Transcript MC -Chapter 2

Managing Change
Lecture 2
Organizational Culture, Structure
and Change
1
LECTURE OUTLINE
2.0 Introduction
2.1 The culture
2.2 National culture
2.3 From breadth to convergence
2.4 Culture and change
2
2.0 INTRODUCTION



The invisible hand of culture – both in terms of
national and global can affect the ways in which
organizations and people react to change
This in turn influences the ways in which change
initiatives are implemented
No matter whether the change is small or big, the
Manager must anticipate resistance to changes
3
2.1 THE CULTURE



Is the glue that hold people together in
national or work groups.
It is composed of values, beliefs and
underlying assumptions that are deeply held.
Based on an intangible factor that is usually
firmly rooted and hard to change.
4
Organizational Culture



The pattern of basic assumptions; invented, discovered
or developed, to cope with problems of adaptation and
integration so as for the new members to perceive,
think and feel in relation to these problems (Schein).
The set of key values, beliefs, understandings, and
norms that members of an organization share (Daft,
2008).
A system of shared meanings and common beliefs held
by organizational members that determines, in a large
degree, how they act towards each other (Robbins,
2007.
5
Three Levels of Culture

Visible Artifacts – that is the constructed
environment which is exemplified by technology,
architecture, dress code

Values that govern behaviour – identified by what
people say – the real reasons may be concealed or
unconscious

Underlying assumptions – determine how group
members perceive, think and feel - really helps to
understand culture
6
Three Levels of Culture
Artifacts
•
•
•
•
Stories/legends
Rituals/ceremonies
Organizational language
Physical structures/décor
Visible
Shared values
• Conscious beliefs
• Evaluate what is good or bad, right or
wrong
Invisible
(below the surface)
Shared assumptions
• Unconscious, taken-for-granted
perceptions or beliefs
• Mental models of ideals
Source: Daft, 2008
Factors that can influence culture




The beliefs and values of the organization's
founder – vision and mission
The societal norms of the country in which
the organization operates
Past practices of the organization - The way
things have been done
The behavior of top management
8
Mintzberg’s (1989) Organizational
Structure
More readings:
 http://www.12manage.com/methods_mintzberg_configurations.html
 http://www.provenmodels.com/22/five-configurations/mintzberg
9
Charles Handy’s (1993) 4 Main
Types of Organizational




POWER CULTURE – Influenced by one person –
effectiveness depends on the charisma and leadership
qualities of the individual
ROLE CULTURE – Depended on functions, authority
and bureaucracy
TASK CULTURE – Dependent on teams of experts
working together – Success depends on getting the best to
complete a task
PERSON CULTURE - Groups or individuals who come
together to design a culture – opportunity to develop
personal aims and objectives
10
Fons Trompenaar’s (1994)
description




The family culture which is personal, paternal
& hierarchical
The Eiffel Tower culture – bureaucratic
The guided missile culture – which is task
oriented
The incubator culture – which nurtures
individual creativity
11
2.2 NATIONAL CULTURE


National culture can result from one nation
attributing characteristics to another, which
can result in stereotyping and prejudice.
The members of the organization bring their
own individual experiences, beliefs and values.
12
Hofstede’s Five Dimensions of
National Culture
Individualism-collectivism.
Power distance.
Uncertainty avoidance.
Masculinity-femininity.
Long-term/short-term orientation
(Source: Schemerhorn et al., 2005)
13
1. Individualism-collectivism
 The cultural tendency to emphasize individual
or group interests.
 Preferences for working individually or in
groups.
 Example of an individualistic culture — United
States.
 Example of a collectivist culture — Mexico
14
2. Power distance
 The willingness of a culture to accept status and
power differences among members.
 Respect for hierarchy and rank in organizations.
 Example of a high power distance culture —
Indonesia.
 Example of a low power distance culture —
Sweden.
15
3. Uncertainty avoidance
 The cultural tendency toward discomfort with
risk and ambiguity.
 Preference for structured versus unstructured
organizational situations.
 Example of a high uncertainty avoidance
culture — France.
 Example of a low uncertainty avoidance
culture — Hong Kong.
16
4. Masculinity-femininity
 The tendency of a culture to value stereotypical
masculine or feminine traits.
 Emphasizes competition/assertiveness versus
interpersonal sensitivity/relationships.
 Example of a masculine culture — Japan.
 Example of a feminine culture — Thailand
17
5. Long-term/short-term orientation
 The tendency of a culture to emphasize future-
oriented values versus present-oriented values.
 Adoption of long-term or short-term
performance horizons.
 Example of a long-term orientation culture —
South Korea.
 Example of a short-term orientation culture —
United States.
18
2.3 FROM BREADTH TO
CONVERGENCE

Central to the Convergence theory is the logic of
industrialization – Changes in technology,
revolutionalised large scale production and product
complex divisions of labour

Divergence theorists take the opposite view - people
will respond differently to the forces, such as
technology that drives changes - Individuals influenced
by national culture

Refer to the case study on page 69 and 70
19
2.4 CULTURE AND CHANGE
Schein’s (1984) 3 Distinct Stages of an
Organization's Life



The early stages of formation – provides a source of
identity and strength
The middle stages – responses to challenges from the
external and internal environment – at this stage very
complex & challenging blends would take place
The matured stage – suffer from complacency and
outdated strategies
20
Aspects of Organizational Operation
that Influences Changes





Performance – sticking to rules or seeking results
Objectives – changes would be smoother where there is
consultation on objectives
Planning – successful planning involves questioning of
objectives and not just identifying steps needed to
achieve
Consultation – good ideas could emerge from this
approach
Procedures – operational procedures are good guidelines
for
21
Aspects of Organizational Operation
that Influences Changes




Communication – good internal communication facilitates
those involved in being informed of goals identified
Decision-making – Centralized or decentralized depending
on the organizational structure and set-up
Loyalty expectations – expecting loyalty to objectives
usually means better adaptability to change
Risk-taking – calculated risks minimizes undue loses
22
References
• Daft, R.L. (2008). The New Era of Management, 2nd
Edition. Thomson South-Western, Ohio.
• McShane and Glinow. (2008). Organizational Behavior,
4th Edition. McGraw-Hill.
• Robbins, S.P. and Coulter, M. (2007). Management, 9th
Edition. Prentice-Hall, USA.
• Schermerhorn, J.R., Hunt, J.G. and Osborn, R.N.
(2005) Organizational Behavior 9th Edition, Wiley
23