizational climate.Organizational climate refers to the shared perceptions organizational members have about their organization and work environment. This aspect of culture is like team spirit at the organizational level. When everyone has the same general feelings about what’s important or how well things are working, the effect of these attitudes will be more than the sum of the individual parts. One meta-analysis found that across dozens of different samples, psychological climate was strongly related to individuals’ level of job satisfaction, involvement, commitment, and motivation. A positive overall workplace climate has been linked to higher customer satisfaction and financial performance as well.
Describe the various situations under which culture acts as a liability.The various situations under which culture acts as a liability are:
a) Institutionalization: When an organization undergoes institutionalization and becomes institutionalized—that is, it is valued for itself and not for the goods or services it produces—it takes on a life of its own, apart from its founders or members. It doesn’t go out of business even if its original goals are no longer relevant. Acceptable modes of behavior become largely self-evident to members, and although this isn’t entirely negative, it does mean behaviors and habits that should be questioned and analyzed become taken for granted, which can stifle innovation and make maintaining the organization’s culture an end in itself.
b) Barriers to change: Culture is a liability when the shared values are not in agreement with those that further the organization’s effectiveness. This is most likely when an organization’s environment is undergoing rapid change and its entrenched culture may no longer be appropriate.
c) Barriers to diversity: By limiting the range of acceptable values and styles, strong cultures put considerable pressure on employees to conform.
d) Barriers to acquisitions and mergers: Historically, when management looked at acquisition or merger decisions, the key factors were financial advantage and product synergy. In recent years, cultural compatibility has become the primary concern.
Describe and explain the five most prevalent climate categories that comprise the ethical dimensions of organization cultures.The five most prevalent climate categories are instrumental, caring, independence, law and code, and rules. Each explains the mindset, expectations, and values of the managers and employees in relationship to their organization. In an instrumental ethical climate, managers may frame their decision making around the assumption that employees are egoistic. In a caring climate, managers may operate under the expectation that their decisions will positively affect the greatest number of stakeholders possible. In a climate of independence, personal moral ideas dictate an individual’s workplace behavior. Law and code climates require managers and employees to use an external standardized moral compass, while rules climates tend to operate by internal standardized expectations.
The ultimate source of an organization’s culture is ________.its founders
The ________ process helps candidates learn about the organization, and if employees perceive a conflict between their values and those of the organization, they can remove themselves from the applicant pool.selection
The selection process helps sustain the organization’s culture by ________.hiring candidates who fit well within the organization
Top management has a major impact on the organization’s culture by ________.establishing norms that filter down through the organization
________ is a process that helps new employees adapt to the prevailing organizational culture.Socialization
The process of socialization consists of three stages. Which of the following is one of these three stages?metamorphosis
Identify the correct order of stages in the socialization process.prearrival, encounter, metamorphosis
The ________ stage of the socialization process explicitly recognizes that each individual the organization comes across during the selection process has a set of values, attitudes, and expectations about both the work to be done and the organization.prearrival
During the ________ stage, a new employee compares his or her expectations with the realities in the organization.encounter
If there is a basic conflict between the individual’s expectations and the reality of working in an organization, the employee is most likely to be disillusioned and quit during the ________ stage of socialization.encounter
Higgins has recently joined a new law firm expecting to participate in exciting environmental law cases and cutting-edge research. After one month at the firm, he still hasn’t been assigned a case and spends most of his time filing standardized appeals for title disputes with insurance companies. In which stage of the socialization process is Higgins?encounter
During the socialization process, to work out any problems discovered during the encounter stage, the new member changes or goes through the ________ stage.metamorphosis
Which of the following statements is true regarding random socialization?In random socialization, new employees are left on their own to figure things out.
Which of the following types of socialization involves putting the new employee directly into the job, with little or no special attention?informal socialization
________ socialization assumes that the newcomer’s qualities and qualifications are the necessary ingredients for job success, so these qualities and qualifications are confirmed and supported.Investiture
Which of the following statements is true about formal socialization?Specific orientation and training programs are examples of formal socialization.
________ socialization tries to strip away certain characteristics of the recruit.Divestiture
Apprenticeship is an example of ________ socialization.serial
By the end of the ________ stage of socialization, the new members internalize and accept the norms of the organization and their work group, are confident in their competence, and feel trusted and valued by their peers.metamorphosis
You are new to an organization and do not really know what to expect about the socialization process. You recently received your MBA and have an undergraduate degree in computer science. Your new firm is a software development company with an emphasis in the healthcare industry. Your hiring process included campus interviews, a daylong trip for an interview at the company, an offer phone call and letter, and some promotional material sent via the mail. When you arrive for your first day at work, you spend half a day in an orientation session that is conducted by the human resources department, where you complete paperwork and receive a company handbook. Then you spend the rest of the day with your supervisor, who gives you a tour, introduces you to your co-workers, and explains your first project. After that, you begin working and getting to know the others in the company. You find that in most respects, your experience fits your expectations, but in some ways you are surprised by realities that you hadn’t expected. None of these surprises is too difficult to accept, so you eventually begin to feel at home and happy with your new job. The information that you receive during the interviewing and hiring process is a part of the ________ stage of employee socialization.prearrival
Your first day at work is a part of the ________ stage of socialization.encounter
When you begin to notice things that are not as you expected, you are in the ________ stage of socialization.encounter
Which of the following steps could your supervisor take to best help you develop a commitment to your new company?encourage you to develop friendship ties within the organization
When you start to accept the differences between your expectations and the reality of the organization, you move into the ________ stage of socialization.metamorphosis
Your supervisor provides you a mentor to help you with your work and guide you. This shows that your supervisor is using a(n) ________ socialization technique.serial
A study conducted by Bain and Company found that 70 percent of mergers failed to increase shareholder values, and Hay Group found that more than 90 percent of mergers in Europe failed to reach financial goals.TRUE
The encounter stage of the socialization process consists of the period of learning that occurs before a new employee joins an organization.FALSE
During the metamorphosis stage of the socialization process, a new employee compares his or her expectations—about the job, co-workers, the boss, and the organization in general—with the reality in the organization.FALSE
Serial socialization is characterized by the use of role models who train and encourage a newcomer.TRUE
Apprenticeship and mentoring programs are examples of random socialization.FALSE
Formal socialization involves putting the new employee directly into the job, with little or no special attention.FALSE
The more management relies on formal, collective, sequential, fixed, and serial socialization programs and emphasizes divestiture, the more likely newcomers’ differences will be stripped away and replaced by standardized predictable behaviors.TRUE
How does organizational culture develop?An organization’s current customs, traditions, and general way of doing things are largely due to what it has done before and the degree of success it has had with those endeavors. The founders of an organization traditionally have a major impact on that organization’s early culture. They have a vision of what the organization should be. The small size that typically characterizes new organizations further facilitates the founders’ imposition of their vision on all organizational members. The process of culture-creation occurs in three ways.

