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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Preparations for Next Chapter Read Chapter 4. Complete Steps 1 through 4 of OD Skills Simulation 4.1. (Takes 30 - 60 minutes.) An Experiential Approach to Organization Development 7th edition