Transcript Organizational Culture and Change MultiMedia by Stephen M. Peters © 2002 South-Western.

Organizational Culture and Change
MultiMedia by Stephen M. Peters
© 2002 South-Western
Organizational Culture
 A dynamic system of shared values, beliefs,
philosophies, experiences, habits, expectations, norms,
and behaviors.
 Defines what is important to the organization.
 The way decisions are made.
 Methods of communication.
 The degree of structure.
 The freedom to function independently.
 How people should behave.
 How they should interact with each other.
 Helps employees develop a sense of group identity and
pride.
MultiMedia by Stephen M. Peters
© 2002 South-Western
Seven Culture-Shaping Factors
1. Key organizational processes
2. Dominant coalition
3. Employees and other tangible assets
4. Formal organizational arrangements
5. Social system
6. Technology
7. External environment
MultiMedia by Stephen M. Peters
© 2002 South-Western
Factors that Shape Organizational Culture
MultiMedia by Stephen M. Peters
© 2002 South-Western
The Social System
Norms and values
Set of employee relationships that
relate to power, affiliation, and trust
Includes the grapevine
MultiMedia by Stephen M. Peters
© 2002 South-Western
External Environment
The Economy
Suppliers
Markets
Competitors
MultiMedia by Stephen M. Peters
Regulators
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Chief Evidences of Culture Include
Stories
Statements
of Principle
Heroes
Symbols
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Slogans
Ceremonies
Physical
Environment
Climate
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Five Principles of Mars
Quality
Responsibility
Mutuality
Efficiency
Freedom
MultiMedia by Stephen M. Peters
© 2002 South-Western
Heroes, to Become One
You have to live the ideology
Quality
Service
Fairness
MultiMedia by Stephen M. Peters
© 2002 South-Western
Symbols
Walt Disney symbolic language
Employees are “cast members.”
Customers are “guests.”
A crowd is an “audience.”
A work shift is a “performance.”
A job is a “part.”
A uniform is a “costume.”
The personnel department is “casting.”
Being on duty is “on stage.”
Being off duty is “off stage.”
MultiMedia by Stephen M. Peters
© 2002 South-Western
Management Helps Create Culture By
• Clearly defining the company’s mission and goals.
• Identifying the core values.
• Determining the amount to individual autonomy and
the degree to which people work separately or in
groups.
• Structuring the work in accordance with the
corporation’s values to achieve its goals.
• Developing reward systems that reinforce the values of
goals.
• Creating methods of socialization.
MultiMedia by Stephen M. Peters
© 2002 South-Western
Visionary Managers and Companies
 Translate their core values into tangible
mechanisms.
 Indoctrinate people.
 Impose tightness of fit.
 Create a sense of belonging to something special.
MultiMedia by Stephen M. Peters
© 2002 South-Western
Role of Employees
 Contribute to the extent that they accept and
adopt the culture.
 Contribute by helping to shape the values it
embodies.
 Play a role in influencing organizational culture
by forming subcultures.
MultiMedia by Stephen M. Peters
© 2002 South-Western
Sources of Change
• External Sources
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Political
Social
Technological
Economic Environment
• Internal Sources
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Managerial policies or styles
Systems and procedures
Technology
Employee attitudes
MultiMedia by Stephen M. Peters
© 2002 South-Western
Four Types of Change
 Strategic Change - changing the strategy or mission of
the organization
 Structural Change - changing the structure of
organizations through team building and downsizing
 Process-Oriented Change - using new technology, shifting
from human to mechanical labor in plants that employ
robotics for manufacturing, or adopting new procedures
 People-Centered Change - directed at the attitudes,
behaviors, skills, or performance of the company’s
employees
MultiMedia by Stephen M. Peters
© 2002 South-Western
Reengineering
The fundamental rethinking and radical
redesign of business processes.
Determines what process
is necessary.
Determines then how to do it.
MultiMedia by Stephen M. Peters
© 2002 South-Western
Management and Change
• Top Managers
– Sensitive to the external environment; that is, they need to stay
attuned to changes in that environment.
• Middle Managers
– Likely will face structural, process-oriented, or people-centered
changes.
• First-Line Managers
– Participate in discussions about strategic or structural changes.
– Institute process-oriented and people-centered change.
MultiMedia by Stephen M. Peters
© 2002 South-Western
Change Agent
 Implements planned change.
 Could be the manager who conceived the need to
change.
 Could be another manager within the organization.
 Could be an outsider.
MultiMedia by Stephen M. Peters
© 2002 South-Western
MultiMedia by Stephen M. Peters
© 2002 South-Western
Nine Steps for Implementing Change
MultiMedia by Stephen M. Peters
© 2002 South-Western
Sources of Resistance to Change
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Loss of security
Fear of economic loss
Loss of power and control
Reluctance to change old habits
Selective perception
Awareness of weaknesses in the proposed change
MultiMedia by Stephen M. Peters
© 2002 South-Western
Five Techniques to Overcome
Resistance to Change
3. Advance
warning
1. Participation
2. Open
communication
4. Sensitivity
MultiMedia by Stephen M. Peters
5. Security
© 2002 South-Western
Changing Attitudes
Three-Step Approach
• First step, unfreezing
– Managers who spot deficiencies in a subordinate’s
behavior must identify the causes of that behavior.
• Second step, change
– The individual’s discomfort level rises.
– Employee to question his or her motives for the
current behavior.
• Third step, refreezing
– Manager recognizes and rewards new and improved
attitudes and behaviors.
MultiMedia by Stephen M. Peters
© 2002 South-Western