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ORGANIZATIONAL CHANGE
AND CULTURE 12
Changes in Chapter 12 from the 9th Edition to the 10th Edition
The entire chapter has been updated with 40 (93%) new references to this new edition.
Learning Outcomes 12-7 and 12-8 have been deleted and their coverage of Training and
Development and Performance Appraisals has been decreased, as these topics are of less
relevant to organizational change. Application Situation 12-4, The Training Cycle has
also been eliminated.
Learning Outcome (coaching model) 12-9 is now 12-7, but the dialog of the coaching
session has been deleted, as students can watch Behavior Model video 12-1 to view a
coaching session, and they can conduct Skill Building Exercise 12-1 to experience
coaching.
The opening section How Change Affects Behavior, Human Relations, and Performance
has been re-written with all new references and is shorter.
The introduction to the Managing Change section has been re-written with two new
references.
A new subsection, Forms of Change, has been added to the Managing Change section,
adding a discussion of incremental and discontinuous change.
The introduction to the Organizational Culture section has been updated with new
references and has been shortened.
The OD technique Survey Feedback section has been shortened.
The Xerox case has a new video link of CEO Burns discussing her career with a new first
question. The case has also been updated and shortened a bit by cutting the paragraph
listing all its awards.
Chapter Outline
I. HOW CHANGE AFFECT BEHAVIOR, HUMAN RELATIONS, AND PERFORMANCE
II. MANAGING CHANGE
A. Types of Changes.
B. Forms of Change
C. Stages in the Change Process.
III. RESISTANCE TO CHANGE AND HOW TO OVERCOME IT
A. Resistance to Change
B. Overcoming Resistance to Change
C. Responding to Resistance.
D. Change Models.
IV. ORGANIZATIONAL CULTURE
A. Learning the Organization’s Culture
B. Strong and Weak, Positive and Negative Cultures.
V. ORGANIZATIONAL CLIMATE
A. Dimensions of Climate.
VI. ORGANIZATIONAL DEVELOPMENT
A. Managing and Changing Culture and Climate through OD.
B. Training and Development.
C. Performance Appraisal.
D. Survey Feedback.
E. Force Field Analysis.
F. Team Building.
VII. GLOBAL DIFFERENCES
VIII. THE RELATIONSHIP AMONG ORGANIZATIONAL CULTURE, CLIMATE, AND
DEVELOPMENT
LECTURE OUTLINE PLUS
Power Point: You may use the Power Point supplement to enhance your lectures. Even if your classroom is not
equipped to use Power Point, you can review the material on your personal computer to get teaching ideas and to
copy the slides. Copies of the slides can be made into overheads.
I. HOW CHANGE AFFECT BEHAVIOR, HUMAN RELATIONS, AND PERFORMANCE
Organizations have pressure to change from many sources.
Work Application (WA): NOTE: All the work application questions appear in the test bank so that you can assess
students’ ability to apply the concepts to their work world. However, because student answers will vary, there are no
answers in the test bank.
WA 1- Give reasons why managing change skills are important to managers in an organization you work/ed for.
SA- Nothing in business, or life, is static. Change is inevitable and in business it is desirable when it increases
II. MANAGING CHANGE
Self-Assessment Exercise 12-1 Openness to Change.
A. Types of Changes. KT- types of changes are technological, structural, task, and people.
LO 1. Describe the four types of changes.
The four types of change are: 1. Technology—machines and process for creating products and services. 2. Structure
Exhibit 12-1, Types of Changes, may be shown to illustrate the four types of changes.
1. Technological change. Technology is changing at a faster rate than every before, and continues to change at an
even faster rate. -Machines change the way business is done.-Process. Organizations continually change the way
they do things, or their process. KT- Management information systems (MIS) are formal structures for collecting,
process, and disseminating necessary information that aids managers in decision-making.
WA 2- Describe the MIS at an organization, preferably one you have been associated with.
