Chapter 3

Changing the Culture

An Experiential Approach to Organization Development 8th edition Chapter 3

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 1
 Learning Objectives
• Recognize importance of corporate
culture.
• Identify key factors assessing culture.
• Describe culture leading to effective
organizations.
• Describe ethical, value, and goal
considerations.
An Experiential Approach to Organization Development 8th edition Chapter 3
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 2
 Creating Climate for Change
• Challenge of managers is:
– Create renewing system.
– Develop long-term efforts.
• Culture often key to success.
• Cultural change result of complex
strategy.

An Experiential Approach to Organization Development 8th edition Chapter 3

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 3
 Understanding Corporate
Culture
• Environment of rapid change.
• Static organizational culture no longer
effective.

An Experiential Approach to Organization Development 8th edition Chapter 3

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 4
 What Is Corporate Culture?
• Culture is system of:
– Shared values.
– Beliefs.
– Behavioral norms.
• Observed behavioral norms.
• Dominant values.
• Learning ropes for newcomers.

An Experiential Approach to Organization Development 8th edition Chapter 3

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 5
 Culture Comes from 2
Subsystems
• Managerial.
• Organizational.

An Experiential Approach to Organization Development 8th edition Chapter 3

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 6
 Managerial Subsystem
Creates Culture
• How employees are treated.
• Through actions and words.
• Vision articulated by top management.

An Experiential Approach to Organization Development 8th edition Chapter 3

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 7
 Organizational Subsystem
Creates Culture
• Outside factors (market, etc.) define
culture.
• Technology.
• Job descriptions.
• Type of structure (tall vrs. flat).

An Experiential Approach to Organization Development 8th edition Chapter 3

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 8
 Figure 3.1
Culture Formation

An Experiential Approach to Organization Development 8th edition Chapter 3

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 9
 Key Factors to Improve
Culture
• Create vision for the future.
• Develop model for change.
• Reward changes.

An Experiential Approach to Organization Development 8th edition Chapter 3

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 10
Cultural Resistance to Change
• Changing culture not easy.
• Time required.
• Culture can prevent company from
adapting.

An Experiential Approach to Organization Development 8th edition Chapter 3

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 11
 Pressure Points to Bring
About Change
• Recession. • Social factors.
• Deregulation. • Global
• Technological competition.
upheavals. • Outsourcing.
• Markets.

An Experiential Approach to Organization Development 8th edition Chapter 3

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 12
 Tools for Change (part 1 of 4)
• Information.
• Support.
• Resources.

An Experiential Approach to Organization Development 8th edition Chapter 3

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 13
 Information (part 2 of 4)
• Provide information to people.
• Provide ability to gather information.
• One method is open-book
management.

An Experiential Approach to Organization Development 8th edition Chapter 3

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 14
 Support (part 3 of 4)
• Support and collaboration from other
departments.
• Management support to provide climate
of risk taking.

An Experiential Approach to Organization Development 8th edition Chapter 3

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 15
 Resources (part 4 of 4)
• Funds. • Equipment.
• Staff. • Materials.

• Innovative programs for providing

resources include:
– Venture capital.
– Innovation banks.

An Experiential Approach to Organization Development 8th edition Chapter 3

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 16
 Organizational Dimensions
Affecting Performance
• Managerial effectiveness.
– Accomplishing goals and objectives.
• Managerial efficiency.
– Ratio of results to resources.
• Motivational climate.
– Employee attitudes that influence
performance.

An Experiential Approach to Organization Development 8th edition Chapter 3

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 17
 Other Criteria for
Organizational Effectiveness

• Adaptability.
• Sense of identity.
• Capacity to test reality.

An Experiential Approach to Organization Development 8th edition Chapter 3

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 18
OD Professional Values and
Ethics
• Expertise.
• Autonomy.
• Commitment.
• Code of ethics.

An Experiential Approach to Organization Development 8th edition Chapter 3

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 19