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Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition. Copyright © 2004 Pearson Education Canada Inc. Chapter 10 Organizational Culture and Change

Organizational Culture

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a slide show showing in-depth organizational culture

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  • Organizational CultureStrategyPeopleWork ProcessVisionValuesEconomic ForcesSocietal ForcesIndustry ForcesLegal ForcesLeadership

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Organizational CultureThe pattern of shared values, beliefs and assumptions considered to be the appropriate way to think and act within an organization.Culture is sharedCulture helps members solve problemsCulture is taught to newcomersCulture strongly influences behaviour

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Exhibit 10-1 Layers of CultureArtifacts of OrganizationalCultureMaterial SymbolsLanguageRitualsStoriesOrganizational CultureBeliefsValuesAssumptions

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Levels of CultureArtifactsBeliefsValuesAssumptions

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Characteristics of Organizational CultureInnovation and risk-takingAttention to detailOutcome orientationPeople orientationTeam orientationAggressivenessStability

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Exhibit 10-2 Contrasting Organization CulturesOrganization AOrganization B Managers must fully document all decisions. Creative decisions, change, and risks are not encouraged. Extensive rules and regulations exist for all employees. Productivity is valued over employee morale. Employees are encouraged to stay within their own department. Individual effort is encouraged. Management encourages and rewards risk-taking and change. Employees are encouraged to run with ideas, and failures are treated aslearning experiences. Employees have few rules and regulations to follow. Productivity is balanced with treating its people right. Team members are encouraged to interact with people at all levels and functions. Many rewards are team based.

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Do Organizations Have Uniform Cultures?Organizational culture represents a common perception held by the organization members.Core values or dominant (primary) values are accepted throughout the organization.Dominant cultureSubcultures

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Exhibit 10-3 How Organizational Culture FormsSelectioncriteriaSocializationOrganization'sculturePhilosophyoforganization'sfoundersTopmanagement

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Keeping a Culture AliveSelectionTop ManagementSocialization

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Cultures FunctionsSocial glue that helps hold an organization together Boundary-definingConveys a sense of identity for organization members

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Cultures FunctionsFacilitates commitment to something larger than ones individual self-interestEnhances social system stabilityServes as a sense-making and control mechanism

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Culture as a LiabilityCulture can have dysfunctional aspects in some instancesCulture as a Barrier to: ChangeDiversityMergers and Acquisitions

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Conditions for Culture ChangeA dramatic crisisTurnover in leadershipYoung and small organizationsWeak culture

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Exhibit 10-6 Suggestions for Changing CultureHave top-management people become positive role models, setting the tone through their behaviour.Create new stories, symbols, and rituals to replace those currently in vogue.Select, promote, and support employees who espouse the new values that are sought.Redesign socialization processes to align with the new values.

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Exhibit 10-6 Suggestions for Changing Culture (contd)Change the reward system to encourage acceptance of a new set of values.Replace unwritten norms with formal rules and regulations that are tightly enforced.Shake up current subcultures through transfers, job rotation, and/or terminations.Work to get peer group consensus through utilization of employee participation and creation of a climate with a high level of trust.

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Exhibit 10-7 Lewins Three-Step Change Model

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Implementing ChangeUnfreezing: getting ready for changeMoving: making the changeRefreezing: stabilizing the change

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Exhibit 10-8 Unfreezing the Status QuoTimeDrivingforcesRestrainingforcesDesiredstateStatusquo

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    UnfreezingArouse dissatisfaction with the current stateActivate and strengthen top management supportUse participation in decision makingBuild in rewards

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    MovingEstablish goalsInstitute smaller, acceptable changes that reinforce and support changeDevelop management structures for changeMaintain open, two-way communication

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    RefreezingBuild success experiencesReward desired behaviourDevelop structures to institutionalize the changeMake change work

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Exhibit 10-9 Sources of Individual Resistance to ChangeSecurityEconomicfactorsIndividualResistanceFear ofthe unknownSelectiveinformationprocessingHabit

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Cynicism About ChangeFeeling uninformed about what was happeningLack of communication and respect from ones supervisorLack of communication and respect from ones union representativeLack of opportunity for meaningful participation in decision-making

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Exhibit 10-11 Sources of Organizational Resistance to Change

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Overcoming Resistance to ChangeEducation and CommunicationParticipationFacilitation and Support

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Overcoming Resistance to ChangeNegotiationManipulation and CooperationCoercion

  • Emotional Response to Change

  • Change:Transition:Situational e.g. revising organizational values, vision, mission and prioritiesPsychological internalizing and coming to terms with the details of the new situation the changes bring about.

  • Managing the EndingDont be surprised by overreaction.Acknowledge loss and grieving.Consistently provide information and updates. Define clearly whats over and what isnt.Treat the past with respect.

  • Managing the Neutral ZoneDo what ever is necessary to encourage cohesion.Set meaningful and achievable short-term goals and checkpoints for people to follow.Encourage creativity, experimentation, innovation and brainstorming.Communicate the change effort in terms of the vision and outcomes.

  • Managing the BeginningCommunicate the basic purpose behind the desired outcomePaint the picture of how the outcome will look and feel.Lay out a step-by-step plan for phasing in the outcome.Identify the part people will plan in the plan and the outcome.

  • Communication is the key factor for all three phases.The Ending informational communication that primarily explains the vision for the new efforts and how they will differ from the old way of workingThe Neutral Zone communication needs to be supportive and reassuring.The Bottom Line About Managing TransitionThe Beginning communication needs to be inspiring, with the purpose of raising energy and promoting action.

  • CHANGE IS A PROCESS OF TRANSITIONPRESENT STATETRANSITIONSTATEDESIREDSTATERefreezing OccursDriving ForcesRestraining Forces

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Summary and ImplicationsEmployees form an overall subjective perception of the organization based on such factors as degree of risk tolerance, team emphasis, and support of people.This overall perception becomes, in effect, the organizations culture or personality.These favourable or unfavourable perceptions then affect employee performance and satisfaction, with the impact being greater for stronger cultures.Just as peoples personalities tend to be stable over time, so too do strong cultures.This makes strong cultures difficult for managers to change.

    Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright 2004 Pearson Education Canada Inc.

    Summary and ImplicationsOne of the more important managerial implications of organizational culture relates to selection decisions.Hiring individuals whose values don't align with those of the organization is not good.Change must be managed, it is not an easy processIndividuals and organizations resist changeTo be successful at change, it is necessary to break down the resistance to change

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