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Chapter
4
Managing Organizational
Culture and Change
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Learning Objectives
After reading this chapter, you should be able to:
 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.
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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
Facilitates commitment
Stability
Sense
of continuity
Satisfies need for predictability, security, and
comfort
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Functions Performed By
Organizational Culture (cont)
Socialization
Internalizing
or taking organizational values as one’s
own
Implementation
Support of the
Organization’s 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
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Language
Leadership
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Characteristics and Types of
Organizational Culture
Cultural
Uniformity versus
Heterogeneity
Strong
versus Weak
Cultures
Culture
versus
Formalization
National
versus
Organizational Culture
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Characteristics and Types of
Organizational Culture (continued)
Types:
Traditional Control or
Involvement
Traditional
Employee
control
 emphasizes
the chain of command
 relies on top-down control and orders
Employee
involvement
 emphasizes
participation
involvement
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Four Types of Culture Classification
 Baseball
team culture--rapidly
changing environment
 Club culture--seeks loyal,
committed people
 Academy culture--hires experts
who are willing to make a slow
steady climb up a ladder
 Fortress culture--focused on
surviving and reversing sagging
fortunes
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Competing Values Framework
Based

on two dimensions: focus and control
Focus--whether the primary attention of the
organization is directed toward internal dynamics or
directed outward toward the external environment
Control--the
extent to which the organization is
flexible or fixed in how it coordinates and controls
activities
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Types of Change
 Planned
Change--change that is
anticipated and allows for advanced
preparation
 Dynamic
Change--change that is
ongoing or happens so quickly that
the impact on the organization cannot
be anticipated and specific
preparations cannot be made
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Forces for Change:
Environmental Forces
Put
pressure on a firm’s relationships with
customers, suppliers, and employees.
Environmental
forces include:
Technology
Market
forces
Political and regulatory agencies and laws
Social trends
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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.
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Resistance to Change
Self-Interest
Cultures that Value
Tradition
Different Perspectives
and Goals
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Lack of Trust and
Understanding
Uncertainty
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Models of Organizational Change:
The Star Model
The
Star Model: Five Points
Types
of change-evolutionary or
transformational
Structure
Reward system
Processes
People
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Lewin’s Three-Step Model of
Organizational Change
Unfreezing--melting
away
resistance
Change--departure from
the status quo
Refreezing--change
becomes routine
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Lewin’s Force Field Analysis Model
Increase
driving forces that
drive change
Reduce restraining forces that
resist change
or do both
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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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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.




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Empower others to act
on the vision.
Plan and create shortterm wins.
Consolidate
improvements and
produce still more
change.
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: Management is Everyone’s
Business—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: Management is Everyone’s
Business—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: Management is Everyone’s
Business—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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