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Fundamentals of organizational behavior 2e by dubrin ch13

Chapter
13

Organizational Culture
and Change

Fundamentals of
Organizational Behavior 2e
Andrew J. DuBrin

PowerPoint Presentation
by Charlie Cook


Learning Objectives
1. Present an analysis of the importance of
organizational culture.
2. Present two models of the change process in
organizations.
3. Describe why people resist change and how to
manage such resistance.

4. Describe several strategies for bringing about
organizational change.
5. Explain the nature of organization
development.
6. Develop useful insights into managing change
A. J. DuBrin,
of Organizational
in yourFundamentals
job and career.
Behavior, Second Edition. Copyright © 2002 by
South-Western.
13–2


Organizational Culture
Organizational culture is a system of shared values
and beliefs that influence worker behavior.
The Determinants of Organizational Culture
 The values, administrative practices, and personality of the

firm’s founder
 The conscious and unconscious choices, behavior patterns,
and prejudices of top-level managers
 The culture of the society (its norms, values, and beliefs) in
which the firm functions
 The industry in which the firm competes
A.J.The
DuBrin,
of Organizational
firm’sFundamentals
code of conduct
Behavior, Second Edition. Copyright © 2002 by
South-Western.
13–3


Organizational Culture
Dimensions of Organizational Culture
1. Values
2. Organizational stories that


have underlying meaning
3. Myths
4. Degree of stability
5. Resource allocation and rewards
6. Traditions, rites, and rituals
7. Ownership culture
8. Corporate spiritualism and organizational
A. J.spirituality
DuBrin, Fundamentals of Organizational
Behavior, Second Edition. Copyright © 2002 by
South-Western.
13–4


Organizational Culture
How Workers Learn Culture
 Workers learn through:


The Socialization Process
– A process of coming to understand
the values, norms, and customs of
the organization.
– Perpetuates the organization by
indoctrinating new workers into the ways of the organization.


The Observation of Leaders

– The teaching of leaders provides vital
guidance to new workers through
what leaders pay attention to,
of Organizationalmeasure, and control.

A. J. DuBrin, Fundamentals
Behavior, Second Edition. Copyright © 2002 by
South-Western.

13–5


The Consequences and Implications of
Organizational Culture
Competitive Advantage and Financial Success
Productivity, Quality, and Morale
Organizational
Culture

Innovation
Compatibility of Mergers and Acquisitions
Person-Organization Fit
Direction of Leadership Activity

A. J. DuBrin, Fundamentals of Organizational
EXHIBIT
Behavior,
Second Edition. Copyright © 2002 by
13-1
South-Western.

13–6


General Considerations About
Managing Change
Types of Change in Organizations
 Changes in technology
 Changes in organizational structure
 Coworkers and customers

A. J. DuBrin, Fundamentals of Organizational
Behavior, Second Edition. Copyright © 2002 by
South-Western.

13–7


Models of the Change Process
The Growth Curve Model
 Formative phase—lack of structure, trial and error, and

entrepreneurial risk taking
 Normative phase—stability, maintenance, and predictability
 Integrative phase—redefining the firm and choosing a new
direction.
 Force-field theory


A organization simultaneously
faces forces of change
and of resistance to change.

A. J. DuBrin, Fundamentals of Organizational
Behavior, Second Edition. Copyright © 2002 by
South-Western.

13–8


The Growth Curve Model of
Organizational Change

Degree of Structure

High
Normative

Integrative
Formative

Low

A. J. DuBrin,
Fundamentals of Organizational
Beginning
EXHIBIT
TIME © 2002 by
Behavior,
Second Edition. Copyright
13-2
South-Western.

13–9


Models of the Change Process
(cont’d)

The Unfreezing-Changing-Refreezing Model
(Kurt Lewin)
 Unfreezing


Reducing or eliminating resistance to change by resolving
fear and feelings about letting go of the “old.”

 Changing (or moving on to a new level)


Moving on to other things through active
participation in the change process.

 Refreezing

Encouraging recognition of successful
change and rewarding people for
A. J. DuBrin, Fundamentals of Organizational
implementing the change.


Behavior, Second Edition. Copyright © 2002 by
South-Western.

13–10


The Change Process

Unfreezing

Changing

A. J. DuBrin, Fundamentals of Organizational
EXHIBIT
Behavior,
Second Edition. Copyright © 2002 by
13-3
South-Western.

Refreezing

13–11


Why People Resist Change
Resistance comes from:
 Fear of an unfavorable outcome (e.g., less money, personal

inconvenience, more work)
 Disrupted social relationships at work
 Not wanting to break with well-established habits
 A general fear of the unknown
and uncertainty
 Fear that an unrecognized
weakness in the proposed
change will result in
outcome. of Organizational
A. J.unfavorable
DuBrin, Fundamentals
Behavior, Second Edition. Copyright © 2002 by
South-Western.

13–12


Why People Resist Change
Gaining Support for Change:
1. Allow for discussion and negotiation.
2. Allow for participation by those affected by the change.
3. Point out the potential benefits.
4. Avoid change overload.
5. Gain political support for the change.
6. Provide education.
7. Use manipulation and co-optation.
8. Avoid poor performance as the reason for change.
9. Use explicit and implicit coercion.
A. J. DuBrin, Fundamentals of Organizational
Behavior, Second Edition. Copyright © 2002 by
South-Western.

13–13


Downsizing and Restructuring as a
Change Strategy
Primary reason for downsizing:
 Reductions in the size of the firm that must be made to

lower costs and allow the firm to become more competitive.

