Management 11e John Schermerhorn

Management11e John Schermerhorn Chapter 11Organizational Cultureand Change

Planning Ahead — Chapter 11 Study Questions • What is organizational culture? • What is a multicultural organization? • What is the nature of organizational change? Management 11e - Chapter 11

Study Question 1: What organizational culture? • Organizational culture • The system of shared beliefs and values that develops within an organization and guides the behavior of its members • Socialization • How new members learn the culture of the organization Management 11e - Chapter 11

Figure 11.1 Levels of organizational culture—observable culture and core culture in the organizational “iceberg ” Management 11e - Chapter 11

Study Question 1: What organizational culture? • Strong cultures: • Commit members to do things that are in the best interests of the organization • Discourage dysfunctional work behavior • Encourage functional work behavior Management 11e - Chapter 11

Study Question 1: What organizational culture? • The best organizations have strong cultures that: • Are performance-oriented • Emphasize teamwork • Allow for risk taking • Encourage innovation • Value the well being of people Management 11e - Chapter 11

Study Question 1: What organizational culture? • What is observable culture? • What one sees and hears when walking around an organization • Elements of observable culture: • Heroes • Ceremonies, rites and rituals • Legends and stories • Metaphors and symbols Management 11e - Chapter 11

Study Question 1: What organizational culture? • What is the core culture? • Underlying assumptions and beliefs that influence behavior and contribute to the observable culture Management 11e - Chapter 11

Study Question 1: What organizational culture? • Core culture and values: • Core values are beliefs and values shared by organization members • Strong cultures have a small but enduring set of core values • Commitment to core values is a key to long-term success Management 11e - Chapter 11

Study Question 1: What organizational culture? Management 11e - Chapter 11

Study Question 1: What organizational culture? • Important cultural values include: • Performance excellence • Innovation • Social responsibility • Integrity • Worker involvement • Customer service • Teamwork Management 11e - Chapter 11

Study Question 1: What organizational culture? • Value-based management: • Describes managers who actively help to develop, communicate, and enact shared values • Criteria for evaluating core values: Management 11e - Chapter 11

Study Question 1: What organizational culture? • Workplace spirituality: • Creates meaning and shared community among organizational members Management 11e - Chapter 11

Study Question 1: What organizational culture? Management 11e - Chapter 11

Study Question 1: What organizational culture? • Symbolic leadership • Symbolic leaders use symbols well to establish and maintain a desired organizational culture • Symbolic leaders behave in ways that espouse the organization’s values Management 11e - Chapter 11

Study Question 1: What organizational culture? • Symbolic leaders: • Use language metaphors • Highlight and dramatize core values and observable culture • Use rites and rituals to glorify performance Management 11e - Chapter 11

Study Question 2: What is a multicultural organization? • Multicultural organizations • Based on pluralism, operating with inclusion and respect for diversity • Multiculturalism • involves pluralism and respect for diversity Management 11e - Chapter 11

Study Question 2: What is a multicultural organization? • Characteristics of multicultural organizations: • Pluralism • Structural integration • Informal network integration • Absence of prejudice and discrimination • Minimum intergroup conflict Management 11e - Chapter 11

Study Question 2: What is a multicultural organization? • Diversity: • Describes differences among people at work, such as; age, gender, race • Diversity alone does not guarantee positive performance impact • Diversity must be included in training and human resource practices • Positive impact results when diversity is embedded in the organizational culture Management 11e - Chapter 11

Study Question 2: What is a multicultural organization? • Organizational subcultures • Cultures based on shared work responsibilities and/or personal characteristics • Ethnocentrism is the beliefthat one’s subculture is superior to all others Management 11e - Chapter 11

Study Question 2: What is a multicultural organization? • Common subcultures include: • Occupations and functions • Ethnicity or national cultures • Gender and generations Management 11e - Chapter 11

Study Question 2: What is a multicultural organization? • Challenges faced by minorities and women: • Glass ceiling • Harassment and discrimination • Minorities may adapt by exhibiting biculturalism - adopting characteristics of the majority culture Management 11e - Chapter 11

Figure 11.2 Glass ceilings as barriers to women and minority cultures in traditional organizations Management 11e - Chapter 11

Study Question 2: What is a multicultural organization? • Diversity leadership approaches: • Managing diversity commits to building an organizational culture that allows all members to reach their full potential • Affirmative action commits the organization to hiring and advancing minorities and women • Valuing diversity commits the organization to education and training programs Management 11e - Chapter 11

