1. Chapter 11 ©2001 South-Western College Publishing Pamela S. Lewis Stephen H. Goodman Patricia M. Fandt Slides Prepared by Bruce R. Barringer University of Central Florida Pamela S. Lewis Stephen H. Goodman Patricia M. Fandt Slides Prepared by Bruce R. Barringer University of Central Florida Organizational Culture, Change, and Development

2. Transparency 11-2 © 2001 South-Western Publishing Learning Objectives Slide 1 of 2 1.Discuss the foundations of organizational culture. 2.List and explain the two components of organizational culture. 3.Clarify the differences between the different types of organizational artifacts. 4.Address the impact of culture on the organization.

3. Transparency 11-3 © 2001 South-Western Publishing Learning Objectives Slide 2 of 2 5.Explain how organizational culture can be changed. 6.Identify and discuss the targets of planned change. 7.Describe the steps for planned change. 8.Identify ways managers can gain support of employee concerns in the change process. 9.Explain how empowering others to act on a vision affects the change process.

4. Transparency 11-4 © 2001 South-Western Publishing Foundations of Organizational Culture Slide 1 of 2 Organizational culture is the shared, emotionally charged beliefs, values, and norms that bind people together and help them make sense of the systems within an organization.

5. Transparency 11-5 © 2001 South-Western Publishing Foundations of Organizational Culture Slide 2 of 2 Culture influences how people act in organizations: the ways in which people perform, view their jobs, work with colleagues, and look at the future. Impact of Organizational Culture

6. Transparency 11-6 © 2001 South-Western Publishing Components of Organizational Culture Substance –Consists of shared systems of beliefs, values, expectations, and norms. Form –Consists of the observable ways that members of a culture express ideas.

7. Transparency 11-7 © 2001 South-Western Publishing Organizational Artifacts –Cultural routines that form the substance of public functions and events staged by the organization. –Artifacts support and reinforce the organization’s shared beliefs, value systems, expectations, and norms. Evaluating Culture Through Organizational Artifacts

8. Transparency 11-8 © 2001 South-Western Publishing Rites, Rituals, and Ceremonies –A relatively dramatic, planned set of recurring activities used at special times to influence the behavior and understanding of organizational members. –Through rituals and ceremonies, participants gain an understanding of and cement beliefs that are important to the organization’s culture. Rites, Rituals, and Ceremonies

9. Transparency 11-9 © 2001 South-Western Publishing Language Systems and Metaphors –The way that organizational members typically express themselves and communicate with each other. Stories and Sagas –Narratives based on true events that are distorted to incorporate fictional embellishment. They graphically and quickly communicate emotionally charged beliefs to newcomers. Other Components of Organizational Culture

10. Transparency 11-10 © 2001 South-Western Publishing The Impact of Culture on Organizations Strong Cultures –Shared values and beliefs create a setting in which people are committed to one another and share an overriding sense of mission. –A strong culture can cause a resistance to change, however, by reinforcing a singular view of the organization and the environment.

11. Transparency 11-11 © 2001 South-Western Publishing Changing Organizational Culture Issues Involved in Changing Organizational Culture –Top managers can set the tone for a culture and for culture change. –Managers who strive for high-quality products and services understand that they must involve the keepers and holders of the culture, build on what all organizational members share, and teach new members how to behave.

12. Transparency 11-12 © 2001 South-Western Publishing The Challenge of Organizational Change Organizational Change –Any alteration of activities in an organization. Alterations can involve the structure of the organization; the transfer of work tasks; the introduction of new products, systems, or technologies; or behavior among members.

13. Transparency 11-13 © 2001 South-Western Publishing Targets for Change Slide 1 of 4 Individual Targets –Involves human resource changes. –Changes in this area are triggered by new staffing strategies or by an effort to enhance workforce diversity. The number and skills of the human resource component. Improving levels of employee motivation and performance.

14. Transparency 11-14 © 2001 South-Western Publishing Targets for Change Slide 2 of 4 Group Targets –Involves changes in the nature of the relationship between managers and subordinates or the relationships within work groups.

