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Organizational Culture and Change Organizational culture A system of shared values, norms, and assumptions that guide member’s attitudes and behaviors
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Organizational culture A system of shared values, norms, and assumptions that
guide member’s attitudes and behaviors
Artifacts—The physical manifestation of the culture including open offices, awards, ceremonies, and formal lists of values
Espoused values and norms—The preferred values and norms explicitly stated by the organization.
Enacted values and norms—Values and norms that employees exhibit based on their observations of what actually goes on in the organization
Assumptions—Those organizational values that have become so taken for granted over time that they become the core of the company’s culture
Does Culture Matter? Culture boosts organizational performance when
it:(1)is strategically relevant(2)is strong(3)emphasizes innovation and change to adapt to a
changing environment
Actively managing an organization’s culture improves its competitive advantage and performance when the culture supports
the business strategy, is strong, and enables innovation and change.
How Leaders Create and Maintain Culture An organization’s culture is influenced in part by its
industry Different industries develop different cultures Organizational culture is also influenced by the national
culture in which the organization is embedded Company founders and leaders also influence a firm’s
culture
Develop a clear sense of mission and values about what the company should be, and communicate it to employees through what you pay attention to, measure, and control.
Select employees who can share, express, and reinforce the desired values in order to help build the desired culture.
Use daily routines and concrete actions and behaviors to demonstrate and exemplify appropriate values and beliefs.
Consistently role model behaviors that reinforce the culture.
Make your human resource management procedures and criteria consistent. Communicate your priorities in the way you reward employees. Linking raises and promotions to specific behaviors communicates leaders’ priorities.
Nurture traditions and rituals that express, define, and reinforce the culture. Awards and recognition ceremonies, having the CEO address new employees during their orientations, and reciting stories of past company successes can all define and reinforce a firm’s culture.
Cultures of Conflict and Cultures of Inclusion Conflict Culture Active Passive Agreeable Disagreeable
Culture of Inclusion
Conflict Culture Dominating conflict cultures: Dominating conflict cultures
are active and disagreeable—open confrontations are accepted as well as heated arguments and threats
Collaborative conflict cultures: Collaborative conflict
cultures are active and agreeable
Avoidant conflict cultures: Avoidant conflict cultures are passive and agreeable
Passive-aggressive conflict cultures: Passive-aggressive conflict cultures are both passive and disagreeable
Effective employees understand their organization’s conflict culture and how to
appropriately resolve conflict.
Cultures for Managing Conflict
Source: Gelfand, M.J., Leslie, L.M., & Keller, K.M. (2008). On the etiology of conflict cultures, Research in Organizational Behavior, 28, 137-166.
The Effects of Technology on Culture Using Intranets to Build and Maintain
Culture
Building and Maintaining Culture with Remote Employees
Their scope. Intranets with a narrow scope can reinforce a culture of secrecy and information hoarding. Intranets that contain information on a variety of topics and links to other useful sites such as human resources, company and industry news, blogs, wikis, interviews with company leaders, and performance indicators reflect a culture of openness and teamwork.
Their openness to employee feedback and contributions. Intranets that contain “like it or not?” feedback tools and features that allow employees to contribute reflect a participative culture that values employee contributions. A more centralized, heavily edited and filtered site reflects a culture in which information flows less freely and employee contributions are less valued.
The frequency with which they are updated. Intranets that are rarely updated are not likely to influence the company’s culture and can reflect a culture that does not value employee contributions, has poor internal communication, and has poor attention to detail. Lucent updates its intranet multiple times a day if appropriate. It also posts two weekly feature articles that reinforce the strategic vision and positioning of the company to entice employees to visit multiple times each week.
The number of intranets. This refers to whether there is just one company intranet, or several, each serving different groups of employees. For example, some organizations have one intranet for the sales force and another, completely different looking one, for the R&D group.
The use of symbols, stories, and ceremonies. Because these express a company’s culture, intranets can convey such information via news of events affecting the organization, messages from CEOs, and announcements of employees’ awards programs of importance to the organization.
Organizational Change Incremental Change
Linear, continuous change
Transformative Change Radical change
Forces creating a need for change: Increased competition Globalization Changes in consumer demands Governmental regulations Deregulation Resource shortages
Lewin’s Model of Organizational Change
Kurt Lewin’s Force Field Analysis Model
Source: Lewin, K. (1951). Field theory in social science; selected theoretical papers. Copyright © 1951 by the American Psychological Association. Reprinted by permission of APA.
Four-Stage Model of the Change Process
Source: Northcraft, G.B., & Neale, M.A. (1994) Organizational Behavior: A Management Challenge. Hinsdale, IL: Dryden Press (2nd edition).
Kotter’s Change Phases Establish a sense of urgency Create a coalition Develop a clear vision for the change Share the vision Empower people to remove obstacles Secure short-term wins Build on the change Anchor the change in the corporate culture
Reactions to Change
Organizational Change
Barriers to Change
Habits Power and influence
Limited resources Misunderstandings
Saving face Fear of the unknown
Tolerance for ambiguity
Organizational Change
Table 15-3Barriers to ChangeHabits: regular, stable patterns of events that become routines and take time to change
Power and Influence: people are likely to resist changes that threaten to reduce their power or influence
Limited Resources: insufficient resources (time, money, expertise, etc.) are a barrier to change
Misunderstandings: because misunderstandings increase uncertainty, they increase the chances that employees do not buy into the need for the change
Barriers to ChangeSaving Face: resisting a change to “prove” that another option was better or to try to demonstrate that the person championing the change is incompetent
Fear of the Unknown: many people are afraid of change because of the uncertainty over their future
Tolerance for Ambiguity: a personality trait reflecting the tendency to perceive ambiguous situations as desirable or as threatening
Overcoming Resistance to Change Communication Ensure that staffing and performance appraisals
support the change Participation Promote fairness perceptions Negotiation Manipulation and coercion Incentives Pilot programs Organization development
Organizational Change
Organizational Learning Learning organization
An organization that facilitates the learning of all its members and continually transforms itself
After-action review A professional discussion of an event that
enables discovery of what happened, why it happened, and how to sustain strengths and improve on weaknesses
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