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Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Chapter 10
Organizational Culture and
Change
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Organizational Culture
• What is organizational culture?• When is organizational culture functional?
Dysfunctional?• How do employees learn about the culture of
their organization?
Questions for ConsiderationQuestions for Consideration
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Henry Mintzberg on Culture
• “Culture is the soul of the organization — the beliefs and values, and how they are manifested. I think of the structure as the skeleton, and as the flesh and blood. And culture is the soul that holds the thing together and gives it life force.”
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Organizational Culture
• The pattern of shared values, beliefs and assumptions considered to be the appropriate way to think and act within an organization.– Culture is shared– Culture helps members solve problems– Culture is taught to newcomers– Culture strongly influences behaviour
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Exhibit 10-1 Layers of Culture
Artifacts of Organizational
Culture
Material SymbolsLanguage
RitualsStories
Organizational Culture
BeliefsValues
Assumptions
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Levels of Culture
• Artifacts– Aspects of an organization’s culture that you see, hear, and feel
• Beliefs– The understandings of how objects and ideas relate to each
other
• Values– The stable, long-lasting beliefs about what is important
• Assumptions– The taken-for-granted notions of how something should be in an
organization
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Characteristics of Organizational Culture
• Innovation and risk-taking– The degree to which employees are encouraged to be innovative and
take risks.
• Attention to detail– The degree to which employees are expected to exhibit precision,
analysis, and attention to detail.
• Outcome orientation– The degree to which management focuses on results or outcomes rather
than on technique and process.
• People orientation– The degree to which management decisions take into consideration the
effect of outcomes on people within the organization.
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Characteristics of Organizational Culture
• Team orientation– The degree to which work activities are organized around teams
rather than individuals.
• Aggressiveness– The degree to which people are aggressive and competitive
rather than easygoing.
• Stability– The degree to which organizational activities emphasize
maintaining the status quo in contrast to growth.
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Exhibit 10-2 Contrasting Organization CulturesOrganization A Organization B
• Managers must fully document
all decisions.
• Creative decisions, change, and risks
are not encouraged.
• Extensive rules and regulations exist
for all employees.
• Productivity is valued over employee
morale.
• Employees are encouraged to stay
within their own department.
• Individual effort is encouraged.
• Management encourages and
rewards risk-taking and change.
• Employees are encouraged to
“ run with ” ideas, and failures are
treated as “ learning experiences.”
• Employees have few rules and
regulations to follow.
• Productivity is balanced with treating
its people right.
• Team members are encouraged to interact
with people at all levels and functions.
• Many rewards are team based.
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Do Organizations Have Uniform Cultures?
• Organizational culture represents a common perception held by the organization members.
• Core values or dominant (primary) values are accepted throughout the organization.– Dominant culture
• Expresses the core values that are shared by a majority of the organization’s members.
– Subcultures • Tend to develop in large organizations to
reflect common problems, situations, or experiences.
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Exhibit 10-3 How Organizational Culture
Forms
Selectioncriteria
Socialization
Organization'sculture
Philosophyof
organization'sfounders
Topmanagement
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Keeping a Culture Alive
• Selection– Identify and hire individuals who will fit in with the
culture
• Top Management– Senior executives establish and communicate the
norms of the organization
• Socialization– Organizations need to teach the culture to new
employees
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Exhibit 10-5 Culture Typology
Fragmented
Networked
Low
High
Solidarity
Mercenary
Low High
Communal
Sociability
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Culture’s Functions
• Social glue that helps hold an organization together – Provides appropriate standards for what
employees should say or do
• Boundary-defining
• Conveys a sense of identity for organization members
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Culture’s Functions
• Facilitates commitment to something larger than one’s individual self-interest
• Enhances social system stability
• Serves as a “sense-making” and control mechanism – Guides and shapes the attitudes and
behaviour of employees
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Culture as a Liability
• Culture can have dysfunctional aspects in some instances– Culture as a Barrier to Change
• When organization is undergoing change, culture may impede change
– Culture as a Barrier to Diversity• Strong cultures put considerable pressure on
employees to conform
– Culture as a Barrier to Mergers and Acquisitions• Merging the cultures of two organizations
can be difficult, if not impossible
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Conditions for Culture Change
• A dramatic crisis
• Turnover in leadership
• Young and small organizations
• Weak culture
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Exhibit 10-6 Suggestions for Changing Culture
• Have top-management people become positive role models, setting the tone through their behaviour.
• Create new stories, symbols, and rituals to replace those currently in vogue.
• Select, promote, and support employees who espouse the new values that are sought.
• Redesign socialization processes to align with the new values.
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Exhibit 10-6 Suggestions for Changing Culture
(cont’d)• Change the reward system to encourage
acceptance of a new set of values.• Replace unwritten norms with formal rules and
regulations that are tightly enforced.• Shake up current subcultures through transfers,
job rotation, and/or terminations.• Work to get peer group consensus through
utilization of employee participation and creation of a climate with a high level of trust.
