An Experiential Approach to Organization Development 8

th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 1
Chapter 3
Changing the Culture
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 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.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 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.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 4
Understanding Corporate
Culture
Environment of rapid change.
Static organizational culture no longer
effective.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 5
What Is Corporate Culture?
Culture is system of:
Shared values.
Beliefs.
Behavioral norms.
Observed behavioral norms.
Dominant values.
Learning ropes for newcomers.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 6
Culture Comes from 2
Subsystems
Managerial.
Organizational.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 7
Managerial Subsystem
Creates Culture
How employees are treated.
Through actions and words.
Vision articulated by top management.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 8
Organizational Subsystem
Creates Culture
Outside factors (market, etc.) define
culture.
Technology.
Job descriptions.
Type of structure (tall vrs. flat).
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 9
Figure 3.1
Culture Formation
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 10
Corporate Culture and
Success
High-performing companies have strong
cultures.
Many cultures fail to adapt to change.
Following corporate mergers, cultures
often clash.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 11
Key Factors to Improve
Culture
Create vision for the future.
Develop model for change.
Reward changes.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 12
Cultural Resistance to Change
Changing culture not easy.
Time required.
Culture can prevent company from
adapting.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 13
Pressure Points to Bring
About Change
Recession.
Deregulation.
Technological
upheavals.
Social factors.
Global
competition.
Outsourcing.
Markets.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 14
Tools for Change (part 1 of 4)
Information.
Support.
Resources.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 15
Information (part 2 of 4)
Provide information to people.
Provide ability to gather information.
One method is open-book
management.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 16
Support (part 3 of 4)
Support and collaboration from other
departments.
Management support to provide climate
of risk taking.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 17
Resources (part 4 of 4)
Funds.
Staff.
Equipment.
Materials.

Innovative programs for providing
resources include:
Venture capital.
Innovation banks.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 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.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 19
Other Criteria for
Organizational Effectiveness
Adaptability.
Sense of identity.
Capacity to test reality.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 20
OD Professional Values and
Ethics
Expertise.
Autonomy.
Commitment.
Code of ethics.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 21
OD Implementation Issues
(part 1 of 4)
Success depends on:
Congruence between OD values and
organizations values.
Key issue is fit between between
practitioner and client:
Compatibility of values.
Imposed change.
Priority of goals.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 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.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 23
Imposed Change
(part 3 of 4)
OD ideally implemented voluntarily.
Top management may impose program.
OD practitioners cognizant of power
and politics.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 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.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 25
OD Values About Nature
of Organization Members
Respect for people.
Trust and support.
Power equalization.
Confrontation and open communication.
Participation.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 26
Table 3.1
OD Values
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 27
OD Application
Culture 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.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 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.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 29
OD Application
How Trilogys 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.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 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.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 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.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 32
Managerial efficiency.
Ratio of output (results) to input
(resources).
Motivational climate.
Employee attitudes that influence
performance.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 33
Open-book management.
Employees understand accounting
statements.
Use knowledge in work.
Professionalism.
Value system that is part of profession.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 34
OD Skills Simulation 3.1
The 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.
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 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
An Experiential Approach to Organization Development 8
th
edition
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 36