Explain what is meant by the ethical person-organization exchange and ethical dissonance including its implications for workplace ethics.

Question

What will be an ideal response?

Answer 1

The ethical-person organization exchange refers to how the ethics of an individual in an organization fits with the ethics of the organization. The fit has many implications for building an ethical workplace environment.

Mary Jo Burchard of Regent University explains what she calls "the Ethical Dissonance Model" to illustrate the interaction between the individual and the organization, based on the person-organization ethical fit at various stages of the contractual relationship in each potential ethical fit scenario. This is an important consideration because the ethics of an individual influences the values that one brings to the workplace and decision making, while the ethics (through its culture) of an organization influences that behavior.

Of the four potential fit options, two possess high person-organization fit: (1) high organizational ethics, high individual ethics (High-High), and (2) low organizational ethics, low individual ethics (Low-Low); and two possess low person-organization fit: (1) high organizational ethics, low individual ethics (High-Low) and (2) low organizational ethics, high individual ethics (Low-High).

Imagine that you are working on a project and your boss directs you to do something that you believe is unethical. Maybe it is to fudge the numbers to make the project look more successful than it is. If the organizational fit is Low-High, you have a problem. Your ethical standards are higher than the organization you work for. How will you deal with the dilemma?

In this case we have what is referred to as ‘ethical dissonance.' Ethical dissonance is the psychological tension between an employee and the organization when the ethical fit is not a good one. When your standards of behavior differ from the organization's standards, you will feel uncomfortable and torn between doing what you know is the right thing to do as opposed to what may be expected of you by the organization.

The underlying problem in this case is a difference in values. The individual values honesty while the organization values loyalty. It expects you to be a team player and go along with the fudged numbers. Given the Low-High fit, you will be under a significant amount of pressure to ‘take one for the team.' However, once you compromise your beliefs, it won't be long before you begin the slide down the proverbial ethical slippery slope.

A reduction in job satisfaction is likely if an employee striving to be ethical perceives little top management support for ethical behavior, an unfavorable ethical climate in the organization, and/or little association between ethical behavior and job success. Once this ethical dissonance is discovered, the likelihood of employee turnover rises.

Creating an ethical organization environment is a process that aims to have a High-High fit and one that brings about ethical awareness, expected standards of behavior, and an action plan to ensure the organization's values form the foundation for all decisions. Incorporating the ethical fit into ethics training can help to align organizational and individual goals and motivation for behavior.