Managing Organizational

Culture and Change

 Learning Objectives

Build and maintain an appropriate company culture.

Understand the roles of symbols, rites, ceremonies, heroes, and
stories in an organization's culture.
Identify the various categories of organizational cultures and
the characteristics of people who fit best with them.
Adapt to organizational change and the forces that drive
change.
Work with employees who resist change.
Use tools to help implement change, including Lewin’s three-
step model of change and force field analysis.
 Organizational Culture
A system of shared values, assumptions, beliefs,
and norms that unite the members of an
organization.

Reflectsemployees’ views about “the way things are

done around here.”

The culture specific to each firm affects how

employees feel and act and the type of employee
hired and retained by the company.
Levels
of Visible
Culture
Corpora
te Expressed
Values
Culture

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 (cont)
Socialization
Internalizing or taking organizational values as
one’s own

Implementation Support of the

Organization’s Strategy
If strategy and culture reinforce each other,
employees find it natural to be committed to the
strategy
 Creating and Sustaining
Organizational Culture
Cultural Company
Symbols Rituals and
Ceremonies

Company
Heroes

Stories

Language
Organizational
Policies and
Decision Making Leadership
 Characteristics and Types of
Organizational Culture
CulturalUniformity versus
Heterogeneity
Strong versus Weak
Cultures
Culture versus
Formalization
Nationalversus
Organizational Culture
 Characteristics and Types of
Organizational Culture (continued)
Types:Traditional Control or
Employee Involvement
Traditional control
 emphasizes the chain of command
 relies on top-down control and orders

Employee involvement
 emphasizesparticipation and
involvement
 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 Lack of Trust

Value Tradition and
Understanding

Different
Perspectives Uncertainty
and Goals
 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
Desire
d 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
 Establish a sense of  Empower others to act
urgency. on the vision.
 Form a powerful  Plan and create short-
coalition of supporters of term wins.
change.  Consolidate
 Create a vision of change. improvements and
 Communicate the vision produce still more
of change. change.
 Institutionalize new
approaches.
Tactics for Introducing Change

Communication
and Education
Employee
Involvement

Negotiation

Coercion

Top-Management
Support