Organizational Development and changing the Culture

1. An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 1
Chapter 3
Changing the Culture

2. An Experiential Approach to Organization Development 8th 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.

3. An Experiential Approach to Organization Development 8th 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.

4. An Experiential Approach to Organization Development 8th 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.

5. An Experiential Approach to Organization Development 8th 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.

6. An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 6
Culture Comes from 2
Subsystems
• Managerial.
• Organizational.

7. An Experiential Approach to Organization Development 8th 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.

8. An Experiential Approach to Organization Development 8th 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).

9. An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 9
Figure 3.1
Culture Formation

10. An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 10
Key Factors to Improve
Culture
• Create vision for the future.
• Develop model for change.
• Reward changes.

11. An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 11
Cultural Resistance to Change
• Changing culture not easy.
• Time required.
• Culture can prevent company from
adapting.

12. An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 12
Pressure Points to Bring
About Change
• Recession.
• Deregulation.
• Technological
upheavals.
• Social factors.
• Global
competition.
• Outsourcing.
• Markets.

13. An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 13
Tools for Change (part 1 of 4)
• Information.
• Support.
• Resources.

14. An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 14
Information (part 2 of 4)
• Provide information to people.
• Provide ability to gather information.
• One method is open-book
management.

15. An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 15
Support (part 3 of 4)
• Support and collaboration from other
departments.
• Management support to provide climate
of risk taking.

16. An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 16
Resources (part 4 of 4)
• Funds.
• Staff.
• Equipment.
• Materials.
• Innovative programs for providing
resources include:
– Venture capital.
– Innovation banks.

17. An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 17
Organizational Dimensions
Affecting Performance
• Managerial effectiveness.
– Accomplishing goals and objectives.
• Managerial efficiency.
– Ratio of results to resources.
• Motivational climate.
– Employee attitudes that influence
performance.

18. An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 18
Other Criteria for
Organizational Effectiveness
• Adaptability.
• Sense of identity.
• Capacity to test reality.

19. An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Slide 19
OD Professional Values and
Ethics
• Expertise.
• Autonomy.
• Commitment.
• Code of ethics.