Organisation Climate [Compatibility Mode] [Repaired]

8/16/2019 Organisation Climate [Compatibility Mode] [Repaired]

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OrganizationalChange

and

Culture



Organizational success depends

on the organization’s adaptations

to environmental changes.



14 - 3



Forces for Organizational Change

External EnvironmentalForces

Increased global competition

Consumer demands

Government laws

Economic conditions Technological advances

Internal EnvironmentalForces

Financial position

New and revised mission and

strategy

Reorganization of formal

structure

Acquisition and merger



Stages in the Change Process

1.Denial

2.Resistance4.Commitment

3 Exploration



Resistance to Change

Resistance to change involves the variablesof intensity, source, and focus, and explains

why people are reluctant to change.

Reasons for resisting change:Status Quo

Uncertainty

Learning Anxiety

Fear

Managers should anticipate how employees will

react to or resist change



Resistance to Change: Key Variables

Intensity – basicreactions to change:

Sources ofresistance:

Focuses ofresistance:

1. Acceptance

2. Tolerance

3. Resistance

4. Rejection

1. Facts

2. Beliefs

3. Values

1. Self

2. Others

3. Work environment



Overcoming Resistance to Change

Develop a positive climate forchange

Encourage interest in

improvementPlan

Give facts

Clearly state why the changeis needed and how it will

affect employees

Create a win-win situation

Provide support

Stay calm

Avoid direct confrontation

Use power and ethical

politics



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Change Models

Lewin’s Change Model

Step 1. Unfreezing

Step 2. Moving

Step 3. Refreezing

Lussier’s Change Model

Step 1. Define the change

Step 2. Identify possible

resistance to change

Step 3. Plan the change

Step 4. Implement the change

Give the facts

Involve employees Provide support

Step 5. Control the change

Exhibit 14.5



Organizational Culture

Organizational culture – consists of the sharedvalues and assumptions of how its members will

behave

Global firms need to incorporate national culturalvalues in their organizational culture

Organizational culture is linked with positive

organizational results

Although culture can change, it is difficult to

change beliefs and values



14 - 12



Strong and Weak Cultures

Strong cultures –

Organizations that have clear values that are shared to

the extent of similar behavior

e.g., IBM, PepsiCo, J.C. Penney

Weak cultures –

Organizations that have no stated values and do notenforce behavior



Positive and Negative Cultures

Positive culture –

Has norms that contribute to effective performance and

productivity

Negative culture –

A source of resistance and turmoil that hinders

effective performance



The most effective organizational

culture that leads to effectiveperformance is strong and

positive .



Organizational Climate

Organizational climate – the relatively enduringquality of the internal environment of the

organization perceived by its members

Climate is employees’ perception of the atmosphere ofthe internal environment

Climate is based on shared perceptions of the way

things are done

Successful companies tend to have strong cultures

and positive climates



Organizational Climate

Organizational climate is important because:

The employees’ perception of the organization serves

as the basis for the development of their attitudes

toward itTheir attitudes in turn affect their behavior

Morale – a state of mind based on attitudes and

satisfaction with the organizationMorale is an important part of organizational climate



Dimensions of Climate

Responsibility

Rewards

Warmth

SupportRisk

Structure

Organizational

identity and

loyaltyDimensions

of Climate





Dimensions of Climate: Summary (2 of 2)

Support The degree of being helped by others and of experiencingcooperation

OrganizationalIdentity andLoyalty:

The degree to which employees identify with theorganization and their loyalty to it

Risk The degree to which risk is encouraged



Organizational Development (OD)

OD –

the ongoing plannedprocess of change

Used as a means of

improving the organization’seffectiveness in solving

problems and achieving its

objectives

The first step in OD isdiagnosis of the problems

OD Techniques

Training and development

Performance appraisal

Grid OD

Survey feedback

Force field analysis

Team building



Training and Development

Training

The process of developing

the necessary skills to

perform the present job Typically used to develop

technical skills of non-

managers

Development

The process of developing

the ability to perform both

present and future jobsUsually less technical

Generally designed for

professional and managerial

employees





Job Instructional Training

Step 1. Preparation of the trainee

Step 2. Trainer presentation of the job

Step 3. Trainee performance of the job

Step 4. Follow-up

Exhibit 14.7



Performance Appraisal

Ongoing process of evaluating employee job performance

Also called:

