Organizational Culture and Change Fundamentals of Organizational Behavior 2e Andrew J. DuBrin PowerPoint Presentation by Charlie Cook Chapter 13

Organizational CultureOrganizational Cultureand Changeand Change

Fundamentals of Fundamentals of Organizational Behavior 2eOrganizational Behavior 2e

Andrew J. DuBrinAndrew J. DuBrin

PowerPoint Presentation by Charlie Cook

PowerPoint Presentation by Charlie Cook

ChapterChapter1313

A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western. 13–2

Learning ObjectivesLearning Objectives

1.1. Present an analysis of the importance of Present an analysis of the importance of organizational culture.organizational culture.

2.2. Present two models of the change process in Present two models of the change process in organizations.organizations.

3.3. Describe why people resist change and how to Describe why people resist change and how to manage such resistance.manage such resistance.

4.4. Describe several strategies for bringing about Describe several strategies for bringing about organizational change.organizational change.

5.5. Explain the nature of organization Explain the nature of organization development.development.

6.6. Develop useful insights into managing change Develop useful insights into managing change in your job and career.in your job and career.


Organizational CultureOrganizational Culture

Organizational culture is a system of shared values Organizational culture is a system of shared values and beliefs that influence worker behavior.and beliefs that influence worker behavior.

The Determinants of Organizational CultureThe Determinants of Organizational Culture The values, administrative practices, and personality of the The values, administrative practices, and personality of the

firm’s founderfirm’s founder The conscious and unconscious choices, behavior patterns, The conscious and unconscious choices, behavior patterns,

and prejudices of top-level managersand prejudices of top-level managers The culture of the society (its norms, values, and beliefs) in The culture of the society (its norms, values, and beliefs) in

which the firm functionswhich the firm functions The industry in which the firm competesThe industry in which the firm competes The firm’s code of conductThe firm’s code of conduct



Dimensions of Organizational CultureDimensions of Organizational Culture1.1. ValuesValues

2.2. Organizational stories that Organizational stories that have underlying meaninghave underlying meaning

3.3. MythsMyths

4.4. Degree of stabilityDegree of stability

5.5. Resource allocation and rewardsResource allocation and rewards

6.6. Traditions, rites, and ritualsTraditions, rites, and rituals

7.7. Ownership cultureOwnership culture

8.8. Corporate spiritualism and organizational Corporate spiritualism and organizational spiritualityspirituality



How Workers Learn CultureHow Workers Learn Culture Workers learn through:Workers learn through:

The Socialization ProcessThe Socialization Process– A process of coming to understand A process of coming to understand

the values, norms, and customs of the values, norms, and customs of the organization.the organization.

– Perpetuates the organization by Perpetuates the organization by indoctrinating new workers into the ways of the organization.indoctrinating new workers into the ways of the organization.

The Observation of LeadersThe Observation of Leaders– The teaching of leaders provides vital The teaching of leaders provides vital

guidance to new workers through guidance to new workers through what leaders pay attention to, what leaders pay attention to,

measure, and control.measure, and control.


The Consequences and Implications ofThe Consequences and Implications ofOrganizational CultureOrganizational Culture

Productivity, Quality, and Morale

Innovation

Compatibility of Mergers and Acquisitions

Person-Organization Fit

Competitive Advantage and Financial Success

Direction of Leadership Activity

OrganizationalCulture

EXHIBITEXHIBIT13-113-1


General Considerations About General Considerations About Managing ChangeManaging Change Types of Change in OrganizationsTypes of Change in Organizations Changes in technologyChanges in technology Changes in organizational structureChanges in organizational structure Coworkers and customersCoworkers and customers


Models of the Change ProcessModels of the Change Process

The Growth Curve ModelThe Growth Curve Model Formative phaseFormative phase——lack of structure, trial and error, and lack of structure, trial and error, and

entrepreneurial risk takingentrepreneurial risk taking Normative phaseNormative phase——stability, maintenance, and predictabilitystability, maintenance, and predictability Integrative phaseIntegrative phase——redefining the firm and choosing a new redefining the firm and choosing a new

direction.direction. Force-field theoryForce-field theory

A organization simultaneously A organization simultaneously faces forces of change faces forces of change and of resistance to change.and of resistance to change.


