Organizational Culture and Change Chapter 11 MANAGEMENT Meeting and Exceeding Customer Expectations EIGHTH EDITION Prepared by Deborah Baker Texas Christian University Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved learning objectives Define organizational culture and the factors that influence it List and describe the ways that culture is manifested Explain the role of managers and employees in creating culture Explain what factors make a culture effective Define change and identify the kinds of change that can occur in an organization Distinguish between evolutionary change and Chapter 11 revolutionary change Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved learning objectives (continued) Distinguish between planned and unplanned change Explain the steps managers can follow to implement planned change Identify the organizational qualities that promote change 10.Explain why people resist change and what managers can to overcome that resistance 11 Explain why change efforts fail 12.Explain the purpose of an organizational Chapter 11 development program Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 11 Organizational Culture Chapter 11 Organizational Organizational Culture Culture A dynamic system of…         shared values beliefs philosophies experiences habits expectations norms behaviors Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved Organizational Culture 11 Defines… Chapter 11         What is important to the organization The way decisions are made Methods of communication The degree of structure The freedom to function independently How people should behave How they should interact with each other For what they should be striving Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 11 Factors Shaping Culture Key Key organizational organizational processes processes Dominant Dominant coalition coalition Employees Employees and and other other tangible tangible assets assets Formal Formal organizational organizational arrangements arrangements Social Social system system Chapter 11 Technology Technology External External environment environment Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved Chapter 11 11 Factors Shaping Culture Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 11 Key Organizational Processes Chapter 11  How managers communicate to employees  How they share decision making  How they structure the flow of work Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved Dominant Coalition 11 Organizational Organizational culture cultureis isgreatly greatlyaffected affectedby by… … Chapter 11     Objectives Strategies Personal characteristics Interrelationships Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved Employees and Other Tangible Assets 11 Chapter 11        Employee population Plant and offices Equipment Tools Land Inventory Money Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 10 77 Phase 3: Delegation Chapter 11  Decentralization  Creation of profit centers  Less frequent communication from the top Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 38 77 Phase 4: Coordination  Managers emphasize coordination  Merger of decentralized work units  Introduction of formal organizationwide planning Chapter 11  Restriction of capital expenditures  Staff personnel begin to wield greater power Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 39 Phase 5: Collaboration 77  Introduction of a new people-oriented and flexible system Chapter 11     Problem solving by teams Reductions in headquarters staff Simplification of formal systems Encouragement of an attitude of risk taking and innovation Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 40 Chapter 11 88 Steps in Planned Change Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 41 99 Qualities Promoting Change Mutual MutualTrust Trust Chapter 11 Organizational Organizational Learning Learning Adaptability Adaptability Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 42 10 10 Implementation of Change Manager must be aware of…  Why people resist change  Why efforts fail  What techniques can be used to Chapter 11 modify behavior Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 43 Resistance to Change 10 10 Sources of Resistance Chapter 11       Loss of security Fear of economic loss Loss of power and control Reluctance to change old habits Selective perception Awareness of weakness in the proposed change Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 44 10 10 Techniques for Overcoming Resistance Participation Participation Open Open Communication Communication Advance Advance Warning Warning Chapter 11 Sensitivity Sensitivity Security Security Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 45 11 11 Why Change Efforts Fail Chapter 11 Faulty Faulty Thinking Thinking Inadequate Inadequate Process Process Lack Lack of of Acceptance Acceptance and and Commitment Commitment Lack Lack of of Resources Resources Lack Lack of of Time Time and and Poor Poor Timing Timing A A Resistant Resistant Culture Culture Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 46 11 11 Methods of Affecting Change Chapter 11 The Three-Step Approach Step Step 11 Unfreezing Unfreezing Step Step 22 Change Change Step Step 33 Refreezing Refreezing Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 47 11 11 Methods of Affecting Change The Three-Step Approach  Unfreezing – Managers who spot deficiencies in a subordinate’s behavior must identify the causes of that behavior  Change – The individual’s discomfort level rises – Employee to question his or her motives for the current behavior Chapter 11  Refreezing – Manager recognizes and rewards new and improved attitudes and behaviors Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 48 11 11 Methods of Affecting Change Chapter 11 Force-Field Analysis Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 49 12 12 Organizational Development Chapter 11 Organizational Organizational Development Development A process of conducting a thorough analysis of an organization’s problems and then implementing long-term solutions to solve them Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 50 Chapter 11 12 12 Organizational Development Process Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 51 12 12 Organizational Development Strategies Diagnostic Strategies Chapter 11  Consultants  Surveys  Group discussions Change Strategies  Training programs  Meetings and seminars  Grid OD – laboratory training – team development – intergroup development – organizational goal setting – goal attainment – stabilization Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 52 ... objectives Define organizational culture and the factors that influence it List and describe the ways that culture is manifested Explain the role of managers and employees in creating culture Explain... Thomson Learning All rights reserved Employees and Other Tangible Assets 11 Chapter 11        Employee population Plant and offices Equipment Tools Land Inventory Money Copyright ©2005 by South-Western,...  Procedures and rules  Specific mandated behaviors Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 11 11 Social System  Contributes norms and values to