Organizational Culture and Change

1. Organizational Culture and Change 2002 South-Western

2. Organizational Culture • A dynamic system of shared values, beliefs, philosophies, experiences, habits, expectations, norms, and behaviors. • Defines what is important to the organization. • The way decisions are made. • Methods of communication. • The degree of structure. • The freedom to function independently. • How people should behave. • How they should interact with each other. • Helps employees develop a sense of group identity and pride. 2002 South-Western

3. Seven Culture-Shaping Factors • Key organizational processes • Dominant coalition • Employees and other tangible assets • Formal organizational arrangements • Social system • Technology • External environment 2002 South-Western

4. Factors that Shape Organizational Culture 2002 South-Western

5. The Social System Norms and values Set of employee relationships that relate to power, affiliation, and trust Includes the grapevine 2002 South-Western

6. External Environment The Economy Suppliers Markets Competitors Regulators 2002 South-Western

7. Chief Evidences of Culture Include Stories Slogans Statements of Principle Heroes Ceremonies Physical Environment Symbols Climate 2002 South-Western

8. Five Principles of Mars Quality Responsibility Mutuality Efficiency Freedom 2002 South-Western

9. Heroes, to Become One You have to live the ideology Quality Service Fairness 2002 South-Western

10. Symbols Walt Disney symbolic language • Employees are “cast members.” • Customers are “guests.” • A crowd is an “audience.” • A work shift is a “performance.” • A job is a “part.” • A uniform is a “costume.” • The personnel department is “casting.” • Being on duty is “on stage.” • Being off duty is “off stage.” 2002 South-Western

11. Management Helps Create Culture By • Clearly defining the company’s mission and goals. • Identifying the core values. • Determining the amount to individual autonomy and the degree to which people work separately or in groups. • Structuring the work in accordance with the corporation’s values to achieve its goals. • Developing reward systems that reinforce the values of goals. • Creating methods of socialization. 2002 South-Western

12. Visionary Managers and Companies • Translate their core values into tangible mechanisms. • Indoctrinate people. • Impose tightness of fit. • Create a sense of belonging to something special. 2002 South-Western

13. Role of Employees • Contribute to the extent that they accept and adopt the culture. • Contribute by helping to shape the values it embodies. • Play a role in influencing organizational culture by forming subcultures. 2002 South-Western

14. Sources of Change • External Sources • Political • Social • Technological • Economic Environment • Internal Sources • Managerial policies or styles • Systems and procedures • Technology • Employee attitudes 2002 South-Western

15. Four Types of Change • Strategic Change - changing the strategy or mission of the organization • Structural Change - changing the structure of organizations through team building and downsizing • Process-Oriented Change - using new technology, shifting from human to mechanical labor in plants that employ robotics for manufacturing, or adopting new procedures • People-Centered Change - directed at the attitudes, behaviors, skills, or performance of the company’s employees 2002 South-Western

16. Reengineering The fundamental rethinking and radical redesign of business processes. Determines what process is necessary. Determines then how to do it. 2002 South-Western

17. Management and Change • Top Managers • Sensitive to the external environment; that is, they need to stay attuned to changes in that environment. • Middle Managers • Likely will face structural, process-oriented, or people-centered changes. • First-Line Managers • Participate in discussions about strategic or structural changes. • Institute process-oriented and people-centered change. 2002 South-Western

18. Change Agent • Implements planned change. • Could be the manager who conceived the need to change. • Could be another manager within the organization. • Could be an outsider. 2002 South-Western

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20. Nine Steps for Implementing Change 2002 South-Western

21. Sources of Resistance to Change • Loss of security • Fear of economic loss • Loss of power and control • Reluctance to change old habits • Selective perception • Awareness of weaknesses in the proposed change 2002 South-Western

22. Five Techniques to Overcome Resistance to Change 3. Advance warning 1. Participation 2. Open communication 4. Sensitivity 5. Security 2002 South-Western

23. Changing AttitudesThree-Step Approach • First step, unfreezing • Managers who spot deficiencies in a subordinate’s behavior must identify the causes of that behavior. • Second step, change • The individual’s discomfort level rises. • Employee to question his or her motives for the current behavior. • Third step, refreezing • Manager recognizes and rewards new and improved attitudes and behaviors. 2002 South-Western