1. Chapter 12 Organizational Culture and Change
John R. Schermerhorn, Jr.
Daniel G. Bachrach
Management
13th edition
Chapter 12 Organizational Culture and Change

2. Planning Ahead — Key Takeaways
Explain the concept of organizational culture and discuss how it affects organizational behavior and performance.
Describe how a multicultural organization handles subcultures and diversity issues.
Identify alternative approaches to organizational change and the types of change strategies and resistance to change found in organizations.
Copyright ©2015 John Wiley & Sons, Inc.

3. Chapter 12 Outline Organizational Cultures Multicultural Organizations
Understanding organizational culture
Observable culture
Values and the core culture
Multicultural Organizations
Multicultural organizations
Organizational subcultures
Power, diversity, and organizational subcultures
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4. Chapter 12 Outline Organizational Change Models of change leadership
Transformational and incremental and change
Phases of planned change
Change strategies
Resistance to change
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5. Organizational Cultures
The system of shared beliefs and values that guides behavior in organizations
Socialization
How new members learn the culture of the organization
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6. Organizational Cultures
Four common organizational cultures, according to LeadershipIQ:
Hierarchical cultures emphasize tradition and clear roles;
Dependable cultures emphasize process and slow change;
Enterprising cultures emphasize creativity and competition; and,
Social cultures emphasize collaboration and trust.
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7. Organizational Cultures
The best organizations have positive cultures that:
Respect members
Are customer driven
Are performance-oriented
Encourage positive work behaviors
Discourage dysfunctional behaviors
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8. Organizational Cultures
How tight or loose is the structure?
Do most decisions reflect change or the status quo?
What outcomes or results are most highly valued?
How widespread is empowerment, worker involvement?
What is the competitive style, internal and external?
What value is placed on people, as customers and employees?
Is teamwork a way of life in this organization?
Questions for reading an organization’s culture
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9. Figure 12.1 Levels of organizational culture—observable culture and core culture in the organizational “iceberg ”
Stories
Tales about events conveying core values
Heroes
People (past and present) who display core values
Symbols
Language and other symbols conveying core values
Rites and Rituals
Celebration of heroes and events displaying core values
CORE CULTURE
Core Values
Beliefs about the right ways to behave
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10. Organizational Cultures
What is observable culture?
What one sees and hears when walking around an organization
Elements of observable culture:
Heroes
Ceremonies, rites and rituals
Legends and stories
Metaphors and symbols
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11. Organizational Cultures
Core culture: consists of the core values, or underlying assumptions and beliefs that shape and guide people’s behaviors in an organization.
Core values are beliefs and values shared by organization members
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12. Organizational Cultures
Important cultural values include:
Performance excellence
Innovation
Social responsibility
Integrity
Worker involvement
Customer service
Teamwork
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13. Organizational Cultures
Value-based management:
Describes managers who actively help to develop, communicate, and enact shared values
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14. Organizational Cultures
Workplace spirituality:
Creates meaning and shared community among organizational members
Meaningful purpose
Trust and respect
Honesty and openness
Personal growth and development
Worker friendly practices
Ethics and social responsibility
Sample values in spiritual organizational cultures:
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15. Multicultural Organizations and Diversity
Multiculturalism
involves inclusiveness, pluralism, and respect for diversity
Multicultural organizations
has a culture with core values that respect diversity and support multiculturalism.
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16. Multicultural Organizations and Diversity
Characteristics of multicultural organizations:
Pluralism
Structural integration
Informal network integration
Absence of prejudice and discrimination
Minimum intergroup conflict
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17. Multicultural Organizations and Diversity
Organizational subcultures
groups of people who share similar beliefs and values based on their work or personal characteristics.
Ethnocentrism is the belief that one’s subculture is superior to all others
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18. Multicultural Organizations and Diversity
Common subcultures include:
Generational
Gender
Occupations and functions
Ethnicity or national cultures
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19. Multicultural Organizations and Diversity
Diversity basically means the presence of differences.
Diversity alone does not guarantee positive performance impact
Diversity must be included in training and human resource practices
Positive impact results when diversity is embedded in the organizational culture
Copyright ©2015 John Wiley & Sons, Inc.

20. Multicultural Organizations and Diversity
Challenges faced by minorities and women:
Glass ceiling
Leaking pipeline problem
Harassment and discrimination
Minorities may adapt by exhibiting biculturalism - adopting characteristics of the majority culture
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21. Figure 12.2 Glass ceilings as barriers to women and minority cultures in traditional organizations
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22. Multicultural Organizations and Diversity
Diversity Leadership
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23. Organizational Change
Change leader
A change agent who takes leadership initiative for changing the existing pattern of behavior of another person or social system
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24. Figure 12.3 Change leaders versus status quo managers
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25. Organizational Change
Top-down change
Change initiatives come from senior management
Success depends on support of middle-level and lower-level workers
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26. Organizational Change
Bottom-up change
The initiatives for change come from any and all parts of the organization, not just top management
Crucial for organizational innovation
Made possible by:
Employee empowerment
Employee involvement
Employee participation
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27. Organizational Change
Establish a sense of urgency for change
Form a powerful coalition to lead the change
Create and communicate a change vision
Empower others to move change forward
Celebrate short-term wins and recognize those who help
Build on success; align people and systems with new ways
Stay with it; keep the message consistent; champion the vision
How to lead transformational change:
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28. Organizational Change
Transformational and incremental change
Transformational change
Results in a major and comprehensive redirection of the organization
Incremental change
Bends and adjusts existing ways to improve performance
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29. Organizational Change
Phases of planned change
Unfreezing
The phase in which a situation is prepared for change and felt needs for change are developed
Changing
The phase in which something new takes place in the system, and change is actually implemented
Refreezing
The phase of stabilizing the change and creating the conditions for its long-term continuity
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30. Figure 12.3 Lewin’s three phases of planned organizational change
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31. Organizational Change
Improvisational Change
Making continual adjustments as changes are being implemented
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32. Figure 12.5 Alternative change strategies and their leadership implications
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33. Organizational Change
Force-coercion strategy of change
Uses formal authority as well as rewards and punishments to induce change
Relies on belief that people are motivated by self-interest
Direct forcing and political maneuvering
Produces limited and temporary results
Most useful in the unfreezing phase
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34. Organizational Change
Rational persuasion strategy of change
Bringing about change through persuasion backed by special knowledge, empirical data, and rational argument
Relies on expert power
Relies on belief that reason guides people’s decisions and actions
Useful in the unfreezing and refreezing phases
Produces longer-lasting and internalized change
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35. Organizational Change
Shared power strategy of change
Engages people in a collaborative process of identifying values, assumptions, and goals from which support for change will naturally emerge
Time consuming but likely to yield high commitment
Involves others in examining sociocultural factors related to the issue at hand
Relies on referent power and strong interpersonal skills in team situations
Relies on belief that people respond to sociocultural norms and expectations of others
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36. Organizational Change
Why people resist change:
Fear of the unknown
Disrupted habits
Loss of confidence
Loss of control
Poor timing
Work overload
Loss of face
Lack of purpose
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37. Organizational Change
Checklist for dealing with resistance to change:
Check the benefits – those involved see a clear advantage
Check the compatibility – keep change similar to existing values/processes
Check the simplicity – make it as easy as possible to understand
Check the triability – allow people to slowly try the change adjusting as progression is made
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38. Organizational Change
Methods for dealing with resistance to change:
Education and communication
Participation and involvement
Facilitation and support
Negotiation and agreement
Manipulation and co-optation
Explicit and implicit coercion
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