1. Organizational Culture and Change
Chapter Thirteen
Organizational Culture and Change

2. 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

3. 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

4. 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

5. 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.

6. 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.

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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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.

19. 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.

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

21. 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

22. 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

23. 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

24. 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