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Chapter 10

Organizational Culture
and Change

Chapter10,NancyLangtonandStephenP.Robbins,

Chapter Outline

What Is Organizational Culture?


Creating and Sustaining Culture
Matching People With Organizational Cultures
The Liabilities of Organizational Culture
Approaches to Managing Change
Resistance to Change

Chapter10,NancyLangtonandStephenP.Robbins,

Organizational Culture
1. What is the purpose of organizational culture?
2. How do you create and maintain organizational
culture?
3. What kind of organizational culture might suit you?
4. Can organizational culture have a downside?
5. How do organizations manage change?
6. Why do people and organizations resist change?
Chapter10,NancyLangtonandStephenP.Robbins,

Henry Mintzberg on Culture


Culture is the soul of the
organization the beliefs and
values, and how they are manifested.
I think of the structure as the
skeleton, and as the flesh and blood.
And culture is the soul that holds the
thing together and gives it life force.
Chapter10,NancyLangtonandStephenP.Robbins,

Organizational Culture
The pattern of shared values, beliefs, and
assumptions considered to be the appropriate
way to think and act within an organization.

Culture is shared.
Culture helps members solve problems.
Culture is taught to newcomers.
Culture strongly influences behaviour.

Chapter10,NancyLangtonandStephenP.Robbins,

Exhibit 10-1 Layers of Culture

Chapter10,NancyLangtonandStephenP.Robbins,

Levels of Culture
Artifacts
Aspects of an organizations culture that you see, hear, and feel
Beliefs
The understandings of how objects and ideas relate to each
other
Values
The stable, long-lasting beliefs about what is important
Assumptions
The taken-for-granted notions of how something should be in
an organization

Chapter10,NancyLangtonandStephenP.Robbins,

Characteristics of
Organizational Culture
Innovation and risk-taking
The degree to which employees are encouraged to be innovative and take
risks.

Attention to detail
The degree to which employees are expected to exhibit precision,
analysis, and attention to detail.

Outcome orientation
The degree to which management focuses on results or outcomes rather
than on technique and process.

People orientation
The degree to which management decisions take into consideration the
effect of outcomes on people within the organization.

Chapter10,NancyLangtonandStephenP.Robbins,

Characteristics of Organizational
Culture
Team orientation
The degree to which work activities are organized around teams
rather than individuals.
Aggressiveness
The degree to which people are aggressive and competitive rather
than easygoing.
Stability
The degree to which organizational activities emphasize
maintaining the status quo in contrast to growth.

Chapter10,NancyLangtonandStephenP.Robbins,

Exhibit 10-2 Contrasting


Organizational Cultures
Organization A
Managers must fully document
all decisions.
Creative decisions, change, and risks
are not encouraged.
Extensive rules and regulations exist
for all employees.
Productivity is valued over employee
morale.
Employees are encouraged to stay
within their own department.
Individual effort is encouraged.

Organization B
Management encourages and
rewards risk-taking and change.
Employees are encouraged to
run with ideas, and failures are
treated as learning experiences.
Employees have few rules and
regulations to follow.
Productivity is balanced with treating
its people right.
Team members are encouraged to interact
with people at all levels and functions.
Many rewards are team based.

Chapter10,NancyLangtonandStephenP.Robbins,

Cultures Functions
Boundary-defining
Conveys a sense of identity for organization
members
Facilitates commitment to something larger
than ones individual self-interest
Social glue that helps hold an organization
together
Provides appropriate standards for what
employees should say or do
Chapter10,NancyLangtonandStephenP.Robbins,

Cultures Functions
Serves as a sense-making and control
mechanism
Guides and shapes the attitudes and behaviour of
employees

Chapter10,NancyLangtonandStephenP.Robbins,

Do Organizations Have Uniform


Cultures?
Organizational culture represents a common
perception held by the organization members.
Core values or dominant (primary) values are
accepted throughout the organization.
Dominant culture
Expresses the core values that are shared by a majority of the
organizations members.

Subcultures
Tend to develop in large organizations to reflect common
problems, situations, or experiences.

Chapter10,NancyLangtonandStephenP.Robbins,

Exhibit 10-3 How Organizational


Culture Forms
Philosophy
of
organization's
founders

Top
management
Organization's
culture

Selection
criteria
Socialization

Chapter10,NancyLangtonandStephenP.Robbins,

Creating and Sustaining Culture:


Keeping a Culture Alive
Selection
Identify and hire individuals who will fit in with the
culture.

Top Management
Senior executives establish and communicate the norms
of the organization.

Socialization
Organizations need to teach the culture to new employees.

Chapter10,NancyLangtonandStephenP.Robbins,

A Socialization Model
Socialization Process

Outcomes
Productivity

Prearrival

Encounter

Metamorphosis

Commitment

Turnover

Chapter10,NancyLangtonandStephenP.Robbins,

Sociability

Exhibit 10-5
Four-Culture Typology
High

Networked

Communal

Low

Fragmented

Mercenary

Low

High

Solidarity
Source:AdaptedfromR.GoffeeandG.Jones,TheCharacterofaCorporation:HowYourCompanysCultureCanMakeorBreakYourBusiness(NewYork:HarperBusiness,1998),p.21.

