10 Langton Fob 3ce Ch10

7/29/2019 10 Langton Fob 3ce Ch10

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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-1Copyright 2007 Pearson Education Canada

Chapter 10

Organizational Cultureand Change


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Chapter Outline

What Is Organizational Culture?

Creating and Sustaining Culture Matching People With Organizational Cultures

The Liabilities of Organizational Culture

Approaches to Managing Change Resistance to Change


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Organizational Culture

1. What is the purpose of organizational culture?

2. How do you create and maintain organizationalculture?

3. What kind of organizational culture might suit you?

4. Can organizational culture have a downside?

5. How do organizations manage change?

6. Why do people and organizations resist change?


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Henry Mintzberg on Culture

Culture is the soul of the organization

the beliefs and values, and how they are

manifested. I think of the structure as the

skeleton, and as the flesh and blood. And

culture is the soul that holds the thing

together and gives it life force.


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Organizational Culture

The pattern of shared values, beliefs, and

assumptions considered to be the appropriate

way to think and act within an organization.

Culture is shared.

Culture helps members solve problems.

Culture is taught to newcomers.

Culture strongly influences behaviour.


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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition10-6

Copyright 2007 Pearson Education Canada

Exhibit 10-1 Layers of Culture


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Levels of Culture Artifacts

Aspects of an organizations culture that you see, hear, and feel

Beliefs

The understandings of how objects and ideas relate to each

other

Values

The stable, long-lasting beliefs about what is important

Assumptions

The taken-for-granted notions of how something should be in

an organization


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Characteristics ofOrganizational Culture Innovation and risk-taking

The degree to which employees are encouraged to be innovative and take

risks. Attention to detail

The degree to which employees are expected to exhibit precision, analysis,and attention to detail.

Outcome orientation

The degree to which management focuses on results or outcomes rather

than on technique and process.

People orientation

The degree to which management decisions take into consideration theeffect of outcomes on people within the organization.


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Characteristics of OrganizationalCulture

Team orientation

The degree to which work activities are organized around teams

rather than individuals.

Aggressiveness

The degree to which people are aggressive and competitive rather

than easygoing.

Stability The degree to which organizational activities emphasize

maintaining the status quo in contrast to growth.


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Exhibit 10-2 Contrasting

Organizational Cultures

Organization A Organization 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 staywithin 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 as learning experiences.

Employees have few rules and

regulations to follow.

Productivity is balanced with treating

its people right.

Team members are encouraged to interactwith people at all levels and functions.

Many rewards are team based.


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Cultures Functions Boundary-defining Conveys a sense of identity for organization

members

Facilitates commitment to something largerthan ones individual self-interest

Social glue that helps hold an organization

togetherProvides appropriate standards for what

employees should say or do


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Cultures Functions

Serves as a sense-making and control

mechanism

Guides and shapes the attitudes and behaviour of

employees


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Do Organizations Have UniformCultures? Organizational culture represents a common

perception held by the organization members.

Core values or dominant (primary) values are acceptedthroughout the organization.

Dominant culture Expresses the core values that are shared by a majority of the

organizations members.

Subcultures Tend to develop in large organizations to reflect common

problems, situations, or experiences.


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Exhibit 10-3 How OrganizationalCulture Forms

Selection

criteria

Socialization

Organization's

culture

Philosophy

of

organization's

founders

Topmanagement

Selection

criteria

Socialization

Organization's

culture

Philosophy

of

organization's

founders

Topmanagement


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Creating and Sustaining Culture:Keeping a Culture Alive Selection

Identify and hire individuals who will fit in with the

culture.

Top Management

Senior executives establish and communicate the norms

of the organization.

Socialization

Organizations need to teach the culture to new employees.


