OB-Topic 9-Organizational Culture and Change-Dr Lan Anh

ORGANIZATIONAL BEHAVIOR level
ORGANIZATIONAL BEHAVIOR
Topic 9: ORGANIZATIONAL
CULTURE & CHANGE
Instructor: Dr. Truong Thi Lan Anh

How people
REALLY do
things around!
Organizational culture & change - 2

Dr. Truong T. Lan Anh
ORGANIZATIONAL CULTURE
A system of
shared meaning
held by members
that distinguishes
the organization
from other
organizations
(Robbins & Judge, 2018)

3 Layers of Organizational Culture
Observable Visible organizational structures and
Artifacts processes (hard to decipher)
Espoused Strategies, goals, philosophy

(espoused justification)
Values
Unconscious, taken-for-granted
Basic Underlying beliefs, perceptions, thoughts, and
feelings (ultimate source of values
Assumptions and action)
Source: E H Schein (2004), Organizational Culture and Leadership, 3nd ed, Jossey-Bass Publishing, p 26.

Do organizations have uniform
cultures?
Subcultures tend to
develop in large
organizations to reflect
common problems,
situations, or experiences
that members face.
(Source:
https://sloanreview.mit.
edu/culture500)
Strong vs. Weak Cultures
• In a strong culture, the organization’s core
values are both intensely held and widely
shared.
• Strong cultures will:
– Have great influence on the behavior of its
members
– Result in lower employee turnover
– Reduce the need of formalization for effective
performance
• What about weak cultures?
➔ Organizational cultures change even more slowly!!!
(George Westerman, 2020)
It’s NOT a TECHNOLOGICAL challenge.

It’s a LEADERSHIP challenge!
WHY Organizational Culture
• Why Organizational Culture?
• Who build organizational culture?
– Consciously by key members: ???
– Unconsciously evolved across the time
“Employees treat customers the

same way that Organization
treats them” (Sources: Liao et al., 2009;
and Ehrhart et al., 2011)

Companies with High-Purpose Cultures
see substantially greater results
• 11.5% on stock returns annually over a 17-year
period, compared with an overall market average
of 6.4%
• Employee turnover rates approximately 50%
lower than competitors in their own industries
• Average turnover costs estimated at 90% to
200% of the exiting employee’s base salary ➔
result in significant cost savings as well as
knowledge retention within the organization
(Source: Leonard Schlesinger at Harvard Business School, and Baker Foundation, 2018)
What does it mean by
(2017) the RIGHT culture?

Competing Values Framework
Which is the right culture?
(Source: Cameron and Quinn, 1999)

Hofstede’s Multi-focus model
(The 8 dimensions of Organisational Culture)
(Source: The Hofstede Centre)

Right
Right person… Right person…

Wrong place Right place
PERSON WHAT
HAPPENS
IF…
Wrong person… Wrong person…

Wrong place Right place
Wrong PLACE Right

What is the RIGHT organizational culture for you?
Zappos Intel Products

Organizational culture & change - VN 19
(Source: Newstrom, 2007)
Organizational culture & change - Dr.

Truong T. Lan Anh
20
How organizational cultures form?
Senior executives establish
norms of behavior through
what they say and do
seek out those who would fit

in by specific criteria and help new
providing information about employees adapt
the organization to the culture
(Source: Robbins & Judge, 2013)
How a Culture begins
• Ultimate source of an organization’s culture
is its founders (then, top managers)
• Normally, culture is created in three ways:
1. They hire and keep those who think and feel
the same way they do
2. They indoctrinate and socialize these
employees to their way of thinking and feeling
3. Their behavior acts as a role model
encouraging employees to identify with them

How employees learn culture?
• Stories
• Rituals
• Material Symbols
• Language
Organizational climate: shared

perceptions about the organization
and work environment.

Can organizational culture be
changed?
• The role of top management: commitment
and support
• The role of employees: implementing
• Training and mentoring
• Formulate value statements
• Rewards behaviors If established culture
• Stories and myth… needs to be changed,
expect it to take years!