Dangers in downsizing:
 Inability to capitalize on post-

restructuring opportunities
due to understaffing.
 Loss of critical human
assets reduces
learning. of Organizational
A. J.organizational
DuBrin, Fundamentals
Behavior, Second Edition. Copyright © 2002 by
South-Western.

13–14


Restructuring as a Change Strategy
Keys to successful restructuring:
 Integrate downsizing with the firm’s long-term strategies.
 Identify and protect high-potential employees.
 Decentralize and empower employees to do their jobs.
 Redefine the positions of surviving employees.
 Eliminate low-value and non-value activities.
 Emphasize teamwork and cooperation.
 Define the new structure by specifying horizontal and

vertical relationships.
 Support and train, then evaluate and reward performance.
A. J. DuBrin, Fundamentals of Organizational
Behavior, Second Edition. Copyright © 2002 by
South-Western.
13–15


Information Technology (IT) and
Organizational Change
IT Effects on Organizations
 Fewer middle management and coordinator positions.
 Increased organizational democracy through direct

communications between all layers of the organization.
 More direct contact with customers and suppliers.
 Enterprise software supplanting
managers and their work.
 Changes in nature of work itself
that blurs the line between work
and non-work time.
A. J. DuBrin, Fundamentals of Organizational
Behavior, Second Edition. Copyright © 2002 by
South-Western.

13–16


Disruptive Technology and
Organizational Change
Ignoring technological changes (especially by
smaller, more nimble competitors) in emerging
markets puts a firm at a competitive disadvantage.
 Meeting the challenge of disruptive change:

Create new organizational structures in which to develop
new processes, products or services.
 Spin out an independent organization in which to develop
new processes, products, or services.
 Acquire another company whose processes and values
closely match the requirements for new processes,
A. J. DuBrin,
Fundamentals
products,
or services. of Organizational


Behavior, Second Edition. Copyright © 2002 by
South-Western.

13–17


The Transition from Carrying Out a
Job and Work
Organizational concerns:
 Traditional job descriptions that are too rigid for the flexible

work roles of today’s workers.
 The trend in hiring a person “to work” (seeking a better
person-organization fit) rather than to fill a specific job.
 Attaining a match of workers’ skills to a project’s
requirements.
 The difficulty managers will have in shifting from the
traditional bureaucratic focus on fixed job descriptions to
an emphasis on ever changing “work roles” for employees.
A. J. DuBrin, Fundamentals of Organizational
Behavior, Second Edition. Copyright © 2002 by
South-Western.
13–18


Organizational Development as a
Change Strategy
Organizational Development
 Is any strategy, method, or technique

for making organizations more effective
by bringing about constructive,
planned change.

A. J. DuBrin, Fundamentals of Organizational
Behavior, Second Edition. Copyright © 2002 by
South-Western.

13–19


Organizational Development
Interventions
Individual Level
Organizational Level
 Executive coaching

 Total quality management (TQM)

 Employee assistance programs

 Grid organization development







(EAPs)
Career development programs
Organizational behavior
modification (OB Mod)
Job enrichment
Wellness programs, including
stress reduction
Sexual harassment avoidance
training

 Gainsharing
 Survey feedback (attitude

surveys)
 Action research (employees
participate in implementing
changes identified as needed by
a consultant)
 Helping an organization learn
 Knowledge management

A. J. DuBrin, Fundamentals of Organizational
Behavior, Second Edition. Copyright © 2002 by
South-Western.

13–20


Organizational Development
Interventions
Small-Group Level
 Team development
 Cultural diversity training






(including valuing differences)
Modified work schedules
Brainstorming
Intergroup conflict resolution
Quality improvement teams
Self-managing teams

A. J. DuBrin, Fundamentals of Organizational
Behavior, Second Edition. Copyright © 2002 by
South-Western.

13–21


A Process
Model of
Organization
Development

Preliminary Identification
of a Problem
Managerial Commitment
Data Feedback
Data Collection and Analysis
Identification of Specific
Problem Areas
Development of Change Strategies
Initiation of Behavior

Evaluation
A. J. DuBrin, Fundamentals of Organizational
EXHIBIT Second Edition. Copyright © 2002 by
Behavior,
13-6
South-Western.

13–22


Process Consultation
A widely used OD intervention in which the
communication pattern of an organizational unit
is examined by a process consultant.
 Consultant’s role is to observe and

raise questions challenging
the status quo and define
what really is happening
in the unit.

A. J. DuBrin, Fundamentals of Organizational
Behavior, Second Edition. Copyright © 2002 by
South-Western.

13–23


Large-Scale Organizational Change
Purpose and process:
 To accomplish a major change in the firm’s strategy and

culture, also referred to as “bending the frame.”
 Requires getting a critical mass of people throughout the
firm committed to outcomes of the change.
 Signs of the need for change:
Top executives micromanaging instead of delegating.
 A high turnover rate of employees.
 Ineffective communication in the organization.
 A compensation system that rewards people for actions
unrelated to business success.
 Loss ofFundamentals
A. J. DuBrin,
of Organizational
established business
and failure acquire new
business.
Behavior,
Second Edition. Copyright © 2002 by


South-Western.

13–24


Total Quality Management (TQM)
 Is a management system for improving performance

throughout a firm by:
maximizing customer satisfaction,
 making continuous improvements,
 and relying heavily on employee involvement.


 Is a fundamental change in the organization’s

culture to one that includes a focus on the
customer, an environment of trust and
openness, formation of work teams,
breaking down internal barriers,
and sharing power.
A. J. DuBrin, Fundamentals of Organizational
Behavior, Second Edition. Copyright © 2002 by
South-Western.
13–25


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