SA- The MIS used at SC Inc. is the meeting file. Whenever anything comes up that should be discussed at staff
-Automation. KT- Automation- the simplification or reduction of human effort to do a job. Machines and equipment
continue to make peoples jobs easier. In fact, they sometimes replace people. In manufacturing the numbers of
employees have decreased over the years as organizations continually upgrade their machines and equipment as a
means for increasing productivity.
WA 3- Describe an automation change in an organization, preferably one you have been associated with.
SA- In working for the college cafeteria we originally had a punch clock that stamped times in and out of work. This
year they installed a computerized punch clock that also calculates the hours worked each day and accumulates them
2. Structural change. EX. When small organizations grow, they often hire new managers, which changes the chain of
command.
3. Task and people change. EX. When people change the way they do their job, their task has changed. With changes
in the task, structure, and technology organizations often need new people. Also a change in people, like a new
president, result in changes in task, structure, and/or technology. A change in one variable often requires a change in
other variables as well.
WA 4- Give one or more examples of a type of change you experienced in an organization (Identify it as a task,
structural, technological, or people change).
SA- An example of a technology change was when I worked in a BMW auto dealership. The new cars continually
Applications Situations
Types of Changes, AS-12.1
1. B. Structure. Departments and reporting relationships are part of an organization's structure.
2. D. People. This is a change in people.
5. A. Task. This is a change in the task of Sergei by filling-in a form.
B. Forms of Change
1. Incremental Change is continual improvement that takes place within the already existing technology cycle.
2. Discontinuous Change.is a significant breakthrough in technology that leads to design competition and a new
technology cycle.
C. Stages in the Change Process.
Exhibit 12-2 Stages in the Change Process may be shown to list the four stages of: 1. denial, 2. resistance, 3.
exploration, 4. commitment.
III. RESISTANCE TO CHANGE AND HOW TO OVERCOME IT
A. Resisting Change. KT- resistance to change- the three variables are intensity, source, and focus and explain why
people are reluctant to change.
Exhibit 12-3 Resistance Matrix, may be shown to illustrate resistance to change as discussed below.
1. Intensity. How strong is people’s resistance to a change?
2. Source. (a.) Facts. Sometimes people resist change due to misinterpreting the facts.
(b.) Beliefs. People tend to view change as good or bad or right or wrong. When people believe change is wrong
3. Focus. (a.) Self. We all have a tendency to look at change with the question "what's in it for me?" "How does the
change help or hurt me?" When people believe change will not benefit them, they resist it. (b.) Others. We also
WA 5- Describe a situation in which you were resistant to change. Identity the intensity, source, and focus. Use
Exhibit 12.3 to identify the box by number and statement about the resistance.
SA- We had a people change. We got a new supervisor in the corrugator department. (a.) My intensity was medium.
I heard he was tough and did not think he would like any of us. (b.) My source of resistance was my belief that he
Application Situations
Identifying Resistance to Change, AS-12.2
In this section it is difficult to say there is only one right answer. As stated in the text, more than one resisting factor
can be at play. Following 69 are other possible answers, as pointed out by one of the reviewers.
6. 9. Value pertaining to the work environment. They disagree on the importance of the project.
7. 1. Facts about self. Breaking in the last rookie is a provable fact. (Some could consider the answer to be Box 7 the
8. 5. Belief about others. Bill is making a judgment that the change is incorrect, regardless of who is the better
9. 8. Value pertaining to others. People are important to her, changing could hurt relationships. (Some could consider
10. 6. Belief about the work environment. The supervisor doesn't agree that a change is needed. (Some could
B. Overcoming Resistance to Change
Exhibit 12-4, Overcoming Resistance to Change, may be shown to illustrate eleven suggestions for overcoming
resistance to change.
As a manager, if you want to overcome resistance to change you must first identify its intensity, source, and focus,
of resistance to change. Then develop an implement a plan that will overcome the resistance to the change.
