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Management First Edition Chapter 4

II. Section I: Organizational Culture

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall.

Managing Organizational Culture and Change Chapter Overview This chapter begins with an overview of organizational culture and both planned and unplanned change in an organization. Then, the importance of culture as a competitive advantage is presented, followed by discussion of how to manage cultural processes. Next, some characteristics and types of organizational culture are examined. Finally, the chapter looks at how to manage organizational change along with some models of organizational change. Learning Objectives 1. Identify the three major aspects of organizational culture. 2. Apply a simple assessment tool to quickly gain a sense of the culture of an organization. 3. Describe the importance of organizational culture. 4. Identify the processes through which organizational culture can be developed and sustained. 5. Use classification systems to identify various types of organizational culture. 6. Identify the sources of resistance to change. 7. Apply models to effectively manage change efforts. Outline I. Understanding the Nature of Culture and Change Employee behavior is influenced by national culture and by company culture. Company culture can differ even within an organization meaning that values systems and influences can differ depending on an employee’s position within the company.

A. Organizational culture plays a role in organizational change. Change can be planned or unplanned.

B. A company’s culture can help managers decide how to prioritize alternatives

when change is necessary.



Organizational culture is a system of shared values, assumptions, beliefs, and norms that unite the members of an organization.

A. It reflects employees’ views about the ways things are done and gives meaning to actions and procedures.

B. There are three aspects of organizational culture:

1. Visible culture includes the aspects of culture than an observer can hear, feel, or see.

2. Espoused values are the aspects of a company’s culture that are not readily observed, but can be perceived from the way managers explain and justify their actions and decisions.

3. Core values are a firm’s principles that are widely shared, that operate unconsciously, and that are considered to be nonnegotiable.

III. The Importance of Culture Organizational culture can be a more important determinant of the commitment and loyalty of employees than pay, and can be a factor in the overall competitiveness of a company.

A. Organizational culture is important for 1. Employee self-‐-‐-‐management 2. Stability 3. Employee socialization 4. Supporting a firm’s strategies

1. Employee Self-‐-‐-‐Management

A. Firms can use organizational culture to encourage employees to behave in certain ways even in the absence of close supervision or formal control mechanisms.

B. Failure to follow established norms can result in ostracism or ridicule.

2. Stability

A. Corporate culture can provide employees with a sense of stability and continuity in times of rapid change and intense competition.

B. Corporate culture can also create a common ground that brings people together

into a cohesive whole. 3. Socialization



A. Organizational culture teaches employees hot to fit in. Socialization is the process of internalizing or taking organizational values as one’s own.

B. Socialization involves three stages

1. Prearrival consists of the values, attitudes, biases, and expectations the employee brings to the organization when first hired.

2. During the encounter stage the employees begins to compare expectations about the firm’s culture with reality.

3. During the metamorphosis stage the employee is induced to bring his or her values and ways of doing things closer to those of the organization.

4. Implementation of the Organization’s Strategy

A. Employees are typically more committed to a company’s strategy when the firm’s strategy and structure reinforce each other.

5. Beware the Dark Side

A. It is important for senior level managers to continually assess a company’s culture to ensure that it is not so strong that employees resist change, or that new hires feel like outsiders.

B. Senior management also needs to ensure that the culture is strong enough that

it supports the firm’s strategic efforts. IV. Managing Cultural Processes Organizational culture is maintained and reinforced deliberately through mechanisms including cultural symbols or rituals and ceremonies. It can also be nurtured unconsciously through stories, language, and perceptions of leadership style. 1. Cultural Symbols

A. Cultural symbols are the icons and objects including flags, uniforms, and logos that communicate organizational values.

B. Cultural symbols convey and sustain shared meaning among employees.

2. Company Rituals and Ceremonies

A. Companies use ceremonies to convey organizational values and celebrate outstanding performances.



3. Company Heroes

A. To encourage certain types of behavior, companies identify individuals whose actions and accomplishments represent what the company believes in.

