Organizational Culture and Change

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Organizational Culture and Change
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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.

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Seven Culture-Shaping Factors

• Key organizational processes
• Dominant coalition
• Employees and other tangible assets
• Formal organizational arrangements
• Social system
• Technology
• External environment

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Factors that Shape Organizational Culture
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The Social System
Norms and values
Set of employee relationships that relate to
power affiliation and trust
Includes the grapevine
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External Environment
The Economy
Suppliers
Markets
Regulators
Competitors
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Chief Evidences of Culture Include
Stories
Slogans
Statements of Principle
Heroes
Ceremonies
Physical Environment
Climate
Symbols
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Five Principles of Mars
Quality
Responsibility
Mutuality
Efficiency
Freedom
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Heroes to Become One
You have to live the ideology
Quality
Service
Fairness
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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.

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Management Helps Create Culture By

• Clearly defining the companys 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
  corporations values to achieve its goals.
• Developing reward systems that reinforce the
  values of goals.
• Creating methods of socialization.

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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.

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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.

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Sources of Change

• External Sources
• Political
• Social
• Technological
• Economic Environment
• Internal Sources
• Managerial policies or styles
• Systems and procedures
• Technology
• Employee attitudes

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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 companys employees

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

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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.

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Nine Steps for Implementing Change
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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

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Five Techniques to Overcome Resistance to Change
3. Advance warning
1. Participation
2. Open communication
5. Security
4. Sensitivity
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Changing AttitudesThree-Step Approach

• First step unfreezing
• Managers who spot deficiencies in a subordinates
  behavior must identify the causes of that
  behavior.
• Second step change
• The individuals 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.