a) First, founders only hire and keep employees who think and feel the way they do.

b) Second, they indoctrinate and socialize these employees to their way of thinking and feeling.

c) And finally, the founders’ own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions. When the organization succeeds, the founders’ vision becomes seen as a primary determinant of that success. At this point, the founders’ entire personalities become embedded in the culture of the organization.

Explain the primary methods of maintaining an organization’s culture.Once a culture is in place, there are practices within the organization that act to maintain it by giving employees a set of similar experiences. Three forces play a particularly important part in sustaining a culture: selection practices, the actions of top management, and socialization methods.

a) Selection: Selection can ensure the hiring of people who have values essentially consistent with those of the organization, or at least a good portion of those values. In addition, the selection process provides information to applicants about the organization. Candidates learn about the organization and, if they perceive a conflict between their values and those of the organization, they can self-select themselves out of the applicant pool.

b) Top management: In addition to selection, the actions of top management also have a major impact on the organization’s culture. Through what they say and how they behave, senior executives establish norms that filter down through the organization as to whether risk taking is desirable; how much freedom managers should give their employees; what is appropriate dress; what actions will pay off in terms of pay raises, promotions, and other rewards; and the like.

c) Socialization: Finally, no matter how good a job the organization does in recruiting and selection, new employees are not fully indoctrinated in the organization’s culture. Because they are unfamiliar with the organization’s culture, new employees are potentially likely to disturb the beliefs and customs that are in place. The organization will, therefore, want to help new employees adapt to its culture. This is done through the process of socialization.

Describe the three stages involved in the process of socialization.The process that helps new employees adapt to the prevailing culture is socialization. The three stages of socialization are prearrival, encounter, and metamorphosis.
a) The prearrival stage recognizes that each individual arrives with a set of values, attitudes, and expectations. These cover both the work to be done and the organization.

b) Upon entry into the organization, the new member enters the encounter stage. Here, the individual confronts the possible dichotomy between his or her expectations and reality.

c) Finally, the new member must work out any problems discovered during the encounter stage. This may mean going through changes—hence, this is called the metamorphosis stage.