4. Stories

A. The telling of stories and legends can help communicate and reinforce corporate values.

5. Language

A. Language can encourage both positive and negative values. Firms can also use slogans to express cultural values.

6. Leadership

A. Effective leaders 1. provide daily examples of what is important to the organization. 2. articulate a vision that generates excitement and commitment among

employees. 7. Organizational Policies and Decision Making

A. Firms communicate values and culture through performance appraisals, budgets, and policies.

B. Employees can learn what the company values by looking at the criteria it uses

to measure performance and by watching where scarce resources are spent. V. Characteristics and Types of Organizational Culture Organizational culture can vary along several dimensions. 1. Cultural Uniformity versus Heterogeneity

A. In some organizations a uniform culture permeates all parts of the company, but in others, different subcultures may exist. 1. Different subcultures make sense for organizations that have largely

autonomous divisions with their own products or services.



2. A more uniform culture is appropriate for organizations where units are interdependent and employees work closely together to achieve common goals.

2. Strong versus Weak Cultures

A. Strong cultures pressure people to conform to what the company wants without formal control mechanisms, and can actually increase motivation as employees strive to do the right thing.

B. A strong culture can be problematic though if it makes it difficult for the organization to react to changes in the environment, makes new employees feel unwelcome, or makes it difficult for firms to work with other companies.

3. Culture versus Formalization

A. Organizational culture can act as a substitute for more formal systems of control.

B. When employees share a common destiny it is less important to institute mechanisms to ensure compliance or predictability. When trust is part of a company’s culture, the need for documentation and monitoring is reduced.

4. National versus Organizational Culture

A. National and regional culture influences the values of individuals. In some cases, organizations try to limit the influence of national culture through employee selection and socialization.

B. Some multinational companies try to avoid the influence of national cultures and

the miscommunications they could bring by creating a global company culture. 5. Types

A. Classifying the type of culture in an organization can be helpful both for hiring and for managing employees.

B. One common classification system divides firms in terms of traditional control

where there is a clearly defined chain of command, and top-‐-‐-‐down control, and employee involvement where employee participation and involvement are emphasized.

C. Another classification system uses four types of cultures.

1. A baseball team culture is a fast-‐-‐-‐paced, competitive, high-‐-‐-‐risk culture that is usually found in organizations in rapidly changing



environments, with high-‐-‐-‐risk decision making, that depend on continuous innovation for survival.

a. This type of organization tends to seek risk-‐-‐-‐takers who thrive under time pressure and in high stress situations.

2. A club culture seeks people who are loyal, committed to one organization, and need to fit into a group.

a. This type of culture rewards employees with job security, promotion from within, and slow progress.

3. An academy culture seeks people who like to be experts in a single area and rewards them with long-‐-‐-‐term association and a steady, slow climb up the organizational ladder.

4. In a company with a fortress culture the primary goals in surviving and reversing business problems including economic decline and hostile competitors.

a. Companies with this type of culture attract individuals who like excitement, challenge, and the opportunities involved with a turnaround.

VI. Managing Organizational Change While the culture within an organization provides a sense of continuity and stability, the environment outside the firm is constantly changing. Managers who effectively anticipate and manage change are more likely to be successful. 1. Types of Change

A. Change can be planned or unplanned. 1. Planned change can be anticipated and advance preparation can take

place. 2. Unplanned change is not anticipated and does not allow for advanced

preparation.

B. Some organizations resist the need for either type of change. 2. Forces for Change

A. There are many causes of change in an organization including environmental forces and internal forces. 1. Environmental forces include relationships with customers, suppliers, and

employees as well as changes in technology, market forces, social trends, and political and regulatory forces.

2. Internal forces originate within the company. They can come from top executives and work down through an organization or come from front line employees or labor unions and work up.



3. Resistance to Change

A. Generally, when change occurs, there is some resistance from employees or managers.

B. Resistance to change can occur for several reasons including

1. Self-‐-‐-‐interest – people fear losing something they value. 2. A lack of understanding and trust – employees may not trust or understand

the intention behind a change. 3. Uncertainty – people fear the negative consequences of change. 4. Different perspectives and goals – employees do not like change that could

diminish the welfare of the unit in which they work regardless of whether the change is beneficial to the company as a whole.

