1. Chapter 3 Changing the Culture
An Experiential Approach to Organization Development 8th edition
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2. Learning Objectives Recognize importance of corporate culture.
Identify key factors assessing culture.
Describe culture leading to effective organizations.
Describe ethical, value, and goal considerations.
An Experiential Approach to Organization Development 8th edition
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3. Creating Climate for Change
Challenge of managers is:
Create renewing system.
Develop long-term efforts.
Culture often key to success.
Cultural change result of complex strategy.
An Experiential Approach to Organization Development 8th edition
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4. Understanding Corporate Culture
Environment of rapid change.
Static organizational culture no longer effective.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

5. What Is Corporate Culture?
Culture is system of:
Shared values.
Beliefs.
Behavioral norms.
Observed behavioral norms.
Dominant values.
Learning ropes for newcomers.
An Experiential Approach to Organization Development 8th edition
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6. Culture Comes from 2 Subsystems
Managerial.
Organizational.
An Experiential Approach to Organization Development 8th edition
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7. Managerial Subsystem Creates Culture
How employees are treated.
Through actions and words.
Vision articulated by top management.
An Experiential Approach to Organization Development 8th edition
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8. Organizational Subsystem Creates Culture
Outside factors (market, etc.) define culture.
Technology.
Job descriptions.
Type of structure (tall vrs. flat).
An Experiential Approach to Organization Development 8th edition
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9. Figure 3.1 Culture Formation
An Experiential Approach to Organization Development 8th edition
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10. Corporate Culture and Success
High-performing companies have strong cultures.
Many cultures fail to adapt to change.
Following corporate mergers, cultures often clash.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

11. Key Factors to Improve Culture
Create vision for the future.
Develop model for change.
Reward changes.
An Experiential Approach to Organization Development 8th edition
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12. Cultural Resistance to Change
Changing culture not easy.
Time required.
Culture can prevent company from adapting.
An Experiential Approach to Organization Development 8th edition
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13. Pressure Points to Bring About Change
Recession.
Deregulation.
Technological upheavals.
Social factors.
Global competition.
Outsourcing.
Markets.
An Experiential Approach to Organization Development 8th edition
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14. Tools for Change (part 1 of 4)
Information.
Support.
Resources.
An Experiential Approach to Organization Development 8th edition
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15. Information (part 2 of 4) Provide information to people.
Provide ability to gather information.
One method is open-book management.
An Experiential Approach to Organization Development 8th edition
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16. Support (part 3 of 4)
Support and collaboration from other departments.
Management support to provide climate of risk taking.
An Experiential Approach to Organization Development 8th edition
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17. Resources (part 4 of 4) Funds. Staff. Equipment. Materials.
Innovative programs for providing resources include:
Venture capital.
Innovation banks.
An Experiential Approach to Organization Development 8th edition
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18. Organizational Dimensions Affecting Performance
Managerial effectiveness.
Accomplishing goals and objectives.
Managerial efficiency.
Ratio of results to resources.
Motivational climate.
Employee attitudes that influence performance.
An Experiential Approach to Organization Development 8th edition
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19. Other Criteria for Organizational Effectiveness
Adaptability.
Sense of identity.
Capacity to test reality.
An Experiential Approach to Organization Development 8th edition
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20. OD Professional Values and Ethics
Expertise.
Autonomy.
Commitment.
Code of ethics.
An Experiential Approach to Organization Development 8th edition
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21. OD Implementation Issues (part 1 of 4)
Success depends on:
Congruence between OD values and organization’s values.
Key issue is fit between between practitioner and client:
Compatibility of values.
Imposed change.
Priority of goals.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

22. Compatibility of Values (part 2 of 4)
Practitioners differ on degree of congruency with client values.
Some believe personal values are compatible with client.
Others will help client as long as operations legal.
An Experiential Approach to Organization Development 8th edition
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23. Imposed Change (part 3 of 4)
OD ideally implemented voluntarily.
Top management may impose program.
OD practitioners cognizant of power and politics.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

24. Priority of Goals (part 4 of 4)
Determine goals given precedence.
Challenge to develop balanced intervention:
One that improves productivity and
Quality of work for members.
An Experiential Approach to Organization Development 8th edition
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25. OD Values About Nature of Organization Members
Respect for people.
Trust and support.
Power equalization.
Confrontation and open communication.
Participation.
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26. Table 3.1 OD Values
An Experiential Approach to Organization Development 8th edition
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27. OD Application Culture and Setpoint Systems
Setpoint builds unique automation equipment.
Required are self-motivated employees.
Who can solve problems and
Look for ways to improve processes.
Uses project management and open-book accounting.
An Experiential Approach to Organization Development 8th edition
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28. Production employees use these techniques to:
Understand the business and
Know where to focus attention.
Culture is one where employees:
Provide thorough attention to financials.
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29. OD Application How Trilogy’s University Helps Build Its Culture
Trilogy is small but competes with large software companies.
Key goal is to attract talented people.
Fosters new methods in relationships with clients and employees.
An Experiential Approach to Organization Development 8th edition
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30. It operates a three-month long “boot camp.”
New employees integrated into company.
Employees learn values and culture.
Receive comprehensive evaluation and feedback.
Program provides source for renewal.
Provides new services and products.
Relationships formed, new leaders created.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

31. Key Words and Concepts Corporate culture. Managerial effectiveness.
System of shared values and beliefs.
Interact with people, structure, systems.
Managerial effectiveness.
Ability to accomplish specific organizational goals.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

32. Managerial efficiency.
Ratio of output (results) to input (resources).
Motivational climate.
Employee attitudes that influence performance.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

33. Open-book management. Professionalism.
Employees understand accounting statements.
Use knowledge in work.
Professionalism.
Value system that is part of profession.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

34. OD Skills Simulation 3.1 The Dim Lighting Co.
Purpose:
Compare decisions made by individuals with those made by group.
Practice effective consensus-seeking techniques.
Gain insights into concept of cultural values.
An Experiential Approach to Organization Development 8th edition
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35. Preparations for Next Chapter
Read Chapter 4.
Complete Steps 1 through 4 of OD Skills Simulation 4.1.
Read and prepare Case: The Grayson Chemical Company
An Experiential Approach to Organization Development 8th edition
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36. An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall