Lecture 1 - organizational culture, inclusive and ethical culture

Question 1

What is OD?

Answer 1

Organizational Development (OD) is a planned effort to improve an organization’s culture, structures, and problem-solving abilities by applying insights from behavioral science, research, and past experiences.

Question 2

You are doing OD if you…

Answer 2

… bringing planned change
… applying behavioral science
… analyzing the effectuveness of an organization
… supporting the increase of an organizational effectiveness on all levels
… developing sustainable change

Question 3

Reasons for continous development

Answer 3

Globalization
Technological changes
Changing markets and consumer demands
Competitors
Climate change

Question 4

What is general and task environment?

Answer 4

General environment: global, sociocultural, political, etc.
Task environment: customers, suppliers, competitors (things directly affecting the organization)

Question 5

Important trends in the general enviroment

Answer 5

1. Economic: globalization
2. Demographic: diversification of the labour force
3. Technological: IT revolution, AI
4. Political: gov. changes
5. Sociocultural: focus on CSR

Question 6

Examples of companies that failed to adapt

Answer 6

Toys R us, Kodak

Question 7

Types of change

Answer 7

1. Magnitude of change:
   - Incremental: small adjustments
   - Fundamental: major adjustments
2. Organization:
   - Underorganized: needs more structure
   - Overorganized: needs to loosen up
3. Setting of change
   - Local: easier to manage
   - Global: harder due to cultural differences

Question 8

Lewin’s planned change model

Answer 8

As a professional, you analyze the organization, study groups, and provide feedback

Unfreezing: Prepare the organization for change by breaking existing norms and behaviors.
Movement: Implement the changes and transition to new practices.
Refreezing: Solidify and stabilize the new changes into the organization.

Question 9

Action research model

Answer 9

The whole participative element comes into play.
Focus is on solving the problem

Question 10

Positive model

Answer 10

Rather than fixing problems, think of best practices
Focus is diagnosing an organizational culture

Question 11

Commonalities vs differences in the models

Answer 11

Commonalities:

Planned change follows phases (diagnose, action, close).
Uses behavioral science.
Organization’s involvement is essential.

Differences:
Lewin: Holistic/simple; focuses on fixing problems.
Action: Focuses on diagnosing and fixing problems.
Positive: Focuses on leveraging strengths; consultant and organization co-learn.
Lewin & Action: Consultant mainly involved in diagnosis/evaluation, less in the change process.

Question 12

Open systems model

Answer 12

Process of understanding how an organization is currently functioning
Takes a** holistic approach** by examining inputs, processes, and outputs.
Emphasizes interconnectedness within the organization.

Question 13

Onion model

Answer 13

The Onion Model describes organizational culture in four layers:

1. Artifacts: Visible behaviors and objects (e.g., dress code, language).
2. Norms: Unwritten rules about behavior, often learned through observation.
3. Values: Belief systems that guide decisions and actions (e.g., teamwork, innovation).
4. Basic Assumptions: Deep, unconscious beliefs that influence behavior (e.g., dressing formally to be taken seriously).

Question 14

Study culture preditcs…

Answer 14

Financial products
Employee well-being
Organizational effectiveness
Innovation

Question 15

Ethical culture

Answer 15

Shared belief that one should behave morally sound
Ethics = moral principles, norms, and values governing the behaviors of individuals

Question 16

Ethical vs illegal behavior at work

Answer 16

Unethical behavior: an organizational member action that violates widely accepted societal moral norms
Illegal behavior: determined by law as breaking rules, prohibited

Question 17

Examples of unethical behavior within organizations

Answer 17

Deceiving customers or investors
Explioting employees
Putting customers at risk
Poisoning the environment

Question 18

Predictors of unethical behavior

Answer 18

• Individual characteristics: cognitive moral development, idealism, relativism
• Moral issue characteristics: concentration of effect, magnitude of consequence, proxmity
• Organizational environment: egoistic ethical climate, code of conduct, code of enforcement

Question 19

5 types of ethical culture

Answer 19

Instrumental: Driven by self-interest, negatively impacts commitment and satisfaction.
Caring: Focuses on others’ well-being,
Independence: Decisions based on moral convictions
Law and Code: Decisions based on formal external codes (e.g., law, professional conduct).
Rules: Decisions guided by a strong set of rules.

Question 20

Benefits of corporate social responsibility

Answer 20

Happier and more productive workers
People are attracted by morality (more than competence)
People need to identify with the organization and derive pride from it

Question 21

Challenges in creating ethical culture relevant to OD

Answer 21

• How the environment affects organization strategies: if everyone cheats on tests, this might push you to do the same to keep up, even if you want to play fair.
• Lack of multi-level approaches to ethics: trying to stop a problem that exists in the entire organization (bullying
• How individual, team, and organization factors influence ethics: ethics are influenced by each layer of the organization
• Formal ethics don’t work without strong social norms
• People unknowingly follow unwritten social norms on what’s “right” or “wrong”: doing something cause everyone else is doing it

Question 22

Inclusive culture

Answer 22

The shared belief that everyone should be included irrespective of their commonalites or differences

Question 23

Benefits of inclusion

Answer 23

Increases prosocial behavior
Decreases aggression
Improves self-regulation
Reduces pain

Question 24

Common themes

Answer 24

Psychological and physical safety
Involvement in work groups
Feeling respected and valued
Influence on decision making

Question 25

Theroetical roots for inclusive culture

Answer 25

The need to belong
Social identity theory
Optimal distinctiveness theory

Question 26

Difference between diversity and inclusion

Answer 26

Diversity = composition of social grouping involving all the characteristics based on which people differ from each other
Inclusion = a culture that connects each employee to the organization

Question 27

Importance of an inclusive culture in organizations

Answer 27

More satisfied and productive employees
Increased interpersonal trust
Full use of the potential of employees

Question 28

Struggles of creating and sustaining an inclusive culture

Answer 28

Similarity Attracts: People prefer those similar to them, which eases communication and reinforces shared views.
Diverse Employees: Differences can lead to lower satisfaction and performance.
Homogeneous Groups: Similar groups often work more harmoniously.

Question 29

Challenges to creating an inclusive culture relevant to OD

Answer 29

Motivational Basis: Employees may follow rules to avoid mistakes but don’t always see diversity as an opportunity to grow.

Equal Representation ≠ Equal Opportunity: Having diverse people doesn’t guarantee fair treatment or opportunities for everyone.

Laws and Policies: Anti-discrimination rules may not fully support an inclusive culture.

HR’s Role: HR must shift from just managing diversity to ensuring all employees feel included.