1. Managing Organizational Culture and Change
Chapter 5
Managing Organizational Culture and Change

2. Management Challenges After reading this chapter, you should be able to:
Describe how organizational culture helps management achieve its objectives.
Understand how cultural symbols, rites, ceremonies, heroes, and stories are used to sustain an organization’s culture.
Recognize the differences between strong and weak organizational cultures, and identify situations in which each of these cultures may be advantageous.
Adapt to organizational change and the forces that drive change.
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3. Management Challenges (continued)
Identify the four different types of organizational cultures and the characteristics of people who fit best with each.
Direct and counsel employees who resist organizational change.
Apply the tactics of change agents while taking into consideration potential sources of resistance.
Use tools that enhance our understanding of the change process, such as Lewin’s three-step model of change and force field analysis.
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4. Skills for managing organizational culture and change:
Cultural diagnostic skills
Cultural strategic skills
Managing culture skills
Change management skills
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5. Organizational Culture
A system of shared values, assumptions, beliefs, and norms that unite the members of an organization.
Reflects employees’ views about “the way things are done around here.”
The culture specific to each firm affects how employees feel and act and the type of employee hired and retained by the company.
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6. Core Values Levels of Corporate Culture Visible Culture
Expressed Values
Core Values
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7. Functions performed by organizational culture:
Employee Self-Management
Sense of shared identity
Generation of commitment
Stability
Sense of continuity
Satisfies need for predictability, security, and comfort
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8. Functions performed by organizational culture: (continued)
Socialization
Internalizing or taking organizational values as one’s own
Implementation Support of the Organization’s Strategy
If strategy and culture reinforce each other, employees find it natural to be committed to the strategy
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9. Stages of the Socialization Process
Pre-arrival
Encounter
Metamorphosis
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10. Creating and Sustaining Organizational Culture
Company Rituals and Ceremonies
Cultural Symbols
Company Heroes
Stories
Language
Organizational Policies and Decision Making
Leadership
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11. Aspects of organizational culture
Cultural Uniformity versus Heterogeneity
Strong versus Weak Cultures
Culture versus Formalization
National versus Organizational Culture
Organizational Fit
Baseball team culture
Club culture
Academy culture
Fortress culture
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12. Managing Organizational Change
Organization culture can facilitate or inhibit change in an organization.
A firm attempts to change organizational culture because the current culture hinders the attainment of corporate goals.
Environmental and internal forces can stimulate the need for organization change.
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13. Forces for Change: Environmental Forces
Put pressure on how a firm conducts its business and its relationships with customers, suppliers, and employees.
Environmental forces include:
Technology
Market forces
Political and regulatory forces
Social trends
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14. Forces for Change: Internal Forces
Come from decisions made within the company.
May originate with top executives and managers and travel in a top-down direction.
May originate with front-line employees or labor unions and travel in a bottom-up direction.
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

15. Resistance to Change Self-Interest Cultures that Value Tradition
Lack of Trust and Understanding
Different Perspectives and Goals
Uncertainty
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16. Models of Organizational Change
Lewin’s three-step model
Force-field analysis model
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17. Lewin’s Three-Step Model of Organizational Change
Unfreezing
Change
Refreezing
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18. Force-field Model of Change
Desired state
Restraining forces
Status quo
Driving forces
Time
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19. Implementing Organizational Change
Top-down Change
Change Agents
Bottom-up Change
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20. Change agents should take the following steps to obtain a successful change outcome:
Establish a sense of urgency.
Form a powerful coalition of supporters of change.
Create a vision of change.
Communicate the vision of change.
Empower others to act on the vision.
Plan and create short-term wins.
Consolidate improvements and produce still more change.
Institutionalize new approaches.
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21. Tactics for Introducing Change
Communication and Education
Employee Involvement
Negotiation
Coercion
Top-Management Support
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22. Applications of Management Perspectives: For the Manager
Certain types of changes routinely provoke strong employee resistance:
Changes that affect skill requirements.
Changes that represent economic or status loss.
Changes that involve disruption of social relationships.
By being aware of the sources of resistance, managers can better apply tactics to make the changes more palatable for employees.
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23. Applications of Management Perspectives: For Managing Teams
Teams can help test the waters for a proposed change.
Various employee teams can serve as focus groups in order to find ways to make a change in policy more acceptable to employees.
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

24. Applications of Management Perspectives: For Individuals
Learning the specifics about the company culture can help you determine your fit with the organization and the possibility of succeeding.
Ask questions and gather information during the recruiting process to get a handle on the company culture and assess whether you will function comfortably in it.
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.