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Chapter

4
Managing Organizational Culture and Change

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After reading this chapter, you should be able to:

Build

Learning Objectives

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 Lewins threestep model of change and force field analysis.

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Organizational Culture
A

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

Reflects

The

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Levels of Corporate Culture

Visible Culture

Expressed Values

Core Values

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Functions Performed By Organizational Culture

Employee
Sense

Self-Management

of shared identity Facilitates commitment

Stability
Sense

of continuity Satisfies need for predictability, security, and comfort

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Functions Performed By Organizational Culture (cont)

Socialization
Internalizing

or taking organizational values as

ones own
Implementation
If

Support of the Organizations Strategy

strategy and culture reinforce each other, employees find it natural to be committed to the strategy

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Stages of the Socialization Process

Pre-arrival

Encounter

Metamorphosis

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Creating and Sustaining Organizational Culture

Cultural Symbols Company Rituals and Ceremonies

Company Heroes

Stories

Organizational Policies and Decision Making

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Language

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Characteristics and Types of Organizational Culture

Cultural

Uniformity versus Heterogeneity versus Weak Cultures versus Formalization versus Organizational Culture
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Strong

Culture

National

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Characteristics and Types of Organizational Culture (continued)

Types:

Traditional Control or Employee Involvement

Traditional
emphasizes

control

the chain of command relies on top-down control and orders

Employee

involvement
and

emphasizes

participation involvement

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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
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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 extent to which the organization is flexible or fixed in how it coordinates and controls activities

Control--the

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Types of Change
Planned

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

Dynamic

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Forces for Change: Environmental Forces

Put

pressure on a firms relationships with customers, suppliers, and employees. forces include:

Environmental
Technology
Market

forces Political and regulatory agencies and laws Social trends

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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.
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Resistance to Change
Self-Interest Cultures that Value Tradition Lack of Trust and Understanding

Different Perspectives and Goals

Uncertainty

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Models of Organizational Change: The Star Model

The

Star Model: Five Points

Types

of change-evolutionary or transformational Structure Reward system Processes People

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Lewins Three-Step Model of Organizational Change

Unfreezing--melting

away

resistance Change--departure from the status quo Refreezing--change becomes routine

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Lewins Force Field Analysis Model

Increase

driving forces that drive change Reduce restraining forces that resist change or do both

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Force-field Model of Change

Desired state
Restraining forces

Status quo

Driving forces

Time
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Implementing Organizational Change

Top-down Change

Change Agents

Bottom-up Change

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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 shortterm wins. Consolidate improvements and produce still more change. Institutionalize new approaches.

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Tactics for Introducing Change

Communication and Education

Employee Involvement

Negotiation

Coercion Top-Management Support

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Applications: Management is Everyones BusinessFor 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. being aware of the sources of resistance, managers can better apply tactics to make the changes more palatable for employees.

By

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Applications: Management is Everyones BusinessFor Managing Teams

Teams

can help test the waters for a proposed change. employee teams can serve as focus groups in order to find ways to make a change in policy more acceptable to employees.

Various

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Applications: Management is Everyones BusinessFor Individuals

Learning

the specifics about the company culture can help you determine your fit with the organization and the possibility of succeeding. 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.

Ask

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