5. Cultures that value tradition – some organizations value traditional ways of doing things and are not supportive of new ideas.

VII. Models of Organizational Change Firms that can respond to change successfully have a competitive advantage over those that do not.

A. There are two approaches to effectively implement change and handle problems and resistance 1. Lewin’s three-‐-‐-‐step model – involves unfreezing (melting resistance to

change), change (a departure from the status quo) , and refreezing (new management practices and employee behaviors become routine) – this model works best when change is planned.

2. The force-‐-‐-‐field analysis model – states that two sets of opposing forces are at equilibrium before a change takes place and put at disequilibrium to make change come about – the forces are driving forces (push for change) and restraining forces (oppose change) – for change to occur, driving forces must be increased, restraining forces must be decreased, or both.

1. Implementing Organizational Change

A. Top-‐-‐-‐down change is change that is initiated by managers. This type of change is common in a crisis.

B. Change agents are people who act as catalysts and manage changes.

C. Bottom-‐-‐-‐up change comes from employees. It is slower to implement than top-‐-‐-‐

down change.



2. Tactics for Introducing Change

A. There are many tactics to achieve organizational change 1) Communication and education is important so employees understand

why the change is needed. 2) Employee involvement helps people become more committed to change. 3) Negotiation and making concessions could increase the chance that

change will be successful. 4) Firms can use coercion to force employees to change or risk job losses or

rewards. 5) Support from top management can be effective in implementing change

because it signals that the change is important.

Sample Questions

1) Which of the following best describes how the company location as a level of culture impacts a company?

A) The Walt Disney Company has a strong culture based on fun and creativity. B) The Dilbert cartoons depicting the culture based on the culture in high tech companies. C) Leaders in the highly collectivist culture in Japan encourage employees to collaborate

rather than compete. D) Walmart's focus is on low prices. Answer: C Diff: 1 Page Ref: 106 Objective: LO1 AACSB: Dynamics of the global economy 2) The two perspectives of organizational change are A) unplanned change and external environmental jolts. B) planned and unplanned changes. C) planned and market changes. D) economic downturns and planned change. Answer: B Diff: 1 Page Ref: 106 Objective: LO1 3) An example of planned change is A) change in organizational strategy. B) an economic downturn. C) a change in customer demand for the firm's product. D) all of the above Answer: A Diff: 2 Page Ref: 106



Objective: LO1 AACSB: Reflective thinking skills 4) Which of the following is not an aspect of an organization's culture? A) Visible culture B) Espoused values C) Core values D) Organizational personality Answer: D Diff: 1 Page Ref: 106 Objective: LO1 5) Which of the following describes organizational culture? A) A system of shared values, assumptions, beliefs, and norms that unite members of an

organization B) Reflects "the way things are done around here" C) The personality of the organization D) all of the above Answer: D Diff: 2 Page Ref: 106 Objective: LO2 6) The most obvious aspect of an organization's culture is A) espoused values. B) visible culture. C) perceived values. D) core values. Answer: B Diff: 1 Page Ref: 106 Objective: LO2 7) The aspect of corporate culture that can be perceived from the way managers explain

and justify their actions and decisions is A) espoused values. B) visible culture. C) perceived values. D) core values. Answer: A Diff: 2 Page Ref: 107 Objective: LO2 AACSB: Reflective thinking skills 8) At the center of organizational culture are A) espoused values. B) visible culture.



