Six Culture Embedding Mechanisms Paper 2022

Running head: SIX CULTURE-EMBEDDING MECHANISMS
SIX CULTURE-EMBEDDING MECHANISMS
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SIX CULTURE-EMBEDDING MECHANISMS1
Executive summary
The aim of this paper is to discuss the importance of ethics in the relation to culture of corporate
environment. In this paper, the issues of organizational culture have been pointed out so that the
question of ethics is answered and how the unethical behaviors on the part of the management
leading to the failure of international company will be analyzed. In this respect, some important
ethical theories that connect the culture of the organization will be analyzed. The ethical theories
will be connecting the Schein’s (1985) six culture-embedding mechanisms. This particular model
is related to the organizational culture which decides the way employees interact with one
another and behave with the people outside the company (Schein, 1985). According to this
models, the ethical decision making of the leaders relate to the successful operation of the
company by gaining support from the stakeholders.
Introduction about company:
Nokia Corporation is a multinational telecommunication, consumer electronics and
information technology company based on Finland. This company was founded in 1865 and is a
public limited company listed in the New York Stock exchange and Helsinki Stock Exchange. It
has operated in various industries over more than 150 years but came into the telecommunication
industry large scale telecommunication infrastructure and technology development. This
company is a major contributor in the mobile telephony industry having association with the
development of GSM service, 3G and the LTE standards (Fuchs, 2020). The issues with this
highly popular company are related to the problems with the management decisions and
unacceptable organizational culture. It was the strategic decisions that caused Nokia’s failure in
the competitive world of business. The company did not follow the customers’ trends and

SIX CULTURE-EMBEDDING MECHANISMS2
demand for innovativeness in the technological business of the mobile phone manufacturing. Its
failure it react to the changing competitive climate created by the competitors like Apple and
Samsung had led the market share decreasing rapidly. The new programing and adapting of
exclusive multimedia features did not compel the management to response quickly. Therefore
the company lost the battle in the initial stage. However, this ignorance on the part of the
management caged after a long period of time. Then it had partnered with the software company
Microsoft but did not allow the change in the organizational culture which led the employees
remain indifferent in the need. The Microsoft Corporation is a US based company where the
organizational culture is completely different from that of the Finnish one like Nokia. This led to
problem with every single operation of the company starting from product development, product
differentiation, innovation method, allocation of resources and mainly communication.
Main content:
According to Schein’s six culture-embedding mechanisms, there are some factors which
directly contribute to the development of corporate culture. The mechanisms include attention,
reaction to crisis, resource allocation, role modelling, rewards and selection and dismissal. These
mechanisms along with the employee awareness and trainings enforce to develop code of ethics
of the company and resulted into employee behavior. The attention refers to the process of
paying attention or communicating clear signals to employees about the important values.
Reaction to crisis creates new values, norms and working process to reveal essential underlying
assumptions so that the solution for the crisis can be found. The resource allocation are
associated with the process through which the resource will be allocated when necessary. Role
modelling is the process of observing the leaders for finding out the valuable measures in the
organization (Vuori & Huy, 2016). The allocation of rewards deals with the experience of the