Change Management

MBA 6113Unit 4Culture and change

Formal vs. Informal Organization• The Formal Organization• Strategies and Goals• Processes/Procedures• Design and structure• Product/Service offerings• Management

• The Informal Organization• Values, attitudes, and beliefs• Leadership styles• Organizational Culture• Power and Politics

Culture Characteristics• Innovation – risk taking vs. risk averse• Level of task detail• Outcome focused• People focused• Team focused• Internal aggression• Stability

Analyzing Competing Values to Interpret Culture

Four Models • Human Relations Model

• Emphasizes flexibility with an internal organizational focus. Seeks effectiveness through development of human resources (i.e. cohesion, morale, purpose)

• Internal Process Model• Emphasizes control with an internal organizational focus.

Seeks effectiveness through information management and communication

• Open Systems Model• Emphasizes flexibility and external organizational focus.

Seeks readiness, growth, resource acquisition, and external support.

• Rational Goal Model• Emphasizes control and external focus. Seeks effectiveness

through planning, goal setting, productivity and process optimization.

Leadership Roles

Dealing with culture when implementing change• Ignore the culture• Risky – especially when considering an organization with

limited/low resources

• Manage around the culture• Viable option when more than 1 way of achieving desired

goals

• Change the culture• Difficult and lengthy, but provides a solid long-term

alignment with strategic goals

• Change the strategy to fit the culture – not a good idea!!!