C) perceived values. D) core values. Answer: D Diff: 1 Page Ref: 108 Objective: LO2 9) Key functions performed by organizational culture include all of the following except A) employee self-‐management. B) diversity management. C) stability. D) employee socialization. Answer: B Diff: 2 Page Ref: 108 Objective: LO3 10) Organizational culture A) can induce employees to behave in a particular way without close supervision. B) is conveyed most effectively in a formal process. C) ensures everyone fits into the organization. D) ensures individual values are aligned with corporate values. Answer: A Diff: 3 Page Ref: 109 Objective: LO3 11) In "hyperturbulent environments," culture fills an important human need for A) predictability. B) security. C) comfort. D) all of the above Answer: D Diff: 2 Page Ref: 109 Objective: LO3 12) The Marine Corps boot camps are an example of A) metamorphosis. B) organizational culture. C) socialization. D) employee self-‐management. Answer: C Diff: 1 Page Ref: 110 Objective: LO3 AACSB: Reflective thinking skills 13) Which of the following is not one of the three stages of socialization? A) Prearrival B) Metamorphosis



C) Orientation D) Encounter Answer: C Diff: 1 Page Ref: 110 Objective: LO3 14) When Sam begins to compare his expectations about his firm's culture with reality,

which stage of socialization is he in? A) Prearrival B) Metamorphosis C) Orientation D) Encounter Answer: D Diff: 2 Page Ref: 110 Objective: LO3 AACSB: Reflective thinking skills 15) When companies hurriedly fill positions, they often do not pay enough attention to

which stage of the socialization process? A) Prearrival B) Metamorphosis C) Orientation D) Encounter Answer: B Diff: 2 Page Ref: 110 Objective: LO3 AACSB: Reflective thinking skills 16) When Jennifer is hired by a firm and receives little special attention, which entry

socialization option is being used? A) Collective socialization B) Individual socialization C) Informal socialization D) Formal socialization Answer: C Diff: 2 Page Ref: 110 Objective: LO3 17) Which entry socialization option assumes the new employee's individual traits and

characteristics are valuable to the employee's and the firm's success? A) Divestiture socialization B) Investiture socialization C) Random socialization D) Individual socialization Answer: B Diff: 3 Page Ref: 110



Objective: LO3 18) Which of the following is true of the dark side of organizational culture? A) A firmly entrenched set of cultural values may cause employees to resist any change. B) A strong culture may cause new employees to feel like outsiders. C) Organizational leaders must continually assess the nature of their culture to avoid

problems. D) all of the above Answer: D Diff: 2 Page Ref: 111 Objective: LO3 19) The culture of an organization A) seldom impacts who is hired. B) is strongly influenced by the beliefs of the organization's founder. C) is created quickly. D) is of little importance in determining organizational success. Answer: B Diff: 1 Page Ref: 111 Objective: LO4 20) Culture can be reinforced and maintained by A) being deliberately imposed by management. B) only conscious processes. C) cultural symbols, but not rituals. D) rituals, but not cultural symbols. Answer: A Diff: 3 Page Ref: 112 Objective: LO4 21) The Disney Company remaining a close reflection of Walt Disney and IBM reflecting J.

Watson are examples of A) culture being deliberately imposed by management. B) rituals maintaining culture. C) values becoming firmly entrenched even after the founder is gone. D) cultural symbols reinforcing culture. Answer: C Diff: 2 Page Ref: 112 Objective: LO4 22) The icons that communicate organizational values are referred to as A) cultural symbols. B) company rituals. C) company ceremonies. D) company stories. Answer: A



Diff: 1 Page Ref: 112 Objective: LO4 23) The president of Nashville's Centennial Medical Center removed the door to his office

and hung it from the lobby ceiling to convey an open-‐door policy. This is an example of A) cultural symbols. B) company rituals. C) company ceremonies. D) company stories. Answer: A Diff: 2 Page Ref: 112 Objective: LO4 AACSB: Reflective thinking skills 24) When the local police department hosts an event to honor an act of heroism by an

officer, this is an example of A) cultural symbols. B) company rituals. C) language. D) company stories. Answer: B Diff: 1 Page Ref: 112 Objective: LO4 AACSB: Reflective thinking skills 25) Steve Jobs is an example of a company hero because A) he was the CEO of Apple. B) his deeds reflect what the organization believes in. C) his corporate leadership made Apple profitable. D) the company developed the iPod under his leadership. Answer: B Diff: 2 Page Ref: 113 Objective: LO4 26) Don Fisher's unsuccessful search for a pair of Levi jeans in San Francisco eventually led

to the launch of the Gap Stores. As new hires hear this, the organizational culture is sustained by this example of

