© 2003 McGraw-Hill Ryerson Ltd. Organizational Culture and Change Chapter Thirteen.

© 2003 McGraw-Hill Ryerson Ltd.

Organizational Culture Organizational Culture and Change and Change

Chapter Thirteen

© 2003 McGraw-Hill Ryerson Ltd.

Foundation of Organizational CultureFoundation of Organizational Culture

•Four Functions of Organizational Culture

•Outcomes Associated with Organizational Culture

•How Cultures are Embedded in Organizations

Embedding Organizational Culture Embedding Organizational Culture Through Socialization Processes and Through Socialization Processes and MentoringMentoring

•A Three-Phase Model of Organizational Socialization

•Practical Application of Socialization Research

•Mentoring

Chapter Thirteen OutlineChapter Thirteen Outline

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A Model of Societal and Organizational A Model of Societal and Organizational CulturesCultures

Forces of ChangeForces of Change

•External Forces

•Internal Forces

Models of Planned ChangeModels of Planned Change

•Lewin’s Change Model

•Kotter’s Eight Steps for Leading Organizational Change

•Organizational Development

Chapter Thirteen Outline Chapter Thirteen Outline (cont’d)(cont’d)

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Understanding and Managing Understanding and Managing Resistance to ChangeResistance to Change

•Why People Resist Change in the Workplace•Alternative Strategies for Overcoming Resistance to Change

Chapter Thirteen OutlineChapter Thirteen Outline (cont’d)(cont’d)

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Organizational CultureOrganizational 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.

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The Layers of Organizational The Layers of Organizational CultureCulture

Source: Adapted from E H Schein, Organizational Culture and Leadership, 2nd ed (San Francisco: Jossey-Bass, 1992), p 17.

Observable

Artifacts

Espoused

Values

Basic

Underlying

Assumptions

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OrganizationalCulture

Sense-makingdevice

Organizationalidentity

Social systemstability

Collectivecommitment

Four Functions of Organizational Four Functions of Organizational CultureCulture

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• 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

Embedding Organizational Embedding Organizational CultureCulture

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• 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

Embedding Organizational Culture Embedding Organizational Culture (cont’d)(cont’d)

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A Model of Organizational A Model of Organizational SocializationSocialization

1. Anticipatory socialization

Learning that occursprior to joining the organization

PhasesPhases

• 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

Perceptual and Social Perceptual and Social ProcessesProcesses

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A Model of Organizational SocializationA Model of Organizational Socialization (cont’d)(cont’d)

2. Encounter

Values, skills and attitudes start to shift as new recruit discovers what theorganization is trulylike

PhasePhasess • Managing lifestyle-

versus-work conflicts• Managing intergroup role conflicts • Seeking role definition and clarity• Becoming familiar with task and group dynamics

Perceptual and Social Perceptual and Social ProcessesProcesses

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A Model of Organizational SocializationA Model of Organizational Socialization (cont’d)(cont’d)

3. Change and acquisition

Recruit masters skills and roles and adjusts to workgroup’s values and norms

PhasesPhases

• Competing role demands are resolved• Critical tasks are mastered • Group norms and values are internalized

Perceptual and Social Perceptual and Social ProcessesProcesses

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A Model of Organizational SocializationA Model of Organizational Socialization (cont’d)(cont’d)

PhasesPhases

1. Anticipatory socialization

2. Encounter

3. Change and acquisition

OutsiderOutsider

SocializedSocializedInsiderInsider

Behavioural OutcomesBehavioural Outcomes

• Performs role assignments

• Remains with organization

• Spontaneously innovates and cooperates

Affective OutcomesAffective Outcomes

• Generally satisfied

• Internally motivated to work

• High job involvement

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Functions of MentoringFunctions of Mentoring• Career Functions

- Sponsorship- Exposure and visibility- Coaching- Protection- Challenging assignments

• Psychosocial Functions- Role modeling- Acceptance and confirmation- Counseling- Friendship

Developmental relationship between an experienced employee and a junior person (the protégé).