Performance job evaluation

Performance review

Merit rating

Performance audit

One of the manager’s most important and most

difficult functions



Conducted properly, performance

appraisal can decreaseabsenteeism and turnover, and

increase morale and productivity.



Performance Appraisal Steps

Organization’s

strategy, goals, and

objectives

State jobresponsibilities

Conduct informal

appraisals –

“Coaching”

Develop standards

and measurement

methods

Conduct the formal

appraisal

interviews

Prepare the formal

appraisal

interviews

Step 1

Step 2

Step 3

Step 4

Step 5



Objectives used to appraise employees’

performance:

Developmental ObjectivesUsed as the basis of

decisions that improve future

performance

Evaluative ObjectivesUsed as the basis of

administrative decisions that

reward or punish for past

performance

e.g., bonus pay

e.g., salary decisions

Used to make demotion,termination, transfer, and

promotion decisions

14 - 29





Coaching Model

Step 1. Refer to past feedback

Step 2. Describe the current performance

Step 3. Describe the desired performance

Step 4. Get a commitment to change

Step 5. Follow-up



Grid OD

A six-phase program designed to improvemanagement and organizational effectiveness

Phases include:

Phase 1. TrainingPhase 2. Team Development

Phase 3. Inter-group Development

Phase 4. Organizational Goal SettingPhase 5. Goal Attainment

Phase 6. Stabilization



Survey Feedback Program Steps (1 of 2)

An OD technique that uses a questionnaire togather data that are used as the basis for

change

1. Management and the change agent do preliminaryplanning to develop an appropriate survey questionnaire

2. The questionnaire is administered to all members of the

organization / unit

3. The survey data are analyzed to uncover problem areas

for improvement



Survey Feedback Program Steps (2 of 2)

1. The change agent feeds back the results to management2. Managers evaluate the feedback and discuss the results

with their subordinates

3. Corrective action plans are developed and implemented

Measuring Climate. Commonly used to

measure the organizational climate.



Force Field Analysis

A technique that diagrams: the current level of performance

the hindering forces toward change

the driving forces toward change

Particularly useful for group problem solving

After group members agree on the diagram, the

solution often becomes clear to them



Team Building

The OD technique designed to help work groupsoperate more effectively

The most widely used OD technique

The goals of team building programs vary,depending on:

the group’s needs

the change agent’s skills



Team Building: Typical Goals (1 of 2)

To clarify the objectives of the team andresponsibilities of each team member

To identify problems preventing the team from

accomplishing its objectivesTo develop team skills in:

problem-solving

decision-making

objective-setting

planning



Team Building: Typical Goals (2 of 2)

To determine a preferred style of teamwork and tochange that style

To fully utilize the resources of each individual

member To develop open, honest working relationships

based on trust and an understanding of group

members

14 - 38





The Relationship among Organizational

Culture, Climate, and Development (1 of 2)

Climate is a sharing of perceptions andintangibles of the internal environment

Culture is the values and assumptions of the ideal

environmentCulture informs climate

Often, the concept of culture encompasses that of

climate



The Relationship among Organizational

Culture, Climate, and Development (2 of 2)

OD is commonly used as the vehicle to changeculture or climate

OD programs tend to be wider in scope than

culture or climateCulture and climate changes can be part of an

extensive OD program addressing other issues as

well



Global Differences

Openness to change is influenced by:Cultural values

Collective versus individual societies

Openness to power and following orders for changewithout questioning authority

Culture and country development

Multinational corporations are continually

seeking best practices to implement at all their

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Organisation Climate [Compatibility Mode] [Repaired]