Management meeting and exceeding customer expectation 8th ch11

Organizational Culture
and Change

Chapter 11

MANAGEMENT
Meeting and Exceeding Customer Expectations
EIGHTH EDITION
Prepared by
Deborah Baker
Texas Christian University
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

1


learning objectives
1. Define organizational culture and the factors that
influence it

2. List and describe the ways that culture is manifested
3. Explain the role of managers and employees in
creating culture

4. Explain what factors make a culture effective
5. Define change and identify the kinds of change that
can occur in an organization

6. Distinguish between evolutionary change and

Chapter 11

revolutionary change

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learning objectives

(continued)

7. Distinguish between planned and unplanned change
8. Explain the steps managers can follow to implement
planned change

9. Identify the organizational qualities that promote
change

10.Explain why people resist change and what

managers can do to overcome that resistance

11. Explain why change efforts fail
12.Explain the purpose of an organizational

Chapter 11

development program

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11

Organizational Culture

Chapter 11

Organizational
Organizational
Culture
Culture

A dynamic system of…

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

shared values
beliefs
philosophies

experiences
habits
expectations
norms
behaviors

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Organizational Culture

11
Defines…

Chapter 11

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
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What is important to the organization
The way decisions are made
Methods of communication

The degree of structure
The freedom to function independently
How people should behave
How they should interact with each other
For what they should be striving

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11

Factors Shaping Culture
Key
Key organizational
organizational processes
processes
Dominant
Dominant coalition
coalition
Employees
Employees and
and other
other tangible
tangible assets
assets
Formal
Formal organizational
organizational arrangements

arrangements
Social
Social system
system

Chapter 11

Technology
Technology
External
External environment
environment
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Chapter 11

11

Factors Shaping Culture

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11

Key Organizational Processes

Chapter 11

 How managers communicate to employees
 How they share decision making
 How they structure the flow of work

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Dominant Coalition

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Organizational
Organizational culture
cultureis
isgreatly
greatlyaffected
affectedby
by…
…

Chapter 11

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


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Objectives
Strategies
Personal characteristics
Interrelationships

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Employees and Other Tangible
Assets

11

Chapter 11

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Employee population
Plant and offices

Equipment
Tools
Land
Inventory
Money

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11

Formal Organizational
Arrangements

Chapter 11

 Structure of the organization
 Procedures and rules
 Specific mandated behaviors

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11

Social System

 Contributes norms and values to
organizational culture

 Includes the set of employee relationships
that relate to power, affiliation, and trust

 Includes the grapevine and the informal

Chapter 11

organization

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11

Technology

Chapter 11

 Technological processes
 Equipment and its use

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11

External Environment

The
TheEconomy
Economy

Suppliers
Suppliers
Markets
Markets

Chapter 11

Competitors
Competitors

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Regulators
Regulators

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22

Manifestations of Culture

Statements
Statements of
of principle
principle
Stories
Stories
Slogans
Slogans
Heroes
Heroes
Ceremonies
Ceremonies
Symbols
Symbols

Chapter 11

Climate
Climate
Physical
Physical environment
environment
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Statements of Principle

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“Five Principles of Mars”

Chapter 11

1.
2.
3.
4.
5.

Quality
Responsibility
Mutuality
Efficiency
Freedom

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Symbols

22

“Disney’s Symbolic Language”

Chapter 11

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Employees are “cast members”
Customers are “guests”
A crowd is an “audience”
A work shift is a “performance”
A job is a “part”
A uniform is a “costume”
The personnel department is “casting”
Being on duty is “on stage”
Being off duty is “off stage”

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22

Symbols

Chapter 11

Nordstrom’s Employee Handbook

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Climate

22

Healthy Climate

 Encouragement to tap
into the other
person’s expertise

 Empowers people
 Rewards people for

Unhealthy Climate

 Management has
different values

 Management is in
conflict

 Management has

taking risks

widely divergent goals

 Provides celebrations

Chapter 11

where peers cheer
peers

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33

Role of Managers
Management helps create culture by…

 Clearly defining the company’s mission and goals
 Identifying the core values
 Determining the amount to individual autonomy
and the degree to which people work separately
or in groups

 Structuring the work in accordance with the
corporation’s values to achieve its goals

 Developing reward systems that reinforce
the values of goals

Chapter 11

 Creating methods of socialization
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Kodak’s Five Core Values

33

Chapter 11

1.
2.
3.
4.
5.

Respect for the individual
Uncompromising integrity in everything Kodak does
Trust
Credibility
Continuous improvement

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Visionary Managers and
Companies

Chapter 11

33



Translate their core values into tangible mechanisms



Indoctrinate people



Impose tightness of fit



Create a sense of belonging to something special

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33

The Role of Employees
 Contribute to the extent that they accept and adopt
the culture

 Contribute by helping to shape the values it
embodies

 Play a role in influencing organizational culture by

Chapter 11

forming subcultures

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44

The Effectiveness of Culture

Coherence
Coherence

Factors
Factors

Persuasiveness
Persuasiveness and
and Depth
Depth

Chapter 11

Adaptability
Adaptability to
to Environment
Environment

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Sources of Change

55

External Sources

Chapter 11

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Political
Social
Technological
Economic

Internal Sources

 Managerial policies
or styles

 Systems and
procedures

 Technology
 Employee attitudes

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