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classnote-Session8.Organisationaljusticecultureandbehaviouralethics.pdf
11/11/19
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Organisational justice, culture and behavioural ethics
Dr Igor Menezes
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Organisational justice, culture and behavioural ethics
Organisational Justice
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- Greenberg (1987):
Organisational justice refers to an employee’s perception of their organisation’s behaviours, decisions and actions and how these influence the employees own attitudes and behaviours at work.
Organisational justice
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- It refers to the extent to which employees perceive workplace procedures, interactions and outcomes to be fair in nature.
- Its concept extends traditional models of work behaviour that tend to conceptualise job demands, job control and social support as the main factors determining individual well-being and productivity.
Organisational justice
Organisational justice, culture and behavioural ethics
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- Often the notion of organisational justice will only become relevant and tangible when a violation of said justice occurs.
- Perceived injustices might include: ■ unequal pay for men and women doing the same job ■ performance reviews being conducted by someone with whom the employee has had little previous contact ■ the use of personality inventories to select new staff ■ arbitrary dismissals.
Organisational justice
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- Distributive justice
Types of organisational justice
Organisational justice, culture and behavioural ethics
Wages Social approval
Job security Promotion
Career opportunities
Education Training
Experience Effort
Inputs Outcomes
Equity principle (Adams, 1965)
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- Distributive justice
Types of organisational justice
Organisational justice, culture and behavioural ethics
- Policies and practices related to the equity principle:
• Predetermined job grades and salary bands. • Universal training and development opportunities. • Avoidance of ‘favouritism’ in showing approval.
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- Equity vs Equality
Types of organisational justice
Organisational justice, culture and behavioural ethics
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- Procedural justice
Types of organisational justice
Organisational justice, culture and behavioural ethics
- It is concerned with the fairness of the decision process leading to a particular outcome.
- Procedural justice can outweigh distributive justice, in that people may be willing to accept an unwanted outcome if they believe the decision process leading up to it was conducted according to organisational justice principles.
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- Procedural justice: Voice principle
Types of organisational justice
Organisational justice, culture and behavioural ethics
- Importance of voice and communication: perceptions of procedural justice are likely to be enhanced if they are given the opportunity to present information and voice their concerns before decisions are taken.
- Simple activities, such as managers lunching with lower-level colleagues, operating open-door policies, or engaging in ‘walk-arounds’, can enhance the feeling among employees that they are being listened to.
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- Procedural justice: Other determinants
Types of organisational justice
Organisational justice, culture and behavioural ethics
- Consistency: The same allocations are made across persons, situations and time.
- Neutrality: Decisions are based on facts, not on vested interests or personal feelings of the decision maker.
- Accuracy: The information used to formulate and justify the decision is up to date and correct.
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- Procedural justice: Other determinants
Types of organisational justice
Organisational justice, culture and behavioural ethics
- Correctability: Provisions exist for challenging and/or reversing ill-advised decisions, such as grievance or appeal procedures.
- Representativeness: All those whom the outcome will affect have their concerns taken into account.
- Morality and ethicality: Age, gender, nationality and other extraneous factors have no bearing on the decision that is made.
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- Interactional justice
Types of organisational justice
Organisational justice, culture and behavioural ethics
- It is the degree to which the people affected by decision are treated by dignity and respect (quality of the interpersonal treatment received).
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- Interactional justice: key aspects
Types of organisational justice
Organisational justice, culture and behavioural ethics
- Truthfulness: Information that is given must be realistic and accurate, and presented in an open and forthright manner.
- Respect: Employees should be treated with dignity, with no recourse to insults or discourteous behaviour.
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- Interactional justice: key aspects
Types of organisational justice
Organisational justice, culture and behavioural ethics
- Propriety: Questions and statements should never be ‘improper’ or involve prejudicial elements such as racism or sexism.
- Justification: When a perceived injustice has occurred, giving a ‘social account’ such as an explanation or apology can reduce or eliminate the sense of anger generated.