A) symbols B) stories. C) leadership. D) language. Answer: B Diff: 2 Page Ref: 113 Objective: LO4



27) PepsiCo's phrase "We take eagles and teach them to fly in formation" is an example of

which approach to reinforcing culture? A) Symbols B) Stories C) Leadership D) Language Answer: D Diff: 2 Page Ref: 113 Objective: LO4 28) Culture can be reinforced through the actions of its leaders. Which leader has reinforced

a frugal image at Intel? A) Lee Iacocca B) Walt Disney C) Andrew Grove D) Herb Kelleher Answer: C Diff: 1 Page Ref: 113 Objective: LO4 29) Southwest's culture of "be happy, enjoy your work, and make customers smile" was

reinforced by A) Herb Kelleher's leadership. B) stories of how Southwest was founded. C) language and acronyms used throughout the airline industry. D) all of the above Answer: A Diff: 3 Page Ref: 113 Objective: LO4 30) Employees learn what the company truly values by A) reading the corporate credo. B) listening to top management. C) watching where scarce resources are spent. D) attending orientation sessions. Answer: C Diff: 3 Page Ref: 114 Objective: LO4 31) Which of the following communicate company values and culture? A) Performance appraisals B) Budgets C) New plans D) all of the above



Answer: D Diff: 3 Page Ref: 113 Objective: LO4 32) Which of the following will be most effective in communicating the value a firm truly

places on innovation? A) The number of times the word innovation is used in speeches B) The number of times the word innovation is used in company brochures and marketing

material C) The extent to which research & development budgets are the first cuts during economic

hardship D) The number of patents the company holds Answer: C Diff: 3 Page Ref: 114 Objective: LO4 33) Which of the following is not true of subcultures? A) Subcultures are not generally seen in uniform cultures. B) Subcultures can be problematic when employees across interdependent units must work

closely together. C) In a large organization, different subcultures may be found in different parts of the

organization. D) When divisions are largely autonomous with different strategies, it may make sense for

them to have subcultures. Answer: A Diff: 2 Page Ref: 114-‐115 Objective: LO5 AACSB: Reflective thinking skills 34) Cultures that are uniform A) have different cultures in different parts of the organization. B) permeate the entire organization. C) vary by division. D) are almost always entrepreneurial. Answer: B Diff: 2 Page Ref: 114 Objective: LO5 35) The culture of 3M focuses on innovation and is evident in all parts of the organization.

This culture is characterized as A) heterogeneous. B) uniform. C) weak. D) national. Answer: B Diff: 1 Page Ref: 115



Objective: LO5 36) When people in an organization do not need close supervision or other formal control

mechanisms to get them to embrace the culture, it is most likely which type of culture? A) Heterogeneous B) Uniform C) Strong D) Weak Answer: C Diff: 2 Page Ref: 115 Objective: LO5 AACSB: Reflective thinking skills 37) Which of the following can be a liability for a strong culture? A) If it presents a barrier to adaptation in a rapidly changing environment B) If it makes some groups of employees feel unwelcome C) If it makes it difficult for the firm to work cooperatively with other firms D) all of the above Answer: D Diff: 3 Page Ref: 115 Objective: LO5 38) Which of the following statements about culture is true? A) Organizational culture is no substitute for formal systems of control. B) To the extent that organizational culture increases trust among employees, it reduces the

need for monitoring of organizational members. C) A national culture has little impact guiding behaviors of organizational members. D) Most cultural traits do not overlap across countries. Answer: B Diff: 3 Page Ref: 115 Objective: LO5 39) To the extent that organizational culture increases trust among employees, it reduces

the need for A) a code of ethics. B) a performance appraisal system. C) written documentation and monitoring of organizational members. D) a disciplinary process. Answer: C Diff: 2 Page Ref: 115 Objective: LO5