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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-16


A Socialization Model

Prearrival Encounter Metamorphosis

Socialization Process Outcomes

Commitment

Productivity

Turnover


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Exhibit 10-5Four-Culture Typology

Fragmented

Networked

Low

High

Solidarity

Mercenary

Low High

Communal

Sociab

ility

Source: Adapted from R. Goffee and G. Jones, The Character of a Corporation: How Your Companys Culture Can Make or Break Your Business (New York: HarperBusiness, 1998), p. 21.


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Finding Your Culture Networked culture:you possess good social skills and empathy;

you like to forge close, work-related friendships; you thrive in arelaxed and convivial atmosphere.

Mercenary culture:you are goal-oriented, thrive on competition,like clearly structured work tasks.

Fragmented cul ture:you are independent, have a low need to bepart of a group atmosphere, are analytical rather than intuitive.

Communal cul ture:you have a strong need to identify with

something bigger than yourself and enjoy working in teams.


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The Liabilities of Culture

Culture can have dysfunctional aspects in someinstances.

Culture as a Barrier to Change When organization is undergoing change, culture may impede

change.

Culture as a Barrier to Diversity

Strong cultures put considerable pressure on employees to

conform. Culture as a Barrier to Mergers and Acquisitions

Merging the cultures of two organizations can be difficult, ifnot impossible.


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Strategies For Merging Cultures

Assimilation

Separation Integration


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Change Agents

People who act as catalysts and assume the

responsibility for managing change activities.


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Outside agents

Can offer an objective perspective.

Usually have an inadequate understanding ofthe organizations history, culture, operating

procedures, and personnel.

Dont have to live with the repercussions

after the change is implemented.


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Internal agents

Have to live with the consequences of their

actions.

May be more thoughtful.

May be more cautious.


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Approaches To Managing Change

Lewins Three-Step Model

Kotters Eight-Step Plan for Implementing

Change

Action Research

Appreciative Inquiry


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Exhibit 10-6 Lewins Three-StepChange Model

RefreezingMovingUnfreezing


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Lewins Three-Step Model ForImplementing Change Unfreezing

Change efforts to overcome the pressures of both

individual resistance and group conformity.

Moving

Efforts to get employees involved in the change process.

Refreezing

Stabilizing a change intervention by balancing driving and

restraining forces.


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Exhibit 10-7Unfreezing the Status Quo

Time

Drivingforces

Restrainingforces

Desiredstate

Statusquo


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Unfreezing

Arouse dissatisfaction with the current state.

Activate and strengthen top management support.

Use participation in decision making. Build in rewards.


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Moving Establish goals.

Institute smaller, acceptable changes that

reinforce and support change.

Develop management structures for change.

Maintain open, two-way communication.


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Refreezing

Build success experiences.

Reward desired behaviour.

Develop structures to institutionalize the change. Make change work.


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Exhibit 10-8 Kotters Eight-Step Plan

for Implementing Change1. Establish a sense of urgency.

2. Form a coalition.

3. Create a new vision.

4. Communicate the vision.

5. Empower others to act.

6. Develop short-term wins.7. Consolidate improvements.

8. Reinforce changes.Source: Based on J. P. Kotter,Leading Change (Boston: Harvard Business School Press, 1996).


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Action Research

A change process based on the systematic

collection of data and then selection of a

change action based on what the analyzed data

indicate.


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The Process of Action Research

Diagnosis

Analysis

Feedback

Action

Evaluation


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Appreciative Inquiry

An approach to change that seeks to identify

the unique qualities and special strengths of an

organization, which can then be built on to

improve performance.


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Steps of Appreciative Inquiry

Four Ds

Discovery

Dreaming

Design

Destiny


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Exhibit 10-9 Sources of Individual

Resistance to Change

Security

Economicfactors

Individual

Resistance

Fear of

the unknown

Selective

information

processing

Habit


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Cynicism About Change

Feeling uninformed about what washappening.

Lack of communication and respect from onessupervisor.

Lack of communication and respect from ones

union representative. Lack of opportunity for meaningfulparticipation in decision making.


