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 threestep 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. employees’ views about “the way things are done around here.” culture specific to each firm affects how employees feel and act and the type of employee hired and retained by the company.

Reflects

The

Levels of Corpora te Culture

Visible Culture Expressed Values

Core Values

Functions Performed By Organizational Culture
Employee
Sense

Self-Management

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
If

Support of the Organization’s Strategy
strategy and culture reinforce each other, employees find it natural to be committed to the strategy

Creating and Sustaining Organizational Culture
Cultural Symbols Company Rituals and Ceremonies Company Heroes Stories

Organizational Policies and Decision Making

Language Leadership

Characteristics and Types of Organizational Culture
Cultural

Uniformity versus Heterogeneity versus Weak Cultures versus Formalization versus Organizational Culture

Strong

Culture

National

Characteristics and Types of Organizational Culture (continued)
Types:

Traditional Control or Employee Involvement
Traditional
 emphasizes

control

the chain of command  relies on top-down control and orders
Employee

involvement
and

 emphasizes

participation involvement

Types of Change
Planned

Change--change that is anticipated and allows for advanced preparation Change--change that is ongoing or happens so quickly that the impact on the organization cannot be anticipated and specific preparations cannot be made

Dynamic

Forces for Change: Environmental Forces
Put

pressure on a firm’s relationships with customers, suppliers, and employees. forces include:
Technology Market

Environmental

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 Value Tradition Lack of Trust and Understanding

Different Perspectives and Goals

Uncertainty

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 urgency.  Form a powerful coalition of supporters of change.  Create a vision of change.  Communicate the vision of change.

Empower others to act on the vision.  Plan and create shortterm wins.  Consolidate improvements and produce still more change.  Institutionalize new approaches.

Tactics for Introducing Change
Communication and Education Employee Involvement

Negotiation

Coercion Top-Management Support

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