Eleven ways to overcome resistance to change include:
1. develop a positive climate for change,
2. encourage interest in improvement,
3. plan,
4. give facts,
5. clearly state why the change is needed and how it will affect employees, 6. create a win-win situation,
7. involve employees,
8. provide support,
9. stay calm,
10. avoid direct confrontation,
11. use power and ethical politics.
LO 2. State why people resist change and how to overcome it.
Four major reasons people resist change are the desire to maintain the status quo, uncertainty, learning anxiety, and
fear. To overcome resistance to change, one should first identify three major variables: Intensity—the strength is the
C. Responding to Resistance. (Discuss: as you have read there are ways to respond to resisters to change. You may
want to respond in these ways when the need arises.)
D. Change Models.
Exhibit 12-5, Change Models, may be shown to illustrate the steps of implementing change for two models
Lewin's Change Model Step:
1. unfreezing
2. moving
3. refreezing
Lussier's Change Model Steps:
1. define the change,
2. identify possible resistance to the change,
3. plan the change,
4. implement the change (give the facts, involve employees, provide support), 5. control the change.
LO 3. Explain how to use the Lussier change model when making changes.
To make a change, follow the steps in the Lussier change model: 1. define the change, 2. identify possible resistance
WA 6- Give a specific example of when the change model would be helpful to a specific managers.
SA- The change model should be used with any major change in an organization. One such example could be
IV. ORGANIZATIONAL CULTURE
KT- organizational culture- consist of the shared values and assumptions of how its members will behave.
LO 4. Explain the two dimensions of an organization’s culture.
The dimensions of culture are strong and weak and positive and negative. Organizations with strong cultures have
A. Learning the Organization’s Culture
1. Heroes
2. Stories
3. Slogans
4. Symbols
5. Ceremonies
WA 7- Identify the cultural heroes, stories, symbols, slogans, and ceremonies for an organization you are/were a
member of.
At Springfield College I heard that Dogget was a hero. I don’t recall any stories. The triangle of spirit, mind, and
B. Strong and Weak, Positive and Negative Cultures.
1. Strong and weak cultures. Organizations with clear shared values have strong cultures; while organizations
without clear shared values have weak cultures. IBM and PepsiCo have strong cultures.
2. Positive and negative cultures. Positive cultures contribute to the organizations performance; while negative
cultures hinder performance.
WA 8- Describe the organizational culture at a firm you work/worked for. Does the organization strive to have a
strong positive culture? If so, how?
SA- In addition to being a student at Springfield College, I also work for the PPD department. SC has a strong
culture. The “Humanics Philosophy” of educating the whole person- sprit, mind, and body is on the college logo.
V. ORGANIZATIONAL CLIMATE
KT- organizational climate- a relatively enduring quality of the internal environment of the organization perceived
by its members. It refers to the atmosphere and morale of employees.
KT- morale- a state of mind based on attitudes and satisfaction with the organization. When employees are happy
with the organization morale tends to be high. Employees who are always complaining and dissatisfied with the
organization tend to have low morale.
A. Dimensions of Climate.
Exhibit 12-6, Dimensions of Climate may be shown as a list of dimensions.
LO 5. Explain seven dimensions of an organization’s climate.
The seven dimensions of climate include: 1. structure—the degree of constraint on members; 2, responsibility—the
degree of control over one’s own job; 3. rewards—the degree of being rewarded for one’s efforts and being punished
B. Common dimensions of climate include:
1. structure
2. responsibility
3. rewards
4. warmth
5. organizational identity and loyalty
6. risk taking
WA 9- Describe the organizational climate at a firm you work/worked for, based on the seven dimensions of climate.
Does the organization measure its climate? If so, how?
SA- Last summer I worked for the Hill Moving Company. (1) The structure was rigid. There were a lot of rules and
procedures for moving. (2) There was little responsibility. The boss just told us what to move, when, and where to
WA 10- Describe the morale at an organization you work/worked for.
