LECTURE 8 principles of marketingggggggg

pmk

1. ORGAnizational Culture and change Lecture 8

2. © 2013 Cengage Learning LEarning outcomes Learning Outcomes Identify the three levels of culture and the roles they play in an organization. Evaluate the four functions of culture within an organization. Explain the relationship between organizational culture and performance. Describe five ways leaders reinforce organizational culture. Describe the three stages of organizational socialization and the ways culture is communicated in each step. Discuss how managers assess their organization’s culture. Explain actions managers can take to change organizational culture. Identify the challenges organizations face developing positive, cohesive cultures.

3. 1. Organizational culture

4. Organizational (Corporate) Culture a pattern of basic assumptions that are considered valid and that are taught to new members as the way to perceive, think, and feel in the organization.

5. Organizational Culture Visible , often not decipherable Greater level of awareness Taken for granted, Invisible, Preconscious Artifacts Espoused Values Assumptions Enacted Values © 2013 Cengage Learning

6. Artifacts Artifacts : symbols of culture in the physical and social work environments. Examples of the artifacts of culture include personal enactment, ceremonies and rites, stories, rituals, and symbols. Personal Enactment Culture can be understood, in part through an examination of the behavior of organization members. Personal enactment by the top managers provides insight into the organization’s values.

7. Ceremonies and Rites Relatively elaborate sets of activities that are repeatedly enacted on important occasions These occasions provide opportunities to reward and recognize employees whose behavior is congruent with the values of the company. Individuals who both espouse and exhibit corporate values are heroes to be admired.

8. Stories Stories give meaning and identity to organizations and are especially helpful in orienting new employees. About the boss , getting fired , relocating , promotions , crisis situations , status considerations Effective stories are not only motivational; they can also reinforce culture and create renewed energy.

9. Rituals and symbols Rituals Everyday, repetitive, organizational practices. “The way we do things around here” Symbols communicate organizational culture through unspoken messages.  Together, p ersonal enactment, rites and ceremonies, stories, rituals, and symbols serve to reinforce the values that are the next level of culture.

10. VALUeS Reflect a person’s inherent beliefs of what should or should not be. Values are often consciously articulated, both in conversation and in a company’s mission statement or annual report. There may be a difference between a company’s espoused values (what the members say they value) and its enacted values (values reflected in the way the members actually behave)

11. ASSUMPTIONS Assumptions are the deeply held beliefs that guide behavior and tell members of an organization how to perceive situations and people. Assumptions are so strongly held that a member behaving in a fashion that would violate them is unthinkable. Another characteristic of assumptions is that they are often unconscious. Organization members may not be aware of their assumptions and may be reluctant or unable to discuss them or change them.

12. Functions of Organizational Culture Culture provides a sense of identity to members and increases their commitment to the organization Culture provides a way for employees to interpret the meaning of organizational events Culture reinforces the values of the organization Culture serves as a control mechanism for shaping behavior

13. The RelAtionship of Culture to PErformance Strong Culture Perspective Fit Perspective Adaptive Perspective

14. THE Strong Culture P erspective The strong-culture perspective states that organizations with strong cultures perform better than other organizations. A strong culture is a organizational culture with a consensus on the values that drive the company and with an intensity that is recognizable even to outsiders. A strong culture is deeply held, widely shared and highly resistant to change

15. © 2013 Cengage Learning BECAUSE They are characterized by goal alignment They create a high level of motivation because of shared values by the members They provide control without the oppressive effects of bureaucracy Strong Cultures Facilitate Performance

16. what if the strong culture leads the firm down the wrong path?

17. Fit Perspective a culture is good only if it fits the industry or the firm’s strategy © 2013 Cengage Learning

18. Three particular industry characteristics affect culture: Competitive environment Customer requirements Societal expectations Fit Perspective

19. Adaptive Culture A n organizational culture that encourages confidence and risk taking among employees, has leadership that produces change, and focuses on the changing needs of customers Adaptive cultures facilitate change to meet the needs of three groups of constituents: stockholders, customers, and employees. Nonadaptive cultures are characterized by cautious management that tries to protect its own interests. Adaptive firms showed significantly better long-term economic performance

20. Adaptive vs. Nonadaptive Cultures

21. Most Important Elements in Managing Culture What leaders pay attention to Leaders in an organization communicate their priorities, values, and beliefs through the themes that consistently emerge from their focus. How leaders react to crises Difficult economic times present crises for many companies and illustrate their different values. How leaders behave Employees often emulate leaders’ behavior and look to the leaders for cues to appropriate behavior. How leaders allocate rewards To ensure that values are accepted, leaders should reward behavior that is consistent with the values. How leaders hire and fire individuals

22. 2. Organizational change

23. The Case for Change Organizational change : any alteration of people, structure, or technology in an organization Change agent : someone who acts as a catalyst and assumes the responsibility for managing the change process V U C A : volatility, uncertainty, complexity, and ambiguity In today’s world, change is the only constant Managers must deal with that reality

24. External • Changing consumer needs and wants • New governmental laws • Changing technology • Economic changes Internal • New organizational strategy • Change in composition of workforce • New equipment • Changing employee attitudes External and Internal Forces for change

25. Calm waters metaphor: Unfreezing the status quo Changing to a new state Refreezing to make the change permanent Calm waters VS White-water rapids metaphors

26. the change process

27. White-water rapids metaphor: the lack of environmental stability and predictability requires that managers and organizations continually adapt and manage change actively to survive Calm waters VS White-water rapids metaphors

28. Reactive versus proactive change processes Reactive: reacting to a situation that has occurred Proactive: activating in advance of a situation

29. Four types of change

30. Why do people resist change? Uncertainty Habit Fear of loss Belief change is inconsistent with goals of organization

31. Techniques for Reducing Resistance to Change Technique When Used Advantage Disadvantage Education and communication When resistance is due to misinformation Clear up misunderstandings May not work when mutual trust and credibility are lacking Participation When resisters have the expertise to make a contribution Increase involvement and acceptance Time-consuming; has potential for a poor solution Facilitation and support When resisters are fearful and anxiety ridden Can facilitate needed adjustments Expensive; no guarantee of success Negotiation When resistance comes from a powerful group Can “buy” commitment Potentially high cost; opens doors for others to apply pressure too Manipulation and co-optation When a powerful group’s endorsement is needed Inexpensive, easy way to gain support Can backfire, causing change agent to lose credibility Coercion When a powerful group’s endorsement is needed Inexpensive, easy way to gain support May be illegal; may undermine change agent’s credibility

32. Leading Change Managers can make change happen successfully by: making organization change capable understanding their own role in process giving employees a role in the change

33. Change - Capable Organizations

34. Creating a culture for change The fact that an organization’s culture is made up of relatively stable and permanent characteristics tends to make it very resistant to change

35. Understanding the situational Factors Conditions that facilitate change: dramatic crisis occurs leadership changes hands culture is weak

36. © 2013 Cengage Learning Cultural Changes With rapid environmental changes such as globalization, workforce diversity and technological innovation, the fundamental assumptions and basic values that drive the organization may need to be altered.

37. Changing culture

38. Merger or Acquisition Developing a global organizational culture Developing an ethical organizational culture Developing a culture of empowerment and quality Challenges to Developing Positive, Cohesive Culture