________ typically contain narratives about the organization’s founders, rule breaking, and reactions to past mistakes.Stories
Bruce is new at Wayne Corp., but after a week he already knows that the founder of the corporation started the business in his garage with only $4,000 and one client. This information was most likely transmitted to Bruce by way of ________.stories
Company chants are examples of ________.rituals
Company chants are used to ________.transmit company culture to employees
Which of the following can act as a common denominator to unite members of a given culture or subculture?jargons and acronyms that are specific to the organization
Alcoa headquarters has few individual offices, even for senior executives. The space is essentially made up of cubicles, common areas, and meeting rooms. This informality conveys to employees that Alcoa values ________.equality
Ask Socrates Inc. is a computer software company that employs highly intelligent, but somewhat unusual people. Every Friday, free lollipops, toys, or other treats are given out to encourage employees to remember how creative they were when they were children. All the new members of the organization are told about the founders who were three young people who “got lucky” and sold a video game that they invented. The employees are allowed to dress informally and can set their own working hours. Which of the following is most likely to be used by Ask Socrates Inc. to inform its new employees about its founders?stories
The regular distribution of lollipops, toys, or treats every Friday is an example of a ________ that helps reinforce Ask Socrates’ culture.ritual
Ask Socrates Inc. employees are allowed to dress informally. This is an example of a ________ through which organizational culture is transmitted.material symbol
What are the various ways in which the organizational culture can be transmitted to the employees?Culture is transmitted to employees in a number of forms, the most potent being stories, rituals, material symbols, and language.

a) Stories: Stories contain a narrative of events about the organization’s founders, rule breaking, rags-to-riches successes, reductions in the workforce, relocation of employees, reactions to past mistakes, and organizational coping. These stories anchor the present in the past and provide explanations and legitimacy for current practices.

b) Rituals: Rituals are repetitive sequences of activities that express and reinforce the key values of the organization, what goals are most important, which people are important and which are expendable.

c) Material symbols: The layout of corporate headquarters, the types of automobiles top executives are given, and the presence or absence of corporate aircraft are a few examples of material symbols. These material symbols convey to employees who is important, the degree of egalitarianism desired by top management, and the kinds of behavior that are appropriate.

d) Language: Many organizations and units within organizations use language as a way to identify members of a culture or subculture. By learning this language, members attest to their acceptance of the culture and, in doing so, help to preserve it. Organizations, over time, often develop unique terms to describe equipment, offices, key personnel, suppliers, customers, or products that relate to its business. New employees are frequently overwhelmed with acronyms and jargon, that, once assimilated, act as a common denominator that unites members of a given culture or subculture.

Provide examples of how an ethical culture can be transmitted through stories, rituals, and material symbols.A company could transmit ethical culture through stories that tell of employees that were punished for unethical acts such as excessive use of company funds or stealing. Ethics could be transferred through rituals that enforce ethical behavior, such as counting or tracking perfect banking accounting and rewarding those employees who never have discrepancies with a ritual of recognition. A manager who maintained a humble work environment would be an example of material symbols that would promote an ethical environment.
An organizational culture most likely to shape high ethical standards among its members is one that ________.balances the rights of multiple stakeholders
Pam works for a corporation that recently fired three top managers who were caught using the company credit cards to lavishly furnish their offices and even purchase “office” furniture that was found in their personal homes. Which method of maintaining an ethical culture is Pam’s company pursuing?visibly punish unethical acts
A positive organizational culture emphasizes ________.individual vitality and growth
Larry has an employee who is amazing at clearly seeing rules and enforcing them. He has recently promoted her to the lead position in quality assurance. Which method of creating a positive organizational culture is Larry utilizing?building on employee strengths
Patricia is a team leader. When looking at an e-mail from one of her team members, Patricia noticed that the e-mail was sent at nine-thirty in the evening. The next day she personally went to the employee’s cubicle and told him how much she appreciated him staying late to get the project to the client on time. Which aspect of creating a positive organizational culture is Patricia utilizing?rewarding more than punishing
Liz is the lead editor for a small, city newspaper. One of her advertising sales representatives is pulling in a lot of restaurant clients. Liz realizes that the representative is quite knowledgeable about food and speaks quite elegantly when describing different dishes. She has begun discussing with the representative the possibility of collaborating with a writer to include a weekly restaurant review that includes the representative on the byline. After the first couple of reviews, the representative is able to increase ad sizes and sales. He is very happy with his new job diversification. Which aspect of creating a positive organizational culture is Liz utilizing?emphasizing individual vitality and growth
Organizations that promote a spiritual culture ________.recognize that people seek to find meaning and purpose in their work
Which of the following terms refers to the recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community?workplace spirituality
Art-Is-Us claims to be a spiritual organization. Company employees are encouraged to show kindness toward others. Employees are treated with esteem and value and supported for their creativity and flexibility. While the organization values profits, its purpose is to spread the pleasure of art to as many people as possible. Which of the following is not one of the cultural characteristics commonly found in spiritual organizations?competitiveness
An organizational culture that encourages its managers to engage in severe competition and discourages them from taking risks and innovating is most likely to shape high ethical standards among its members.FALSE
A positive organizational culture emphasizes building on employee strengths, rewards more than it punishes, and emphasizes individual vitality and growth.TRUE
Workplace spirituality recognizes that people have an inner life that nourishes and is nourished by meaningful work in the context of community.TRUE
Spiritual organizations discourage flexible thinking and creativity among employees.FALSE
What can management do to create a more ethical culture within an organization?To create a more ethical culture, management can take a number of steps.