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Authority
Organisational justice, culture and behavioural ethics
- Perceptions about a manager’s authority can affect procedural justice judgements.
- Three aspects of authority having a bearing on this judgement are trust, neutrality and standing.
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Positive effects of organisational justice
Organisational justice, culture and behavioural ethics
- Sheppard et al. (1992):
Equitable pay improves individual performance. Equal treatment raises group spirit. Voice creates commitment to a decision.
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Positive effects of organisational justice
Organisational justice, culture and behavioural ethics
- Organisational justice promotes positive attitudes of job satisfaction, commitment and trust.
- Procedural justice is positively related to organisational citizenship behaviour (courtesy, conscientiousness, altruism and sportsmanship).
- Organisational justice was found to be a reliable predictor of employee health and well-being (Kivimäki et al., 2004)
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Responses to injustice
Organisational justice, culture and behavioural ethics
- Exit behaviours (negative/active) e.g., leave the organization
- Withdrawal behaviours (negative/passive) e.g., reduce one’s efforts
- Voice behaviours (positive/active) e.g., file a grievance
- Loyalty behaviours (positive/passive) e.g., ignore or try to rationalise the injustice.
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Attempts to recompense themselves
Organisational justice, culture and behavioural ethics
- Theft.
- Wasting company materials.
- Taking erroneous sick days.
- Disobeying instructions.
- Spending time on personal matters at work.
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Applications of organisational justice
Organisational justice, culture and behavioural ethics
- Performance appraisal.
- Disciplinary procedures.
- Training managers in key aspects of procedural and interpersonal justice.
- Conflict resolution.
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Applications of organisational justice
Organisational justice, culture and behavioural ethics
- Layoffs and terminations: nearly 15 per cent of dismissed employees who felt they had been treated unfairly proceeded to file claims against their former company, even if they did not expect to win.
- Selection and staffing.
- Organisational change: communication and involvement.
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- Social identity plays a crucial role in how people respond behaviourally to perceptions of justice or fairness.
- Goal: to examine whether self-reported misbehaviours are associated with scientists’ perceptions of organisational justice (both distributive and procedural), and whether perceived threats to one’s identity as a scientist affect the strength of the relationship between perceptions of procedural justice and behavioural responses.
Research paper: Scientists’ Perceptions of Organisational Justice and Self- Reported Misbehaviours
Organisational justice, culture and behavioural ethics
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- Findings suggest that early- and mid-career scientists’ perceptions of organisational injustice are associated with behaviours that may compromise the integrity of science and may lead to ethical, legal, or regulatory problems for scientists and their institutions.
Research paper: Scientists’ Perceptions of Organisational Justice and Self- Reported Misbehaviours
Organisational justice, culture and behavioural ethics
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- At the institutional level, perceived injustice in distributions of responsibilities or unfairness in the decision processes that generate these distributions may contribute to an environment in which scientific misbehaviour increases.
Organisational justice, culture and behavioural ethics
Research paper: Scientists’ Perceptions of Organisational Justice and Self- Reported Misbehaviours
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Organisational justice, culture and behavioural ethics
Behavioural ethics
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- Until recently, little empirical attention was given to how people actually behave when they face ethical dilemmas and decisions or to how their behavior can be improved.
- Behavioural ethics is a field of study that seeks to understand how people behave when confronted with ethical dilemmas.
Behavioural ethics
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- The study of systematic and predictable ways in which individuals make ethical decisions and judge the ethical decisions of others that are at odds with intuition and the benefits of the broader society.
Behavioural ethics
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- Ethical blindness, also known as ‘ethical fading’ or ‘moral myopia’, is a temporary and subconscious state in which a person is unable to see the ethical dimension of the decision they are making.
Example: NASA engineers who voted for the Challenger space shuttle to take off despite their concerns for its safety.
Behavioural ethics: Predictors of ethical risks
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- Moral disengagement is where an individual is aware of the ethical aspects of a decision and actively choses to disengage from these and behave unethically.