The Growth Curve Model ofThe Growth Curve Model ofOrganizational ChangeOrganizational Change

Beginning

Low

High

TIME

Normative

Integrative

Formative

Deg

ree

of

Str

uct

ure



Models of the Change Process Models of the Change Process (cont’d)(cont’d)The Unfreezing-Changing-Refreezing Model The Unfreezing-Changing-Refreezing Model (Kurt Lewin)(Kurt Lewin) UnfreezingUnfreezing

Reducing or eliminating resistance to change by resolving Reducing or eliminating resistance to change by resolving fear and feelings about letting go of the “old.”fear and feelings about letting go of the “old.”

Changing (or moving on to a new level)Changing (or moving on to a new level) Moving on to other things through active Moving on to other things through active

participation in the change process.participation in the change process. RefreezingRefreezing

Encouraging recognition of successful Encouraging recognition of successful change and rewarding people for change and rewarding people for implementing the change.implementing the change.


The Change ProcessThe Change Process

Unfreezing Changing Refreezing



Why People Resist ChangeWhy People Resist Change

Resistance comes from:Resistance comes from: Fear of an unfavorable outcome (e.g., less money, personal Fear of an unfavorable outcome (e.g., less money, personal

inconvenience, more work)inconvenience, more work) Disrupted social relationships at workDisrupted social relationships at work Not wanting to break with well-established habitsNot wanting to break with well-established habits A general fear of the unknown A general fear of the unknown

and uncertaintyand uncertainty Fear that an unrecognized Fear that an unrecognized

weakness in the proposed weakness in the proposed change will result in change will result in unfavorable outcome.unfavorable outcome.


Why People Resist ChangeWhy People Resist Change

Gaining Support for Change:Gaining Support for Change:1.1. Allow for discussion and negotiation.Allow for discussion and negotiation.

2.2. Allow for participation by those affected by the change.Allow for participation by those affected by the change.

3.3. Point out the potential benefits.Point out the potential benefits.

4.4. Avoid change overload.Avoid change overload.

5.5. Gain political support for the change.Gain political support for the change.

6.6. Provide education.Provide education.

7.7. Use manipulation and co-optation.Use manipulation and co-optation.

8.8. Avoid poor performance as the reason for change.Avoid poor performance as the reason for change.

9.9. Use explicit and implicit coercion.Use explicit and implicit coercion.


Downsizing and Restructuring as a Downsizing and Restructuring as a Change StrategyChange Strategy Primary reason for downsizing:Primary reason for downsizing: Reductions in the size of the firm that must be made to Reductions in the size of the firm that must be made to

lower costs and allow the firm to become more competitive.lower costs and allow the firm to become more competitive.

Dangers in downsizing:Dangers in downsizing: Inability to capitalize on post-Inability to capitalize on post-

restructuring opportunities restructuring opportunities due to understaffing.due to understaffing.

Loss of critical human Loss of critical human assets reduces assets reduces organizational learning.organizational learning.


Restructuring as a Change StrategyRestructuring as a Change Strategy

Keys to successful restructuring:Keys to successful restructuring: Integrate downsizing with the firm’s long-term strategies.Integrate downsizing with the firm’s long-term strategies. Identify and protect high-potential employees.Identify and protect high-potential employees. Decentralize and empower employees to do their jobs.Decentralize and empower employees to do their jobs. Redefine the positions of surviving employees.Redefine the positions of surviving employees. Eliminate low-value and non-value activities.Eliminate low-value and non-value activities. Emphasize teamwork and cooperation.Emphasize teamwork and cooperation. Define the new structure by specifying horizontal and Define the new structure by specifying horizontal and

vertical relationships.vertical relationships. Support and train, then evaluate and reward performance.Support and train, then evaluate and reward performance.