Lewin’s Three-Step Process
Unfreezing Changing Refreezing
Unfreezing Changing Refreezing

(Kurt Lewin, 1952) Organizational culture & change - 27
Resistance to change
Any employee behaviors designed to
discredit, delay, or prevent the
implementation of change.
– New situation/conditions < current balance ➔
Inertia ➔ resistance
– Repetitive change syndrome ➔ overload and
stress ➔ resistance: “More Pain, Less
Change”.

Reasons for resistance
• Feel uncomfortable, incorrect from their

beliefs (technically or morally)
• Fear of unknown or threats to their needs
• Experience inequity (someone else gain
benefits from change, not them)
Reading book: Who

move my cheese?

What is your attitude towards change?
• POSITIVE!
• YES, I WANT CHANGE!
⚫ I WANT…THEM TO CHANGE!
⚫ SOMEONE ELSE, NOT ME!

Do you resist to change?
⚫ NO!!! NEVER!!!
• I JUST RESIST TO
THOSE WHO FORCE
ME TO CHANGE !!!
Overcoming Resistance to Change
• Communication
• Participation
• Building support and commitment
• Develop positive relationships
• Implementing changes fairly
• Manipulation and cooptation
• Selecting people who accept change
• Coercion
(Source: Robbins & Judge, 2018)
Organizational culture & change - Dr. Truong T. Lan Anh 33

Many Employees Feel Extreme Stress
Source: Based on J. Hudson, “High Stress Has Employees Seeking Both Wellness and Employee Assistance Help,”
ComPsych Corporation press release, November 12, 2014, http://www.compsych.com/press-room/press-releases-
2014/818-nov-12-2014.
Organizational culture & change - Dr. Truong T. Lan Anh 34
Stress at work
(Source: Robbins & Judge, © Pearson Education, 2019)

Stress and job performance
The inverted
U-curve
(Source: Robbins
& Judge, 2015)

Work stress & Work-life balance
• Employees have personal lives that they
don’t leave behind when they come to work.
• Right Management (2015), in
ManpowerGroup, found that:
– 45% of employees across Singapore, India,
Australia, rank work-life balance as their
number one career aspiration
– 54% of employees in Asia said they will be
ready to quit in search of a company that offers
a better balance

Solution: Well-Being
High well-being means a life well-lived—all the things that are
important to each of us, what we think about, and how we
experience our lives.
Liking what you do each day and being motivated to achieve your goals
Having supportive relationships and love in your life
Managing your economic life to reduce stress and increase security
Liking where you live, feeling safe and having pride in your community
Having good health and enough energy to get things done daily
(Source: Gallup, 2014)

39 Organizational culture & change -
Copyright © 2014 Gallup, Inc. All rights reserved.
(Source: Deloitte Human Capital Trends 2020 )

New
normal:
Design
working
schedule
for
employee
wellbeing
(Source: Deloitte Vietnam, 2020) Organizational culture & change - 42

KEY WORDS


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ORGANIZATIONAL BEHAVIOR level

Instructor: Dr. Truong Thi Lan Anh

Organizational culture & change - 2

Organizational culture & change - 3

Espoused Strategies, goals, philosophy

Organizational culture & change - 4

It’s NOT a TECHNOLOGICAL challenge.

“Employees treat customers the

Organizational culture & change - 12

Organizational culture & change - 15

Which is the right culture?

(Source: Cameron and Quinn, 1999)

Organizational culture & change - 16

(Source: The Hofstede Centre)

Right person… Right person…

Wrong person… Wrong person…

Wrong PLACE Right

Zappos Intel Products

Organizational culture & change - Dr.

seek out those who would fit

Organizational culture & change - 23

Organizational climate: shared

Organizational culture & change - 24

Organizational culture & change - 26

Unfreezing Changing Refreezing

Organizational culture & change - 28

• Feel uncomfortable, incorrect from their

Reading book: Who

Organizational culture & change - 29

Organizational culture & change - 30

Organizational culture & change - Dr. Truong T. Lan Anh 33

(Source: Robbins & Judge, © Pearson Education, 2019)

Organizational culture & change - 35

Organizational culture & change - 37

Organizational culture & change - 38

Having supportive relationships and love in your life

Managing your economic life to reduce stress and increase security

(Source: Gallup, 2014)

Organizational culture & change - 41

(Source: Deloitte Vietnam, 2020) Organizational culture & change - 42

Organizational culture & change - 43

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