Chapter
13
Organizational Culture
and Change
Fundamentals of
Organizational Behavior 2e
Andrew J. DuBrin
PowerPoint Presentation
by Charlie Cook
Learning Objectives
1. Present an analysis of the importance of
organizational culture.
2. Present two models of the change process in
organizations.
3. Describe why people resist change and how to
manage such resistance.
4. Describe several strategies for bringing about
organizational change.
5. Explain the nature of organization
development.
6. Develop useful insights into managing change
in your job and career.
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Organizational Culture
Organizational culture is a system of shared values
and beliefs that influence worker behavior.
The Determinants of Organizational Culture
 The values, administrative practices, and personality of the
firm’s founder
 The conscious and unconscious choices, behavior
patterns, and prejudices of top-level managers
 The culture of the society (its norms, values, and beliefs) in
which the firm functions
 The industry in which the firm competes
 The firm’s code of conduct
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Organizational Culture
Dimensions of Organizational Culture
1. Values
2. Organizational stories that
have underlying meaning
3. Myths
4. Degree of stability
5. Resource allocation and rewards
6. Traditions, rites, and rituals
7. Ownership culture
8. Corporate spiritualism and organizational
spirituality
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Organizational Culture
How Workers Learn Culture
 Workers learn through:

The Socialization Process
– A process of coming to understand
the values, norms, and customs of
the organization.
– Perpetuates the organization by
indoctrinating new workers into the ways of the organization.

The Observation of Leaders
– The teaching of leaders provides vital
guidance to new workers through
what leaders pay attention to,
measure, and control.
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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The Consequences and Implications of
Organizational Culture
Competitive Advantage and Financial Success
Productivity, Quality, and Morale
Organizational
Culture
Innovation
Compatibility of Mergers and Acquisitions
Person-Organization Fit
Direction of Leadership Activity
EXHIBIT
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A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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General Considerations About Managing
Change
Types of Change in Organizations
 Changes in technology
 Changes in organizational structure
 Coworkers and customers
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Models of the Change Process
The Growth Curve Model
 Formative phase—lack of structure, trial and error, and
entrepreneurial risk taking
 Normative phase—stability, maintenance, and predictability
 Integrative phase—redefining the firm and choosing a new
direction.
 Force-field theory

A organization simultaneously
faces forces of change
and of resistance to change.
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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The Growth Curve Model of
Organizational Change
Degree of Structure
High
Normative
Integrative
Formative
Low
EXHIBIT
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Beginning
TIME
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Models of the Change Process (cont’d)
The Unfreezing-Changing-Refreezing Model
(Kurt Lewin)
 Unfreezing

Reducing or eliminating resistance to change by resolving
fear and feelings about letting go of the “old.”
 Changing (or moving on to a new level)

Moving on to other things through active
participation in the change process.
 Refreezing

Encouraging recognition of successful
change and rewarding people for
implementing the change.
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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The Change Process
Unfreezing
Changing
Refreezing
EXHIBIT
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A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Why People Resist Change
Resistance comes from:
 Fear of an unfavorable outcome (e.g., less money, personal
inconvenience, more work)
 Disrupted social relationships at work
 Not wanting to break with well-established habits
 A general fear of the unknown
and uncertainty
 Fear that an unrecognized
weakness in the proposed
change will result in
unfavorable outcome.
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Why People Resist Change
Gaining Support for Change:
1. Allow for discussion and negotiation.
2. Allow for participation by those affected by the change.
3. Point out the potential benefits.
4. Avoid change overload.
5. Gain political support for the change.
6. Provide education.
7. Use manipulation and co-optation.
8. Avoid poor performance as the reason for change.
9. Use explicit and implicit coercion.
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Downsizing and Restructuring as a Change
Strategy
Primary reason for downsizing:
 Reductions in the size of the firm that must be made to
lower costs and allow the firm to become more competitive.
Dangers in downsizing:
 Inability to capitalize on post-
restructuring opportunities
due to understaffing.
 Loss of critical human
assets reduces
organizational learning.
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Restructuring as a Change Strategy
Keys to successful restructuring:
 Integrate downsizing with the firm’s long-term strategies.
 Identify and protect high-potential employees.
 Decentralize and empower employees to do their jobs.
 Redefine the positions of surviving employees.
 Eliminate low-value and non-value activities.
 Emphasize teamwork and cooperation.
 Define the new structure by specifying horizontal and
vertical relationships.
 Support and train, then evaluate and reward performance.
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Information Technology (IT) and
Organizational Change
IT Effects on Organizations
 Fewer middle management and coordinator positions.
 Increased organizational democracy through direct
communications between all layers of the organization.
 More direct contact with customers and suppliers.
 Enterprise software supplanting
managers and their work.
 Changes in nature of work itself
that blurs the line between work
and non-work time.
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Disruptive Technology and Organizational
Change
Ignoring technological changes (especially by
smaller, more nimble competitors) in emerging
markets puts a firm at a competitive disadvantage.
 Meeting the challenge of disruptive change:
Create new organizational structures in which to develop
new processes, products or services.
 Spin out an independent organization in which to develop
new processes, products, or services.
 Acquire another company whose processes and values
closely match the requirements for new processes,
products, or services.