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Exhibit 10-11 Sources of

Organizational Resistance to Change

Organizational

Resistance

Threat to established

resource allocations

Structural

inertia

Threat to established

power relationships

Limited focus

of change

Threat to

expertise

Group

inertia


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Overcoming Resistance to Change

Education and communication

This tactic assumes that the source of resistance lies in misinformation orpoor communication.

Best used: Lack of information, or inaccurate information

Participation and involvement

Prior to making a change, those opposed can be brought into the decisionprocess.

Best used: Where initiators lack information, and others have power toresist

Facilitation and support

The provision of various efforts to facilitate adjustment.

Best used: Where people resist because of adjustment problems


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Overcoming Resistance to Change

Negotiation and agreement

Exchange something of value for a lessening of resistance.

Best used: Where one group will lose, and has considerable power toresist

Manipulation and cooperation

Twisting and distorting facts to make them appear more attractive.

Best used: Where other tactics wont work or are too expensive

Explicit and implicit coercion

The application of direct threats or force upon resisters.

Best used: Speed is essential, and initiators have power


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Summary and Implications

1. What is the purpose of organizationalculture?

Organizational culture provides stability and

gives employees a clear understanding of theway things are done around here.

2. How do you create and maintain culture?

An organizations culture is derived from the

philosophy of its founders. It iscommunicated by managers and employeesare socialized into it.


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3. What kind of organizational culture might suit you?

Organizational cultures can be analyzed in terms of membersfriendliness (sociability) and task orientation (solidarity).

4. Can organizational culture have a downside?

A strong culture can have a negative effect, includingpressure-cooker cultures, barriers to change, difficulty increating an inclusive environment, and hindering mergersand acquisitions.

5. How do organizations manage change?

Kurt Lewin argued that successful change should follow

three steps: unfreezing, moving, and refreezing. John Kotterbuilt on Lewins work to offer an eight-step model. Twoother theories include action research and appreciativeinquiry.


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6. Why do people and organizations resist change?

Individuals resist change because of basic human

characteristics such as perceptions, personalities,and needs. Organizations resist change because

they are conservative and because change is

difficult.


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OB at Work


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For Review

1. How can an outsider assess an organizations culture?

2. What defines an organizations subcultures?

3. Can an employee survive in an organization if he or sherejects its core values? Explain.

4. What benefits can socialization provide for theorganization? For the new employee?

5. Describe four cultural types and the characteristics ofemployees who fit best with each.


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For Review

6. How can culture be a liability to an organization?

7. How does Lewins three-step model of change deal with

resistance to change?8. How does Kotters eight-step plan for implementing

change deal with resistance to change?

9. What are the factors that lead individuals to resistchange?

10.What are the factors that lead organizations to resistchange?


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For Critical Thinking

1. How are an individuals personality and anorganizations culture similar? How are they different?

2. Is socialization brainwashing? Explain.3. Can you identify a set of characteristics that describes

your colleges or universitys culture? Compare themwith several of your peers lists. How closely do theyagree?

4. Resistance to change is an irrational response. Do youagree or disagree? Explain.


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Point-CounterPoint Why Culture Doesnt

Change

Culture develops over many

years, and becomes part ofhow the organization thinks

and feels.

Selection and promotion

policies guarantee survival of

culture. Top management chooses

managers who are likely to

maintain culture.

When Culture Can

Change There is a dramatic crisis.

There is a turnover in

leadership.

The organization is young and

small.

There is a weak culture.


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Breakout Group Exercises

Form small groups to discuss the following:

1. Identify artifacts of culture in your current or previousworkplace. From these artifacts, would you conclude that theorganization has a strong or weak culture?

2. Have you or someone you know worked somewhere where theculture was strong? What was your reaction to that strongculture? Did you like that environment, or would you prefer towork where there is a weaker culture? Why?

3. Reflect on either the culture of one of your classes or theculture of the organization where you work, and identify

characteristics of that culture that could be changed. How mightthese changes be made?

10 Langton Fob 3ce Ch10

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