- Corporate culture of an organisation can influence whether employees are able to disengage from the morality of a decision.
Behavioural ethics: Predictors of ethical risks
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Behavioural ethics: Predictors of ethical risks
Organisational justice, culture and behavioural ethics
Ethics Alarm s: Unethical Rationalizations and M isconceptions
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- Perfect rationality, which forms the basis of many classical economic theories, is not an accurate description of how people make their decisions.
- Multiple social identities: People are likely to put aside their personal moral standards at work if they think this is what is expected from their role.
Behavioural ethics: Predictors of ethical risks
Organisational justice, culture and behavioural ethics
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- Ethics needs to become part of the reward, recognition and promotion system.
- Time pressure can have a negative impact on organisational culture and the ability to consider the ethical implications of a decision.
Behavioural ethics: Predictors of ethical risks
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- Internal communications and the language used within an organisation can have a significant impact on the ethical culture.
- Individual responsibility for values and associated behaviours needs to be encouraged.
Behavioural ethics: Predictors of ethical risks
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Organisational justice, culture and behavioural ethics
Nudge theory
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- A nudge, as we will use the term, is any aspect of the choice architecture that alters people's behavior in a predictable way without forbidding any options or significantly changing their economic incentives.
Nudge theory
Organisational justice, culture and behavioural ethics
Thaler and Sunstein (2008)
Putting fruit at eye level counts as a nudge. Banning junk food does not.
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- It suggests that a positive reinforcement and indirect suggestions can be more effective to produce the desired behaviour than direct instructions, legislation and enforcement.
“By knowing how people think, we can make it easier for them to choose what is best for them, their families and society” (Thaler &
Sunstein, 2008).
Nudge theory
Organisational justice, culture and behavioural ethics
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- Automatic enrolment scheme for private sector workers the Government in 2012.
Nudge theory
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- Nudges can’t undermine welfare, autonomy, and dignity.
- Two main points to consider in the domain of ethics:
1. Be honest: framing true information (e.g. 70% of your colleagues are saving for retirement vs. 30% of your colleagues are not saving for retirement) vs false information (e.g. 99% of your colleagues are saving for retirement).
Is nudge theory ethical?
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- Two main points to consider in the domain of ethics:
2. Who is the beneficiary of the nudge? If the company and the employee benefit, or the employee mainly benefits and the company receives some indirect benefit, this is a more ethical approach.”
Is nudge theory ethical?
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Activity
Organisational justice, culture and behavioural ethics
In teams of two or three:
1. Do you agree that nudge theory may manipulate people?
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Organisational culture
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Organisational culture
Organisational justice, culture and behavioural ethics
Organizational climate and organizational culture are two alternative constructs for conceptualizing the way people experience and describe their work settings.
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Organisational culture
Organisational justice, culture and behavioural ethics
OrganisaQonal culture is connected with the nature of beliefs and expecta/ons about organisaQonal life, while climate is an indicator of whether these beliefs and expectaQons are being fulfilled.
(Bowditch and Buono)
OrganisaQonal culture is recognised as one determinant of how people behave, more or less ethically, in organisaQons.
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Organisational culture
Organisational justice, culture and behavioural ethics
Organizational culture may be defined as the shared basic assumptions, values, and beliefs that characterize a setting and are taught to newcomers as the proper way to think and feel, communicated by the myths and stories people tell about how the organization came to be the way it is as it solved problems associated with external adaptation and internal integration (Schein 2010, Trice & Beyer 1993, Zohar & Hofmann 2012).
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Organisational culture
Organisational justice, culture and behavioural ethics
Organisational Culture: HSBC
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Organisational culture
Organisational justice, culture and behavioural ethics
Emerging from a conceptual and
methodological base in anthropology.
CollecQve was the natural unit of theory
and analysis.
What the employees perceive and how this perception creates a
pattern of beliefs, values, and expectations.
