Cultural Changes 2

An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 3Slide 1

Chapter 3

Changing the Culture


Chapter 3Slide 2

Learning Objectives

• Recognize importance of corporate culture.

• Identify key factors assessing culture.

• Describe culture leading to effective organizations.

• Describe ethical, value, and goal considerations.


Chapter 3Slide 3

Creating Climate for Change

• Challenge of managers is:– Create renewing system.– Develop long-term efforts.

• Culture often key to success.

• Cultural change result of complex strategy.


Chapter 3Slide 4

Understanding Corporate Culture

• Environment of rapid change.

• Static organizational culture no longer effective.


Chapter 3Slide 5

What Is Corporate Culture?

• Culture is system of:– Shared values.– Beliefs.– Behavioral norms.

• Observed behavioral norms.• Dominant values.• Learning ropes for newcomers.


Chapter 3Slide 6

Culture Comes from 2 Subsystems

• Managerial.

• Organizational.


Chapter 3Slide 7

Managerial SubsystemCreates Culture

• How employees are treated.

• Through actions and words.

• Vision articulated by top management.


Chapter 3Slide 8

Organizational Subsystem Creates Culture

• Outside factors (market, etc.) define culture.

• Technology.

• Job descriptions.

• Type of structure (tall vrs. flat).


Chapter 3Slide 9

Figure 3.1Culture Formation


Chapter 3Slide 10

Corporate Culture and Success

• High-performing companies have strong cultures.

• Many cultures fail to adapt to change.

• Following corporate mergers, cultures often clash.


Chapter 3Slide 11

Key Factors to Improve Culture

• Create vision for the future.

• Develop model for change.

• Reward changes.


Chapter 3Slide 12

Cultural Resistance to Change

• Changing culture not easy.

• Time required.

• Culture can prevent company from adapting.


Chapter 3Slide 13

Pressure Points to Bring About Change

• Recession.

• Deregulation.

• Technological upheavals.

• Social factors.

• Global competition.

• Outsourcing.

• Markets.


Chapter 3Slide 14

Tools for Change (part 1 of 4)

• Information.

• Support.

• Resources.


Chapter 3Slide 15

Information (part 2 of 4)

• Provide information to people.

• Provide ability to gather information.

• One method is open-book management.


Chapter 3Slide 16

Support (part 3 of 4)

• Support and collaboration from other departments.

• Management support to provide climate of risk taking.


Chapter 3Slide 17

Resources (part 4 of 4)

• Funds.• Staff.

• Equipment.

• Materials.

• Innovative programs for providing resources include:– Venture capital.– Innovation banks.


Chapter 3Slide 18

Organizational Dimensions Affecting Performance

• Managerial effectiveness.– Accomplishing goals and objectives.

• Managerial efficiency.– Ratio of results to resources.

• Motivational climate.– Employee attitudes that influence

performance.


Chapter 3Slide 19

Other Criteria for Organizational Effectiveness

• Adaptability.

• Sense of identity.

• Capacity to test reality.


Chapter 3Slide 20

OD Professional Values and Ethics

• Expertise.

• Autonomy.

• Commitment.

• Code of ethics.


Chapter 3Slide 21

OD Implementation Issues(part 1 of 4)

• Success depends on:– Congruence between OD values and

organization’s values.

• Key issue is fit between between practitioner and client:– Compatibility of values.– Imposed change.– Priority of goals.


Chapter 3Slide 22

Compatibility of Values(part 2 of 4)

• Practitioners differ on degree of congruency with client values.– Some believe personal values are

compatible with client.– Others will help client as long as

operations legal.


Chapter 3Slide 23

Imposed Change(part 3 of 4)

• OD ideally implemented voluntarily.

• Top management may impose program.

• OD practitioners cognizant of power and politics.


Chapter 3Slide 24

Priority of Goals(part 4 of 4)

• Determine goals given precedence.

• Challenge to develop balanced intervention:– One that improves productivity and– Quality of work for members.


Chapter 3Slide 25

OD Values About Natureof Organization Members

• Respect for people.

• Trust and support.

• Power equalization.

• Confrontation and open communication.

• Participation.


Chapter 3Slide 26

Table 3.1OD Values


Chapter 3Slide 27

OD ApplicationCulture and Setpoint Systems• Setpoint builds unique automation

equipment.

• Required are self-motivated employees.– Who can solve problems and– Look for ways to improve processes.

• Uses project management and open-book accounting.


Chapter 3Slide 28

• Production employees use these techniques to:– Understand the business and– Know where to focus attention.

• Culture is one where employees:– Understand the business and– Provide thorough attention to financials.


Chapter 3Slide 29

OD ApplicationHow Trilogy’s University Helps

Build Its Culture • Trilogy is small but competes with large

software companies.

• Key goal is to attract talented people.

• Fosters new methods in relationships with clients and employees.


Chapter 3Slide 30

• It operates a three-month long “boot camp.”– New employees integrated into company.– Employees learn values and culture.– Receive comprehensive evaluation and

feedback.

• Program provides source for renewal.– Provides new services and products.

• Relationships formed, new leaders created.


Chapter 3Slide 31

Key Words and Concepts

• Corporate culture.– System of shared values and beliefs.– Interact with people, structure, systems.

• Managerial effectiveness.– Ability to accomplish specific organizational

goals.


Chapter 3Slide 32

• Managerial efficiency.– Ratio of output (results) to input

(resources).

• Motivational climate.– Employee attitudes that influence

performance.


Chapter 3Slide 33

• Open-book management.– Employees understand accounting

statements.– Use knowledge in work.

• Professionalism.

– Value system that is part of profession.


Chapter 3Slide 34

OD Skills Simulation 3.1The Dim Lighting Co.

• Purpose:– Compare decisions made by individuals

with those made by group.– Practice effective consensus-seeking techniques.– Gain insights into concept of cultural values.


Chapter 3Slide 35

Preparations for Next Chapter

• Read Chapter 4.

• Complete Steps 1 through 4 of OD Skills Simulation 4.1.

• Read and prepare Case: The Grayson Chemical Company


Chapter 3Slide 36

Cultural Changes 2

Documents

Transcript of Cultural Changes 2