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Personality of the organization. Comprised of the assumptions, values, norms and tangible signs of organization members and their behaviors. Difficult to express distinctly, but everyone knows it when they sense it Particularly important when attempting to manage organization-wide change Organizational Culture
Importance: Organizational change failure is credited to lack of understanding about the strong role of culture and the role it plays in organizations. That's one of the reasons that many strategic planners now place as much emphasis on identifying strategic values as they do mission and vision.
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
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
Stages of the Socialization Process Pre-arrival Encounter Metamorphosis
Creating and Sustaining Organizational Culture Company Rituals and Ceremonies Cultural Symbols Company Heroes Stories Language Organizational Policies and Decision Making Leadership
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
Types of Culture : - There are different types of culture just like there are different types of personality Academy Culture (highly skilled and tend to stay in the organization) Eg :universities, hospitals, large corporations, etc Baseball Team Culture (Employees are "free agents" who have highly prized skills,high demands)Eg : Investment banking, advertising, etc.
Club Culture (Requirement for employees in this culture is to fit into the group)Eg : Military, some law firms, etc Fortress Culture (Employees don't know if they'll be laid off or not. These organizations often undergo massive reorganization) Eg : savings and loans, large car companies, etc.
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.
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
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.
Resistance to Change Self-Interest Lack of Trust and Understanding Cultures that Value Tradition Different Perspectives and Goals Uncertainty
6/28/2011 Murlidhar Puthran 15 Overcoming Resistance to Change Education and communication Participation and involvement Facilitation and support Negotiation and agreement
Models of Organizational Change Lewin’s three-step model
Lewin’s Three-Step Model of Organizational Change Unfreezing Moving Refreezing
18 Implementing Change Unfreezing: getting ready for change Moving: making the change Refreezing: stabilizing the change
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.
Tactics for Introducing Change Communication and Education Employee Involvement Negotiation Coercion Top-Management Support
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.
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.
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.