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Organisational culture
Organisational justice, culture and behavioural ethics
“OrganizaQons have cultures” perspecQve
Researchers are concerned with the ways in which organizations differ and are usually pragmatic in terms of their focus on organizational effectiveness
and organizational change (Alvesson 2002, Weick & Quinn 1999).
The research approach from this perspective is typically com parative — to explore those attributes of organizations
that differentiate the m ore effective from the less effective.
Survey approaches have dominated research on
culture from this perspective
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Organisational culture
Organisational justice, culture and behavioural ethics
“OrganizaQons are cultures” perspecQve
The researcher’s goal is description and understanding, including how organizational members develop meaning and come to share the very basic
assumptions—the root metaphors (Smircich 1983)—that guide the way they as the organization function.
Researchers from this perspective almost exclusively use qualitative
methods in their research
Permit the identification of the unique manifestations of culture in settings
and permit the identification of ambiguity in “the” culture as an
attribute of a setting.
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Organisational culture
Organisational justice, culture and behavioural ethics
There is not agreement on what culture is nor how it should be studied
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Organisational culture
Organisational justice, culture and behavioural ethics
It notes that people occupy sub-cultures in organizations (by function, by occupation, by gender, and so forth) and thus may have different experiences and may even attach different meaning to the same events.
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Organisational culture
Organisational justice, culture and behavioural ethics
Schein’s (2010) proposed three levels of organizational culture: artifacts, espoused beliefs and values, and underlying assumptions.
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Organisational culture
Organisational justice, culture and behavioural ethics
Artifacts represent the outer layer of culture and include rituals, language, myths, dress, and the organization of space.
Values are the conscious, affective desires or wants of people that guide their behavior. An individual’s personal values guide behavior on and off the job.
Underlying assumptions: indicate why organizational members go about their day-to-day work lives as they do, and they are frequently so ingrained that they cannot necessarily be easily articulated, requiring in-depth interviewing to illuminate them.
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Organisational justice, culture and behavioural ethics
How Employees Learn Culture
Stories Anchoring the present
in the past and legitim ating current
practices
include narraQves about the organizaQon’s
founders, rule breaking, rags-to- riches successes,
reacQons to past mistakes, and organizaQonal coping.
“A number of senior Nike executives spend much of their time serving as corporate storytellers. When they tell how co-founder (and Oregon track coach) Bill Bowerman went to his workshop and poured rubber into his wife’s waffle iron to create a better running shoe, they’re talking about Nike’s spirit of innovation. When new hires hear tales of Oregon running star Steve Prefontaine’s battles to make running a professional sport and attain better performance equipment, they learn of Nike’s commitment to helping athletes”
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Organisational justice, culture and behavioural ethics
How Employees Learn Culture
Rituals
are repetitive sequences of
activities that express and reinforce the key
values of the organization
w hat goals are m ost im portant and w hich people are im portant
and w hich are expendable
Company Culture
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Organisational justice, culture and behavioural ethics
How Employees Learn Culture
Material Symbols
The layout of corporate
headquarter
size of offi ces, the elegance of
furnishings.
the types of autom obiles top
executives are given.
These convey to em ployees who is im portant, the degree of egalitarianism top m anagem ent desires, and the kinds of behavior that are appropriate, such as risk taking, conservative, authoritarian, participative, individualistic, or social.
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Organisational justice, culture and behavioural ethics
How Employees Learn Culture
Language
language to help members idenQfy with the culture
help preserve culture
unique terms describe
equipment, officers, key individuals
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Organisational justice, culture and behavioural ethics
OrganizaAonal Culture and Societal Value Systems
Society’s values have an impact on organizational values because of the interactive nature of work, leisure, family, and community.
Does the value mix change or is it different for women, African Americans, Hispanics, immigrants, physically challenged workers, and others who are increasingly joining the workforce and contributing to organizational success? This is a question that empirical studies and extensive analysis and debate will need to cover more thoroughly in the next few decades.