40) Which type of culture emphasizes the chain of command and relies on top-‐down

control? A) Traditional control culture B) Employee involvement culture C) Strong culture D) Uniform culture Answer: A Diff: 2 Page Ref: 115-‐116 Objective: LO5 41) Employees of the Acme Company work together to attain goals, because they are

internally motivated. The Acme Company's culture is most likely a(n) A) traditional control culture. B) employee involvement culture. C) strong culture. D) uniform culture. Answer: B Diff: 3 Page Ref: 116 Objective: LO5 AACSB: Reflective thinking skills 42) Which type of culture is fast-‐paced, competitive and high risk and is typically found in

rapidly changing environments with short product cycles? A) Baseball team culture B) Club team culture C) Academy team culture D) Fortress team culture Answer: A Diff: 2 Page Ref: 116 Objective: LO5 43) Mark is a risk taker who enjoys being a free agent rather than committing to one

employer. Which type of organizational culture is the best fit for him? A) Baseball team culture B) Club team culture C) Academy team culture D) Fortress team culture Answer: A Diff: 3 Page Ref: 116 Objective: LO5 AACSB: Reflective thinking skills



44) Which type of culture seeks employees who are loyal and committed to one

organization, then rewards them with job security and slow progress? A) Baseball team culture B) Club team culture C) Academy team culture D) Fortress team culture Answer: B Diff: 2 Page Ref: 116 Objective: LO5 45) In which type of organizational culture should employees not expect broad

development and intense networking with people in other areas? A) Baseball team culture B) Club team culture C) Academy team culture D) Fortress team culture Answer: C Diff: 2 Page Ref: 116 Objective: LO5 46) Which type of organizational culture would appeal to individuals who enjoy the

excitement, challenge, and opportunities of a turnaround? A) Baseball team culture B) Club team culture C) Academy team culture D) Fortress team culture Answer: D Diff: 3 Page Ref: 116 Objective: LO5 AACSB: Reflective thinking skills 47) Which type of change allows for advance preparation? A) Technological B) Planned C) Unplanned D) Dynamic Answer: B Diff: 1 Page Ref: 116 Objective: LO5 48) Which of the following does not represent an environmental force for change? A) Technology B) Market forces C) Change in CEO D) Social trends



Answer: C Diff: 1 Page Ref: 117 Objective: LO5 49) The threat that Barnes & Noble faced losing market share to Amazon.com is an example

of A) an environmental force for change. B) planned change. C) an internal force for change. D) a regulatory change. Answer: A Diff: 2 Page Ref: 117 Objective: LO5 50) Which of the following are sources of resistance to change? A) Lack of understanding B) Self-‐interest C) Uncertainty D) all of the above Answer: D Diff: 2 Page Ref: 118 Objective: LO5 51) Which of the following statements is not true concerning resistance to change? A) Resistance to some change is based on legitimate concerns. B) Resistance to change can be fairly dramatic and can involve acts of sabotage. C) Understanding the causes of resistance does little to manage change. D) Employees resist change when they fear losing something they value. Answer: C Diff: 2 Page Ref: 118 Objective: LO5 52) Which type of resistance to change is most likely to occur when previous changes were

not well understood or resulted in negative consequences? A) Uncertainty B) Different goals C) Self-‐interest D) Lack of trust Answer: D Diff: 3 Page Ref: 119 Objective: LO5 53) What is the final stage in Lewin's three-‐step model of organizational change? A) Unfreezing B) Refreezing C) Changing



D) Force field analysis Answer: B Diff: 2 Page Ref: 121 Objective: LO6 54) Lewin's three-‐stage model of organizational change is most effective with which type of

change? A) Unplanned B) Planned C) Dynamic D) Environmental Answer: B Diff: 2 Page Ref: 121 Objective: LO6 AACSB: Analytic skills 55) What is one of the most effective ways to overcome resistance to change? A) Involve the resisters in the implementation. B) Educate employees why the change is needed. C) Make concessions in exchange for the cooperation of resisters. D) Force resisters by threatening them if they continue to hinder the implementation of a

change. Answer: B Diff: 2 Page Ref: 122-‐123 Objective: LO6 56) The most obvious aspect of culture includes the espoused values. Answer: FALSE Diff: 1 Page Ref: 106 Objective: LO2 57) Studies have indicated that organizational culture can be an even more important

determinant of worker commitment and loyalty than pay. Answer: TRUE Diff: 2 Page Ref: 108 Objective: LO3 58) In industries with "hyperturbulent environments," culture fulfills an important human

need for predictability and security. Answer: TRUE Diff: 2 Page Ref: 109 Objective: LO3 59) While the culture of a firm is strongly influenced by the founder, as the firm grows, the

founder's values have little impact on who is hired, retained or promoted. Answer: FALSE