SA- The overall morale at Springfield College is positive. Students and faculty are generally satisfied with the
college. There is a friendly relationship between the student body and faculty; and the faculty and administration get
Application Situations
Organizational Culture or Climate? AS 12-3
11. B. Climate. This is a morale issue of satisfaction with pay.
12. B. Climate. Climate, not culture is measured by survey.
VI. ORGANIZATIONAL DEVELOPMENT
KT- Organizational development (OD)- the ongoing planned process of change to improve the organization's
effectiveness in solving problems and achieving objectives.
LO 6. Describe five OD techniques.
Organizational development is the ongoing planned process of change to improve the organization's effectiveness in
solving problems and achieving objectives. The six OD techniques are: 1. Training and Development to teach people
WA 15 asks for an OD example. You may ask students for their examples as you cover each technique, or wait until
the end as a review of the section.
A. Managing and Changing Culture and Climate through OD.
B. Training and Development.
KT- Training is the process of developing the necessary skills to perform the present job. Development is the process
of developing the ability to perform both present and future jobs.
1. The Training Cycle.
Exhibit 12-7 lists the Training Cycle steps, and Model 12-1 the Job Instructional Steps
1. conduct a needs assessment
2. set objectives,
3. prepare for training,
Job instructional training steps are: 1. prepare the trainee, 2. present the job, 3. trainee does job, 4. follow-up
4. conduct the training,
5. measure and evaluate training results.
WA 11- State how you were trained to perform a specific job. Explain how the training affects your job performance.
How could the training at this organization be used to increase productivity?
SA- My training was done on-the-job, and it was very short. The methods used were: 1. Reading. My supervisor
gave me information to read to familiarize myself with various projects and to see examples of the types of projects
C. Performance Appraisal. KT- Performance appraisal- the ongoing process of evaluating employee performance.
The Performance Appraisal Steps.
Exhibit 12-8 Performance Appraisal Steps, may be shown to illustrate the five steps.
The five steps in the performance appraisal process are:
1. Job responsibilities, a rank order of the important task performed.
2. Develop standards and measurement methods, KT- standards- describe performance levels in the areas of
quantity, quality, time, and cost. Clear objectives and standards are needed in order to measure performance.
WA 12- Describe the performance standards for a job you hold/held. How would you improve them?
SA- Honestly, with the job I hold there are no standards. I just make sure I do everything that is put on my desk. I
WA 13- Identify the performance measurement method(s) used to evaluate your job performance. Describe how you
would improve the method(s).
SA- My supervisor used the rating method. He has a check list that he completed each month to let us know how we
3. Conduct informal performance appraisals-coaching, employees need regular feedback on their performance. Once
or twice a year is not enough. KT- coaching model. Exhibit 12-11 list the steps. NOTE: the dialog of the coaching
session has be deleted from the text, but a coaching session can be view on Behavior Model Video 12-1.
Behavior Model Video 12-1 Coaching shows a manager coach an employee.
Skill-Building Exercise 12-1 develops coaching skills
LO 7. List the steps in the coaching model.
The steps in the coaching model are: 1. Refer to past feedback. 2. describe the current performance. 3. describe the
WA 14- Describe a specific situation in which it would be appropriate to use the coaching model.
SA- An employee hands in a report, but it is only on a superficial level. The supervisor could (1) remind the
employee of the way it should have been done. (2) Refer to specific areas in which the report is weak. (3) Explain
4. Preparing for the formal performance interviews.
5. Conducting the formal performance appraisal interviews, employees should understand why they received the
specific rating they got, and understand how to improve for the next review period.
Behavior Model Videos 12-2 and 12-3 show a manager perform an evaluative and developmental and performance
appraisal.
D. Survey Feedback. KT- Survey feedback- uses a questionnaire to gather data that is used as the basis for change.
This OD technique commonly follows six steps, as stated in the text. When using a questionnaire to attain
information from employees it is important to follow up with action to improve the situation, or at least state why no
change will take place.
