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Ch03 changing the culture report

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  • 1. CHANGING THE CULTURE KRIZELLE A DINLASAN MBA3
  • 2. Creating A Concept for Change Change, massive change, is having an impact on all facets of society, creating new dimensions and great uncertainty. Change is inevitable.
  • 3. Understanding Corporate Culture Reinventing lies not in marginally changing the current way of doing business, but creating totally new approaches, new technologies, and new markets. Managers must be able to recognize when changes are necessary and must possess the skills and competence to implement these changes.
  • 4. What is Corporate Culture?•Is a system of shared values and beliefs thatinteract with an organization’s people, structure,and systems to produce behavioral norms (“theway things are done around here”)
  • 5. What is Corporate Culture?
  • 6. Management Style + Corporate Culture = Central Factors of Success (Organizational Strategy)
  • 7. Corporate Culture-set the tone for the -goals achieved andwhole organization needs satisified  Problem approach Communication  Serve customers Decision-making  React to competitors Leadership patterns  Carry out activitiesNo basic culture that works A strong widely internalized best for all organizations. corporate culture – reason for success of some
  • 8. Corporate Cultural Index (Henry Migliore)1. Goals 11. Values2.Planning 2. Training3. Planning Effectiveness 13. Teamwork4. Morale 14. Social5. Performance Appraisals 15. Ethics6. Awards 16. Leader7. Freedom 17. Interaction8. Communications 18. Benefits9. Job Satisfaction 19. Perception10. People 20. Environment
  • 9. CCI include the following characteristics:Member IdentityTeam EmphasisPeople FocusAutonomyControlRisk Tolerance
  • 10. CCI include the following characteristics:Member IdentityTeam EmphasisPeople FocusAutonomyControlRisk Tolerance
  • 11. CCI include the following characteristics:Member IdentityTeam Emphasis - employees identify with the organizationPeople Focus as a whole on their type of job or field ofAutonomy professional expertise.ControlRisk Tolerance
  • 12. CCI include the following characteristics:Member IdentityTeam EmphasisPeople FocusAutonomyControlRisk Tolerance
  • 13. CCI include the following characteristics:Member IdentityTeam Emphasis - the degree to whichPeople Focus work activities are organized aroundAutonomy teams rather than individuals.ControlRisk Tolerance
  • 14. CCI include the following characteristics:Member IdentityTeam EmphasisPeople FocusAutonomyControlRisk Tolerance
  • 15. CCI include the following characteristics:Member IdentityTeam Emphasis - the degree to whichPeople Focus manager empowers the employees withinAutonomy the organization.ControlRisk Tolerance
  • 16. CCI include the following characteristics:Member IdentityTeam EmphasisPeople FocusAutonomyControlRisk Tolerance
  • 17. CCI include the following characteristics:Member IdentityTeam Emphasis - the degree to which departments withinPeople Focus the organization are encouraged to operateAutonomy in a coordinated or interdependentControl manner.Risk Tolerance
  • 18. CCI include the following characteristics:Member IdentityTeam EmphasisPeople FocusAutonomyControlRisk Tolerance
  • 19. CCI include the following characteristics:Member IdentityTeam Emphasis - the degree to whichPeople Focus rules, regulations, and direct supervision areAutonomy used to control employee behavior.ControlRisk Tolerance
  • 20. CCI include the following characteristics:Member IdentityTeam EmphasisPeople FocusAutonomyControlRisk Tolerance
  • 21. CCI include the following characteristics:Member IdentityTeam Emphasis - the degree to whichPeople Focus employees are encouraged to beAutonomy aggressive, innovative, and risk-seeking.ControlRisk Tolerance
  • 22. Corporate Culture and Successgives the organization a sense ofa. how to behaveb. what to do, andc. where to set the priorities in getting the job done.In today’s rapidly changing environment, many cultures fail to adapt to change, and therefore fail as economic entities.
  • 23. Corporate Culture and Success, cont...Cultures often clash following mergers, downsizing, or other restructuring.Both mergers and internal restructurings involve bringing groups together that may have very different goals, operating methods, and cultures.International mergers – even more complex (national culture and language) We versus They
  • 24. What makes for excellence in the management of an organization? Flexibility InnovationChanges include: Improving product quality Increasing speed of responsiveness Expanding customer orientationHence, the need to alter corporate culture, which means change in the basic values, in the hearts and mind of the employees. Reengineering = radical redesign = significant culture change
  • 25. The Impact of Key Factors In order to create a winning culture,manager needs to adapt their managerial style,values, and goals to fit the changing demands ofthe environment.
  • 26. Key factors to improve organization effectiveness:1. Create a vision for Provides:the future •Direction •Focus •Commitment
  • 27. Key factors to improve organization effectiveness:2. Develop a model Total organizationfor Change often starts in one unit or subculture of an organization
  • 28. Key factors to improve organization effectiveness:3. Reward Changes Underlying concept on motivation
  • 29. Cultural Resistance to Change Changing a corporate culture is not easy. Culture emerges out of the shared behaviors and the working relationships of organization members that have developed over time. Pressure points: •Recession. •Deregulation. •Technological upheavals •Social factors. •Global competition. •Outsourcing. •Markets.
  • 30. Tools for ChangeA. INFORMATION-provides people with information or ability to gatherinformation-- open-book management – employees are taught tounderstand accounting and financial statements
  • 31. Tools for Change B. SUPPORT-Providesthe corporate entrepreneur with the supportand necessary “go ahead”-Can remove the fear to fail
  • 32. Tools for Change C. RESOURCES-Provides the funds, staff, equipment, and materials, tocarry out the project.
  • 33. Key Factors in Cultural Changea. Understand the old culture.b. Encourage change in employees.c. Follow outstanding units.d. Don’t impose cultural change.e. Lead with a vision.f. Large-scale change takes time.g. Live the new culture.
  • 34. The Goals and Values of OD Three Basic Organizational Dimensions Managerial - accomplishment of specific organizational goalsEffectiveness and objectives, or “doing the right thing”Managerial - ratio of output (results) to input (resources), orEfficiency “doing the things right”Motivational - consists of the set of employee attitudes and Climate morale that influence the level of performance
  • 35. Other indicators of organizational effectiveness and health: Adaptability A sense of identity Capacity to test and vision reality- Ability to solve - Organization’s - Ability to search outproblems and to react knowledge and insight and accuratelywith flexibility to about what goals are interpret the realchanging and what it has to do. properties of theenvironmental environment, esp fordemands. the functioning of the organization.
  • 36. OD Professional Values and Ethics Professional- determined by the degree to which he or she has internalized certain values pertinent to the profession. Four areas:a. Expertise – specialized knowledge and skill (study and experience)b. Autonomy – right to decidec. Commitment – to the discipline (identify with own organization)d. Code of Ethics – responsibility to society
  • 37. OD Implementation Issues- The success of an OD program, is to a great extend, dependent upon the fit between OD values and the organization’s values. Compatibility of Values- The degree to which practitioner’s personal values are congruent with those of the client.
  • 38. Other limit themselves to client systems that can afford their professional fees.Source: B.C. (Johnny Hart and Creators Syndicate, Inc.)
  • 39. Imposed Change- The question of choice in deciding to implement a change program. Determining the Priority of the Goals- Which goals of the OD program is likely to be given precedence.
  • 40. Values of OD a. Respect for people. b. Trust and support. c. Power equalization. d. Confrontation. e. Participation Objectives of ODTo create organizational cultures that are more effective, more potent, more innovative, and better equipped to accomplish both organizational and member goals
  • 41. End of Presentation... THANK YOU!!!