Organizational Culture

Chapter 10
Organizational
Culture and
Change
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.
Copyright 2004 Pearson Education Canada Inc.
Organizational Culture
Questions for Consideration
Questions for Consideration
What is organizational culture?

When is organizational culture functional?
Dysfunctional?
How do employees learn about the culture of
their organization?
Economic
Forces
Industry
Forces
Leadership
Strategy
Legal
Forces
Vision
Values
People
Work Process
Societal
Forces
KINE 3240
The pattern of shared values, beliefs and
assumptions considered to be the
appropriate way to think and act within an
organization.
Culture is shared
Culture helps members solve problems
Culture is taught to newcomers
Culture strongly influences behaviour
Exhibit 10-1 Layers of

Culture
Artifacts of
Organizational
Culture
Organizational
Culture
Material Symbols
Language
Rituals
Stories
Beliefs
Values
Assumptions
Characteristics of
Innovation and risk-taking

Attention to detail
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
Exhibit 10-2 Contrasting

Organization Cultures
Organization A
Managers must fully document
all decisions.
Creative decisions, change, and risks
are not encouraged.
Extensive rules and regulations exist
for all employees.
Productivity is valued over employee
morale.
Employees are encouraged to stay
within their own department.
Individual effort is encouraged.
Organization B
Management encourages and
rewards risk-taking and change.
Employees are encouraged to
run with ideas, and failures are
treated as learning experiences.
Employees have few rules and
regulations to follow.
Productivity is balanced with treating
its people right.
Team members are encouraged to interact
with people at all levels and functions.
Many rewards are team based.
Do Organizations Have
Uniform Cultures?
Organizational culture represents a
common perception held by the
organization members.
Core values or dominant (primary) values
are accepted throughout the organization.
Dominant culture
Subcultures
Exhibit 10-3 How

Forms
Philosophy
of
organization's
founders
Top
management
Organization's
culture
Selection
criteria
Socialization
Keeping a Culture Alive

Selection
Top Management
Socialization
Cultures Functions
Social glue that helps hold an organization
together
Boundary-defining
Conveys a sense of identity for
organization members
Cultures Functions
Facilitates commitment to something
larger than ones individual self-interest
Enhances social system stability
Serves as a sense-making and control
mechanism
Culture as a Liability
Culture can have dysfunctional aspects in
some instances
Culture as a Barrier to:
Change
Diversity
Mergers and Acquisitions
Conditions for Culture

Change
A dramatic crisis
Turnover in leadership
Young and small organizations
Weak culture
Exhibit 10-6 Suggestions

for Changing Culture
Have top-management people become positive
role models, setting the tone through their
behaviour.
Create new stories, symbols, and rituals to
replace those currently in vogue.
Select, promote, and support employees who
espouse the new values that are sought.
Redesign socialization processes to align with the
new values.
Exhibit 10-6 Suggestions

for Changing Culture
(contd)
Change the reward system to encourage

acceptance of a new set of values.
Replace unwritten norms with formal rules and
regulations that are tightly enforced.
Shake up current subcultures through transfers,
job rotation, and/or terminations.
Work to get peer group consensus through
utilization of employee participation and
creation of a climate with a high level of trust.
Exhibit 10-7 Lewins

Three-Step Change
Model
Unfreezing
Moving
Refreezing
Implementing Change
Unfreezing: getting ready for change
Moving: making the change
Refreezing: stabilizing the change
Exhibit 10-8
Unfreezing the Status
Quo
Desired
state
Restraining
forces
Status
quo
Driving
forces
Time
Unfreezing
Arouse dissatisfaction with the current state
Activate and strengthen top management
support
Use participation in decision making
Build in rewards
Moving
Establish goals
Institute smaller, acceptable changes
that reinforce and support change
Develop management structures for
change
Maintain open, two-way communication
Refreezing
Build success experiences
Reward desired behaviour
Develop structures to institutionalize the
change
Make change work
Exhibit 10-9 Sources of

Individual Resistance to
Change
Selective
information
processing
Habit
Individual
Resistance
Fear of
the unknown
Security
Economic
factors
Cynicism About Change

Feeling uninformed about what was
happening
Lack of communication and respect from
ones supervisor
Lack of communication and respect from
ones union representative
Lack of opportunity for meaningful
participation in decision-making
Exhibit 10-11 Sources of

Organizational Resistance
to Change
Threat to established
resource allocations
Threat to established
power relationships
Threat to
expertise
Organizational
Resistance
Structural
inertia
Limited focus
of change
Group
inertia
Overcoming Resistance
to Change
Education and Communication
Participation
Facilitation and Support
Overcoming Resistance
to Change
Negotiation
Manipulation and Cooperation
Coercion
Emotional Response to Change
KINE 3240
Change:
Situational e.g. revising
organizational values, vision, mission
and priorities
Transition:
Psychological internalizing and
coming to terms with the details of
the new situation the changes bring
about.
Managing the Ending

Dont be surprised by overreaction.
Acknowledge loss and grieving.
Consistently provide information and updates.
Define clearly whats over and what isnt.
Treat the past with respect.
Managing the Neutral Zone

Do what ever is necessary to encourage
cohesion.
Set meaningful and achievable short-term
goals and checkpoints for people to follow.
Encourage creativity, experimentation,
innovation and brainstorming.
Communicate the change effort in terms of
the vision and outcomes.
Managing the Beginning

Communicate the basic purpose behind the
desired outcome
Paint the picture of how the outcome will
look and feel.
Lay out a step-by-step plan for phasing in the
outcome.
Identify the part people will plan in the plan
and the outcome.
The Bottom Line About Managing Transition

Communication is the key factor for all three
phases.
The Ending informational communication that
primarily explains the vision for the new efforts and
how they will differ from the old way of working
The Neutral Zone communication needs to be
supportive and reassuring.
The Beginning communication needs to be
inspiring, with the purpose of raising energy and
promoting action.
CHANGE IS A PROCESS
OF TRANSITION
Driving Forces
PRESENT
STATE
Restraining Forces
TRANSITION
STATE
DESIRED
STATE
Unfreezing Occurs Refreezing Occurs

KINE 3240
Summary and
Implications
Employees form an overall subjective perception of the
organization based on such factors as degree of risk
tolerance, team emphasis, and support of people.
This overall perception becomes, in effect, the organizations
culture or personality.
These favourable or unfavourable perceptions then affect
employee performance and satisfaction, with the impact being
greater for stronger cultures.
Just as peoples personalities tend to be stable over time,

so too do strong cultures.
This makes strong cultures difficult for managers to change.
Summary and
Implications
One of the more important managerial implications of
organizational culture relates to selection decisions.
Hiring individuals whose values don't align with those of the
organization is not good.
Change must be managed, it is not an easy process

Individuals and organizations resist change
To be successful at change, it is necessary to break down the
resistance to change

Organizational Culture

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Chapter 10

What is organizational culture?

Exhibit 10-1 Layers of

Innovation and risk-taking

Exhibit 10-2 Contrasting

Exhibit 10-3 How

Keeping a Culture Alive

Conditions for Culture

Exhibit 10-6 Suggestions

Exhibit 10-6 Suggestions

Change the reward system to encourage

Exhibit 10-7 Lewins

Exhibit 10-9 Sources of

Cynicism About Change

Exhibit 10-11 Sources of

Emotional Response to Change

Managing the Ending

Managing the Neutral Zone

Managing the Beginning

The Bottom Line About Managing Transition

Unfreezing Occurs Refreezing Occurs

Just as peoples personalities tend to be stable over time,

Change must be managed, it is not an easy process

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