Cultural Changes 2
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Transcript of Cultural Changes 2
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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
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 4
Understanding Corporate Culture
• Environment of rapid change.
• Static organizational culture no longer effective.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 6
Culture Comes from 2 Subsystems
• Managerial.
• Organizational.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 7
Managerial SubsystemCreates Culture
• How employees are treated.
• Through actions and words.
• Vision articulated by top management.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 8
Organizational Subsystem Creates Culture
• Outside factors (market, etc.) define culture.
• Technology.
• Job descriptions.
• Type of structure (tall vrs. flat).
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 9
Figure 3.1Culture Formation
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 11
Key Factors to Improve Culture
• Create vision for the future.
• Develop model for change.
• Reward changes.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 12
Cultural Resistance to Change
• Changing culture not easy.
• Time required.
• Culture can prevent company from adapting.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 13
Pressure Points to Bring About Change
• Recession.
• Deregulation.
• Technological upheavals.
• Social factors.
• Global competition.
• Outsourcing.
• Markets.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 14
Tools for Change (part 1 of 4)
• Information.
• Support.
• Resources.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 15
Information (part 2 of 4)
• Provide information to people.
• Provide ability to gather information.
• One method is open-book management.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 16
Support (part 3 of 4)
• Support and collaboration from other departments.
• Management support to provide climate of risk taking.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 17
Resources (part 4 of 4)
• Funds.• Staff.
• Equipment.
• Materials.
• Innovative programs for providing resources include:– Venture capital.– Innovation banks.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 19
Other Criteria for Organizational Effectiveness
• Adaptability.
• Sense of identity.
• Capacity to test reality.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 20
OD Professional Values and Ethics
• Expertise.
• Autonomy.
• Commitment.
• Code of ethics.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 25
OD Values About Natureof Organization Members
• Respect for people.
• Trust and support.
• Power equalization.
• Confrontation and open communication.
• Participation.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 26
Table 3.1OD Values
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 32
• Managerial efficiency.– Ratio of output (results) to input
(resources).
• Motivational climate.– Employee attitudes that influence
performance.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 33
• Open-book management.– Employees understand accounting
statements.– Use knowledge in work.
• Professionalism.
– Value system that is part of profession.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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.
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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
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An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3Slide 36