Diff: 2 Page Ref: 111 Objective: LO4 60) Mary Kay's pink Cadillacs are examples of cultural symbols. Answer: TRUE Diff: 2 Page Ref: 112 Objective: LO4 AACSB: Reflective thinking skills 61) A strong culture always provides a competitive advantage. Answer: FALSE Diff: 2 Page Ref: 115 Objective: LO5 62) IBM, Coca-‐Cola, and Procter & Gamble are examples of academy cultures. Answer: TRUE Diff: 3 Page Ref: 116 Objective: LO5 AACSB: Analytic skills 63) Some strong organizational cultures are not supportive of change, but rather value

tradition. Answer: TRUE Diff: 2 Page Ref: 119 Objective: LO5 64) According to Lewin, when the driving forces and restraining forces are evenly balanced,

the organization does not change. Answer: TRUE Diff: 1 Page Ref: 121 Objective: LO6 65) Change agents are outside consultants who are selected for their skill in dealing with

resistance to change. Answer: FALSE Diff: 1 Page Ref: 122 Objective: LO6 66) What are the three aspects of an organization's culture? Answer: There are three aspects of an organization's culture. The most obvious is the visible

culture that an observer can hear, see, or feel. At a deeper level, espoused values are not readily observed but instead are the ways managers and employees explain and justify actions and decisions. Espoused values are generally consciously and explicitly communicated. At the center of organizational culture are core values that are widely shared, operate unconsciously, and are considered nonnegotiable.

Diff: 1 Page Ref: 106-‐108



Objective: LO2 67) What are the key functions performed by culture? Answer: Key functions performed by culture include employee self-‐management, stability,

employee socialization, and supporting a firm's strategies. Diff: 2 Page Ref: 108-‐111 Objective: LO3 68) Contrast formal and informal socialization. Answer: Formal socialization occurs when an employee's newcomer status is made obvious,

through separate training or orientation away from the job. Informal socialization happens when the new employee receives little special attention and begins working right away.

Diff: 2 Page Ref: 110 Objective: LO3 69) Discuss the founder's role in influencing corporate culture. Answer: The culture of an organization normally is strongly influenced by the beliefs and

philosophy of the organization's founder. A firm's founder transmits his or her beliefs to a small group of close associates, often family members who already share the same values or at least know each other well. As the firm grows, the founder's values determine who is hired and who is retained and promoted. Selection and socialization processes tend to reinforce the founder's values. These values become firmly entrenched even after the founder is long gone.

Diff: 2 Page Ref: 111 Objective: LO4 70) Discuss a strong versus weak culture. Answer: A strong culture pressures people to do what the organization wants with less

reliance on formal control mechanisms such as close supervision, hierarchies, rules, and procedures. It may also increase the level of intrinsic motivation because employees work hard for the right thing.

Diff: 2 Page Ref: 115 Objective: LO5 71) Describe the baseball team, club, academy, and fortress cultures. Discuss what type of

employee would be the best fit for each. Answer: A baseball team culture is present in an organization facing a rapidly changing

environment, with short product life cycles, high-‐risk decision making, and dependence on continuous innovation for survival. The employee who best fits this culture tends to be a risk taker, enjoys being a "free agent," shows little commitment to one employer and thrives on time pressure and stress. The club culture seeks people who are loyal, committed to one organization, and need to fit into a group. People are rewarded with job security, promotion from within, and slow progress. Club cultures are present in companies such as UPS, government agencies, and the military. The academy culture seeks to hire people with specialties and technical mastery who will be confined to a set



job within a particular function and be rewarded by long-‐term association and a slow, steady climb up the organization ladder. Organizations that fit this model include IBM, Coca-‐Cola, and Procter & Gamble. Fortress cultures are obsessed with surviving and reversing sagging fortunes. Fortress-‐type organizations attract confident individuals who enjoy the excitement, challenge, and opportunities of a turnaround.

