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McGraw-Hill. © 2004 The McGraw-Hill Companies, Inc. All rights reserved. Chapter. 4. Managing Organizational Culture and Change. McGraw-Hill. © 2004 The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives After reading this chapter, you should be able to:.

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slide1

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

slide2

Chapter

4

Managing Organizational

Culture and Change

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

learning objectives after reading this chapter you should be able to
Learning ObjectivesAfter reading this chapter, you should be able to:
  • Build and maintain an appropriate company culture.
  • Understand the roles of symbols, rites, ceremonies, heroes, and stories in an organization's culture.
  • Identify the various categories of organizational cultures and the characteristics of people who fit best with them.
  • Adapt to organizational change and the forces that drive change.
  • Work with employees who resist change.
  • Use tools to help implement change, including Lewin’s three-step model of change and force field analysis.

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

organizational culture
Organizational Culture
  • A system of shared values, assumptions, beliefs, and norms that unite the members of an organization.
  • Reflects employees’ views about “the way things are done around here.”
  • The culture specific to each firm affects how employees feel and act and the type of employee hired and retained by the company.

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

slide5

Levels of Corporate Culture

Visible Culture

Expressed Values

Core Values

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

functions performed by organizational culture
Functions Performed By Organizational Culture
  • Employee Self-Management
    • Sense of shared identity
    • Facilitates commitment
  • Stability
    • Sense of continuity
    • Satisfies need for predictability, security, and comfort

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

functions performed by organizational culture cont
Functions Performed By Organizational Culture(cont)
  • Socialization
    • Internalizing or taking organizational values as one’s own
  • Implementation Support of the Organization’s Strategy
    • If strategy and culture reinforce each other, employees find it natural to be committed to the strategy

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

stages of the socialization process
Stages of the Socialization Process

Pre-arrival

Encounter

Metamorphosis

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

creating and sustaining organizational culture
Creating and Sustaining Organizational Culture

Company Rituals and Ceremonies

Cultural Symbols

Company Heroes

Stories

Language

Organizational Policies and Decision Making

Leadership

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

characteristics and types of organizational culture
Characteristics and Types of Organizational Culture
  • Cultural Uniformity versus Heterogeneity
  • Strong versus Weak Cultures
  • Culture versus Formalization
  • National versus Organizational Culture

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

characteristics and types of organizational culture continued
Characteristics and Types of Organizational Culture (continued)
  • Types: Traditional Control or Employee Involvement
    • Traditional control
      • emphasizes the chain of command
      • relies on top-down control and orders
    • Employee involvement
      • emphasizes participation and involvement

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

four types of culture classification
Four Types of Culture Classification
  • Baseball team culture--rapidly changing environment
  • Club culture--seeks loyal, committed people
  • Academy culture--hires experts who are willing to make a slow steady climb up a ladder
  • Fortress culture--focused on surviving and reversing sagging fortunes

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

competing values framework
Competing Values Framework
  • Based on two dimensions: focus and control
    • Focus--whether the primary attention of the organization is directed toward internal dynamics or directed outward toward the external environment
    • Control--the extent to which the organization is flexible or fixed in how it coordinates and controls activities

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

types of change
Types of Change
  • Planned Change--change that is anticipated and allows for advanced preparation
  • Dynamic Change--change that is ongoing or happens so quickly that the impact on the organization cannot be anticipated and specific preparations cannot be made

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

forces for change environmental forces
Forces for Change: Environmental Forces
  • Put pressure on a firm’s relationships with customers, suppliers, and employees.
  • Environmental forces include:
    • Technology
    • Market forces
    • Political and regulatory agencies and laws
    • Social trends

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

forces for change internal forces
Forces for Change: Internal Forces
  • Arise from events within the company.
  • May originate with top executives and managers and travel in a top-down direction.
  • May originate with front-line employees or labor unions and travel in a bottom-up direction.

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

resistance to change
Resistance to Change

Self-Interest

Cultures that Value Tradition

Lack of Trust and Understanding

Different Perspectives and Goals

Uncertainty

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

models of organizational change the star model
Models of Organizational Change: The Star Model
  • The Star Model: Five Points
    • Types of change-evolutionary or transformational
    • Structure
    • Reward system
    • Processes
    • People

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

lewin s three step model of organizational change
Lewin’s Three-Step Model of Organizational Change
  • Unfreezing--melting away resistance
  • Change--departure from the status quo
  • Refreezing--change becomes routine

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

lewin s force field analysis model
Lewin’s Force Field Analysis Model
  • Increase driving forces that drive change
  • Reduce restraining forces that resist change
  • or do both

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

slide21

Force-field Model of Change

Desired state

Restraining forces

Status quo

Driving forces

Time

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

implementing organizational change
Implementing Organizational Change

Top-down Change

Change Agents

Bottom-up Change

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

eight steps to a planned organizational change
Establish a sense of urgency.

Form a powerful coalition of supporters of change.

Create a vision of change.

Communicate the vision of change.

Empower others to act on the vision.

Plan and create short-term wins.

Consolidate improvements and produce still more change.

Institutionalize new approaches.

Eight Steps to a Planned Organizational Change

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

tactics for introducing change
Tactics for Introducing Change

Communication and Education

Employee Involvement

Negotiation

Coercion

Top-Management Support

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

applications management is everyone s business for the manager
Applications: Management is Everyone’s Business—For the Manager
  • Certain types of changes routinely provoke strong employee resistance:
    • Changes that affect skill requirements.
    • Changes that represent economic or status loss.
    • Changes that involve disruption of social relationships.
  • By being aware of the sources of resistance, managers can better apply tactics to make the changes more palatable for employees.

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

applications management is everyone s business for managing teams
Applications: Management is Everyone’s Business—For Managing Teams
  • Teams can help test the waters for a proposed change.
  • Various employee teams can serve as focus groups in order to find ways to make a change in policy more acceptable to employees.

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

applications management is everyone s business for individuals
Applications: Management is Everyone’s Business—For Individuals
  • Learning the specifics about the company culture can help you determine your fit with the organization and the possibility of succeeding.
  • Ask questions and gather information during the recruiting process to get a handle on the company culture and assess whether you will function comfortably in it.

McGraw-Hill

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.