Information Technology (IT) and Information Technology (IT) and Organizational ChangeOrganizational ChangeIT Effects on OrganizationsIT Effects on Organizations Fewer middle management and coordinator positions.Fewer middle management and coordinator positions. Increased organizational democracy through direct Increased organizational democracy through direct

communications between all layers of the organization.communications between all layers of the organization. More direct contact with customers and suppliers.More direct contact with customers and suppliers. Enterprise software supplanting Enterprise software supplanting

managers and their work.managers and their work. Changes in nature of work itself Changes in nature of work itself

that blurs the line between work that blurs the line between work and non-work time.and non-work time.


Disruptive Technology and Disruptive Technology and Organizational ChangeOrganizational ChangeIgnoring technological changes (especially by Ignoring technological changes (especially by smaller, more nimble competitors) in emerging smaller, more nimble competitors) in emerging markets puts a firm at a competitive disadvantage.markets puts a firm at a competitive disadvantage. Meeting the challenge of disruptive change:Meeting the challenge of disruptive change:

Create new organizational structures in which to develop Create new organizational structures in which to develop new processes, products or services.new processes, products or services.

Spin out an independent organization in which to develop Spin out an independent organization in which to develop new processes, products, or services.new processes, products, or services.

Acquire another company whose processes and values Acquire another company whose processes and values closely match the requirements for new processes, closely match the requirements for new processes, products, or services.products, or services.


The Transition from Carrying Out a The Transition from Carrying Out a Job and WorkJob and WorkOrganizational concerns:Organizational concerns: Traditional job descriptions that are too rigid for the flexible Traditional job descriptions that are too rigid for the flexible

work roles of today’s workers.work roles of today’s workers. The trend in hiring a person “to work” (seeking a better The trend in hiring a person “to work” (seeking a better

person-organization fit) rather than to fill a specific job.person-organization fit) rather than to fill a specific job. Attaining a match of workers’ skills to a project’s Attaining a match of workers’ skills to a project’s

requirements.requirements. The difficulty managers will have in shifting from the The difficulty managers will have in shifting from the

traditional bureaucratic focus on fixed job descriptions to traditional bureaucratic focus on fixed job descriptions to an emphasis on ever changing “work roles” for employees.an emphasis on ever changing “work roles” for employees.


Organizational Development as a Organizational Development as a Change StrategyChange Strategy

Organizational DevelopmentOrganizational Development Is any strategy, method, or technique Is any strategy, method, or technique

for making organizations more effective for making organizations more effective by bringing about constructive, by bringing about constructive, planned change.planned change.


Organizational Development Organizational Development InterventionsInterventions Individual LevelIndividual Level

Executive coachingExecutive coaching Employee assistance programs Employee assistance programs

(EAPs)(EAPs) Career development programsCareer development programs Organizational behavior Organizational behavior

modification (OB Mod)modification (OB Mod) Job enrichmentJob enrichment Wellness programs, including Wellness programs, including

stress reductionstress reduction Sexual harassment avoidance Sexual harassment avoidance

trainingtraining

Organizational LevelOrganizational Level Total quality management (TQM)Total quality management (TQM) Grid organization developmentGrid organization development GainsharingGainsharing Survey feedback (attitude Survey feedback (attitude

surveys)surveys) Action research (employees Action research (employees

participate in implementing participate in implementing changes identified as needed by changes identified as needed by a consultant)a consultant)

Helping an organization learnHelping an organization learn Knowledge managementKnowledge management


Organizational Development Organizational Development InterventionsInterventions Small-Group LevelSmall-Group Level

Team developmentTeam development Cultural diversity training Cultural diversity training

(including valuing differences)(including valuing differences) Modified work schedulesModified work schedules BrainstormingBrainstorming Intergroup conflict resolutionIntergroup conflict resolution Quality improvement teamsQuality improvement teams Self-managing teamsSelf-managing teams


A ProcessA ProcessModel of Model of OrganizationOrganizationDevelopmentDevelopment


Preliminary Identification Preliminary Identification of a Problemof a Problem

Identification of Specific Identification of Specific Problem AreasProblem Areas

Data Collection and AnalysisData Collection and Analysis

Data FeedbackData Feedback

Managerial CommitmentManagerial Commitment

Development of Change StrategiesDevelopment of Change Strategies

Initiation of BehaviorInitiation of Behavior

EvaluationEvaluation


Process ConsultationProcess Consultation

A widely used OD intervention in which the A widely used OD intervention in which the communication pattern of an organizational unit communication pattern of an organizational unit is examined by a process consultant.is examined by a process consultant. Consultant’s role is to observe and Consultant’s role is to observe and

raise questions challenging raise questions challenging the status quo and define the status quo and define what really is happening what really is happening in the unit.in the unit.


