Chapter 3

Changing the Culture

An Experiential Approach to

Chapte

Learning Objectives
Recognize importance of corporate
culture.
Identify key factors assessing culture.
Describe culture leading to effective
organizations.
Describe ethical, value, and goal
considerations.
An Experiential Approach to

Chapte

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.

An Experiential Approach to

Chapte

Understanding Corporate
Culture
Environment of rapid change.
Static organizational culture no longer
effective.

An Experiential Approach to

Chapte

What Is Corporate Culture?

Culture is system of:
Shared values.
Beliefs.
Behavioral norms.

Observed behavioral norms.

Dominant values.
Learning ropes for newcomers.
An Experiential Approach to

Chapte

Culture Comes from 2

Subsystems
Managerial.
Organizational.

An Experiential Approach to

Chapte

Managerial Subsystem
Creates Culture
How employees are treated.
Through actions and words.
Vision articulated by top management.

An Experiential Approach to

Chapte

Organizational Subsystem
Creates Culture
Outside factors (market, etc.) define
culture.
Technology.
Job descriptions.
Type of structure (tall vrs. flat).

An Experiential Approach to

Chapte

Figure 3.1
Culture Formation

An Experiential Approach to

Chapte

Corporate Culture and

Success
High-performing companies have
strong cultures.
Many cultures fail to adapt to change.
Following corporate mergers, cultures
often clash.

An Experiential Approach to

Chapte

Key Factors to Improve

Culture
Create vision for the future.
Develop model for change.
Reward changes.

An Experiential Approach to

Chapte

Cultural Resistance to Change

Changing culture not easy.
Time required.
Culture can prevent company from
adapting.

An Experiential Approach to

Chapte

Pressure Points to Bring

About Change
Recession.
Deregulation.
Technological
upheavals.

Social factors.
Global
competition.
Outsourcing.
Markets.

An Experiential Approach to

Chapte

Tools for Change (part 1 of 4)

Information.
Support.
Resources.

An Experiential Approach to

Chapte

Information (part 2 of 4)
Provide information to people.
Provide ability to gather information.
One method is open-book
management.

An Experiential Approach to

Chapte

Support (part 3 of 4)
Support and collaboration from other
departments.
Management support to provide climate
of risk taking.

An Experiential Approach to

Chapte

Resources (part 4 of 4)
Funds.
Staff.

Equipment.
Materials.

Innovative programs for providing

resources include:
Venture capital.
Innovation banks.
An Experiential Approach to

Chapte

Organizational Dimensions
Affecting Performance
Managerial effectiveness.
Accomplishing goals and objectives.

Managerial efficiency.
Ratio of results to resources.

Motivational climate.
Employee attitudes that influence
performance.
An Experiential Approach to

Chapte

Other Criteria for

Organizational Effectiveness
Adaptability.
Sense of identity.
Capacity to test reality.

An Experiential Approach to

Chapte

OD Professional Values and

Ethics

Expertise.
Autonomy.
Commitment.
Code of ethics.

An Experiential Approach to

Chapte

OD Implementation Issues
(part 1 of 4)

Success depends on:

Congruence between OD values and
organizations values.

Key issue is fit between between

practitioner and client:
Compatibility of values.
Imposed change.
Priority of goals.
An Experiential Approach to

Chapte

Compatibility of Values
(part 2 of 4)

Practitioners differ on degree of

congruency with client values.
Some believe personal values are
compatible with client.
Others will help client as long as
operations legal.

An Experiential Approach to

Chapte

Imposed Change
(part 3 of 4)

OD ideally implemented voluntarily.

Top management may impose program.
OD practitioners cognizant of power
and politics.

An Experiential Approach to

Chapte

Priority of Goals
(part 4 of 4)

Determine goals given precedence.

Challenge to develop balanced
intervention:
One that improves productivity and
Quality of work for members.

An Experiential Approach to

Chapte

OD Values About Nature

of Organization Members

Respect for people.

Trust and support.
Power equalization.
Confrontation and open communication.
Participation.

An Experiential Approach to

Chapte

Table 3.1
OD Values

An Experiential Approach to

Chapte

OD Application
Culture and Setpoint Systems
Setpoint builds unique automation
equipment.
Required are self-motivated employees.
Who can solve problems and
Look for ways to improve processes.

Uses project management and openbook accounting.

An Experiential Approach to

Chapte

 Production employees use these

techniques to:
Understand the business and
Know where to focus attention.

Culture is one where employees:

Understand the business and
Provide thorough attention to financials.

An Experiential Approach to

Chapte

OD Application
How Trilogys University Helps
Build Its Culture
Trilogy is small but competes with large
software companies.
Key goal is to attract talented people.
Fosters new methods in relationships
with clients and employees.
An Experiential Approach to

Chapte

 It operates a three-month long boot

camp.
New employees integrated into company.
Employees learn values and culture.
Receive comprehensive evaluation and
feedback.

Program provides source for renewal.

Provides new services and products.

Relationships formed, new leaders

created.
An Experiential Approach to

Chapte

Key Words and Concepts

Corporate culture.
System of shared values and beliefs.
Interact with people, structure, systems.

Managerial effectiveness.
Ability to accomplish specific organizational
goals.

An Experiential Approach to

Chapte

 Managerial efficiency.
Ratio of output (results) to input
(resources).

Motivational climate.
Employee attitudes that influence
performance.

An Experiential Approach to

Chapte

 Open-book management.
Employees understand accounting
statements.
Use knowledge in work.

Professionalism.
Value system that is part of profession.

An Experiential Approach to

Chapte

OD Skills Simulation 3.1

The Dim Lighting Co.
Purpose:
Compare decisions made by individuals
with those made by group.
Practice effective consensus-seeking techniques.
Gain insights into concept of cultural values.

An Experiential Approach to

Chapte

Preparations for Next Chapter

Read Chapter 4.
Complete Steps 1 through 4 of OD
Skills Simulation 4.1.
Read and prepare Case: The Grayson
Chemical Company

An Experiential Approach to

Chapte

An Experiential Approach to

Chapte