1. Managing Organizational Culture and Change
Chapter 4
Managing Organizational Culture and Change

2. Organizational Culture
A system of shared values, assumptions, beliefs, and norms that unite the members of an organization.
Reflects employees’ views about “the way things are done around here.”
The culture specific to each firm affects how employees feel and act and the type of employee hired and retained by the company.

3. Levels of Corporate Culture
Core Values
Expressed Values
Visible Culture

4. Key Effects of Organizational Culture
Employee Self-management”
shared identity
Facilitates commitment
Stability
Sense of continuity
Satisfies need for predictability, security, and comfort
Organizational Culture
Socialization
Internalizing or taking organizational values as one’s own
Strategy Implementation
If strategy and culture reinforce each other, employees find it natural to be committed to the strategy

5. Stages of the Socialization Process
Pre-arrival
Encounter
Metamorphosis

6. Managing Cultural Processes
Company Rituals and Ceremonies
Cultural Symbols
Company Heroes
Stories
Language
Organizational Policies and Decision Making
Leadership

7. Characteristics and Types of Organizational Culture
Cultural Uniformity versus Heterogeneity
Strong versus Weak Cultures
Culture versus Formalization
National versus Organizational Culture

8. Characteristics and Types of Organizational Culture (continued)
Types: Traditional Control or Employee Involvement
Traditional control
emphasizes the chain of command
relies on top-down control and orders
Employee involvement
emphasizes participation and involvement

9. Four Types of Culture Classification
Baseball team culture--rapidly changing environment
Club culture--seeks loyal, committed people
Academy culture--hires experts who are willing to make a slow steady climb up a ladder
Fortress culture--focused on surviving and reversing sagging fortunes

10. Competing Values Framework
Based on two dimensions: focus and control
Focus--whether the primary attention of the organization is directed toward internal dynamics or directed outward toward the external environment
Control--the extent to which the organization is flexible or fixed in how it coordinates and controls activities

11. Competing Values Framework
Focus
Internal
External
Flexible
Control
Fixed

12. Four Types of Employees
Alignment with culture No
Yes
Performance
Low
Worst
Give Another Chance
High
Make the tough choice
Best