Introduction
There are various types of influence of organizational culture and ethics; at the same time, elements of corporate culture intersect with the main aspects of the morality of the organization. The impact of organizational culture and ethics on staff behavior on their loyalty and dedication to the organization, and, consequently, on work efficiency. Among the values that form the culture of the organization organizational and ethical values are considered as the most important. They represent a system of moral principles that guides the behavior of a group of employees, determining which behavior is correct within the framework of performing professional duties. Studies of organizational culture and ethics conducted using various diagnostic methods are necessary to solve practical problems of managers or staff of the organization. There is a direct relationship between the type of organizational culture and ethics and organizational effectiveness. Organizational culture and ethics are strategic tools that allow staff to focus on common goals, mobilize employee initiative, ensure loyalty, and facilitate communication.
Effects of Organizational Culture & Ethics on Organizational Effectiveness
The main types of organizational culture and ethics have different effects on organizational effectiveness. In organizations with a culture of power, there is a quick reaction to changes in the situation, efficiency in decision-making and their execution (Aviles, 2018). A special role is played by the figure of the leader, who is engaged in the allocation of resources. This is due to the fact that the source of power is resources, the distribution of which is handled by the head.
Employees are given less important than in the role-based organizational culture. Such an organization is characterized by a high level of agreement and mutual loyalty, as well as adherence to traditions. Organizations with a role culture function effectively in a stable environment (Huhtala et al., 2021). In organizations with a role culture, a strict functional distribution of roles and specialization of employees acting on the basis of a system of regulated rules, procedures and standards allows them to function effectively in a stable environment, provided that the actions of employees at different levels of management are well coordinated.
Unlike in the task culture, in the role culture, the position occupied in the hierarchical structure is important, not the qualities of the employee. An organization with a task culture successfully functions in any conditions (Huhtala et al., 2021). High professionalism of employees and their effective cooperation are also very dependent on the task culture. In conditions of various organizational culture and ethics, the staff functions in different ways. The development of organizational ethics and concern for the welfare of employees can significantly affect the behavior of personnel in the organization, their loyalty and dedication to the organization, and, consequently, the effectiveness of work.
Effects of Organizational Culture & Ethics on Organizational Functioning
The effectiveness of the organization’s functioning depends on how the processes of the influence of organizational culture and ethics on the behavior of personnel proceed. Cooperation as an ethical model is always more effective than the work of individual performers or departments (Rasooly et al., 2020). It can be proven by using the example of Japanese management model. Organizations with any of these culture types need to make decisions and decision-making in these organizations is a serious matter.
Individual decisions turn out to be wrong more often than group decisions: they have a greater risk of errors. This is due to the fact that the problems of organizations are becoming more complex and require multidimensional consideration, and a variety of specialized knowledge (Hendra et al., 2019). The lack of brainstorming affects the decision-making process significantly. Decision-making is more effective if it is controlled as the decision-making process consists of two controlled stages: first analysis, then decision. Control that ensures the achievement of the organization’s goal depends on the accepted culture and ethics (Rasooly et al., 2020). It is necessary to detect and resolve emerging problems. The difference between trust-based and oppressive control is that the latter is based on coercion and pressure of a repressive nature, while the latter means more democratic control. Control mechanisms depend on organizational values, but they are absolutely necessary and must be followed regardless of circumstances. Internal control mechanisms may be mandatory or voluntary, but their presence in the organization is unconditional.
Role of Organizational & Ethical Values in Corporate Culture
Organizational and ethical values play a leading role in the corporate culture. The formation of the organization’s goals is the creation of special values with the inherent culture of work efficiency (Hald et al., 2020). Any organization is created to achieve any goals, so they are the fundamental core of corporate ethics. Therefore, the relevance of corporate ethics for the organization is constantly increasing. The goals of the organization’s activities are formed by the client: the mission is characterized by the goals and needs of the client, which are met and achieved when purchasing a certain product or service of an organization. One of the important areas of organizational values and ethics is interaction with the consumer (Ullah et al., 2022). Unsatisfied customers are the main indicator of an outstanding organizational culture since the main goal of organizational culture is to ensure self-organization of socio-economic customer satisfaction.
Retaining old customers and attracting new ones is related to the management of the organization. However, retaining an old client is about cheaper than attracting a new one. Effective management is formed by the propagandized values of the organization, that is, its culture (Ullah et al., 2022). In many companies, slogans, stories and legends related to the effective activities of the organization, its creators, prominent managers or specialists are widely used. A certain combination of organizational culture and ethics criteria is determined by the peculiarities of management. Employers are paying more and more attention to the culture and ethics of business and personal relationships in the recruitment and hiring process.
Correlation of Organizational Culture Scheme & Main Vector of Activity
The correlation of the organizational culture scheme and the main vector of activity is explained, first of all, by the specifics of the latter. Organization with an emphasis on a rational goal and open system is characterized by effective ethics (Chang et al., 2021). The adhocratic corporate culture consists in prioritizing initiative, freedom and high risks. As a rule, such companies enter the market with a new product or a unique service.
A significant difference in the specifics of organizations is caused by the accumulation of a substantial practical base in the field of entrepreneurship and management of the ethical culture of the company. Organization with excessive stability has outdated ethics (Roulin et al., 2021). Discipline and control are least in demand in the market-hierarchical sphere. However, the cultural preferences of employees of both firms, who, as it turned out, are in solidarity with experts in their assessments of effective organizational culture, differ from each other.
The ethics of two organizational culture is chosen differently because the real culture, values, norms and patterns of behavior in practice have dissimilarities. The cultural preferences of the employees of both corporate ethics differ from each other (Chang et al., 2021). The employees of second company are focused on personal development, and employees of the first company are more concentrated on results. Strategic goals and criteria for organizational success are different in companies chosen. This is important because these goals are considered the most important for the current and future success of the business.
Formulation of Strategic Goals & Criteria for Organizational Success
Formulation of strategic goals and criteria for organizational success are the main differences of corporate ethics. This is due to the fact that the main purpose of the strategy is to create a set of competitive advantages in order to achieve business success in the long term. The leadership style forms strategic goals in corporate culture (Xuemei et al., 2021). In the task organizational culture, the leader is focused on generating new ideas whilst in the power organizational culture the leader is more focused on competition. The leaders of various organizational cultures reach their chosen goals by using different criteria. The criteria for organizational success are a source of value specifics of interaction with subordinates (Farias et al., 2020). The source of the formation of these values through reflection of their own techniques and rules of managerial actions and values are formal managers. In the liberal coaching manner compared to the bureaucratic manner of communication there is a big difference between management representatives and performers. The main differences of corporate ethics reflect the essence of different organizational cultures.
Summary & Conclusion
The tasks of the management staff of the company are the formation, analysis, management and maintenance of the most efficient corporate culture. The task type of organizational culture and ethics is better for organizational effectiveness. A well-developed culture is the most important characteristic of organizations with significant success. The excessive control by the leader negatively affects corporate culture and ethics. This is due to the fact that leaders can negatively influence the company’s culture by encouraging questionable working methods.
The organizational and ethical values determine the achievement of goals in the corporate culture. It is the values shared and declared by the founders and the most authoritative members of the organization that often become the key link on which the cohesion of employees depends, unity of views and actions is formed, and, consequently, the achievement of the goals of the organization is ensured. The organizational culture scheme of power is more suitable for conservative organizations that do not seek innovation. Moreover, corporate ethics affects the success in achieving organizational goal. In general, corporate culture and ethics reflect most of the phenomena of the social and material life of the collective, the dominant moral norms and values.
References
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