Chapter 5
Managing Organizational Culture and Change
Management Challenges
After reading this chapter, you should be able to:
Describe how organizational culture helps management achieve its objectives. Understand how cultural symbols, rites, ceremonies, heroes, and stories are used to sustain an organizations culture. Recognize the differences between strong and weak organizational cultures, and identify situations in which each of these cultures may be advantageous. Adapt to organizational change and the forces that drive change.
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Management Challenges (continued)
Identify the four different types of organizational cultures and the characteristics of people who fit best with each. Direct and counsel employees who resist organizational change. Apply the tactics of change agents while taking into consideration potential sources of resistance. Use tools that enhance our understanding of the change process, such as Lewins three-step model of change and force field analysis.
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Skills for managing organizational culture and change:
Cultural diagnostic skills
Cultural strategic skills
Managing culture skills
Change management skills
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Organizational Culture
A system of shared values, assumptions, beliefs, and norms that unite the members of an organization. Reflects employees 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.
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Levels of Corporate Culture
Visible Culture
Expressed Values
Core Values
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Functions performed by organizational culture:
Employee Self-Management
Sense
of shared identity Generation of commitment
Stability
Sense
of continuity Satisfies need for predictability, security, and comfort
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Functions performed by organizational culture: (continued)
Socialization
Internalizing
or taking organizational values as ones own
Implementation Support of the Organizations Strategy
If
strategy and culture reinforce each other, employees find it natural to be committed to the strategy
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Stages of the Socialization Process
Pre-arrival Encounter
Metamorphosis
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Creating and Sustaining Organizational Culture
Cultural Symbols Company Rituals and Ceremonies Company Heroes
Stories
Organizational Policies and Decision Making
Language Leadership
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Aspects of organizational culture
Cultural Uniformity versus Heterogeneity Strong versus Weak Cultures Culture versus Formalization National versus Organizational Culture Organizational Fit
Baseball
team culture Club culture Academy culture Fortress culture
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Managing Organizational Change
Organization culture can facilitate or inhibit change in an organization. A firm attempts to change organizational culture because the current culture hinders the attainment of corporate goals. Environmental and internal forces can stimulate the need for organization change.
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Forces for Change: Environmental Forces
Put pressure on how a firm conducts its business and its relationships with customers, suppliers, and employees. Environmental forces include:
Technology Market
forces Political and regulatory forces Social trends
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Forces for Change: Internal Forces
Come from decisions made 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.
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Resistance to Change
Self-Interest Cultures that Value Tradition Different Perspectives and Goals Lack of Trust and Understanding Uncertainty
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Models of Organizational Change
Lewins three-step model
Force-field analysis model
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Lewins Three-Step Model of Organizational Change
Unfreezing
Change
Refreezing
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Force-field Model of Change
Desired state Restraining forces
Status quo
Driving forces Time
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Implementing Organizational Change
Top-down Change Change Agents
Bottom-up Change
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Change agents should take the following steps to obtain a successful change outcome:
1. Establish a sense of 5. Empower others to
urgency. 2. Form a powerful coalition of supporters of change. 3. Create a vision of change. 4. Communicate the vision of change.
act on the vision. 6. Plan and create shortterm wins. 7. Consolidate improvements and produce still more change. 8. Institutionalize new approaches.
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Tactics for Introducing Change
Communication and Education
Employee Involvement
Negotiation
Coercion
Top-Management Support
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Applications of Management Perspectives:
For the Manager
Certain types of changes routinely provoke strong employee resistance:
Changes
that affect skill requirements. Changes that represent economic or status loss. Changes that involve disruption of social relationships.
By being aware of the sources of resistance, managers can better apply tactics to make the changes more palatable for employees.
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Applications of Management Perspectives:
For Managing Teams
Teams can help test the waters for a proposed change. Various employee teams can serve as focus groups in order to find ways to make a change in policy more acceptable to employees.
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Applications of Management Perspectives:
For Individuals
Learning the specifics about the company culture can help you determine your fit with the organization and the possibility of succeeding. Ask questions and gather information during the recruiting process to get a handle on the company culture and assess whether you will function comfortably in it.
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