Chapter 11
Organizational Culture, Change,
and Development
Pamela S. Lewis
Stephen H. Goodman
Patricia M. Fandt
Slides Prepared by
Bruce R. Barringer
University of Central Florida
©2001 South-Western College Publishing
Learning Objectives
Slide 1 of 2
1.Discuss the foundations of organizational
culture.
2.List and explain the two components of
organizational culture.
3.Clarify the differences between the different
types of organizational artifacts.
4.Address the impact of culture on the
organization.
© 2001 South-Western Publishing
Transparency 11-2
Learning Objectives
Slide 2 of 2
5.Explain how organizational culture can be
changed.
6.Identify and discuss the targets of planned
change.
7.Describe the steps for planned change.
8.Identify ways managers can gain support of
employee concerns in the change process.
9.Explain how empowering others to act on a
vision affects the change process.
© 2001 South-Western Publishing
Transparency 11-3
Foundations of Organizational Culture
Slide 1 of 2
Organizational culture is the shared,
emotionally charged beliefs, values, and norms
that bind people together and help them make
sense of the systems within an organization.
© 2001 South-Western Publishing
Transparency 11-4
Foundations of Organizational Culture
Slide 2 of 2
Impact of Organizational Culture
Culture influences how people act in organizations:
the ways in which people perform, view their jobs,
work with colleagues, and look at the future.
© 2001 South-Western Publishing
Transparency 11-5
Components of Organizational Culture
• Substance
– Consists of shared systems of beliefs, values,
expectations, and norms.
• Form
– Consists of the observable ways that members of
a culture express ideas.
© 2001 South-Western Publishing
Transparency 11-6
Evaluating Culture Through
Organizational Artifacts
• Organizational Artifacts
– Cultural routines that form the substance of public
functions and events staged by the organization.
– Artifacts support and reinforce the organization’s
shared beliefs, value systems, expectations, and
norms.
© 2001 South-Western Publishing
Transparency 11-7
Rites, Rituals, and Ceremonies
• Rites, Rituals, and Ceremonies
– A relatively dramatic, planned set of recurring
activities used at special times to influence the
behavior and understanding of organizational
members.
– Through rituals and ceremonies, participants gain
an understanding of and cement beliefs that are
important to the organization’s culture.
© 2001 South-Western Publishing
Transparency 11-8
Other Components of Organizational
Culture
• Language Systems and Metaphors
– The way that organizational members typically
express themselves and communicate with each
other.
• Stories and Sagas
– Narratives based on true events that are distorted
to incorporate fictional embellishment. They
graphically and quickly communicate emotionally
charged beliefs to newcomers.
© 2001 South-Western Publishing
Transparency 11-9
The Impact of Culture on
Organizations
• Strong Cultures
– Shared values and beliefs create a setting in
which people are committed to one another and
share an overriding sense of mission.
– A strong culture can cause a resistance to
change, however, by reinforcing a singular
view of the organization and the environment.
© 2001 South-Western Publishing
Transparency 11-10
Changing Organizational Culture
• Issues Involved in Changing Organizational
Culture
– Top managers can set the tone for a culture and
for culture change.
– Managers who strive for high-quality products
and services understand that they must involve
the keepers and holders of the culture, build on
what all organizational members share, and
teach new members how to behave.
© 2001 South-Western Publishing
Transparency 11-11
The Challenge of Organizational
Change
• Organizational Change
– Any alteration of activities in an organization.
• Alterations can involve the structure of the
organization; the transfer of work tasks; the
introduction of new products, systems, or
technologies; or behavior among members.
© 2001 South-Western Publishing
Transparency 11-12
Targets for Change
Slide 1 of 4
• Individual Targets
– Involves human resource changes.
– Changes in this area are triggered by new
staffing strategies or by an effort to enhance
workforce diversity.
• The number and skills of the human resource
component.
• Improving levels of employee motivation and
performance.
© 2001 South-Western Publishing
Transparency 11-13
Targets for Change
Slide 2 of 4
• Group Targets
– Involves changes in the nature of the
relationship between managers and
subordinates or the relationships within work
groups.
