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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 that
interact with an organization’s people, structure,
and systems to produce behavioral norms (“the
way 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 and
whole organization needs satisified
 Problem approach
 Communication  Serve customers
 Decision-making  React to competitors
 Leadership patterns  Carry out activities
No 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. Values
2.Planning 2. Training
3. Planning Effectiveness 13. Teamwork
4. Morale 14. Social
5. Performance Appraisals 15. Ethics
6. Awards 16. Leader
7. Freedom 17. Interaction
8. Communications 18. Benefits
9. Job Satisfaction 19. Perception
10. People 20. Environment

9. CCI include the following characteristics:
Member Identity
Team Emphasis
People Focus
Autonomy
Control
Risk Tolerance

10. CCI include the following characteristics:
Member Identity
Team Emphasis
People Focus
Autonomy
Control
Risk Tolerance

11. CCI include the following characteristics:
Member Identity
Team Emphasis
- employees identify
with the organization
People Focus
as a whole on their
type of job or field of
Autonomy
professional expertise.
Control
Risk Tolerance

12. CCI include the following characteristics:
Member Identity
Team Emphasis
People Focus
Autonomy
Control
Risk Tolerance

13. CCI include the following characteristics:
Member Identity
Team Emphasis
- the degree to which
People Focus work activities are
organized around
Autonomy teams rather than
individuals.
Control
Risk Tolerance

14. CCI include the following characteristics:
Member Identity
Team Emphasis
People Focus
Autonomy
Control
Risk Tolerance

15. CCI include the following characteristics:
Member Identity
Team Emphasis
- the degree to which
People Focus
manager empowers
the employees within
Autonomy
the organization.
Control
Risk Tolerance

16. CCI include the following characteristics:
Member Identity
Team Emphasis
People Focus
Autonomy
Control
Risk Tolerance

17. CCI include the following characteristics:
Member Identity
Team Emphasis - the degree to which
departments within
People Focus the organization are
encouraged to operate
Autonomy in a coordinated or
interdependent
Control manner.
Risk Tolerance

18. CCI include the following characteristics:
Member Identity
Team Emphasis
People Focus
Autonomy
Control
Risk Tolerance

19. CCI include the following characteristics:
Member Identity
Team Emphasis
- the degree to which
People Focus rules, regulations, and
direct supervision are
Autonomy used to control
employee behavior.
Control
Risk Tolerance

20. CCI include the following characteristics:
Member Identity
Team Emphasis
People Focus
Autonomy
Control
Risk Tolerance

21. CCI include the following characteristics:
Member Identity
Team Emphasis
- the degree to which
People Focus employees are
encouraged to be
Autonomy aggressive, innovative,
and risk-seeking.
Control
Risk Tolerance

22. Corporate Culture and Success
gives the organization a sense of
a. how to behave
b. what to do, and
c. 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 Innovation
Changes include:
 Improving product quality
 Increasing speed of responsiveness
 Expanding customer orientation
Hence, 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 of
the 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 organization
for 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 Change
A. INFORMATION
-provides people with information or ability to gather
information
-- open-book management – employees are taught to
understand accounting and financial statements

31. Tools for Change
B. SUPPORT
-Providesthe corporate entrepreneur with the support
and necessary “go ahead”
-Can remove the fear to fail

32. Tools for Change
C. RESOURCES
-Provides the funds, staff, equipment, and materials, to
carry out the project.

33. Key Factors in Cultural Change
a. 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 goals
Effectiveness and objectives, or “doing the right thing”
Managerial - ratio of output (results) to input (resources), or
Efficiency “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 out
problems and to react knowledge and insight and accurately
with flexibility to about what goals are interpret the real
changing and what it has to do. properties of the
environmental environment, esp for
demands. 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 decide
c. 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 OD
To 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...
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