Chapter10,NancyLangtonandStephenP.Robbins,

Finding Your Culture


Networked culture: you possess good social skills and empathy;
you like to forge close, work-related friendships; you thrive in a
relaxed and convivial atmosphere.
Mercenary culture: you are goal-oriented, thrive on competition,
like clearly structured work tasks.
Fragmented culture: you are independent, have a low need to be
part of a group atmosphere, are analytical rather than intuitive.
Communal culture: you have a strong need to identify with
something bigger than yourself and enjoy working in teams.

Chapter10,NancyLangtonandStephenP.Robbins,

The Liabilities of Culture


Culture can have dysfunctional aspects in some
instances.
Culture as a Barrier to Change
When organization is undergoing change, culture may impede
change.

Culture as a Barrier to Diversity


Strong cultures put considerable pressure on employees to
conform.

Culture as a Barrier to Mergers and Acquisitions


Merging the cultures of two organizations can be difficult, if
not impossible.

Chapter10,NancyLangtonandStephenP.Robbins,

Strategies For Merging Cultures


Assimilation
Separation
Integration

Chapter10,NancyLangtonandStephenP.Robbins,

Change Agents
People who act as catalysts and assume the
responsibility for managing change activities.

Chapter10,NancyLangtonandStephenP.Robbins,

Outside agents

Can offer an objective perspective.


Usually have an inadequate understanding of
the organizations history, culture, operating
procedures, and personnel.
Dont have to live with the repercussions
after the change is implemented.

Chapter10,NancyLangtonandStephenP.Robbins,

Internal agents
Have to live with the consequences of their
actions.
May be more thoughtful.
May be more cautious.

Chapter10,NancyLangtonandStephenP.Robbins,

Approaches To Managing Change


Lewins Three-Step Model
Kotters Eight-Step Plan for Implementing
Change
Action Research
Appreciative Inquiry

Chapter10,NancyLangtonandStephenP.Robbins,

Exhibit 10-6 Lewins Three-Step


Change Model

Unfreezing

Moving

Refreezing

Chapter10,NancyLangtonandStephenP.Robbins,

Lewins Three-Step Model For


Implementing Change
Unfreezing
Change efforts to overcome the pressures of both
individual resistance and group conformity.

Moving
Efforts to get employees involved in the change process.

Refreezing
Stabilizing a change intervention by balancing driving and
restraining forces.

Chapter10,NancyLangtonandStephenP.Robbins,

Exhibit 10-7
Unfreezing the Status Quo
Desired
state

Restraining
forces

Status
quo
Driving
forces
Time

Chapter10,NancyLangtonandStephenP.Robbins,

Unfreezing

Arouse dissatisfaction with the current state.


Activate and strengthen top management support.
Use participation in decision making.
Build in rewards.

Chapter10,NancyLangtonandStephenP.Robbins,

Moving
Establish goals.
Institute smaller, acceptable changes that
reinforce and support change.
Develop management structures for change.
Maintain open, two-way communication.

Chapter10,NancyLangtonandStephenP.Robbins,

Refreezing

Build success experiences.


Reward desired behaviour.
Develop structures to institutionalize the change.
Make change work.

Chapter10,NancyLangtonandStephenP.Robbins,

Exhibit 10-8 Kotters Eight-Step Plan


for Implementing Change

1.
2.
3.
4.
5.
6.
7.
8.

Establish a sense of urgency.


Form a coalition.
Create a new vision.
Communicate the vision.
Empower others to act.
Develop short-term wins.
Consolidate improvements.
Reinforce changes.

Source:BasedonJ.P.Kotter,LeadingChange(Boston:HarvardBusinessSchoolPress,1996).

Chapter10,NancyLangtonandStephenP.Robbins,

Action Research
A change process based on the systematic
collection of data and then selection of a
change action based on what the analyzed data
indicate.

Chapter10,NancyLangtonandStephenP.Robbins,

The Process of Action Research

Diagnosis
Analysis
Feedback
Action
Evaluation

Chapter10,NancyLangtonandStephenP.Robbins,

Appreciative Inquiry
An approach to change that seeks to identify
the unique qualities and special strengths of an
organization, which can then be built on to
improve performance.