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Exhibit 10-7 Lewin’s Three-Step Change
Model
RefreezingMovingUnfreezing
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Implementing Change
• Unfreezing: getting ready for change– Minimizing resistance
• Moving: making the change– Changing people (individuals and groups);
Tasks; Structure; Technology
• Refreezing: stabilizing the change– Reinforcing outcomes, evaluating results,
making constructive modifications
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Exhibit 10-8 Unfreezing the Status
Quo
Time
Drivingforces
Restrainingforces
Desiredstate
Statusquo
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Unfreezing
• Arouse dissatisfaction with the current state– Tell them about deficiencies in organization
• Activate and strengthen top management support– Need to break down power centres
• Use participation in decision making– Get people involved
• Build in rewards– Tie rewards to change/use recognition, status
symbols, praise to get people to go along
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Moving• Establish goals
– E.G. Make business profitable by end of next year
• Institute smaller, acceptable changes that reinforce and support change– E.G. Procedures and rules, job descriptions,
reporting relationships
• Develop management structures for change– E.G. Plans, strategies, mechanisms that ensure
change occurs
• Maintain open, two-way communication
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Refreezing
• Build success experiences– Set targets for change, and have everyone work toward targets
• Reward desired behaviour– GOOD - reward behaviour that reinforces changes
– BAD - reward old system (e.g., people relying on old systems while computerization is going on)
• Develop structures to institutionalize the change– Organizational retreats, appropriate computer technology,
performance appraisals that examine change efforts
• Make change work
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Exhibit 10-9 Sources of Individual Resistance to
Change
Security
Economicfactors
IndividualResistance
Fear ofthe unknown
Selectiveinformationprocessing
Habit
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Cynicism About Change
• Feeling uninformed about what was happening
• Lack of communication and respect from one’s supervisor
• Lack of communication and respect from one’s union representative
• Lack of opportunity for meaningful participation in decision-making
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Exhibit 10-11 Sources of Organizational Resistance
to Change
OrganizationalResistance
Threat to establishedresource allocations
Structuralinertia
Threat to establishedpower relationships
Limited focus of change
Threat toexpertise
Groupinertia
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Overcoming Resistance to Change
• Education and Communication– This tactic assumes that the source of resistance lies
in misinformation or poor communication.
• Participation– Prior to making a change, those opposed can be
brought into the decision process.
• Facilitation and Support– The provision of various efforts to facilitate
adjustment.
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Overcoming Resistance to Change
• Negotiation– Exchange something of value for a lessening of
resistance.
• Manipulation and Cooperation– Twisting and distorting facts to make them appear
more attractive.
• Coercion– The application of direct threats or force upon
resisters.
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Summary and Implications
• Employees form an overall subjective perception of the organization based on such factors as degree of risk tolerance, team emphasis, and support of people.– This overall perception becomes, in effect, the organization’s
culture or personality.
– These favourable or unfavourable perceptions then affect employee performance and satisfaction, with the impact being greater for stronger cultures.
• Just as people’s personalities tend to be stable over time, so too do strong cultures.– This makes strong cultures difficult for managers to change.
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Summary and Implications
• One of the more important managerial implications of organizational culture relates to selection decisions.– Hiring individuals whose values don't align with those of the
organization is not good.
• Change must be managed, it is not an easy process
• Individuals and organizations resist change– To be successful at change, it is necessary to break down the
resistance to change
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
OB at Work
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
For Review
1. Can an employee survive in an organization if he or she rejects its core values? Explain.
2. How can an outsider assess an organization’s culture?
3. What defines an organization’s subcultures?
4. How can culture be a liability to an organization?
5. What benefits can socialization provide for the organization? For the new employee?
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
For Review
6. Describe four cultural types and the characteristics of employees who fit best with each.
7. How does Lewin’s three-step model of change deal with resistance to change?
8. What is the difference between driving forces and restraining forces?
9. What are the factors that lead individuals to resist change?
10. What are the factors that lead organizations to resist change?
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
For Critical Thinking
1. Contrast individual personality and organizational culture. How are they similar? How are they different?
2. Is socialization brainwashing? Explain.3. Can you identify a set of characteristics that
describes your college’s or university’s culture? Compare them with several of your peers. How closely do they agree?
4. “Resistance to change is an irrational response.” Do you agree or disagree? Explain.
Chapter 10, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.
Breakout Group Exercises
• Form small groups to discuss the following:1. Choose two courses that you are taking this term, ideally in
different faculties, and describe the culture of the classroom in each. What are the similarities and differences? What values about learning might you infer from your observations of culture?
2. Identify artifacts of culture in your current or previous workplace. From these artifacts, would you conclude that the organization had a strong or weak culture?
3. Reflect on either the culture of one of your classes, or the culture of the organization where you work, and identify aspects of that culture that could be changed. How might some of these changes be made?