Diff: 3 Page Ref: 116 Objective: LO5 72) Define planned and unplanned change. Answer: Change can be viewed as a planned event or as an unplanned and dynamic

condition. A planned change occurs when a change in an organization is anticipated and allows for advance preparation. In contrast, dynamic change refers to change that is ongoing or happens quickly.

Diff: 2 Page Ref: 116 Objective: LO5 73) Discuss sources of resistance to change. Answer: Some of the major reasons for resistance to change include self-‐interest, lack of

trust and understanding, uncertainty, different perspectives and goals, and cultures that value tradition. Employees resist change when they fear losing something they value. Employees may resist change when they do not trust the intentions behind a proposed change, or they may misunderstand its purpose. Uncertainty results from fear of the unknown and lack of information about the future. Finally, a proposed change can be viewed through different lenses by employees with differing goals and perspectives.

Diff: 2 Page Ref: 118 Objective: LO5 74) Discuss Lewin's three-‐step model of organizational change. Answer: Kurt Lewin developed the three-‐step model of organizational change. The three

steps are unfreezing, change, and refreezing. Unfreezing involves melting resistance to change by dealing with people's fears and anxieties so they can be more open to the change. New information makes them aware that the status quo is unacceptable and that some type of change is required. The second step is the change itself, which is a departure from the status quo. Refreezing is the final step in which new management practices and employee behaviors become part of employees' routine activities.

Diff: 2 Page Ref: 121 Objective: LO6 75) Describe force-‐field analysis and explain how change is implemented. Answer: Force-‐field analysis states that two sets of opposing forces are at equilibrium

before a change takes place. The forces consist of driving forces, which are pushing for change, and restraining forces, which are opposed to change. When the two forces are evenly balanced, the organization is in a status quo state and does not change. To implement change, the model suggests that management can choose from one of three change strategies. Management can increase the driving forces, reduce the restraining forces, or do both.



Diff: 3 Page Ref: 121-‐122 Objective: LO6 76) What is a change agent? Answer: Change agents are people who act as catalysts and assume responsibility for

managing change. Change agents can be internal managers or outside consultants selected for their skill in dealing with resistance to change. Sometimes the change agents are the employees themselves.

Diff: 2 Page Ref: 122 Objective: LO6 77) What is bottom-‐up change and how does it begin? Answer: A bottom-‐up change originates with employees. Bottom-‐up changes are put into

effect more slowly than top-‐down changes. They generally begin with a series of meetings between employees and supervisors. Next, the change is discussed in meetings between supervisors and middle managers, then finally it is examined and approved or modified in meetings between managers and top executives.

Diff: 2 Page Ref: 122 Objective: LO6 78) List the choice of tactics for bringing about change in an organization. Answer: The tactics for bringing about change in an organization are communication and

education, employee involvement, negotiation, coercion, and top management support. Diff: 1 Page Ref: 122 Objective: LO6 79) What is one of the most effective way to overcome resistance to change? Answer: One of the most effective ways to overcome resistance to change is to educate

employees about why the change is needed. Information should flow in both directions. Diff: 1 Page Ref: 122 Objective: LO6 80) What are Shelley Bird's suggestions for managing change? Answer: The six key lessons suggested by Bird for managing change are: 1. Communicate the vision. 2. Engage employees in the first 100 days. 3. Keep management in the loop. 4. Invite the community in. 5. Be open with the press. 6. Measure results. Diff: 2 Page Ref: 124-‐125 Objective: LO6

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Management First Edition Chapter 4 - DonsDocs · Management First Edition Chapter 4 ... A.##Organizational#culture#teaches#employees#hotto#fitin.# ... 7.#Organizational#Policies#and#Decision#Making#