a) Management can be a visible role model. Employees will look to top management behavior as a benchmark for defining appropriate behavior.

b) Management can communicate ethical expectations. Ethical ambiguities can be minimized by creating and disseminating an organizational code of ethics. It should state the organization’s primary values and the ethical rules that employees are expected to follow.

c) Management can provide ethical training. Training sessions can be used to reinforce the organization’s standards of conduct, to clarify what practices are and are not permissible, and to address possible ethical dilemmas.

d) Management can visibly reward ethical acts and punish unethical ones. Performance appraisals of managers should include a point-by-point evaluation of how his or her decisions measured against the organization’s code of ethics. Appraisals must include the means taken to achieve goals as well as the ends themselves.

e) Finally, the organization needs to provide formal mechanisms so that employees can discuss ethical dilemmas and report unethical behavior without fear of reprimand. This might include creation of ethical counselors, ombudsmen, or ethical officers.

Explain the characteristics of a positive organizational culture.A positive organizational culture emphasizes building on employee strengths, rewards more than it punishes, and emphasizes individual vitality and growth.

a) Building on employee strengths: Although a positive organizational culture does not ignore problems, it does emphasize showing workers how they can capitalize on their strengths.

b) Rewarding more than punishing: Although most organizations are sufficiently focused on extrinsic rewards such as pay and promotions, they often forget about the power of smaller (and cheaper) rewards such as praise.

c) Emphasizing vitality and growth: No organization will get the best from employees who see themselves as mere cogs in the machine. A positive culture recognizes the difference between a job and a career. It supports not only what the employee contributes to organizational effectiveness but also how the organization can make the employee more effective—personally and professionally.

Compare and contrast an ethical organizational culture and a positive organizational culture. How are they similar and different?The organizational culture most likely to shape high ethical standards among its members is one that’s high in risk tolerance, low to moderate in aggressiveness, and focused on means as well as outcomes. This type of culture also takes a long-term perspective and balances the rights of multiple stakeholders, including the communities in which the business operates, its employees, and its stockholders. Managers are supported for taking risks and innovating, discouraged from engaging in unbridled competition, and guided to pay attention not just to what goals are achieved but also to how. If the culture is strong and supports high ethical standards, it should have a very powerful and positive influence on employee behavior. Research suggests managers can have an effect on the ethical behavior of employees by adhering to the following principles: be a visible role model, communicate ethical expectations, provide ethical training, visibly reward ethical acts and punish unethical ones, and provide protective mechanisms. A positive organizational culture emphasizes building on employee strengths, rewards more than it punishes, and emphasizes individual vitality and growth. The steps to create a positive work culture are more focused on the behavior of the employee, whereas the steps to creating an ethical work culture focus more on the behavior and responsibilities of management. They both take a long-term perspective and are concerned with balancing the rights and happiness of the employees and the investors.
What is workplace spirituality?Workplace spirituality recognizes that people have an inner life that nourishes and is nourished by meaningful work in the context of community. Organizations that promote a spiritual culture recognize that people seek to find meaning and purpose in their work and desire to connect with other human beings as part of a community.
What are the characteristics of a spiritual organization?Several cultural characteristics tend to be evident in spiritual organizations:

a) Benevolence. Spiritual organizations value showing kindness toward others and promoting the happiness of employees and other organizational stakeholders.

b) Strong sense of purpose. Spiritual organizations build their cultures around a meaningful purpose. Although profits may be important, they’re not the primary value of the organization.

c) Trust and respect. Spiritual organizations are characterized by mutual trust, honesty, and openness. Employees are treated with esteem and value, consistent with the dignity of each individual.

d) Open-mindedness. Spiritual organizations value flexible thinking and creativity among employees.

How can U.S. managers be culturally sensitive?by listening more
Which of the following statements is true regarding effects of national culture on organizational culture and ethical behavior within an organization?Generally, U.S. managers see bribery, nepotism, and favoring personal contacts as highly unethical.
Explain the difference between a typical U.S. manager’s point of view of ethical behavior and that of a manager in a developing economy and the implications of the difference.U.S. managers endorse the supremacy of anonymous market forces and implicitly or explicitly view profit maximization as a moral obligation for business organizations. Accordingly, U.S. managers see bribery, nepotism, and favoring personal contacts as being highly unethical. Any action that deviates from profit maximization may indicate that inappropriate or corrupt behavior may be occurring. In contrast, managers in developing economies are more likely to see ethical decisions as embedded in a social environment. Consequently, these managers see doing special favors for friends and family as not only being appropriate, but possibly even an ethical responsibility. Managers in these nations also view capitalism with skepticism and believe the interests of workers should be put on par with the interests of shareholders.