ORGANIZATIONAL SYSTEMS

1. Formal and Informal Organization

2. Models of Organization Behavior
a. Autocratic
b. Custodial
c. Supportive
d. Collegial
e. Hybrid (Type Z)
3. Graft & Corruption
Reporter: Ms. Pearl Justo / Mr. Marlon D. Jaranilla
Organization achieve their goals by
creating, operating and
communicating an organizational
behavior system. These systems
exist in every organization, although
they have a greater chance of being
successful if they have been
consciously created by drawing upon
the constantly growing behavioral
science base of knowledge.
GRAFT and CORRUPTION
Definition:
CORRUPTION

 An act done with an intent to give some advantage inconsistent

with official duty and the rights of others. It includes bribery, but
is more comprehensive; because an act may be corruptly done,
though the advantage to be derived from it be not offered by
another.

Is the violation of norms of duty and responsibility for personal

gain. This includes embezzlement, where public funds are used for
one’s own benefit’s; nepotism, where friends, relatives and
associates are appointed to public office on the basis personal
relationship rather than merit.

To misuse of a position of trust for personal gain. Even though

corruption can be present in any sphere of life, it usually refers to
political corruption. By political corruption, we mean the illegitimate
use of government powers by the officials for their personal
purposes. Political corruption influences the state or country in
many ways and hinders the overall development of the region.
GRAFT and CORRUPTION
GRAFT

The acquisition of money, power, etc., by dishonest or

unfair means, especially by taking advantage of a position
of trust.

TYPES OF CORRUPTION

Bribery
Requires two participants: one to give the bribe, and one
to take it.

Bribery produces cynicism and a general distrust of

institutions.

Trading in influence
refers to the situation where a person is selling his/her
influence over the decision process involving a third party
(person or institution)
GRAFT and CORRUPTION
Graft

While bribery includes an intent to influence or be influenced

by another for personal gain, which is often difficult to prove,
graft only requires that the official gains something of
value, not part of his official pay, when doing his work.

Patronage

Refers to favoring supporters. It can be seen as corruption

if this means that incompetent persons, as a payment for
supporting the regime, are selected before more able
ones.

Nepotism and cronyism

Favoring relatives (nepotism) or personal friends (cronyism)

of an official is a form of illegitimate private gain.
GRAFT and CORRUPTION
Electoral fraud

is illegal interference with the process of an election.

Acts of fraud affect vote counts to bring about a election
result, whether by increasing the vote share of the favored
candidate, depressing the vote share of the rival candidates or
both. Also called voter fraud, the mechanisms involved
include illegal voter registration, intimidation at polls and
improper vote counting.

Embezzlement

is outright theft of entrusted funds. It is a

misappropriation of property.

Kickbacks

A kickback is an official's share of misappropriated funds

allocated from his or her organization to an organization
involved in corrupt bidding.
GRAFT and CORRUPTION
Unholy alliance

coalitionamong seemingly antagonistic groups, especially

if one is religious, for ad hoc or hidden gain. Like
patronage, unholy alliances are not necessarily illegal, but
unlike patronage, by its deceptive in nature and often with
great financial resources, an unholy alliance can be much
more dangerous to the public interest.

Corruption exists only when there is an opportunity.

The removal of the opportunity therefore tends to stop

corruption.
People behave and continue to be honest and efficient
when they know they will be checked at anytime.
 When does business gift
become a bribe?
Business gift giving has always been common and
contentious at the same time. Business gifts are usually
seen as an ‘advertising, sales promotion and marketing
communication medium’. Usually there are three (3)
reasons why business practiced gift giving: (a) in
appreciation for past client relationships, placing a new
order, referrals to other clients, etc.; (b) in the hopes of
creating a positive, first impression which might help to
establish an initial business relationship; and (c) giving
may be perceived as a quid Pro quo (meaning: returning a
favour or expecting a favour in return for something).
Most observers agree that there is a very fine line
between business gift giving and bribing, and it is
seldom clear when the line is crossed.
However, the implications of getting it wrong can have
significant impact on the company’s performance, and
create a number of legal, ethical and brand-related
issues.
The three Dimensions of business
gift vs. bribe
Contents

Context

Culture

Conclusion
Graft and corruption, admittedly is difficult to probe or either to
stop. Written policy and in-acted laws is good only as deterrent tools in
combating illegal practices both in government and private business
sector of our society. On the hand, no amount of written policy, laws that
can stop a more determine person to commit such illegal practices. This
is a complex area of policy-making, but as the discussion above
illustrate, businesses must engage in defining and maintaining a clear and
consistent policy towards gifts. Given the convention, and the beneficial
effects of gifts on business, they can not be ruled out altogether. But
extreme care must be taken – as improper gifting can create legal issues,
affect the morale, corrupt the employees and destroy the brand.
Discretionary gift giving appears to be the key. The difficult part
actually remains in creating a robust company culture, and a
value system which rejects bribing in any form. With keener
regulators and invasive media, it is increasingly clear that businesses
must operate with a high ethical standard to survive. One may hope,
therefore, that executive intent will not be in short supply.