© 2001 South-Western Publishing
Transparency 11-14
Targets for Change
Slide 3 of 4
• Organizational Targets
– Involves changes in any of the following areas:
• Basic goals and strategies of the organization
• Products, quality, or services offered
• Organizational structure
• The composition of work units
• Organizational processes such as reward,
communication, or information processing
system
• The culture
© 2001 South-Western Publishing
Transparency 11-15
Targets for Change
Slide 4 of 4
• Environmental Targets
– Involves changing sectors of an organization’s
environment
– For example, changes in products or services
offered may require new technology or a new
distribution system
© 2001 South-Western Publishing
Transparency 11-16
A Framework for Change
• Force Field Analysis
– A systematic process for examining the pressures
that are likely to support or resist a proposed
change.
– This framework was proposed by organizational
researcher Kurt Lewin, whose approach recognizes
that merely introducing a change does not
guarantee that the change will be successful.
– The three aspects of change identified by Lewin
include unfreezing, changing, and refreezing.
© 2001 South-Western Publishing
Transparency 11-17
Steps for Planned Change
Evaluate: Examine feedback
Establishes criteria for success and monitors changes
Institutionalize: Refreeze
Reinforces and rewards the new behaviors
Empower employees to act
Provides training and development to implement
Communicate: Share information
Gains support and helps members learn
Create a vision: Unfreeze behavior
Clarifies and directs change effort
© 2001 South-Western Publishing
Transparency 11-18
Steps for Planned Change: Step 1
Slide 1 of 2
• Creating a Vision
– Establishing a vision or goal is the first step in
the process.
– The vision often triggers the beginning of the
unfreezing process when an initial awareness of
the need for change and the forces supporting
and resisting change are recognized.
© 2001 South-Western Publishing
Transparency 11-19
Steps for Planned Change: Step 1
Slide 2 of 2
• Creating a Vision
– The vision often triggers the beginning of the
unfreezing process.
• Unfreezing is a process that involves developing an
initial awareness of the need for change and the forces
supporting and resisting change.
– Other relevant topics.
• Driving force - The push for change in the status quo.
• Restraining force - The force to keep the status quo.
• External forces - Forces that are fundamentally beyond
the control of management.
© 2001 South-Western Publishing
Transparency 11-20
Steps for Planned Change: Step 2
• Communication and Information Sharing
– Valuable way to help organization members learn
to embrace change.
– To gain the support of employees for the change
efforts, management should consider their most
commonly expressed concerns.
•
•
•
•
Information - “What’s going to happen?”
Personal involvement - “How will I fit in?”
Implementation - “How do I get started on the change?”
Impact - “What will be different?”
© 2001 South-Western Publishing
Transparency 11-21
Steps for Planned Change: Step 3
• Empowering Others to Act on the Vision
– The change process focuses on providing training
and educational opportunities to help employees
learn the new behavior they need to implement the
vision.
© 2001 South-Western Publishing
Transparency 11-22
Steps for Planned Change: Step 4
• Institutionalization or Refreezing the New
Approaches
– This step centers on reinforcing new behavior,
usually by positive results, feelings of
accomplishment, or rewards from others.
© 2001 South-Western Publishing
Transparency 11-23
Steps for Planned Change: Step 5
• Evaluation
– An important and often overlooked step.
– Management needs to know whether the change
had the intended effects.
© 2001 South-Western Publishing
Transparency 11-24
Effective Organizational
Culture and Change
Slide 1 of 3
• Research suggests a number of activities
that will help managers achieve effective
organizational culture and change.
• Solicit input from those who will be
affected by organizational change.
Involvement is essential to accepting the
need for change.
© 2001 South-Western Publishing
Transparency 11-25
Effective Organizational
Culture and Change
Slide 2 of 3
• Carefully formulate your message regarding
the need for and nature of organizational
change. The success of the change process
will depend on effective communication.
• Assess your organizational environment and
be sure that the tone and the tempo of the
change fits the organization. Timing is
everything.
© 2001 South-Western Publishing
Transparency 11-26
Effective Organizational
Culture and Change
Slide 3 of 3
• Serve as a role model for the behaviors
sought by the organizational change.
Actions speak louder than words.
© 2001 South-Western Publishing
Transparency 11-27