Chapter 12Chapter 12

Organizational Change and

Development

Organizational Cultures

• Organizational culture – The system of shared beliefs and values that

guides behavior in organizations

• Socialization– How new members learn the culture of the

organization

Organizational Cultures

Four common organizational cultures, according to LeadershipIQ:•Hierarchical cultures emphasize tradition and clear roles; •Dependable cultures emphasize process and slow change;•Enterprising cultures emphasize creativity and competition; and, •Social cultures emphasize collaboration and trust.

Organizational Cultures

• The best organizations have positive cultures that:– Respect members– Are customer driven– Are performance-oriented – Encourage positive work behaviors– Discourage dysfunctional behaviors

Organizational Cultures

Organizational Cultures

• 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

Organizational Cultures

• Core culture: consists of the core values, or underlying assumptions and beliefs that shape and guide people’s behaviors in an organization.

• Core values are beliefs and values shared by organization members

Organizational Cultures

• Important cultural values include:– Performance excellence– Innovation– Social responsibility– Integrity– Worker involvement– Customer service– Teamwork

Takeaway 1: Organizational Cultures

• Value-based management:–Describes managers who actively help to

develop, communicate, and enact shared values

Multicultural Organizations

• Multiculturalism – involves inclusiveness, pluralism, and

respect for diversity

• Multicultural organizations– has a culture with core values that respect

diversity and support multiculturalism.

Multicultural Organizations

• Characteristics of multicultural organizations:– Pluralism– Structural integration– Informal network integration– Absence of prejudice and discrimination– Minimum intergroup conflict

Multicultural Organizations

• Organizational subcultures– groups of people who share similar beliefs and

values based on their work or personal characteristics.

– Ethnocentrism is the belief that one’s subculture is superior to all others

Multicultural Organizations

• Common subcultures include:– Gender and generations– Ethnicity or national cultures– Occupations and functions

Multicultural Organizations

• Diversity:– Diversity basically means the presence of

differences. – 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

Multicultural Organizations

• Challenges faced by minorities and women:– Glass ceiling– Leaking pipeline problem– Harassment and discrimination

• Minorities may adapt by exhibiting biculturalism - adopting characteristics of the majority culture

Glass ceilings as barriers to women and minority cultures in traditional organizations

Organizational Change

Takeaway 3: Organizational Change

• 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

Lewin’s three phases of planned organizational change

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

Organizational Change

• Checklist for dealing with resistance to change:Check the benefits – those involved see a clear advantageCheck the compatibility – keep change similar to existing

values/processesCheck the simplicity – make it as easy as possible to

understandCheck the triability – allow people to slowly try the

change adjusting as progression is made

Organizational Change

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