Transcript change
Chapter Thirteen Organizational Culture and Change © 2003 McGraw-Hill Ryerson Ltd. Chapter Thirteen Outline Foundation of Organizational Culture •Four Functions of Organizational Culture •Outcomes Associated with Organizational Culture •How Cultures are Embedded in Organizations Embedding Organizational Culture Through Socialization Processes and Mentoring •A Three-Phase Model of Organizational Socialization •Practical Application of Socialization Research •Mentoring © 2003 McGraw-Hill Ryerson Ltd. Chapter Thirteen Outline (cont’d) A Model of Societal and Organizational Cultures Forces of Change •External Forces •Internal Forces Models of Planned Change •Lewin’s Change Model •Kotter’s Eight Steps for Leading Organizational Change •Organizational Development © 2003 McGraw-Hill Ryerson Ltd. Chapter Thirteen Outline (cont’d) Understanding and Managing Resistance to Change •Why People Resist Change in the Workplace •Alternative Strategies for Overcoming Resistance to Change © 2003 McGraw-Hill Ryerson Ltd. Organizational Culture The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments. © 2003 McGraw-Hill Ryerson Ltd. The Layers of Organizational Culture Observable Artifacts Espoused Values Basic Underlying Assumptions Source: Adapted from E H Schein, Organizational Culture and Leadership, 2nd ed (San Francisco: Jossey-Bass, 1992), p 17. © 2003 McGraw-Hill Ryerson Ltd. Four Functions of Organizational Culture Organizational identity Sense-making device Organizational Culture Social system stability © 2003 McGraw-Hill Ryerson Ltd. Collective commitment Embedding Organizational Culture • • • • • • Formal statements of organizational philosophy, mission, vision, values, and materials used for recruiting, selection and socialization The design of physical space, work environments, and buildings Slogans, language, acronyms, and sayings Deliberate role modeling, training programs, teaching and coaching by managers and supervisors Explicit rewards, status symbols (e.g., titles), and promotion criteria Stories, legends, and myths about key people and events © 2003 McGraw-Hill Ryerson Ltd. Embedding Organizational Culture • • • • • The organizational activities, processes, or outcomes that leaders pay attention to, measure, and control Leader reactions to critical incidents and organizational crises The workflow and organizational structure Organizational systems and procedures Organizational goals and the associated criteria used for recruitment, selection, development, promotion, layoffs, and retirement of people © 2003 McGraw-Hill Ryerson Ltd. (cont’d) A Model of Organizational Socialization Phases 1. Anticipatory socialization Learning that occurs prior to joining the organization © 2003 McGraw-Hill Ryerson Ltd. Perceptual and Social Processes • Anticipating realities about the organization and the new job • Anticipating organization’s need for one’s skills and abilities • Anticipating organization’s sensitivity to one’s needs and values A Model of Organizational Socialization Phases 2. Encounter Values, skills and attitudes start to shift as new recruit discovers what the organization is truly like © 2003 McGraw-Hill Ryerson Ltd. (cont’d) Perceptual and Social Processes • Managing lifestyleversus-work conflicts • Managing intergroup role conflicts • Seeking role definition and clarity • Becoming familiar with task and group dynamics A Model of Organizational Socialization Phases 3. Change and acquisition Recruit masters skills and roles and adjusts to work group’s values and norms © 2003 McGraw-Hill Ryerson Ltd. (cont’d) Perceptual and Social Processes • Competing role demands are resolved • Critical tasks are mastered • Group norms and values are internalized A Model of Organizational Socialization (cont’d) Phases Outsider 1. Anticipatory socialization 2. Encounter 3. Change and acquisition Behavioural Outcomes • Performs role assignments • Remains with organization • Spontaneously innovates and cooperates © 2003 McGraw-Hill Ryerson Ltd. Socialized Insider Affective Outcomes • Generally satisfied • Internally motivated to work • High job involvement Mentoring Developmental relationship between an experienced employee and a junior person (the protégé). Functions of Mentoring • • Career Functions - Sponsorship - Exposure and visibility - Coaching - Protection - Challenging assignments Psychosocial Functions - Role modeling - Acceptance and confirmation - Counseling - Friendship © 2003 McGraw-Hill Ryerson Ltd. Cultural Influences on Organizational Behaviour Organizational Culture • Economic/ technological setting • Political/ legal setting • Ethnic background • Religion Societal culture • Customs • Language • Personal values/ethics • Attitudes • Assumptions • Expectations Organizational Behaviour Source: Adapted in part from BJ Punnett and S Withane, “Hofstede’s Value Survey Module: To Embrace or Abandon?” in Advances in International Comparative Management , vol 5, ed SB Prasad (Greenwich, CT: JAI Press, 1990), pp 69-89. © 2003 McGraw-Hill Ryerson Ltd. Forces of Change