Marketing Manager Course - Chapter 04
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McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
4
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:
Build and maintain an appropriate company culture.
Understand the roles of symbols, rites, ceremonies, heroes, and
stories in an organization's culture.
Identify the various categories of organizational cultures and the
characteristics of people who fit best with them.
Adapt to organizational change and the forces that drive change.
Work with employees who resist change.
Use tools to help implement change, including Lewin’s three-
step model of change and force field analysis.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Organizational Culture
A system of shared values, assumptions, beliefs,
and norms that unite the members of an
organization.
Reflects employees’ views about “the way things are
done around here.”
The culture specific to each firm affects how
employees feel and act and the type of employee
hired and retained by the company.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Levels of
Corporate Visible Culture
Culture
Expressed Values
Core Values
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Functions Performed By
Organizational Culture
Employee Self-Management
Sense of shared identity
Facilitates commitment
Stability
Sense of continuity
Satisfies need for predictability, security, and
comfort
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Functions Performed By
Organizational Culture (cont)
Socialization
Internalizing or taking organizational values as
one’s own
Implementation Support of the
Organization’s Strategy
If strategy and culture reinforce each other,
employees find it natural to be committed to the
strategy
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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
Organizational Policies
and Decision Making
Leadership
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Characteristics and Types of
Organizational Culture
Cultural Uniformity versus
Heterogeneity
Strong versus Weak
Cultures
Culture versus
Formalization
National versus
Organizational Culture
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Characteristics and Types of
Organizational Culture (continued)
Types: Traditional Control or
Employee Involvement
Traditional control
emphasizes the chain of command
relies on top-down control and orders
Employee involvement
emphasizes participation and
involvement
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Four Types of Culture Classification
Baseball team culture--rapidly
changing environment
Club culture--seeks loyal,
committed people
Academy culture--hires experts
who are willing to make a slow
steady climb up a ladder
Fortress culture--focused on
surviving and reversing sagging
fortunes
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Competing Values Framework
Based on two dimensions: focus and control
Focus--whether the primary attention of the
organization is directed toward internal dynamics or
directed outward toward the external environment
Control--the extent to which the organization is
flexible or fixed in how it coordinates and controls
activities
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Types of Change
Planned Change--change that is
anticipated and allows for advanced
preparation
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
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Forces for Change:
Environmental Forces
Put pressure on a firm’s relationships with
customers, suppliers, and employees.
Environmental forces include:
Technology
Market forces
Political and regulatory agencies and laws
Social trends
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Forces for Change: Internal Forces
Arise from events within the
company.
May originate with top
executives and managers and
travel in a top-down direction.
May originate with front-line
employees or labor unions and
travel in a bottom-up direction.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Resistance to Change
Self-Interest
Cultures that Value Lack of Trust and
Tradition Understanding
Different Perspectives
and Goals Uncertainty
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Models of Organizational Change:
The Star Model
The Star Model: Five Points
Types of change-evolutionary or
transformational
Structure
Reward system
Processes
People
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Lewin’s Three-Step Model of
Organizational Change
Unfreezing--melting away
resistance
Change--departure from
the status quo
Refreezing--change
becomes routine
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Lewin’s Force Field Analysis Model
Increase driving forces that
drive change
Reduce restraining forces
that resist change
or do both
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