1. An Experiential Approach to Organization Development 7th edition
Chapter 3
Changing the Culture
An Experiential Approach to Organization Development 7th edition

2. An Experiential Approach to Organization Development 7th edition
Learning Objectives
Recognize importance of corporate culture.
Identify key factors assessing culture.
Describe culture leading to effective organizations.
An Experiential Approach to Organization Development 7th edition

3. Culture Change at Tivoli Systems
Tivoli in competitive software business.
Part of IBM.
IBM tries to infuse culture of Tivoli into IBM.
IBM placed Tivoli in charge of systems management business.
Goal to blend power of IBM with speed of small company.
An Experiential Approach to Organization Development 7th edition

4. Creating Concept for Change
Challenge of managers is:
Create renewing system.
Develop long-term efforts.
Culture often key to success.
Cultural change result of complex strategy.
An Experiential Approach to Organization Development 7th edition

5. Understanding Corporate Culture
Given an environment of rapid change, a static organizational culture can no longer be effective.
An Experiential Approach to Organization Development 7th edition

6. Our Changing World: 54 Gallons of Soda (part 1 of 2)
Coca-Cola one of most recognized brands.
Sells 300 brands in 200 markets.
Despite boom in 80s and 90s, Coke facing serious problems.
An Experiential Approach to Organization Development 7th edition

7. Our Changing World: 54 Gallons of Soda (part 2 of 2)
Coke undergoing cultural transformation.
Changing to innovation.
Trying to better understand customers.
Customizes brands to please local tastes.
Emphasis shifted from U.S. and Japan to other countries.
An Experiential Approach to Organization Development 7th edition

8. What Is Corporate Culture?
Culture is a system of:
Shared values. Beliefs. Behavioral norms.
Observed behavioral norms.
Dominant values.
Learning the ropes for newcomers.
An Experiential Approach to Organization Development 7th edition

9. Culture From 2 Subsystems
Managerial.
Organizational.
An Experiential Approach to Organization Development 7th edition

10. An Experiential Approach to Organization Development 7th edition
Managerial Subsystem
Through actions and words, managers define philosophy of how employees are treated.
Vision articulated by top management.
An Experiential Approach to Organization Development 7th edition

11. Organizational Subsystem
Outside factors define culture.
Technology influences culture.
Job descriptions and structure influence culture’s development.
An Experiential Approach to Organization Development 7th edition

12. Figure 3.1 Culture Formation
An Experiential Approach to Organization Development 7th edition

13. Corporate Culture and Success
High-performing companies have strong cultures.
Many cultures fail to adapt to change.
Following corporate mergers, cultures often clash.
An Experiential Approach to Organization Development 7th edition

14. Key Factors to Improve Culture
Create vision for the future.
Develop model for change.
Reward changes.
An Experiential Approach to Organization Development 7th edition

15. Cultural Resistance to Change
Changing culture not easy.
Time required.
Culture can prevent company from adapting.
An Experiential Approach to Organization Development 7th edition

16. Organizational Adaptability
Recession.
Deregulation.
Technological upheavals.
Social factors.
Global competition.
Outsourcing.
Markets.
An Experiential Approach to Organization Development 7th edition

17. Tools for Change (part 1 of 4)
Information.
Support.
Resources.
An Experiential Approach to Organization Development 7th edition

18. An Experiential Approach to Organization Development 7th edition
Information (part 2 of 4)
Provide information to people.
One method is open-book management.
An Experiential Approach to Organization Development 7th edition

19. An Experiential Approach to Organization Development 7th edition
Support (part 3 of 4)
Support and collaboration from other departments.
Management support to provide climate of risk taking.
An Experiential Approach to Organization Development 7th edition

20. An Experiential Approach to Organization Development 7th edition
Resources (part 4 of 4)
Funds.
Staff.
Equipment.
Materials.
Innovative programs for providing resources including:
Innovation Banks
Skunk works.
Venture capital.
An Experiential Approach to Organization Development 7th edition

21. OD in Practice: What’s Your Culture Worth (part 1 of 2)
Setpoint is custom-manufacturing company with about 30 employees.
Petersen of Petersen Inc. wanted to learn about open-book management.
An Experiential Approach to Organization Development 7th edition

22. OD in Practice: What’s Your Culture Worth (part 2 of 2)
Employees on shop floor explained it in detail.
Rank-and-file understood accounting concepts that helped to make decisions.
Had specific objectives to meet daily and weekly profit goals.
An Experiential Approach to Organization Development 7th edition

23. Table 3.1 Key Factors in Culture Change
An Experiential Approach to Organization Development 7th edition

24. Organizational Dimensions Affecting Performance
Managerial effectiveness.
Managerial efficiency.
Motivational climate.
An Experiential Approach to Organization Development 7th edition

25. Other Criteria for Organizational Effectiveness
Adaptability.
Sense of identity.
Capacity to test reality.
An Experiential Approach to Organization Development 7th edition

26. OD Professional Values and Ethics
Expertise.
Autonomy.
Commitment.
Code of ethics.
An Experiential Approach to Organization Development 7th edition

27. OD Implementation Issues
Success dependent upon fit between OD values and organization’s values.
Key issue is value orientations and purpose of change.
An Experiential Approach to Organization Development 7th edition

28. An Experiential Approach to Organization Development 7th edition
Imposed Change
OD ideally implemented voluntarily.
Top management may impose program.
OD practitioners cognizant of power and politics.
An Experiential Approach to Organization Development 7th edition

29. Determine Priority of Goals
Goals given precedence.
Develop balanced intervention.
An Experiential Approach to Organization Development 7th edition

30. OD Values About Nature of Human Beings
Respect for people.
Trust and support.
Power equalization.
Confrontation.
Participation.
An Experiential Approach to Organization Development 7th edition

31. An Experiential Approach to Organization Development 7th edition
Table 3.2 OD Values
An Experiential Approach to Organization Development 7th edition

32. An Experiential Approach to Organization Development 7th edition
Key Words and Concepts
Corporate culture - system of shared values and beliefs that interact with people, structure, and systems.
Managerial effectiveness - ability to accomplish specific organizational goals.
An Experiential Approach to Organization Development 7th edition

33. An Experiential Approach to Organization Development 7th edition
Managerial efficiency - ratio of output (results) to input (resources).
Motivational climate - employee attitudes that influence performance.
Open-book-management - employees understand accounting statements and use knowledge in work.
An Experiential Approach to Organization Development 7th edition

34. An Experiential Approach to Organization Development 7th edition
Organizational effectiveness - result of successful OD program.
Professionalism - value system that is part of profession.
An Experiential Approach to Organization Development 7th edition

35. Preparations for Next Chapter
Read Chapter 4.
Complete Steps 1 through 4 of OD Skills Simulation 4.1. (Takes minutes.)
An Experiential Approach to Organization Development 7th edition