Figure 11.3 Leadership approaches to diversity—from affirmative action to managing diversity Source: Developed from R. Roosevelt Thomas, Jr., Beyond Race and Gender (New York: AMACOM, 1991), p. 28. Management 11e - Chapter 11

Study Question 3: What is the nature of organizational change? • Change leader • A change agent who takes leadership responsibility for changing the existing pattern of behavior of another person or social system • Change leadership • Forward-looking • Proactive • Embraces new ideas Management 11e - Chapter 11

Figure 11.4 Change leaders versus status quo managers Management 11e - Chapter 11

Study Question 3: What is the nature of organizational change? • Top-down change • Change initiatives come from senior management • Success depends on support of middle-level and lower-level workers Management 11e - Chapter 11

Study Question 3: What is the nature of organizational change? • Bottom-up change • The initiatives for change come from any and all parts of the organization, not just top management • Crucial for organizational innovation • Made possible by: • Employee empowerment • Employee involvement • Employee participation Management 11e - Chapter 11

Study Question 3: What is the nature of organizational change? • Integrated change leadership • Successful and enduring change combines advantages of top-down and bottom-up approaches Management 11e - Chapter 11

Study Question 3: What is the nature of organizational change? • Incremental and transformational change • Incremental change • Bends and adjusts existing ways to improve performance • Transformational change • Results in a major and comprehensive redirection of the organization Management 11e - Chapter 11

Study Question 3: What is the nature of organizational change? Management 11e - Chapter 11

Study Question 3: What is the nature of organizational change? • Organizational targets for change: • Tasks • People • Culture • Technology • Structure Management 11e - Chapter 11

Study Question 3: What is the nature of organizational change? • Phases of planned change • Unfreezing • The phase in which a situation is prepared for change and felt needs for change are developed • Changing • The phase in which something new takes place in the system, and change is actually implemented • Refreezing • The phase of stabilizing the change and creating the conditions for its long-term continuity Management 11e - Chapter 11

Figure 10.3Lewin’s three phases of planned organizational change Management 11e - Chapter 11

Study Question 3: What is the nature of organizational change? • Improvisational Change • Making continual adjustments as changes are being planned Management 11e - Chapter 11

Study Question 3: What is the nature of organizational change? • Force-coercion strategy of change • Uses power bases of legitimacy, rewards and punishments to induce change • Relies on belief that people are motivated by self-interest • Direct forcing and political maneuvering • Produces limited and temporary results • Most useful in the unfreezing phase Management 11e - Chapter 11

Study Question 3: What is the nature of organizational change? • Rational persuasion strategy of change • Bringing about change through persuasion backed by special knowledge, empirical data, and rational argument • Relies on expert power • Relies on belief that reason guides people’s decisions and actions • Useful in the unfreezing and refreezing phases • Produces longer-lasting and internalized change Management 11e - Chapter 11

Study Question 3: What is the nature of organizational change? • Shared power strategy of change • Engages people in a collaborative process of identifying values, assumptions, and goals from which support for change will naturally emerge • Time consuming but likely to yield high commitment • Involves others in examining sociocultural factors related to the issue at hand • Relies on referent power and strong interpersonal skills in team situations • Relies on belief that people respond to sociocultural norms and expectations of others Management 11e - Chapter 11

Figure 11.6 Alternative change strategies and their leadership implications Management 11e - Chapter 11

Study Question 3: What is the nature of organizational change? • Why people resist change: • Fear of the unknown • Disrupted habits • Loss of confidence • Loss of control • Poor timing • Work overload • Loss of face • Lack of purpose Management 11e - Chapter 11

Study Question 3: What is the nature of organizational change? • Checklist for dealing with resistance to change: • Check the benefits – those involved see a clear advantage • Check the compatibility – keep change similar to existing values/processes • Check the simplicity – make it as easy as possible to understand • Check the triability – allow people to slowly try the change adjusting as progression is made Management 11e - Chapter 11

Study Question 3: What is the nature of organizational change? • Methods for dealing with resistance to change: • Education and communication • Participation and involvement • Facilitation and support • Facilitation and agreement • Manipulation and co-optation • Explicit and implicit coercion Management 11e - Chapter 11

Chapter 11 Case • Apple Inc.: People and design create the future

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Management 11e John Schermerhorn