Chapter10,NancyLangtonandStephenP.Robbins,

Steps of Appreciative Inquiry


Four Ds

Discovery
Dreaming
Design
Destiny

Chapter10,NancyLangtonandStephenP.Robbins,

Exhibit 10-9 Sources of Individual


Resistance to Change
Selective
information
processing

Habit

Individual
Resistance
Fear of
the unknown

Security

Economic
factors

Chapter10,NancyLangtonandStephenP.Robbins,

Cynicism About Change


Feeling uninformed about what was
happening.
Lack of communication and respect from ones
supervisor.
Lack of communication and respect from ones
union representative.
Lack of opportunity for meaningful
participation in decision making.
Chapter10,NancyLangtonandStephenP.Robbins,

Exhibit 10-11 Sources of


Organizational Resistance to Change
Threat to established
resource allocations

Threat to established
power relationships

Threat to
expertise

Organizational
Resistance

Structural
inertia

Limited focus
of change

Group
inertia

Chapter10,NancyLangtonandStephenP.Robbins,

Overcoming Resistance to Change

Education and communication


This tactic assumes that the source of resistance lies in misinformation or
poor communication.
Best used: Lack of information, or inaccurate information

Participation and involvement


Prior to making a change, those opposed can be brought into the decision
process.
Best used: Where initiators lack information, and others have power to
resist

Facilitation and support


The provision of various efforts to facilitate adjustment.
Best used: Where people resist because of adjustment problems

Chapter10,NancyLangtonandStephenP.Robbins,

Overcoming Resistance to Change

Negotiation and agreement


Exchange something of value for a lessening of resistance.
Best used: Where one group will lose, and has considerable power to
resist

Manipulation and cooperation


Twisting and distorting facts to make them appear more attractive.
Best used: Where other tactics wont work or are too expensive

Explicit and implicit coercion


The application of direct threats or force upon resisters.
Best used: Speed is essential, and initiators have power

Chapter10,NancyLangtonandStephenP.Robbins,

Summary and Implications


1. What is the purpose of organizational
culture?

Organizational culture provides stability and


gives employees a clear understanding of the
way things are done around here.

2. How do you create and maintain culture?


An organizations culture is derived from the
philosophy of its founders. It is
communicated by managers and employees
are socialized into it.
Chapter10,NancyLangtonandStephenP.Robbins,

Summary and Implications


3.

What kind of organizational culture might suit you?

Organizational cultures can be analyzed in terms of members


friendliness (sociability) and task orientation (solidarity).
4. Can organizational culture have a downside?
A strong culture can have a negative effect, including
pressure-cooker cultures, barriers to change, difficulty in
creating an inclusive environment, and hindering mergers
and acquisitions.
5. How do organizations manage change?
Kurt Lewin argued that successful change should follow
three steps: unfreezing, moving, and refreezing. John Kotter
built on Lewins work to offer an eight-step model. Two other
theories include action research and appreciative inquiry.

Chapter10,NancyLangtonandStephenP.Robbins,

Summary and Implications


6.

Why do people and organizations resist change?


Individuals resist change because of basic human
characteristics such as perceptions, personalities,
and needs. Organizations resist change because they
are conservative and because change is difficult.

Chapter10,NancyLangtonandStephenP.Robbins,

OB at Work

Chapter10,NancyLangtonandStephenP.Robbins,

For Review
1. How can an outsider assess an organizations culture?
2. What defines an organizations subcultures?
3. Can an employee survive in an organization if he or she
rejects its core values? Explain.
4. What benefits can socialization provide for the
organization? For the new employee?
5. Describe four cultural types and the characteristics of
employees who fit best with each.

Chapter10,NancyLangtonandStephenP.Robbins,

For Review
6. How can culture be a liability to an organization?
7. How does Lewins three-step model of change deal with
resistance to change?
8. How does Kotters eight-step plan for implementing
change deal with resistance to change?
9. What are the factors that lead individuals to resist
change?
10.What are the factors that lead organizations to resist
change?
Chapter10,NancyLangtonandStephenP.Robbins,

For Critical Thinking


1. How are an individuals personality and an
organizations culture similar? How are they different?
2. Is socialization brainwashing? Explain.
3. Can you identify a set of characteristics that describes
your colleges or universitys culture? Compare them
with several of your peers lists. How closely do they
agree?
4. Resistance to change is an irrational response. Do you
agree or disagree? Explain.
Chapter10,NancyLangtonandStephenP.Robbins,

Point-CounterPoint
Why Culture Doesnt
Change
Culture develops over many
years, and becomes part of
how the organization thinks
and feels.
Selection and promotion
policies guarantee survival of
culture.
Top management chooses
managers who are likely to
maintain culture.

When Culture Can


Change
There is a dramatic crisis.
There is a turnover in
leadership.
The organization is young and
small.
There is a weak culture.

Chapter10,NancyLangtonandStephenP.Robbins,

Breakout Group Exercises


Form small groups to discuss the following:
1. Identify artifacts of culture in your current or previous
workplace. From these artifacts, would you conclude that the
organization has a strong or weak culture?
2. Have you or someone you know worked somewhere where the
culture was strong? What was your reaction to that strong
culture? Did you like that environment, or would you prefer to
work where there is a weaker culture? Why?
3. Reflect on either the culture of one of your classes or the
culture of the organization where you work, and identify
characteristics of that culture that could be changed. How
might these changes be made?

Chapter10,NancyLangtonandStephenP.Robbins,

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