External forces originate outside the organization. • Demographic Characteristics • Technological Advancements • Market Changes • Social and Political Pressures Internal forces originate inside the organization. • Human Resource Problems/Prospects • Managerial Behaviour/Decisions © 2003 McGraw-Hill Ryerson Ltd. Lewin’s Change Model •Unfreezing - Creates the motivation to change - Encourages the replacement of old behaviours and attitudes with those desired by management - Entails devising ways to reduce barriers to change • Changing - Helps employees learn new concepts or points of view - Provides new information, new behavioural models - Role models, mentors, experts, benchmarking results, and training are useful mechanisms to facilitate change •Refreezing - Helps employees integrate the changed behaviour or attitude into their normal way of doing things - Positive reinforcement is used to reinforce the desired change - Coaching and modeling help reinforce the stability of change © 2003 McGraw-Hill Ryerson Ltd. Kotter’s Steps for Leading Organizational Change Step Description Establish a sense Unfreeze the organization by creating a of urgency compelling reason for why change is needed. Create the guiding Create a cross-functional, cross-level group of coalition people with enough power to lead the change. Develop a vision Create a vision and strategic plan to guide the and strategy change process. Communicate the Create and implement a communication strategy change vision that consistently communicates the new vision and strategic plan. Empower broadEliminate barriers to change, and use target based action elements of change to transform the organization. Encourage risk taking and creative problem-solving. © 2003 McGraw-Hill Ryerson Ltd. Kotter’s Steps for Leading Organizational Change (cont’d) Step Generate shortterm wins Description Plan for and create short-term “wins” or improvements. Recognize and reward people who contribute to the wins. Consolidate gains The guiding coalition uses credibility from and produce more short-term wins to create more change. change Additional people are brought into the change process as change cascades throughout the organization. Attempts are made to reinvigorate the change process. Anchor new Reinforce the changes by highlighting approaches in the connections between new behaviours and culture processes and organizational success. Develop methods to ensure leadership development and successes. © 2003 McGraw-Hill Ryerson Ltd. Characteristics of Organization Development (OD) • • • • OD involves profound change OD is value loaded OD is a diagnosis/prescription cycle OD is process-oriented © 2003 McGraw-Hill Ryerson Ltd. Resistance To Change The leading reasons why people resist change are: • • • • • An individual’s predisposition toward change Surprise and fear of the unknown Climate of mistrust Fear of failure Loss of status and/or job security Peer pressure Disruption of cultural traditions and/or group relationships Personality conflicts Lack of tact and/or poor timing Non-reinforcing reward systems © 2003 McGraw-Hill Ryerson Ltd. Strategies for Overcoming Resistance to Change Approach Education + Communication Participation + Involvement Commonly Used in Situations Where there is a lack of information or inaccurate information and analysis Where the initiators do not have all the information they need to design the change and where others have considerable power to resist People who participate will be committed to implementing change, and any relevant information they have will be integrated into the change plan Advantages Drawbacks Once persuaded, people will often help with the implementation of the change Can be very time consuming if lots of people are involved © 2003 McGraw-Hill Ryerson Ltd. Can be very time consuming if participators design an inappropriate change Strategies for Overcoming Resistance to Change (cont’d) Approach Facilitation + Support Commonly Used in Situations Where someone or some group Where people are resisting because of adjustment problems will clearly lose out in a change and where that group has considerable power to resist Advantages Drawbacks Negotiation + Agreement No other approach works as well Sometimes it is a relatively easy with adjustment problems way to avoid major resistance Can be time consuming, expensive, and still fail © 2003 McGraw-Hill Ryerson Ltd. Can be too expensive in many cases if alerts others to negotiate for compliance Strategies for Overcoming Resistance to Change (cont’d) Approach Manipulation + Co-optation Explicit + Implicit Coercion Commonly Used in Situations Where other tactics will not work or are too expensive Where speed is essential and where the change initiators possess considerable power It can be a relatively quick and inexpensive solution to resistance problems It is speedy and can overcome any kind of resistance Can lead to future problems if people feel manipulated Can be risky if it leaves people mad at the initiators Advantages Drawbacks © 2003 McGraw-Hill Ryerson Ltd.