Managing Organizational Culture and Change 1 Yes or No Organizational culture is a system of shared values, assumptions, beliefs, and norms that unite the members of an organization because it reflects, "What it's like to work here." This becomes apparent through the visible level of the culture, the espoused values that are not observed but rather explained and justified, and through the core beliefs that are widely shared through the organization. 2 Levels of Corporate Culture Visible Culture Expressed Values Core Values 3 Video: New Belgium What are some core values at NBB? 4 Key Effects of Organizational Culture Employee Self-management Organizational Culture Stability Socialization Strategy Implementation 5 Managing Cultural Processes Cultural Symbols Company Rituals and Ceremonies Company Heroes Stories Organizational Policies and Decision Making Language Leadership 6 Characteristics and Types of Organizational Culture Cultural Uniformity versus Heterogeneity Strong versus Weak Cultures Culture versus Formalization National versus Organizational Culture Characteristics and Types of Organizational Culture Types: Traditional Control or Employee Involvement (continued) Traditional control emphasizes the chain of command relies on top-down control and orders Employee involvement emphasizes participation and involvement 8 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 Video: Pike Place Fish Market 10 What type of culture classification does Pike Place Fish Market exhibit? A) B) C) D) Baseball team culture Club culture Academy culture Fortress culture 11 Questions: 1. 2. Identify some of the visible components of org. culture at Pike Place? Does Pike Place have a strong or weak org. culture? How can you tell? 12 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 What Are The Sources Of Change That Create Tension In Your Life/School/Organization? On a piece of paper write 3 or more positive changes with a partner &Share 3 or your more information negative changes 14 How many of you are afraid of change? If You Are Afraid of Change, PLEASE STAND UP 15 How many of you think Other People are afraid of change? If You Think Other People Are Afraid of Change PLEASE STAND UP 16 What does that tell you? Most of us are more afraid of change than we would like to admit – even to ourselves. 17 Are You Comfortable Where You Are? CHANGE WHERE YOU ARE SITTING NOW! Change Quickly 18 How Do You Feel When You Are Told To Change Quickly But Do Not Know Why? Change Imposed is Change Opposed 19 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 20 Forces for Change: (continued) People – By 2040 US Census predicts a world population of 10 BILLION!! Technology – Over 80% of the world’s technological advances have occurred since 1900 Information – More information was produced in the 30 years between 1965 – 1995 than was produced in the entire 5,000-year period from 3,00 B.C. to 1965 21 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 Different Perspectives and Goals Lack of Trust and Understanding Uncertainty 23 Fears That Create Resistance to Change (The Individual) Fear of Losing One’s Identity Fear of Losing Control Loss of Meaning Fear of Not Belonging Loss of Future Fear of Making a Mistake 24 10 Phrases that Deter Us From Changing 1. 2. 3. 4. 5. 6. “We’ve tried that before.” “That’ll never work.” “They’ll never let us do that.” “Yes, but…” “I already know how it will turn out.” “That’s not how I would do it.” “We’ve always done it that way.” 8. Nobody else does it that way.” 9. “We’ve got more than enough good ideas.” 10. “Whose idea was this, anyway?” 7. 25 “A Natural Process” Negative Energy Change Continue Denial Acceptance Test New Realities Confusion/ Chaos Anger/ Blame Bargaining Depression/ Inadequacy Time 26 What Do I Do Now? 27 Personal Survival Techniques 28 Personal Survival Techniques 29 Personal Survival Techniques 30 Personal Survival Techniques 31 Personal Survival Techniques Who are your internal customers? What product or service do you supply to your internal customers? 32 Surviving & Thriving Skills On a scale of 1-10, how would you rate your morale? What behaviors would you display at that level that you are not currently displaying? Where would you like your morale level to be? 33 Surviving & Thriving Skills 34 Prescription for Change: Six Simple, But Not Easy, Rules Face it Accept it – Don’t Fight it Float With It – Don’t Tense Wit It Let Time Pass – Don’t Be Impatient You Have To Give Up Control In Order To Gain Control “For The Ego To Integrate, It Has To Regress” 35 Survival Guides Don’t count on anybody else coming along to relieve your stress. The organization is going to change – it must – if it is to survive and prosper. Accept fate, and move on. 36 37