1. Measuring Climate.
SBEx 12-2 and 12-3- Your College Climate may be used to better understand how to measure and improve
organizational climate.
E. Force Field Analysis.
KT- Force field analysis- used to diagram the current level of performance as well as the hindering and driving
forces. When using force field analysis it is important to overcome the hindering forces for change while
maintaining or increasing the driving forces for change.
Exhibit 12-9, Force Field Analysis, may be shown to provide an illustrative example.
BMV 12-4 Video Module Force Field Analysis may be shown to illustrate how to conduct a force field analysis.
F. Team Building. KT- Team building- designed to help work groups operate more effectively. During team building
the change agent helps the group to look at how the people interact as they work together, and how to work together
more effectively. Team building programs vary with the change agent's preferences and the needs of the group.
1. Team-building goals.
2. Team-building program agenda.
WA 15- Identify an OD technique and explain how it is used by a specific organization, preferably one with which
you have been associated.
SA- When I worked for a pizza chain, my boss used to have the employees fill out forms asking us how we could
Application Situations
OD Techniques, AS-12.4
16. C. Training. Employees need to be trained to do statistics.
17. E. Performance Appraisal. It should provide feedback on how to improve performance.
18. A. Force field analysis. This is basically its definition.
SB Ex 12.4- Team Building can be used with teams that have worked together for some time, to show student how
VII. GLOBAL DIFFERENCES
There are global differences in change. Trying to implement standard Western management styles and practices may
not work.
VIII. THE RELATIONSHIP AMONG ORGANIZATIONAL CULTURE, CLIMATE, AND DEVELOPMENT
These concepts are different yet related. Culture forms climate, and organizational development programs are
commonly used to develop culture and climate.
LO 8. Explain the relationship among organizational culture, climate, and development.
These concepts are different yet related. Culture forms climate, and organizational development programs are
Self-Assessment Exercise 12-2, Personality and Change and Culture
LEARNING OUTCOME ANSWERS
NOTE: Below are recommend answers to the learning objectives. The learning objectives with answers also appear
in the test bank so that you can test students on them as short answer/essay questions.
You may also want to limit the number of learning objectives that you expect students to know for the exams. For
example, you could select say 2-5 from each chapter that you believe are the most important things that students
should know. Assume you have a total of 10 for an exam. You could tell students to know the answers to all 10 and
that you will select say 3 of them for the exam.
LO 1. Describe the four types of changes.
The four types of change are: 1. Technology—machines and process for creating products and services. 2. Structure
LO 2. State why people resist change and how to overcome it.
Four major reasons people resist change are the desire to maintain the status quo, uncertainty, learning anxiety, and
fear. To overcome resistance to change, one should first identify three major variables: Intensity—the strength is the
LO 3. Explain how to use the Lussier change model when making changes.
To make a change, follow the steps in the Lussier change model: 1. define the change, 2. identify possible resistance
LO 4. Explain dimensions of an organization’s culture.
The dimensions of culture are strong and weak and positive and negative. Organizations with strong cultures have
LO 5. Explain dimensions of an organization’s climate.
The seven dimensions of climate include: 1. structure—the degree of constraint on members; 2, responsibility—the
degree of control over one’s own job; 3. rewards—the degree of being rewarded for one’s efforts and being punished
LO 6. List the steps in the coaching model.
The five steps of the coaching model are: 1. refer to past feedback. 2. describe the current performance. 3. describe
LO 7. Describe six OD techniques.
Organizational development is the ongoing planned process of change to improve the organization's effectiveness in
solving problems and achieving objectives. The five OD techniques are: 1. Training and Development to teach
LO 8. Explain the relationship among organizational culture, climate, and development.
Climate is the shared perceptions of intangibles of the actual internal environment, while culture is the values and