MentoringMentoring

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Cultural Influences on Cultural Influences on Organizational BehaviourOrganizational Behaviour

OrganizationalBehaviour

OrganizationalCulture

• Personal values/ethics• Attitudes• Assumptions• Expectations

Societal culture

• Customs• Language

• Economic/ technological setting• Political/ legal setting• Ethnic background• Religion

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 69-89.

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External forcesExternal forces originate outside the organization.

• Demographic CharacteristicsDemographic Characteristics• Technological AdvancementsTechnological Advancements• Market ChangesMarket Changes• Social and Political PressuresSocial and Political Pressures

Internal forcesInternal forces originate inside the organization.

• Human Resource Problems/ProspectsHuman Resource Problems/Prospects

• Managerial Behaviour/DecisionsManagerial Behaviour/Decisions

Forces of ChangeForces of Change

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•UnfreezingUnfreezing- 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

• • ChangingChanging- 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

•RefreezingRefreezing- 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

Lewin’s Change ModelLewin’s Change Model

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Step Description Establish a senseEstablish a sense Unfreeze the organization by creating a

of urgencyof urgency compelling reason for why change is needed. Create the guidingCreate the guiding Create a cross-functional, cross-level group of

coalitioncoalition people with enough power to lead the change. Develop a visionDevelop a vision Create a vision and strategic plan to guide the

and strategyand strategy change process. Communicate theCommunicate the Create and implement a communication

strategychange visionchange vision that consistently communicates the new vision

and strategic plan. Empower broad-Empower broad- Eliminate barriers to change, and use target

based actionbased action elements of change to transform theorganization. Encourage risk taking andcreative problem-solving.

Kotter’s Steps for Leading Kotter’s Steps for Leading Organizational ChangeOrganizational Change

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Step Description Generate short-Generate short- Plan for and create short-term “wins” or

term winsterm wins improvements. Recognize and reward peoplewho contribute to the wins.

Consolidate gainsConsolidate gains The guiding coalition uses credibility fromand produce moreand produce more short-term wins to create more change.changechange Additional people are brought into the change

process as change cascades throughout theorganization. Attempts are made to reinvigorate the change process.

Anchor newAnchor new Reinforce the changes by highlightingapproaches in theapproaches in the connections between new behaviours and cultureculture processes and organizational success. Develop

methods to ensure leadership development and

successes.

Kotter’s Steps for Leading Kotter’s Steps for Leading Organizational ChangeOrganizational Change (cont’d)(cont’d)

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• OD involves profound change• OD is value loaded• OD is a diagnosis/prescription

cycle• OD is process-oriented

Characteristics of OrganizationCharacteristics of OrganizationDevelopment (OD)Development (OD)

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The leading reasons why people resist The leading reasons why people resist change are: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

Resistance To ChangeResistance To Change

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DrawbacksDrawbacks

AdvantagesAdvantages

Commonly Commonly Used in Used in SituationsSituations

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 + Participation + Involvement Involvement

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 + Education + CommunicationCommunication

ApproachApproach

Strategies for Overcoming Strategies for Overcoming Resistance to ChangeResistance to Change

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DrawbacksDrawbacks

AdvantagesAdvantages

Commonly Commonly Used in Used in SituationsSituations

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 Negotiation + Agreement

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 + SupportFacilitation + SupportApproachApproach

Strategies for Overcoming Strategies for Overcoming Resistance to ChangeResistance to Change (cont’d)(cont’d)

© 2003 McGraw-Hill Ryerson Ltd.

DrawbacksDrawbacks

AdvantagesAdvantages

Commonly Commonly Used in Used in SituationsSituations

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 Explicit + Implicit Coercion Coercion

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-Manipulation + Co-optationoptation

ApproachApproach

Strategies for Overcoming Strategies for Overcoming Resistance to ChangeResistance to Change (cont’d)(cont’d)