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10.3 Identify the factors that create and sustain an organisation`s culture.


10.3 Identify the factors that create and sustain an organisation`s culture.

An organisation’s current customs, traditions and general way of doing things are largely due to what it has done before and how successful it was in doing it.


Culture creation occurs in three ways.


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


2. Second, they indoctrinate and socialise these employees to their way of thinking and feeling.


3. And finally, the founder’s own behaviour encourages employees to identify with them and internalise their beliefs, values and assumptions.


When the organisation succeeds, the founder’s personality becomes embedded in the culture.

10.4 Show how culture is transmitted to employees

Culture is transmitted to employees in a number of forms, the most potent being: 1. Stories,


2. Rituals,


3. Material symbols and


4. Language.



10.5 Demonstrate how an ethical culture can be created.

- The organisational culture most likely to shape high ethical standards among its members is high in risk tolerance, low to moderate in aggressiveness, and focused on means as well as outcomes.


-Managers are supported for taking risks and innovating, discouraged from engaging in unbridled competition, and guided to heed not just to what goals are achieved but also how.


- If the culture is strong and supports high ethical standards, it should have a very powerful and positive influence on employee behaviour.



What can managers do to create a more ethical culture? They can adhere to the following principles: • Be a visible role model: Employees will look to the actions of top management as a benchmark for appropriate behaviour. Send a positive message. • Communicate ethical expectations: Minimise ethical ambiguities by sharing an organisational code of ethics that states the organisation’s primary values and ethical rules employees must follow. • Provide Ethical Training: Set up seminars, workshops and training programmes to reinforce the organisation’s standards of conduct, clarify what practices are permissible and address potential ethical dilemma.


Visibly reward ethical acts and punish unethical ones: Appraise managers on how their decisions measure up against the organisation’s code of ethics. Review the means as well as the ends. Visibly reward those who act ethically and conspicuously punish those who do not. • Provide protective mechanisms: Provide formal mechanisms so employees can discuss ethical dilemmas and report unethical behaviour without fear of repri- mand. These might include ethical counsellors, ombudsmen or ethical officers

- Be a visible role model:


- Communicate ethical expectations:


- Provide Ethical Training:


- Visibly reward ethical acts and punish unethical ones:


- Provide protective mechanisms:


10. 6 Describe a positive organisational culture.

A positive organisational culture emphasises building on employee strengths, rewards more than it punishes, and emphasises individual vitality and growth. Let us consider each of these areas:



1. Building in Employee Strengths


- emphasise showing workers how they can capitalise on their strengths


2 Rewards more than Punishes


3. Emphasizes individual vitality and growth

1. Building in Employee Strengths2 Rewards more than Punishes3. Emphasizes individual vitality and growth