marketing manager course - chapter 04

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
4
Chapter
Managing Organizational
Culture and Change
Managing Organizational
Culture and Change
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
After reading this chapter, you should be able to:
z Build and maintain an appropriate company culture.
z Understand the roles of symbols, rites, ceremonies, heroes, and
stories in an organization's culture.
z Identify the various categories of organizational cultures and the
characteristics of people who fit best with them.
z Adapt to organizational change and the forces that drive change.
z Work with employees who resist change.
z Use tools to help implement change, including Lewin’s three-
step model of change and force field analysis.
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Organizational Culture
z A system of shared values, assumptions, beliefs,
and norms that unite the members of an
organization.
z Reflects employees’ views about “the way things are
done around here.”
z The culture specific to each firm affects how
employees feel and act and the type of employee
hired and retained by the company.
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Core Values

Expressed Values
Visible Culture
Levels of
Corporate
Culture
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Functions Performed By
Organizational Culture
zEmployee Self-Management
¾Sense of shared identity
¾Facilitates commitment
zStability
¾Sense of continuity
¾Satisfies need for predictability, security, and
comfort
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Functions Performed By
Organizational Culture
(cont)
zSocialization
¾Internalizing or taking organizational values as
one’s own
zImplementation Support of the
Organization’s Strategy
¾If strategy and culture reinforce each other,
employees find it natural to be committed to the
strategy
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Stages of the Socialization Process
Pre-arrival

Encounter
Metamorphosis
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Creating and Sustaining
Organizational Culture
Cultural Symbols
Company Rituals and
Ceremonies
Company Heroes
Stories
Language
Leadership
Organizational Policies
and Decision Making
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Characteristics and Types of
Organizational Culture
zCultural Uniformity versus
Heterogeneity
zStrong versus Weak
Cultures
zCulture versus
Formalization
zNational versus
Organizational Culture
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Characteristics and Types of
Organizational Culture (continued)
zTypes: Traditional Control or
Employee Involvement

¾Traditional control
9 emphasizes the chain of command
9 relies on top-down control and orders
¾Employee involvement
9 emphasizes participation and
involvement
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Four Types of Culture Classification
zBaseball team culture rapidly
changing environment
zClub culture seeks loyal,
committed people
zAcademy culture hires experts
who are willing to make a slow
steady climb up a ladder
zFortress culture focused on
surviving and reversing sagging
fortunes
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Competing Values Framework
zBased on two dimensions: focus and control
¾ Focus whether the primary attention of the
organization is directed toward internal dynamics or
directed outward toward the external environment
¾Control the extent to which the organization is
flexible or fixed in how it coordinates and controls
activities
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Types of Change
z Planned Change change that is

anticipated and allows for advanced
preparation
z Dynamic Change change that is
ongoing or happens so quickly that
the impact on the organization cannot
be anticipated and specific
preparations cannot be made
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Forces for Change:
Environmental Forces
zPut pressure on a firm’s relationships with
customers, suppliers, and employees.
zEnvironmental forces include:
¾Technology
¾Market forces
¾Political and regulatory agencies and laws
¾Social trends
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Forces for Change: Internal Forces
zArise from events within the
company.
zMay originate with top
executives and managers and
travel in a top-down direction.
zMay originate with front-line
employees or labor unions and
travel in a bottom-up direction.
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Resistance to Change
Self-Interest

Lack of Trust and
Understanding
Uncertainty
Different Perspectives
and Goals
Cultures that Value
Tradition
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Models of Organizational Change:
The Star Model
zThe Star Model: Five Points
¾Types of change-evolutionary or
transformational
¾Structure
¾Reward system
¾Processes
¾People
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Lewin’s Three-Step Model of
Organizational Change
zUnfreezing melting away
resistance
zChange departure from
the status quo
zRefreezing change
becomes routine
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Lewin’s Force Field Analysis Model
zIncrease driving forces that
drive change

zReduce restraining forces
that resist change
zor do both
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Force-field Model of Change
Desired
state
Restraining forces
Status quo
Driving forces
Time
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Implementing Organizational Change
Top-down Change
Change Agents
Bottom-up Change
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Eight Steps to a Planned
Organizational Change
z Establish a sense of
urgency.
z Form a powerful
coalition of supporters of
change.
z Create a vision of
change.
z Communicate the vision
of change.
z Empower others to act
on the vision.

z Plan and create short-
term wins.
z Consolidate
improvements and
produce still more
change.
z Institutionalize new
approaches.
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Tactics for Introducing Change
Communication and
Education
Employee Involvement
Negotiation
Coercion
Top-Management Support
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Applications: Management is Everyone’s
Business
—For the Manager
z Certain types of changes routinely provoke strong employee
resistance:
¾ Changes that affect skill requirements.
¾ Changes that represent economic or status loss.
¾ Changes that involve disruption of social relationships.
z By being aware of the sources of resistance, managers can
better apply tactics to make the changes more palatable for
employees.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.