Formal Cultures in an organisation
The formal ethical system of a company includes formal written policies, which direct behaviour towards reaching the organisation’s goal (Letherwood & Spector 1991; Ouchi 1977). The formal cultural systems aim to create and manage an ethical culture in an organisation (Trevino & Nelson 2010). The three formal culture categories discussed in this essay are executive leadership, selection system and values and mission statement.
Ethical executive leadership – Leaders can affect the culture of an organisation in both formal and informal approaches. They influence formal culture by creating and supporting new policies and beliefs (Trevino & Brown 2004). The founders or owners of organisations can be a part of shaping the culture of an ethical organisation. Taking example of the CEO of online clothing retailer Zappos, Tony Hsieh. Hseich happiness was more than having money and so he made it his mission when he became CEO that he would do everything in his authority to assure employee and customer happiness. Zappos is one know known for its wonderful employee culture and customer satisfaction. Hseich was also voted number 3 by an online survey on onlinemba.com. Newly appointed CEO’s can either change the culture of an organisation if they
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