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Session 8 Organizational Culture

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Organizational culture and analysis necessary in order to understand how new ... Artful blending of four types to create unique cultural configuration ... – PowerPoint PPT presentation

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Title: Session 8 Organizational Culture


1
Session 8 Organizational Culture Change
Management
2
Agenda
  • Housekeeping
  • Questions on assignments
  • Lecture
  • Organizational Culture
  • Chapter 10
  • BREAK
  • Change Management
  • Chapter 11

3
Organizational Culture So What?
  • Organizational culture and analysis necessary in
    order to understand how new technologies
    influence and are influenced by organizations.
  • Illuminates norms and assumptions
  • Consists of ambiguities, paradoxes,
    contradictions
  • Impacts capabilities and competences needed to
    achieve sustainable competitive advantage

4
Organizational Culture Definition
  • A pattern of shared basic assumptions that the
    group learned as it solved its problems of
    external adaptation and internal integration.
    This pattern has proven successful over time and
    is taught to new members as the correct way to
    perceive, think and feel in relation to these
    problems

5
Levels of Culture
Artifacts
Espoused Values
Basic Underlying Assumptions
6
Culture and Leadership
  • Culture is created, embedded, manipulated,
    managed and changed
  • The dynamic processes of culture creation and
    management are the essence of leadership
  • Culture and leadership two sides of same coin
  • Cultures begin with leaders who impose their own
    values and assumptions on a group

7
Three Key Concepts
  • Uniqueness of organizational cultures
  • Differences between objective and subjective
    organizational culture
  • Organizational subcultures

8
Cultural Uniqueness
  • Four general corporate cultures based on degree
    of risk and speed of feedback in an industry
  • Tough/guy macho success determined by ability
    to take risks
  • Process ability to manage details low risk and
    slow feedback (I.e. insurance and utility)
  • Bet your company high risk, slow feedback
    industries (I.e. aircraft manufacturers)
  • Work hard/play hard success based on action and
    highly motivated employees
  • Artful blending of four types to create unique
    cultural configuration
  • Cultural differences most notable in mergers and
    acquisitions

9
Organizational Style
Focus
Outward Facts Principles Controls
Inward Meanings Values Options
Information
Evaluation
Orientation
10
Competing Polarities - Work Systems
Shared Values
Rules Planned Managerial Core Competencies
Inspirations Opportunistic Transformational
Adaptive
Strategy
Style
Skills
11
Competing Polarities in the Human Systems
Team Future Person-centered Everbody
Wins Leads
People
Individual Present Principle-centered We
Win Manages
Communications
Coaching
Negotiating
Representative of the People
12
Why is Learning So Critical Today?
Revised valuation of human capital brings
attention to skill gaps
Grow
Knowledge and skills recognized as critical
resource in global economy
Attract
Employee
Retain
RESULT
Increased focus on continuous learning
13
Principles for Organizational Capability- Culture
Fit
  • To what extent do we have a shared mindset inside
    and outside the organization?
  • Internalize customer values-the ability to make
    customer values employee values
  • Mindset dispersion-the ability to build a shared
    mindset inside and outside the organization
  • To what extent does my business demonstrate
    world-class performance in each source of
    uniqueness as well as the ability to integrate
    the four sources of uniqueness?
  • Paradox-the ability to deal with competing
    demands
  • To what extent do we understand and meet customer
    needs?
  • Customer intelligence-the ability to scan
    continuously and learn from customers
  • Competitor intelligence-the ability to examine
    continuously and learn from competitors
  • To what extent do we understand economic and
    social conditions affecting our business?
  • Continuous learning-the ability to learn
    continuously about business conditions that
    affect the firm

14
Stability Change
Stability Change

Continuity
Innovation
-
Chaos
Stagnation
15
Stuck in the Downside of Stability
Stability Change

Continuity
New Energy
-
Chaos
Stagnation
16
Goal Stability and Change
Stability Change

Continuity
New Energy
-
Chaos
Stagnation
17
Organization Life Cycles
Building (The Expanding Stage)
Exploring (The Maturity Stage) Institutionalizi
ng (The Entrenched Stage)
Venturing (The Emerging Stage)
Dreaming
18
The Four Horsemen of Contemporary Business
  • Increased competition

Tighter budgets
Proliferating technology
Smaller labor pools
19
Tool Kit
  • SWOT
  • Strengths/Weaknesses
  • Opportunities/ Threats
  • Research Methods
  • Surveys
  • Questionnaires
  • Interviews/observations
  • Industry/organization data
  • Culture/Leadership/Human Asset Valuation
  • Organization values assessment
  • Individual SWOT assessment
  • Team structure and roles

