Change management

Ch. 5. Organizational change (changing the culture)

Dan Lungescu, PhD, assistant professor 2010-2011

Course outline
Change management Ch. 1. Why change? Ch. 2. The conditions for change Ch. 3. A framework for change Ch. 4. Individual change

Ch. 5. Organizational change

Ch. 6. Sustainable change

Chapter 5 outline

5.1. Organizational culture 5.2. Matching strategy and OC 5.3. Changing organizational culture

5.4. The learning organization

5.1. Organizational culture

Organizational culture
The deeper level of basic assumptions and beliefs that are shared by members of an organization, that operate unconsciously and define in a basic taken for granted fashion an organizations view of itself and its environment.

Organizational culture
A system of shared values, assumptions, beliefs, and norms that unite the members of an organization.
the way things are done around here

Outline 5.1. Organizational culture

Cultures layers
1. Beliefs (something is true or false). 2. Values (something is good or bad) and attitudes. 3. Practices (manifestations): Symbols. Heroes. Stories. Behavior norms. Rites and rituals.
Outline 5.1. Organizational culture Cultures layers

Major aspects of OC
3 major aspects of OC affect the organization:
1. Direction
The degree to which a culture supports, rather than interferes with, reaching organizational goals.

2. Pervasiveness
The extent to which a culture is widespread among members.

3. Strength
The degree to which members accept the values and other aspects of a culture.
Outline 5.1. Organizational culture Major aspects of OC

The cultural web

Stories Rituals and routines Control systems Organizational structures Symbols

The paradigm or mindset

Power structures

Outline 5.1. Organizational culture The cultural web

Characteristics of OC
Member identity
The degree to which employees identify with the organization as a whole rather than with their type of job or field of professional expertise.

Group emphasis
The degree to which work activities are organized around groups rather than individuals.

People focus
The degree to which management decisions take into consideration the effect of outcomes on people within the organization.

Unit integration
The degree to which units within the organization are encouraged to operate in a coordinated or interdependent manner.
Outline 5.1. Organizational culture Characteristics of OC

Characteristics of OC (2)
Control
The degree to which rules, regulations and direct supervision are used to oversee and control employee behavior.

Risk tolerance
The degree to which employees are encouraged to be aggressive, innovative and risk-seeking.

Reward criteria
The degree to which rewards such as salary increases and promotions are allocated according to employee performance rather than seniority, favoritism or other nonperformance factors.

Conflict tolerance
The degree to which employees are encouraged to air conflicts and criticisms openly.
Outline 5.1. Organizational culture Characteristics of OC (2)

Characteristics of OC (3)

Means-ends orientation
The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve those outcomes.

Open-system focus
The degree to which the organization monitors and responds to changes in the external environment.

Outline 5.1. Organizational culture Characteristics of OC (3)

5.2. Matching strategy and OC

Alternatives:

1. Manage around the culture 2. Try to change the culture to fit the strategy 3. Change the strategy to fit the culture 4. Ignore the culture

Not practical Rarely works

Appropriate

Best

Outline 5.2. Matching strategy and OC

5.3. Changing organizational culture

1. Surfacing actual norms
2. Articulating new directions 3. Establishing new norms 4. Identifying culture gaps

5. Closing culture gaps

Outline 5.3. Changing organizational culture

5.4. The learning organization

Learning organization
Embedding learning into the culture of the organization so that it becomes a key element of the way of doing things around here.

Learning organization
Defining learning in a broad way, encompassing learning from experience and being open to new knowledge and ideas.

Learning organization
Seeing learning as a creative process enabling people to develop new and expansive patterns of thinking.

Learning organization
Nurturing learning as a means of constantly transforming the organization.
Outline 5.4. The learning organization

Dan Lungescu, PhD, assistant professor 2010-2011