MultiMedia by Stephen M. Peters© 2002 South-Western Organizational Culture and Change

MultiMedia by Stephen M. Peters© 2002 South-Western Organizational Culture  A dynamic system of shared values, beliefs, philosophies, experiences, habits, expectations, norms, and behaviors.  Defines 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.  Helps employees develop a sense of group identity and pride.

MultiMedia by Stephen M. Peters© 2002 South-Western Seven Culture-Shaping Factors 1.Key organizational processes 2.Dominant coalition 3.Employees and other tangible assets 4.Formal organizational arrangements 5.Social system 6.Technology 7.External environment 1.Key organizational processes 2.Dominant coalition 3.Employees and other tangible assets 4.Formal organizational arrangements 5.Social system 6.Technology 7.External environment

MultiMedia by Stephen M. Peters© 2002 South-Western Factors that Shape Organizational Culture

MultiMedia by Stephen M. Peters© 2002 South-Western The Social System Norms and values Set of employee relationships that relate to power, affiliation, and trust Includes the grapevine

MultiMedia by Stephen M. Peters© 2002 South-Western External Environment Suppliers The Economy RegulatorsCompetitors Markets

MultiMedia by Stephen M. Peters© 2002 South-Western Chief Evidences of Culture Include Statements of Principle Heroes StoriesSlogans ClimateSymbols Ceremonies Physical Environment

MultiMedia by Stephen M. Peters© 2002 South-Western Five Principles of Mars Quality Efficiency Freedom Responsibility Mutuality

MultiMedia by Stephen M. Peters© 2002 South-Western Heroes, to Become One QualityService Fairness You have to live the ideology

MultiMedia by Stephen M. Peters© 2002 South-Western Symbols  Employees are “cast members.”  Customers are “guests.”  A crowd is an “audience.”  A work shift is a “performance.”  A job is a “part.”  A uniform is a “costume.”  The personnel department is “casting.”  Being on duty is “on stage.”  Being off duty is “off stage.” Walt Disney symbolic language

MultiMedia by Stephen M. Peters© 2002 South-Western Management Helps Create Culture By Clearly defining the company’s mission and goals. Identifying the core values. Determining the amount to individual autonomy and the degree to which people work separately or in groups. Structuring the work in accordance with the corporation’s values to achieve its goals. Developing reward systems that reinforce the values of goals. Creating methods of socialization.

MultiMedia by Stephen M. Peters© 2002 South-Western Visionary Managers and Companies  Translate their core values into tangible mechanisms.  Indoctrinate people.  Impose tightness of fit.  Create a sense of belonging to something special.

MultiMedia by Stephen M. Peters© 2002 South-Western Role of Employees  Contribute to the extent that they accept and adopt the culture.  Contribute by helping to shape the values it embodies.  Play a role in influencing organizational culture by forming subcultures.

MultiMedia by Stephen M. Peters© 2002 South-Western Sources of Change External Sources –Political –Social –Technological –Economic Environment Internal Sources –Managerial policies or styles –Systems and procedures –Technology –Employee attitudes

MultiMedia by Stephen M. Peters© 2002 South-Western Four Types of Change  Strategic Change - changing the strategy or mission of the organization  Structural Change - changing the structure of organizations through team building and downsizing  Process-Oriented Change - using new technology, shifting from human to mechanical labor in plants that employ robotics for manufacturing, or adopting new procedures  People-Centered Change - directed at the attitudes, behaviors, skills, or performance of the company’s employees

MultiMedia by Stephen M. Peters© 2002 South-Western Reengineering The fundamental rethinking and radical redesign of business processes. Determines what process is necessary. Determines then how to do it.

MultiMedia by Stephen M. Peters© 2002 South-Western Management and Change Top Managers –Sensitive to the external environment; that is, they need to stay attuned to changes in that environment. Middle Managers –Likely will face structural, process-oriented, or people-centered changes. First-Line Managers –Participate in discussions about strategic or structural changes. –Institute process-oriented and people-centered change.

MultiMedia by Stephen M. Peters© 2002 South-Western Change Agent  Implements planned change.  Could be the manager who conceived the need to change.  Could be another manager within the organization.  Could be an outsider.

MultiMedia by Stephen M. Peters© 2002 South-Western

MultiMedia by Stephen M. Peters© 2002 South-Western Nine Steps for Implementing Change

MultiMedia by Stephen M. Peters© 2002 South-Western Sources of Resistance to Change Loss of security Fear of economic loss Loss of power and control Reluctance to change old habits Selective perception Awareness of weaknesses in the proposed change

MultiMedia by Stephen M. Peters© 2002 South-Western Five Techniques to Overcome Resistance to Change 1. Participation 3. Advance warning 5. Security4. Sensitivity 2. Open communication

MultiMedia by Stephen M. Peters© 2002 South-Western Changing Attitudes Three-Step Approach First step, unfreezing –Managers who spot deficiencies in a subordinate’s behavior must identify the causes of that behavior. Second step, change –The individual’s discomfort level rises. –Employee to question his or her motives for the current behavior. Third step, refreezing –Manager recognizes and rewards new and improved attitudes and behaviors.