20
Corporate Culture Survival Guide by Edward
Shein
  • Define Business Problem
  • Review Concept of Culture
  • Culture Delineation
  • Identify artifacts
  • Identify practices and espoused values (e.g.
    strategies, goals, philosophies, key norms
    justifications)
  • Identify underlying organizational values and
    assumptions
  • Culture Analysis
  • Culture Assessment
  • Creation of Action Plan
  • Text Figure 10-4 page 297

21
Team Discussion
  • Get into project teams
  • Choose one of your teams organizations and…
  • Apply business analysis tools to determine how
    your companys culture has impacted its ability
    to achieve sustainable advantage? Be specific.
  • Based on your analysis what would you change in
    the culture to improve its success?
  • What role should HR play in the change process?
  • Select spokesperson to lead discussion

Culture has been defined as a pervasive and
powerful force in shaping behavior
22
  • What you do speaks so loudly
  • I cannot hear what you say.
  • Ralph Waldo Emerson

23
Break
24
  • Change dynamics

25
Content of Change
  • Centrality principle states change must be
    clearly and obviously linked to core strategic
    issues of the enterprise
  • Three-Theme principle - identify themes to
    communicate and conceptualize changes
  • Magic Leader principle - individual leader who is
    the focal point for the change
  • Envisioning, Energizing, Enabling
  • Success depends on broad range of support

26
Types of Organizational Change
  • Incremental Strategic
  • Anticipatory Tuning Reorientation
  • Reactive Adaptation Re-creation

27
Magnitudes of Change
Continuous Improvement
Discontinuous Change
Generative Change
Landmark/CMD, 1993
28
Achieving Change
  • Planning and opportunism principle- requires
    intensive planning based on diagnosis and
    development of vision use iterative planning
  • Many-bullets principle - incorporate
    intentionally redundant activities to overcome
    resistance
  • standards and measures of performance
  • rewards and incentives
  • budgeting and resource allocation
  • information systems

29
Achieving Change
  • Investment and Returns
  • measure investment of time, effort and dollars
  • predictable change states include
  • awareness
  • experimentations
  • understanding
  • commitment
  • education
  • application of leveraged issues and integration
    into on -going behaviors refreezing new behaviors

30
Principles of Effective Frame Bending
  • Diagnostic thinking -analyzing the organization
    in its environment, understanding strengths and
    weaknesses and implications guides identification
    of appropriate change type and needed strategies

31
Choosing the right change path
  • Moderate change forces require reactive change
    (i.e. business performance is affected)
  • Less need to get peoples attention
  • Expose people directly to need for change
  • Use multidisciplinary teams to develop
    value-creating ideas

32
Choosing the right change path
  • Proactive change occurs while change force is
    weak. Hurdles include
  • Get peoples attention
  • Shock others into recognizing need for change
  • Develop value-creating ideas from change agents
    in first stage

33
Choosing the right change path
  • Strong change forces demand rapid change
  • Survival threatened and full attention is given
  • Direction of the change is clear - save the
    business, cut costs, regroup around core
    competencies or strong points, adapt tactics of
    successful competitors
  • Commit the business to the new opportunity
    quickly

34
Change resistance
  • Depends on the degree to which people may lose or
    gain by changing
  • Depends on how organizational culture shapes the
    way they respond to change

35
Change resistance in closed organizations
  • Confront directly top resistors with moments of
    truth (MOT)
  • When an organization is closed to change and
    survival is at stake radical restructuring
    required.

36
Change resistance moderate
  • Existing pockets of change agents exist and
    typically are team-oriented cultures
  • Makes it possible to hurdle experimentation
  • Get management to deal directly with resistors
  • Might require top-down experimentation and task
    forces - create prototypes

37
Ten Commandments for managing change by Todd
Jick
  • Analyze organization and its need for change
  • Create shared vision and common direction
  • Separate from past
  • Create sense of urgency
  • Support strong leader role

38
Jicks Ten Commandments
  • Line up political sponsorship
  • Craft an implementation plan
  • Develop enabling structures
  • Communicate, involve people, and be honest
  • 10. Reinforce and institutionalize change

39
  • Great minds discuss ideas,
  • average minds discuss events,
  • small minds discuss people.
  • Admiral Hyman Rickover
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