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Chapter 4 Organizational Culture and Change

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Managing

Organizational
Culture and Change
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.”

 Theculture specific to each firm affects how


employees feel and act and the type of employee
hired and retained by the company.
Levels of
Corporate Visible Culture

Culture
Expressed Values

Core Values
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
Functions Performed By
Organizational Culture
 Socialization
 Internalizing ortaking
organizational values as
one’s own

 Implementation Support of
the Organization’s Strategy
 If strategy andculture
reinforce each other,
employees find it natural to
be committed to the
strategy
Creating and Sustaining
Organizational Culture

Company Rituals and


Ceremonies

Cultural Symbols

Language
Organizational Policies Leadership
and Decision Making
Characteristics and Types of
Organizational Culture

Cultural
Uniformity versus
Heterogeneity
Strong versus Weak Cultures
Culture versus Formalization
Nationalversus
Organizational Culture
Characteristics and Types of
Organizational Culture

Types: Traditional Control or Employee


Involvement
Traditional control
 emphasizes the chain of command
 relies on top-down control and orders

Employee involvement
 emphasizes participation
involvement
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
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
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
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.
Resistance to Change

Self-Interest

Cultures that Value Lack of Trust and


Tradition Understanding

Different Perspectives
and Goals Uncertainty
Models of Organizational Change: The
Star Model

The Star Model: Five Points


Types of change-evolutionary or
transformational
Structure

Reward system
Processes

People
Lewin’s Three-Step Model of
Organizational Change
Unfreezing--melting away
resistance
Change--departure from the
status quo
Refreezing--change becomes
routine
Lewin’s Force Field Analysis Model

Increase driving forces that


drive change
Reduce restraining forces that
resist change
Or do both
Force-field Model of Change

Desired
state

Restraining forces

Status quo

Driving forces

Time
Implementing Organizational Change

Top-down Change

Change Agents

Bottom-up Change
Eight Steps to a Planned
Organizational Change
 Empower others to act on
 Establish a sense of
the vision.
urgency.
 Plan and create short-term
 Form a powerful coalition
wins.
of supporters of change.
 Consolidate improvements
 Create a vision of change.
and produce still more
 Communicate the vision of change.
change.
 Institutionalize new
approaches.
Tactics for Introducing Change

Communication and
Education
Employee Involvement

Negotiation

Coercion

Top-Management Support

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