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Organisational culture
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Imagine this scenario: David's boss has asked him to manage a large, global team. In this new role, he'll be working closely with people in several different countries. He's excited about the opportunities that his connectedness will present, but he's also nervous about making cross-cultural faux pas.
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Organisational culture
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Psychologist Dr Geert Hofstede published his cultural dimensions model at the end of the 1970s, based on a decade of research. Since then, it's become an internationally recognized standard for understanding cultural differences.
Hofstede studied people who worked for IBM in more than 50 countries. Initially, he identified four dimensions that could distinguish one culture from another. Later, he added fifth and sixth dimensions, in cooperation with Drs Michael H. Bond and Michael Minkov.
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These people worked in the local subsidiaries of one large multinational corporation: IBM. Most parts of the organization had been surveyed twice over a four-year interval, and the database contained more than 100,000 questionnaires.
Patterns of correlation at the country level could be strikingly different from what was found at the individual level, and needed an entirely different interpretation. One of the weaknesses of much cross-cultural research is not recognizing the difference between analysis at the societal level and at the individual level; this amounts to confusing anthropology and psychology.
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Hofstede’s Cultural Dimensions
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Organisational culture
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Organisational justice, culture and behavioural ethics
Types of Culture
Theorists and researchers have offered and discussed various listings of different cultures.
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Organisational culture
Organisational justice, culture and behavioural ethics
Types of Culture
Bureaucra'c Culture
An organization that emphasizes rules, policies, procedures, chain of command, and centralized decision making has a bureaucratic culture. The military, government agencies, and firms started and managed by autocratic managers are examples of bureaucratic culture. Some individuals prefer the certainty, hierarchy, and strict organization of such a culture.
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Organisational culture
Organisational justice, culture and behavioural ethics
Types of Culture
Clan Culture
Being a part of a working family, following tradition and rituals, teamwork, spirit, self- management, and social influence are characteristics of the clan culture.
In a clan culture, employees are socialized by other members. Members help each other celebrate successes together.
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Entrepreneurial Culture
Innovation, creativity, risk taking, and aggressively seeking opportunities illustrate an entrepreneurial culture.
Employees understand that dynamic change, individual iniQaQves, and autonomy are standard pracQces.
Types of Culture
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Organisational culture
Organisational justice, culture and behavioural ethics
Types of Culture
Market Culture
InnovaQon, creaQvity, risk taking, and aggressively seeking opportuniQes illustrate an emphasis on sales growth, increased market share, financial stability, and profitability are alributes of a market culture.
Employees have a contractual relationship with the firm.
There is little feeling of teamwork and cohesiveness in this type of culture.
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Organizational Subcultures
Within this dominant culture are sub-cultures.
Teams, projects, divisions, regions, and units may or may not have their own subcultures.
Subcultures can form around types of work, such as doctors, nurses, and administrators in health care organizaQons.
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Cultural Fit
Cultural fit is the likelihood that someone will reflect and/or be able to adapt to the core beliefs, antudes, and behaviors that make up your organizaQon.
It’s a key trait to look for when recruiQng. The result of poor culture fit due to turnover can cost an organizaQon between 50-60% of the person’s annual salary, according to the Society for Human Resource Management (SHRM).
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Organisational culture and ethics
Organisational justice, culture and behavioural ethics
- In any organization, culture is a complex and multi- system framework that must be aligned to encourage ethical behaviour (Trevino & Nelson, 2018).
- Values within the culture of the organisation influence the perception of situations and problems, the entire process of choice in decision making as well as set limits to ethical behaviour in decision making.
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Organisational culture and ethics
Organisational justice, culture and behavioural ethics
- Creating a unitary cohesive culture around core moral values helps to enhance ethical behaviours.
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Organisational justice, culture and behavioural ethics
Filabi & Bulgarella, 2018
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Activity
Organisational justice, culture and behavioural ethics
In teams of two or three:
1. Is it possible to change an organizational culture?
2. How could a change in organisational culture reconfigure employment relations?
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Organizational Culture and Societal Value Systems
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