organizational culture and change

MultiMedia by Stephen M. Peters © 2002 South-Western

Organizational Culture and Change


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.


Seven Culture-Shaping Factors1. Key organizational processes

2. Dominant coalition

3. Employees and other tangible assets

4. Formal organizational arrangements

5. Social system

6. Technology

7. External environment


Factors that Shape Organizational Culture


The Social System

Norms and values

Set of employee relationships that relate to power, affiliation, and trust

Includes the grapevine


External Environment

Suppliers The Economy

RegulatorsCompetitors

Markets


Chief Evidences of Culture Include

Statements of Principle

Heroes

Stories Slogans

ClimateSymbols

CeremoniesPhysical

Environment


Five Principles of Mars

Quality

Efficiency

Freedom

Responsibility

Mutuality


Heroes, to Become One

Quality Service

Fairness

You have to live the ideology


Symbols

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.”

Walt Disney symbolic language


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.


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.


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.


Sources of Change• External Sources

– Political– Social– Technological– Economic Environment

• Internal Sources– Managerial policies or styles– Systems and procedures– Technology– Employee attitudes


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


Reengineering

The fundamental rethinking and radical redesign of business processes.

Determines what process is necessary.

Determines then how to do it.


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.


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.


Nine Steps for Implementing Change


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


Five Techniques to Overcome Resistance to Change

1. Participation3. Advance

warning

5. Security4. Sensitivity

2. Open communication


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.

organizational culture and change

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