Large-Scale Organizational ChangeLarge-Scale Organizational Change Purpose and process:Purpose and process: To accomplish a major change in the firm’s strategy and To accomplish a major change in the firm’s strategy and

culture, also referred to as “bending the frame.”culture, also referred to as “bending the frame.” Requires getting a critical mass of people throughout the Requires getting a critical mass of people throughout the

firm committed to outcomes of the change.firm committed to outcomes of the change. Signs of the need for change:Signs of the need for change:

Top executives micromanaging instead of delegating.Top executives micromanaging instead of delegating. A high turnover rate of employees.A high turnover rate of employees. Ineffective communication in the organization.Ineffective communication in the organization. A compensation system that rewards people for actions A compensation system that rewards people for actions

unrelated to business success.unrelated to business success. Loss of established business and failure acquire new Loss of established business and failure acquire new

business.business.


Total Quality Management (TQM)Total Quality Management (TQM)

Is a management system for improving performance Is a management system for improving performance throughout a firm by:throughout a firm by:

maximizing customer satisfaction, maximizing customer satisfaction, making continuous improvements, making continuous improvements, and relying heavily on employee involvement.and relying heavily on employee involvement.

Is a fundamental change in the organization’s Is a fundamental change in the organization’s culture to one that includes a focus on the culture to one that includes a focus on the

customer, an environment of trust and customer, an environment of trust and openness, formation of work teams, openness, formation of work teams,

breaking down internal barriers, breaking down internal barriers, and sharing power.and sharing power.


Six Sigma as Organizational DevelopmentSix Sigma as Organizational Development

Six SigmaSix Sigma Is a data-driven statistically-based method for achieving Is a data-driven statistically-based method for achieving

near-perfect quality with an emphasis on preventing near-perfect quality with an emphasis on preventing problems from occurring in the process .problems from occurring in the process .

Features:Features: Emphasizes motivating people Emphasizes motivating people

to work together to achieve to work together to achieve higher levels of productivity.higher levels of productivity.

Is a fusion of technical and Is a fusion of technical and social systems for creating social systems for creating a culture of quality.a culture of quality.


Managing Change YourselfManaging Change Yourself

Empirical Research about Coping with Empirical Research about Coping with Organizational ChangeOrganizational Change Having a positive self-concept and a tolerance for risk were Having a positive self-concept and a tolerance for risk were

both positively related to having a tolerance for ambiguity both positively related to having a tolerance for ambiguity and positive affectivity.and positive affectivity.

Optimistic people who can tolerate a Optimistic people who can tolerate a lack of clarity and structural change lack of clarity and structural change cope well with change.cope well with change.


Managing Change YourselfManaging Change YourselfSuggestions for Coping with ChangeSuggestions for Coping with Change Practice dealing with ambiguous tasks.Practice dealing with ambiguous tasks. Maintain a positive general disposition.Maintain a positive general disposition. Look for personal value (“silver lining”)Look for personal value (“silver lining”)

embedded in a forced change.embedded in a forced change. When faced with significant change, When faced with significant change,

ask yourself “what if” questions.ask yourself “what if” questions. When confronting major change, force yourself to When confronting major change, force yourself to

enjoy at least some small aspect of the change.enjoy at least some small aspect of the change. Recognize that change is inevitable: Change before Recognize that change is inevitable: Change before

you have to and you will get a better deal.you have to and you will get a better deal. Stop trying to be in control all the time.Stop trying to be in control all the time.

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Organizational Culture and Change Fundamentals of Organizational Behavior 2e Andrew J. DuBrin PowerPoint Presentation by Charlie Cook Chapter 13