Organization Culture and
Change Management
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Organization Culture• A system of shared values,
assumptions, beliefs, and norms that unite the members of an organization.
• Reflects employees’ views about “the way things are done around here.”
• The culture specific to each firm affects how employees feel and act and the type of employee hired and retained by the company.
In order to survive, organizations and their cultures must continuously evolve
and change.
Conditions prompting change
• Economic crises• Changes in laws or regulations• Social developments• Global competition• Demographic trends• Explosive technological changes
“Cultures change when an organization discovers,
invents or develops solutions to problems it faces.”
Managing Organizational Change
• Organization culture can facilitate or inhibit change in an organization.
• A firm attempts to change organizational culture because the current culture hinders the attainment of corporate goals.
• Environmental and internal forces can stimulate the need for organization change.
Environmental Forces
• Put pressure on how a firm conducts its business and its relationships with customers, suppliers, and employees.
• Environmental forces include:– Technology– Market forces– Political and regulatory forces– Social trends
Internal Forces
• Come from decisions made within the company.
• May originate with top executives and managers and travel in a top-down direction.
• May originate with front-line employees or labor unions and travel in a bottom-up direction.
Organization Culture Issues
Three important issues in an Organization’s Culture
– Ethics– Diversity of employees– Leadership behavior
How does all this fit together ?
Managers and leaders must use good leadership practices
to be sure to introduce, develop, reward, and
“cement” ethical practices and positive ways of working
with diversity into the organization culture
Changing Organizational Culture
Top leaders can set the tone for a culture and for culture change.
Leaders who strive for high-quality products and services understand
• Involve the keepers and holders of the culture.• Build on what all organizational
members share.• Teach new members how to behave.
Implementing Organizational Change
Top-down Change
Change Agents
Bottom-up Change
Targets for Change
• Individuals• Groups• The Organization• The Environment
Individual Targets
Changes in this area are triggered by new staffing strategies or by an effort to enhance workforce diversity.• The number and skills of the human resource
component.• Improving levels of employee motivation and
performance.
Group TargetsInvolves changes in the nature of the relationship
between managers and subordinates or the relationships within work groups.
Organizational Targets• Changes in any of the following
areas:– Basic goals and strategies of the
organization– Products, quality, or services offered– Organizational structure– The composition of work units– Organizational processes such as
reward, communication, or information processing system
– The culture
Environmental Targets
• Involves changing sectors of an organization’s environment– For example, changes in
products or services offered may require new technology or a new distribution system.
Change agents should take the following steps to obtain a successful
change outcome1. Establish a sense of
urgency.2. Form a powerful
coalition of supporters of change.
3. Create a vision of change.4. Communicate the vision
of change.
5. Empower others to act on the vision.
6. Plan and create short-term wins.
7. Consolidate improvements and produce still more change.
8. Institutionalize new approaches.
Change Agent’s Profile
ACTION !
BREAKTHROUGH
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