Organizational Culture and Change Chapter Thirteen Organizational Culture and Change

Chapter Thirteen Outline Foundation of Organizational Culture Four Functions of Organizational Culture Outcomes Associated with Organizational Culture How Cultures are Embedded in Organizations Embedding Organizational Culture Through Socialization Processes and Mentoring A Three-Phase Model of Organizational Socialization Practical Application of Socialization Research Mentoring

Chapter Thirteen Outline (cont’d) A Model of Societal and Organizational Cultures Forces of Change External Forces Internal Forces Models of Planned Change Lewin’s Change Model Kotter’s Eight Steps for Leading Organizational Change Organizational Development

Chapter Thirteen Outline (cont’d) Understanding and Managing Resistance to Change Why People Resist Change in the Workplace Alternative Strategies for Overcoming Resistance to Change

Organizational Culture The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments.

The Layers of Organizational Culture Observable Artifacts Espoused Values Basic Underlying Assumptions Source: Adapted from E H Schein, Organizational Culture and Leadership, 2nd ed (San Francisco: Jossey-Bass, 1992), p 17.

Four Functions of Organizational Culture Sense-making device identity Social system stability Collective commitment

Embedding Organizational Culture Formal statements of organizational philosophy, mission, vision, values, and materials used for recruiting, selection and socialization The design of physical space, work environments, and buildings Slogans, language, acronyms, and sayings Deliberate role modeling, training programs, teaching and coaching by managers and supervisors Explicit rewards, status symbols (e.g., titles), and promotion criteria Stories, legends, and myths about key people and events

Embedding Organizational Culture (cont’d) The organizational activities, processes, or outcomes that leaders pay attention to, measure, and control Leader reactions to critical incidents and organizational crises The workflow and organizational structure Organizational systems and procedures Organizational goals and the associated criteria used for recruitment, selection, development, promotion, layoffs, and retirement of people

A Model of Organizational Socialization Perceptual and Social Processes Phases 1. Anticipatory socialization Learning that occurs prior to joining the organization Anticipating realities about the organization and the new job Anticipating organization’s need for one’s skills and abilities Anticipating organization’s sensitivity to one’s needs and values

A Model of Organizational Socialization (cont’d) Perceptual and Social Processes Phases Managing lifestyle- versus-work conflicts Managing intergroup role conflicts Seeking role definition and clarity Becoming familiar with task and group dynamics 2. Encounter Values, skills and attitudes start to shift as new recruit discovers what the organization is truly like

A Model of Organizational Socialization (cont’d) Perceptual and Social Processes Phases 3. Change and acquisition Recruit masters skills and roles and adjusts to work group’s values and norms Competing role demands are resolved Critical tasks are mastered Group norms and values are internalized

A Model of Organizational Socialization (cont’d) Phases 1. Anticipatory socialization 2. Encounter 3. Change and acquisition Outsider Socialized Insider Behavioural Outcomes Performs role assignments Remains with organization Spontaneously innovates and cooperates Affective Outcomes Generally satisfied Internally motivated to work High job involvement

Mentoring Functions of Mentoring Developmental relationship between an experienced employee and a junior person (the protégé). Functions of Mentoring Career Functions - Sponsorship - Exposure and visibility - Coaching - Protection - Challenging assignments Psychosocial Functions - Role modeling - Acceptance and confirmation - Counseling - Friendship

Cultural Influences on Organizational Behaviour Organizational Culture Economic/ technological setting Political/ legal setting Ethnic background Religion Societal culture Customs Language Personal values/ethics Attitudes Assumptions Expectations Organizational Behaviour Source: Adapted in part from BJ Punnett and S Withane, “Hofstede’s Value Survey Module: To Embrace or Abandon?” in Advances in International Comparative Management, vol 5, ed SB Prasad (Greenwich, CT: JAI Press, 1990), pp 69-89.

Forces of Change External forces originate outside the organization. Demographic Characteristics Technological Advancements Market Changes Social and Political Pressures Internal forces originate inside the organization. Human Resource Problems/Prospects Managerial Behaviour/Decisions

Lewin’s Change Model Unfreezing - Creates the motivation to change - Encourages the replacement of old behaviours and attitudes with those desired by management - Entails devising ways to reduce barriers to change • Changing - Helps employees learn new concepts or points of view - Provides new information, new behavioural models - Role models, mentors, experts, benchmarking results, and training are useful mechanisms to facilitate change Refreezing - Helps employees integrate the changed behaviour or attitude into their normal way of doing things - Positive reinforcement is used to reinforce the desired change - Coaching and modeling help reinforce the stability of change

Kotter’s Steps for Leading Organizational Change Step Description Establish a sense Unfreeze the organization by creating a of urgency compelling reason for why change is needed. Create the guiding Create a cross-functional, cross-level group of coalition people with enough power to lead the change. Develop a vision Create a vision and strategic plan to guide the and strategy change process. Communicate the Create and implement a communication strategy change vision that consistently communicates the new vision and strategic plan. Empower broad- Eliminate barriers to change, and use target based action elements of change to transform the organization. Encourage risk taking and creative problem-solving.

Kotter’s Steps for Leading Organizational Change (cont’d) Step Description Generate short- Plan for and create short-term “wins” or term wins improvements. Recognize and reward people who contribute to the wins. Consolidate gains The guiding coalition uses credibility from and produce more short-term wins to create more change. change Additional people are brought into the change process as change cascades throughout the organization. Attempts are made to reinvigorate the change process. Anchor new Reinforce the changes by highlighting approaches in the connections between new behaviours and culture processes and organizational success. Develop methods to ensure leadership development and successes.

Characteristics of Organization Development (OD) OD involves profound change OD is value loaded OD is a diagnosis/prescription cycle OD is process-oriented

Resistance To Change The leading reasons why people resist change are: An individual’s predisposition toward change Surprise and fear of the unknown Climate of mistrust Fear of failure Loss of status and/or job security Peer pressure Disruption of cultural traditions and/or group relationships Personality conflicts Lack of tact and/or poor timing Non-reinforcing reward systems

Strategies for Overcoming Resistance to Change Approach Can be very time consuming if lots of people are involved Once persuaded, people will often help with the implementation of the change Where there is a lack of information or inaccurate information and analysis Education + Communication Can be very time consuming if participators design an inappropriate change People who participate will be committed to implementing change, and any relevant information they have will be integrated into the change plan Where the initiators do not have all the information they need to design the change and where others have considerable power to resist Participation + Involvement Commonly Used in Situations Advantages Drawbacks

Strategies for Overcoming Resistance to Change (cont’d) Approach Can be time consuming, expensive, and still fail No other approach works as well with adjustment problems Where people are resisting because of adjustment problems Facilitation + Support Can be too expensive in many cases if alerts others to negotiate for compliance Sometimes it is a relatively easy way to avoid major resistance Where someone or some group will clearly lose out in a change and where that group has considerable power to resist Negotiation + Agreement Commonly Used in Situations Advantages Drawbacks

Strategies for Overcoming Resistance to Change (cont’d) Approach Can lead to future problems if people feel manipulated It can be a relatively quick and inexpensive solution to resistance problems Where other tactics will not work or are too expensive Manipulation + Co-optation Can be risky if it leaves people mad at the initiators It is speedy and can overcome any kind of resistance Where speed is essential and where the change initiators possess considerable power Explicit + Implicit Coercion Commonly Used in Situations Advantages Drawbacks