A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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The Transition from Carrying Out a Job
and Work
Organizational concerns:
 Traditional job descriptions that are too rigid for the flexible
work roles of today’s workers.
 The trend in hiring a person “to work” (seeking a better
person-organization fit) rather than to fill a specific job.
 Attaining a match of workers’ skills to a project’s
requirements.
 The difficulty managers will have in shifting from the
traditional bureaucratic focus on fixed job descriptions to
an emphasis on ever changing “work roles” for employees.
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Organizational Development as a Change
Strategy
Organizational Development
 Is any strategy, method, or technique
for making organizations more effective
by bringing about constructive,
planned change.
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Organizational Development Interventions
Individual Level
Organizational Level
 Executive coaching
 Total quality management (TQM)
 Employee assistance programs
 Grid organization development





(EAPs)
Career development programs
Organizational behavior
modification (OB Mod)
Job enrichment
Wellness programs, including
stress reduction
Sexual harassment avoidance
training
 Gainsharing
 Survey feedback (attitude
surveys)
 Action research (employees
participate in implementing
changes identified as needed by
a consultant)
 Helping an organization learn
 Knowledge management
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Organizational Development Interventions
Small-Group Level
 Team development
 Cultural diversity training





(including valuing differences)
Modified work schedules
Brainstorming
Intergroup conflict resolution
Quality improvement teams
Self-managing teams
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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A Process
Model of
Organization
Development
Preliminary Identification
of a Problem
Managerial Commitment
Data Feedback
Data Collection and Analysis
Identification of Specific
Problem Areas
Development of Change Strategies
Initiation of Behavior
EXHIBIT
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Evaluation
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Process Consultation
A widely used OD intervention in which the
communication pattern of an organizational unit
is examined by a process consultant.
 Consultant’s role is to observe and
raise questions challenging
the status quo and define
what really is happening
in the unit.
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Large-Scale Organizational Change
Purpose and process:
 To accomplish a major change in the firm’s strategy and
culture, also referred to as “bending the frame.”
 Requires getting a critical mass of people throughout the
firm committed to outcomes of the change.
 Signs of the need for change:
Top executives micromanaging instead of delegating.
 A high turnover rate of employees.
 Ineffective communication in the organization.
 A compensation system that rewards people for actions
unrelated to business success.
 Loss of established business and failure acquire new
business.

A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Total Quality Management (TQM)
 Is a management system for improving performance
throughout a firm by:
maximizing customer satisfaction,
 making continuous improvements,
 and relying heavily on employee involvement.

 Is a fundamental change in the organization’s
culture to one that includes a focus on the
customer, an environment of trust and
openness, formation of work teams,
breaking down internal barriers,
and sharing power.
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Six Sigma as Organizational Development
Six Sigma
 Is a data-driven statistically-based method for achieving
near-perfect quality with an emphasis on preventing
problems from occurring in the process .
 Features:
Emphasizes motivating people
to work together to achieve
higher levels of productivity.
 Is a fusion of technical and
social systems for creating
a culture of quality.

A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Managing Change Yourself
Empirical Research about Coping with
Organizational Change
 Having a positive self-concept and a tolerance for risk were
both positively related to having a tolerance for ambiguity
and positive affectivity.
 Optimistic people who can tolerate a
lack of clarity and structural change
cope well with change.
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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Managing Change Yourself
Suggestions for Coping with Change
 Practice dealing with ambiguous tasks.
 Maintain a positive general disposition.
 Look for personal value (“silver lining”)
embedded in a forced change.
 When faced with significant change,
ask yourself “what if” questions.
 When confronting major change, force yourself to
enjoy at least some small aspect of the change.
 Recognize that change is inevitable: Change before
you have to and you will get a better deal.
 Stop trying to be in control all the time.
A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.
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