Management 11e John Schermerhorn

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Management 11e John Schermerhorn

• Chapter 11Organizational Cultureand Change

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Planning Ahead Chapter 11 Study Questions

1. What is organizational culture?
2. What is a multicultural organization?
3. What is the nature of organizational change?

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Study Question 1 What organizational culture?

• Organizational culture
• The system of shared beliefs and values that
  develops within an organization and guides the
  behavior of its members
• Socialization
• How new members learn the culture of the
  organization

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Figure 11.1 Levels of organizational
cultureobservable culture and core culture in
the organizational iceberg
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Study Question 1 What organizational culture?

• Strong cultures
• Commit members to do things that are in the best
  interests of the organization
• Discourage dysfunctional work behavior
• Encourage functional work behavior
• The best organizations have strong cultures that
• Are performance-oriented
• Emphasize teamwork
• Allow for risk taking
• Encourage innovation
• Value the well being of people

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Study Question 1 What organizational culture?

• What is observable culture?
• What one sees and hears when walking around an
  organization
• Elements of observable culture
• Heroes
• Ceremonies, rites and rituals
• Legends and stories
• Metaphors and symbols
• What is the core culture?
• Underlying assumptions and beliefs that influence
  behavior and contribute to the observable culture
  

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Study Question 1 What organizational culture?

• Core culture and values
• Core values are beliefs and values shared by
  organization members
• Strong cultures have a small but enduring set of
  core values
• Commitment to core values is a key to long-term
  success
• Important cultural values include
• Performance excellence
• Innovation
• Social responsibility
• Integrity. Worker involvement. Customer service.
  Teamwork

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Study Question 1 What organizational culture?
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Study Question 1 What organizational culture?

• Value-based management
• Describes managers who actively help to develop,
  communicate, and enact shared values
• Criteria for evaluating core values
• Workplace spirituality
• Creates meaning and shared community among
  organizational members

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Study Question 1 What organizational culture?
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Study Question 1 What organizational culture?

• Symbolic leadership
• Symbolic leaders use symbols well to establish
  and maintain a desired organizational culture
• Symbolic leaders behave in ways that espouse the
  organizations values
• Symbolic leaders
• Use language metaphors
• Highlight and dramatize core values and
  observable culture
• Use rites and rituals to glorify performance

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Study Question 2 What is a multicultural
organization?

• Multicultural organizations
• Based on pluralism, operating with inclusion and
  respect for diversity
• Multiculturalism
• involves pluralism and respect for diversity
• Characteristics of multicultural organizations
• Pluralism
• Structural integration
• Informal network integration
• Absence of prejudice and discrimination
• Minimum intergroup conflict

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Study Question 2 What is a multicultural
organization?

• Diversity
• Describes differences among people at work, such
  as age, gender, race
• Diversity alone does not guarantee positive
  performance impact
• Diversity must be included in training and human
  resource practices
• Positive impact results when diversity is
  embedded in the organizational culture
• Organizational subcultures
• Cultures based on shared work responsibilities
  and/or personal characteristics
• Ethnocentrism is the belief that ones subculture
  is superior to all others

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Study Question 2 What is a multicultural
organization?

• Common subcultures include
• Occupations and functions
• Ethnicity or national cultures
• Gender and generations
• Challenges faced by minorities and women
• Glass ceiling
• Harassment and discrimination
• Minorities may adapt by exhibiting biculturalism
  - adopting characteristics of the majority
  culture

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Figure 11.2 Glass ceilings as barriers to women
and minority cultures in traditional
organizations
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Study Question 2 What is a multicultural
organization?

• Diversity leadership approaches
• Managing diversity commits to building an
  organizational culture that allows all members to
  reach their full potential
• Affirmative action commits the organization to
  hiring and advancing minorities and women
• Valuing diversity commits the organization to
  education and training programs

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Figure 11.3 Leadership approaches to
diversityfrom affirmative action to managing
diversity
Source Developed from R. Roosevelt Thomas, Jr.,
Beyond Race and Gender (New York AMACOM, 1991),
p. 28.
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Study Question 3 What is the nature of
organizational change?

• Change leader
• A change agent who takes leadership
  responsibility for changing the existing pattern
  of behavior of another person or social system
• Change leadership
• Forward-looking
• Proactive
• Embraces new ideas

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Figure 11.4 Change leaders versus status quo
managers
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Study Question 3 What is the nature of
organizational change?

• Top-down change
• Change initiatives come from senior management
• Success depends on support of middle-level and
  lower-level workers
• Bottom-up change
• The initiatives for change come from any and all
  parts of the organization, not just top
  management
• Crucial for organizational innovation
• Made possible by
• Employee empowerment
• Employee involvement
• Employee participation

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Study Question 3 What is the nature of
organizational change?

• Integrated change leadership
• Successful and enduring change combines
  advantages of top-down and bottom-up approaches
• Incremental and transformational change
• Incremental change
• Bends and adjusts existing ways to improve
  performance
• Transformational change
• Results in a major and comprehensive redirection
  of the organization

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Study Question 3 What is the nature of
organizational change?
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Study Question 3 What is the nature of
organizational change?

• Organizational targets for change
• Tasks. People. Culture. Technology. Structure
• Phases of planned change
• Unfreezing
• The phase in which a situation is prepared for
  change and felt needs for change are developed
• Changing
• The phase in which something new takes place in
  the system, and change is actually implemented
• Refreezing
• The phase of stabilizing the change and creating
  the conditions for its long-term continuity

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Figure 10.3 Lewins three phases of planned
organizational change
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Study Question 3 What is the nature of
organizational change?

• Improvisational Change
• Making continual adjustments as changes are being
  planned
• Force-coercion strategy of change
• Uses power bases of legitimacy, rewards and
  punishments to induce change
• Relies on belief that people are motivated by
  self-interest
• Direct forcing and political maneuvering
• Produces limited and temporary results
• Most useful in the unfreezing phase

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Study Question 3 What is the nature of
organizational change?

• Rational persuasion strategy of change
• Bringing about change through persuasion backed
  by special knowledge, empirical data, and
  rational argument
• Relies on expert power
• Relies on belief that reason guides peoples
  decisions and actions
• Useful in the unfreezing and refreezing phases
• Produces longer-lasting and internalized change
• Shared power strategy of change
• Engages people in a collaborative process of
  identifying values, assumptions, and goals from
  which support for change will naturally emerge
• Time consuming but likely to yield high
  commitment
• Involves others in examining sociocultural
  factors related to the issue at hand
• Relies on referent power and strong interpersonal
  skills in team situations
• Relies on belief that people respond to
  sociocultural norms and expectations of others

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Figure 11.6 Alternative change strategies and
their leadership implications
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Study Question 3 What is the nature of
organizational change?

• Why people resist change
• Fear of the unknown. Disrupted habits. Loss of
  confidence. Loss of control. Poor timing. Work
  overload. Loss of face. Lack of purpose
• Checklist for dealing with resistance to change
• Check the benefits those involved see a clear
  advantage
• Check the compatibility keep change similar to
  existing values/processes
• Check the simplicity make it as easy as
  possible to understand
• Check the triability allow people to slowly try
  the change adjusting as progression is made

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Study Question 3 What is the nature of
organizational change?

• Methods for dealing with resistance to change
• Education and communication
• Participation and involvement
• Facilitation and support
• Facilitation and agreement
• Manipulation and co-optation
• Explicit and implicit coercion

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Chapter 11 Case

• Apple Inc. People and design create the future