15. Transparency 11-15 © 2001 South-Western Publishing Targets for Change Slide 3 of 4 Organizational Targets –Involves changes in any of the following areas: Basic goals and strategies of the organization Products, quality, or services offered Organizational structure The composition of work units Organizational processes such as reward, communication, or information processing system The culture

16. Transparency 11-16 © 2001 South-Western Publishing Targets for Change Slide 4 of 4 Environmental Targets –Involves changing sectors of an organization’s environment –For example, changes in products or services offered may require new technology or a new distribution system

17. Transparency 11-17 © 2001 South-Western Publishing A Framework for Change Force Field Analysis –A systematic process for examining the pressures that are likely to support or resist a proposed change. –This framework was proposed by organizational researcher Kurt Lewin, whose approach recognizes that merely introducing a change does not guarantee that the change will be successful. –The three aspects of change identified by Lewin include unfreezing, changing, and refreezing.

18. Transparency 11-18 © 2001 South-Western Publishing Steps for Planned Change Create a vision: Unfreeze behavior Clarifies and directs change effort Communicate: Share information Gains support and helps members learn Empower employees to act Provides training and development to implement Institutionalize: Refreeze Reinforces and rewards the new behaviors Evaluate: Examine feedback Establishes criteria for success and monitors changes

19. Transparency 11-19 © 2001 South-Western Publishing Steps for Planned Change: Step 1 Slide 1 of 2 Creating a Vision –Establishing a vision or goal is the first step in the process. –The vision often triggers the beginning of the unfreezing process when an initial awareness of the need for change and the forces supporting and resisting change are recognized.

20. Transparency 11-20 © 2001 South-Western Publishing Steps for Planned Change: Step 1 Slide 2 of 2 Creating a Vision –The vision often triggers the beginning of the unfreezing process. Unfreezing is a process that involves developing an initial awareness of the need for change and the forces supporting and resisting change. –Other relevant topics. Driving force - The push for change in the status quo. Restraining force - The force to keep the status quo. External forces - Forces that are fundamentally beyond the control of management.

21. Transparency 11-21 © 2001 South-Western Publishing Steps for Planned Change: Step 2 Communication and Information Sharing –Valuable way to help organization members learn to embrace change. –To gain the support of employees for the change efforts, management should consider their most commonly expressed concerns. Information - “What’s going to happen?” Personal involvement - “How will I fit in?” Implementation - “How do I get started on the change?” Impact - “What will be different?”

22. Transparency 11-22 © 2001 South-Western Publishing Steps for Planned Change: Step 3 Empowering Others to Act on the Vision –The change process focuses on providing training and educational opportunities to help employees learn the new behavior they need to implement the vision.

23. Transparency 11-23 © 2001 South-Western Publishing Steps for Planned Change: Step 4 Institutionalization or Refreezing the New Approaches –This step centers on reinforcing new behavior, usually by positive results, feelings of accomplishment, or rewards from others.

24. Transparency 11-24 © 2001 South-Western Publishing Steps for Planned Change: Step 5 Evaluation –An important and often overlooked step. –Management needs to know whether the change had the intended effects.

25. Transparency 11-25 © 2001 South-Western Publishing Effective Organizational Culture and Change Slide 1 of 3 Research suggests a number of activities that will help managers achieve effective organizational culture and change. Solicit input from those who will be affected by organizational change. Involvement is essential to accepting the need for change.

26. Transparency 11-26 © 2001 South-Western Publishing Effective Organizational Culture and Change Slide 2 of 3 Carefully formulate your message regarding the need for and nature of organizational change. The success of the change process will depend on effective communication. Assess your organizational environment and be sure that the tone and the tempo of the change fits the organization. Timing is everything.

27. Transparency 11-27 © 2001 South-Western Publishing Effective Organizational Culture and Change Slide 3 of 3 Serve as a role model for the behaviors sought by the organizational change. Actions speak louder than words.