Ch 3 Changing the Culture

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Transcript Ch 3 Changing the Culture

Chapter 3 Changing the Culture

Chapter 3 Slide 1

Learning Objectives

• Recognize importance of corporate culture.

• Identify key factors assessing culture.

• Describe culture leading to effective organizations.

• Describe ethical, value, and goal considerations.

Chapter 3 Slide 2

Creating Climate for Change

• Challenge of managers is: – Create renewing system.

– Develop long-term efforts.

• Culture often key to success.

• Cultural change result of complex strategy.

Chapter 3 Slide 3

Understanding Corporate Culture

• Environment of rapid change.

• Static organizational culture no longer effective.

Chapter 3 Slide 4

What Is Corporate Culture?

• Culture is system of: – Shared values.

– Beliefs.

– Behavioral norms.

• Observed behavioral norms.

• Dominant values.

• Learning ropes for newcomers.

Chapter 3 Slide 5

Culture Comes from 2 Subsystems

• Managerial.

• Organizational.

Chapter 3 Slide 6

Managerial Subsystem Creates Culture

• How employees are treated.

• Through actions and words.

• Vision articulated by top management.

Chapter 3 Slide 7

Organizational Subsystem Creates Culture

• Outside factors (market, etc.) define culture.

• Technology.

• Job descriptions.

• Type of structure (tall vrs. flat).

Chapter 3 Slide 8

Figure 3.1

Culture Formation

Chapter 3 Slide 9

Corporate Culture and Success

• High-performing companies have strong cultures.

• Many cultures fail to adapt to change.

• Following corporate mergers, cultures often clash.

Chapter 3 Slide 10

Key Factors to Improve Culture

• Create vision for the future.

• Develop model for change.

• Reward changes.

Chapter 3 Slide 11

Cultural Resistance to Change

• Changing culture not easy.

• Time required.

• Culture can prevent company from adapting.

Chapter 3 Slide 12

Pressure Points to Bring About Change

• Recession.

• Deregulation.

• Technological upheavals.

• Social factors.

• Global competition.

• Outsourcing.

• Markets.

Chapter 3 Slide 13

Tools for Change

(part 1 of 4) • Information.

• Support.

• Resources.

Chapter 3 Slide 14

Information

(part 2 of 4) • Provide information to people.

• Provide ability to gather information.

• One method is open-book management.

Chapter 3 Slide 15

Support

(part 3 of 4) • Support and collaboration from other departments.

• Management support to provide climate of risk taking.

Chapter 3 Slide 16

Resources

(part 4 of 4) • Funds.

• Staff.

• Equipment.

• Materials.

• Innovative programs for providing resources include: – Venture capital.

– Innovation banks.

Chapter 3 Slide 17

Organizational Dimensions Affecting Performance

• Managerial effectiveness.

– Accomplishing goals and objectives.

• Managerial efficiency.

– Ratio of results to resources.

• Motivational climate.

– Employee attitudes that influence performance.

Chapter 3 Slide 18

Other Criteria for Organizational Effectiveness

• Adaptability.

• Sense of identity.

• Capacity to test reality.

Chapter 3 Slide 19

OD Professional Values and Ethics

• Expertise.

• Autonomy.

• Commitment.

• Code of ethics.

Chapter 3 Slide 20

OD Implementation Issues

(part 1 of 4) • Success depends on: – Congruence between OD values and organization’s values.

• Key issue is fit between between practitioner and client: – Compatibility of values.

– Imposed change.

– Priority of goals.

Chapter 3 Slide 21

Compatibility of Values

(part 2 of 4) • Practitioners differ on degree of congruency with client values.

– Some believe personal values are compatible with client.

– Others will help client as long as operations legal.

Chapter 3 Slide 22

Imposed Change

(part 3 of 4) • OD ideally implemented voluntarily.

• Top management may impose program.

• OD practitioners cognizant of power and politics.

Chapter 3 Slide 23

Priority of Goals

(part 4 of 4) • Determine goals given precedence.

• Challenge to develop balanced intervention: – One that improves productivity and – Quality of work for members.

Chapter 3 Slide 24

OD Values About Nature of Organization Members

• Respect for people.

• Trust and support.

• Power equalization.

• Confrontation and open communication.

• Participation.

Chapter 3 Slide 25

Table 3.1

OD Values

Chapter 3 Slide 26

OD Application Culture and Setpoint Systems

• Setpoint builds unique automation equipment.

• Required are self-motivated employees.

– Who can solve problems and – Look for ways to improve processes.

• Uses project management and open book accounting.

Chapter 3 Slide 27

• Production employees use these techniques to: – Understand the business and – Know where to focus attention.

• Culture is one where employees: – Understand the business and – Provide thorough attention to financials.

Chapter 3 Slide 28

OD Application How Trilogy’s University Helps Build Its Culture

• Trilogy is small but competes with large software companies.

• Key goal is to attract talented people.

• Fosters new methods in relationships with clients and employees.

Chapter 3 Slide 29

• It operates a three-month long “boot camp.” – New employees integrated into company.

– Employees learn values and culture.

– Receive comprehensive evaluation and feedback.

• Program provides source for renewal.

– Provides new services and products.

• Relationships formed, new leaders created.

Chapter 3 Slide 30

Key Words and Concepts

• Corporate culture.

– System of shared values and beliefs.

– Interact with people, structure, systems.

• Managerial effectiveness.

– Ability to accomplish specific organizational goals.

Chapter 3 Slide 31

• Managerial efficiency.

– Ratio of output (results) to input (resources). • Motivational climate.

– Employee attitudes that influence performance.

Chapter 3 Slide 32

• Open-book management.

– Employees understand accounting statements.

– Use knowledge in work.

• Professionalism.

– Value system that is part of profession.

Chapter 3 Slide 33

OD Skills Simulation 3.1

The Dim Lighting Co.

• Purpose: – Compare decisions made by individuals with those made by group.

– Practice effective consensus-seeking techniques.

– Gain insights into concept of cultural values.

Chapter 3 Slide 34

Preparations for Next Chapter

• Read Chapter 4.

• Complete Steps 1 through 4 of OD Skills Simulation 4.1.

• Read and prepare Case: The Grayson Chemical Company

Chapter 3 Slide 35

Chapter 3 Slide 36