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An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 1.

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Presentation on theme: "An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 1."— Presentation transcript:

1 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 1 Chapter 3 Changing the Culture

2 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 2 Learning Objectives Recognize importance of corporate culture. Identify key factors assessing culture. Describe culture leading to effective organizations. Describe ethical, value, and goal considerations.

3 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 3 Creating Climate for Change Challenge of managers is: –Create renewing system. –Develop long-term efforts. Culture often key to success. Cultural change result of complex strategy.

4 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 4 Understanding Corporate Culture Environment of rapid change. Static organizational culture no longer effective.

5 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 5 What Is Corporate Culture? Culture is system of: –Shared values. –Beliefs. –Behavioral norms. Observed behavioral norms. Dominant values. Learning ropes for newcomers.

6 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 6 Culture Comes from 2 Subsystems Managerial. Organizational.

7 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 7 Managerial Subsystem Creates Culture How employees are treated. Through actions and words. Vision articulated by top management.

8 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 8 Organizational Subsystem Creates Culture Outside factors (market, etc.) define culture. Technology. Job descriptions. Type of structure (tall vrs. flat).

9 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 9 Figure 3.1 Culture Formation

10 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 10 Corporate Culture and Success High-performing companies have strong cultures. Many cultures fail to adapt to change. Following corporate mergers, cultures often clash.

11 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 11 Key Factors to Improve Culture Create vision for the future. Develop model for change. Reward changes.

12 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 12 Cultural Resistance to Change Changing culture not easy. Time required. Culture can prevent company from adapting.

13 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 13 Pressure Points to Bring About Change Recession. Deregulation. Technological upheavals. Social factors. Global competition. Outsourcing. Markets.

14 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 14 Tools for Change (part 1 of 4) Information. Support. Resources.

15 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 15 Information (part 2 of 4) Provide information to people. Provide ability to gather information. One method is open-book management.

16 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 16 Support (part 3 of 4) Support and collaboration from other departments. Management support to provide climate of risk taking.

17 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 17 Resources (part 4 of 4) Funds. Staff. Equipment. Materials. Innovative programs for providing resources include: –Venture capital. –Innovation banks.

18 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 18 Organizational Dimensions Affecting Performance Managerial effectiveness. –Accomplishing goals and objectives. Managerial efficiency. –Ratio of results to resources. Motivational climate. –Employee attitudes that influence performance.

19 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 19 Other Criteria for Organizational Effectiveness Adaptability. Sense of identity. Capacity to test reality.

20 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 20 OD Professional Values and Ethics Expertise. Autonomy. Commitment. Code of ethics.

21 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 21 OD Implementation Issues (part 1 of 4) Success depends on: –Congruence between OD values and organization’s values. Key issue is fit between between practitioner and client: –Compatibility of values. –Imposed change. –Priority of goals.

22 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 22 Compatibility of Values (part 2 of 4) Practitioners differ on degree of congruency with client values. –Some believe personal values are compatible with client. –Others will help client as long as operations legal.

23 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 23 Imposed Change (part 3 of 4) OD ideally implemented voluntarily. Top management may impose program. OD practitioners cognizant of power and politics.

24 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 24 Priority of Goals (part 4 of 4) Determine goals given precedence. Challenge to develop balanced intervention: –One that improves productivity and –Quality of work for members.

25 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 25 OD Values About Nature of Organization Members Respect for people. Trust and support. Power equalization. Confrontation and open communication. Participation.

26 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 26 Table 3.1 OD Values

27 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 27 OD Application Culture and Setpoint Systems Setpoint builds unique automation equipment. Required are self-motivated employees. –Who can solve problems and –Look for ways to improve processes. Uses project management and open- book accounting.

28 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 28 Production employees use these techniques to: –Understand the business and –Know where to focus attention. Culture is one where employees: –Understand the business and –Provide thorough attention to financials.

29 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 29 OD Application How Trilogy’s University Helps Build Its Culture Trilogy is small but competes with large software companies. Key goal is to attract talented people. Fosters new methods in relationships with clients and employees.

30 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 30 It operates a three-month long “boot camp.” –New employees integrated into company. –Employees learn values and culture. –Receive comprehensive evaluation and feedback. Program provides source for renewal. –Provides new services and products. Relationships formed, new leaders created.

31 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 31 Key Words and Concepts Corporate culture. –System of shared values and beliefs. –Interact with people, structure, systems. Managerial effectiveness. –Ability to accomplish specific organizational goals.

32 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 32 Managerial efficiency. –Ratio of output (results) to input (resources). Motivational climate. –Employee attitudes that influence performance.

33 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 33 Open-book management. –Employees understand accounting statements. –Use knowledge in work. Professionalism. –Value system that is part of profession.

34 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 34 OD Skills Simulation 3.1 The Dim Lighting Co. Purpose: –Compare decisions made by individuals with those made by group. –Practice effective consensus-seeking techniques. –Gain insights into concept of cultural values.

35 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 35 Preparations for Next Chapter Read Chapter 4. Complete Steps 1 through 4 of OD Skills Simulation 4.1. Read and prepare Case: The Grayson Chemical Company

36 An Experiential Approach to Organization Development 8 th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 3 Slide 36


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