Chapter        4              Managing Organizational               Culture and ChangeMcGraw-Hill                  © 2004 ...
McGraw-Hill   © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives              After reading this chapter, you should be able to:       Build  and maintain an appropri...
Organizational Culture      A   system of shared values, assumptions, beliefs, and         norms that unite the members o...
Levels of         Corporate    Visible Culture         Culture                     Expressed Values                     Co...
Functions Performed By                       Organizational Culture      Employee           Self-Management              ...
Functions Performed By                 Organizational Culture (cont)      Socialization              Internalizing   or ...
Stages of the Socialization Process                         Pre-arrival                         Encounter                 ...
Creating and Sustaining                   Organizational Culture                              Cultural Symbols            ...
Characteristics and Types of                Organizational Culture      Cultural  Uniformity versus         Heterogeneity...
Characteristics and Types of                Organizational Culture (continued)      Types:  Traditional Control or       ...
Four Types of Culture Classification               Baseball  team culture--rapidly                changing environment   ...
Competing Values Framework      Based           on two dimensions: focus and control                 Focus--whether the ...
Types of Change       Planned   Change--change that is         anticipated and allows for advanced         preparation   ...
Forces for Change:                        Environmental Forces      Put   pressure on a firm’s relationships with        ...
Forces for Change: Internal Forces      Arise from events within the       company.      May originate with top       ex...
Resistance to Change                              Self-Interest        Cultures that Value                                ...
Models of Organizational Change:                  The Star Model      The        Star Model: Five Points              Ty...
Lewin’s Three-Step Model of                Organizational Change      Unfreezing--melting   away       resistance      C...
Lewin’s Force Field Analysis Model      Increase  driving forces that       drive change      Reduce restraining forces ...
Force-field Model of Change  Desired  state               Restraining forces  Status quo                Driving forces    ...
Implementing Organizational Change                      Top-down Change                       Change Agents               ...
Eight Steps to a Planned                    Organizational Change             Establish a sense of            Empower ot...
Tactics for Introducing Change                      Communication and                         Education                   ...
Applications: Management is Everyone’s                       Business—For the Manager       Certain  types of changes rou...
Applications: Management is Everyone’s                     Business—For Managing Teams       Teams  can help test the wat...
Applications: Management is Everyone’s                        Business—For Individuals       Learning   the specifics abo...
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  • Managing

    1. 1. Chapter 4 Managing Organizational Culture and ChangeMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    2. 2. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    3. 3. Learning Objectives After reading this chapter, you should be able to:  Build and maintain an appropriate company culture.  Understand the roles of symbols, rites, ceremonies, heroes, and stories in an organizations culture.  Identify the various categories of organizational cultures and the characteristics of people who fit best with them.  Adapt to organizational change and the forces that drive change.  Work with employees who resist change.  Use tools to help implement change, including Lewin’s three- step model of change and force field analysis.McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    4. 4. 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.McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    5. 5. Levels of Corporate Visible Culture Culture Expressed Values Core ValuesMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    6. 6. Functions Performed By Organizational Culture Employee Self-Management Sense of shared identity Facilitates commitment Stability Sense of continuity Satisfies need for predictability, security, and comfortMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    7. 7. Functions Performed By Organizational Culture (cont) 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 strategyMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    8. 8. Stages of the Socialization Process Pre-arrival Encounter MetamorphosisMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    9. 9. Creating and Sustaining Organizational Culture Cultural Symbols Company Rituals and Ceremonies Company Heroes Stories Language Organizational Policies and Decision Making LeadershipMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    10. 10. Characteristics and Types of Organizational Culture Cultural Uniformity versus Heterogeneity Strong versus Weak Cultures Culture versus Formalization National versus Organizational CultureMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    11. 11. Characteristics and Types of Organizational Culture (continued) Types: Traditional Control or Employee Involvement Traditional control  emphasizes the chain of command  relies on top-down control and orders Employee involvement  emphasizesparticipation and involvementMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    12. 12. Four Types of Culture Classification  Baseball team culture--rapidly changing environment  Club culture--seeks loyal, committed people  Academy culture--hires experts who are willing to make a slow steady climb up a ladder  Fortress culture--focused on surviving and reversing sagging fortunesMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    13. 13. Competing Values Framework Based on two dimensions: focus and control  Focus--whether the primary attention of the organization is directed toward internal dynamics or directed outward toward the external environment Control--the extent to which the organization is flexible or fixed in how it coordinates and controls activitiesMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    14. 14. Types of Change  Planned Change--change that is anticipated and allows for advanced preparation  Dynamic Change--change that is ongoing or happens so quickly that the impact on the organization cannot be anticipated and specific preparations cannot be madeMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    15. 15. Forces for Change: Environmental Forces Put pressure on a firm’s relationships with customers, suppliers, and employees. Environmental forces include: Technology Market forces Political and regulatory agencies and laws Social trendsMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    16. 16. Forces for Change: Internal Forces Arise from events 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.McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    17. 17. Resistance to Change Self-Interest Cultures that Value Lack of Trust and Tradition Understanding Different Perspectives and Goals UncertaintyMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    18. 18. Models of Organizational Change: The Star Model The Star Model: Five Points Types of change-evolutionary or transformational Structure Reward system Processes PeopleMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    19. 19. Lewin’s Three-Step Model of Organizational Change Unfreezing--melting away resistance Change--departure from the status quo Refreezing--change becomes routineMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    20. 20. Lewin’s Force Field Analysis Model Increase driving forces that drive change Reduce restraining forces that resist change or do bothMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    21. 21. Force-field Model of Change Desired state Restraining forces Status quo Driving forces TimeMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    22. 22. Implementing Organizational Change Top-down Change Change Agents Bottom-up ChangeMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    23. 23. Eight Steps to a Planned Organizational Change  Establish a sense of  Empower others to act urgency. on the vision.  Form a powerful  Plan and create short- coalition of supporters of term wins. change.  Consolidate  Create a vision of change. improvements and  Communicate the vision produce still more of change. change.  Institutionalize new approaches.McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    24. 24. Tactics for Introducing Change Communication and Education Employee Involvement Negotiation Coercion Top-Management SupportMcGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    25. 25. Applications: Management is Everyone’s Business—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.McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    26. 26. Applications: Management is Everyone’s Business—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.McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
    27. 27. Applications: Management is Everyone’s Business—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.McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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