Organizational Change & Culture
Matthew L. Eisenhard, Psy.D.
Week 12: Psychology for Business & Industry
Life is About Changes
“It is not the strongest of the species that survive, nor
the most intelligent, but the one most responsive to
• Managing change is crucial to all elements of life
▫ An organization’s (or a person’s)
success or failure can depend on
how well they adapt to change.
▫ Sounds easy, but it is not!
Example: Blockbuster Video.
Types of Change
• Self-assessment 12.1 examines your openness to
• Organizations are composed of four interactive
variables – they are the types of changes.
▫ Any new type of manufacturing
equipment – especially computers.
▫ Simplification or reduction of human
effort to do a job.
▫ Changes the types of jobs available.
▫ Increases the need for training and education for skilled
workers – while need for unskilled jobs declines.
▫ How a business changes raw material into finished goods,
services, or information.
▫ Management information systems (MIS) = a formal system
for getting, processing, and sending out information.
• Structure of an organization means how it is designed.
▫ How departments are divided.
▫ The employee hierarchy.
• Important to change the structure to go with
• Tasks are the day-to-day things that
people do to perform their jobs.
▫ As technology and structures
change, so do people’s routine
▫ People’s skills must change –
ongoing job training is necessary.
▫ Organizations need to be prepared
to hire new employees with the
• People are the most important resource in any
▫ People create, manage, and use technology.
▫ The social changes that go
along with the technical
changes affect people the most.
Success depends on integrating
people and technology – a
Stages in the
▫ “Oh that can’t be true!” – it affects others, but not me.
▫ Following the initial shock, reality hits, and the person
resists the change. “No I won’t do it!”
▫ Once the changes are implemented, people start to
understand it more and try to see how they fit into it.
▫ Once people are trained they will either embrace the
change, move and grow with it – or continue to be resistant.
Resistance to Change
• People resist change for a number
▫ Want to maintain the status quo –
like things the way they are.
▫ Fear the unknown – uncertainty
makes us nervous.
▫ Anxiety about having to learn
▫ Fear of losing their jobs, feel threatened, out of control of
• INTENSITY: acceptance – tolerance – resistance – rejection.
• SOURCES: facts – beliefs – values.
• FOCUS: self – others – work environment.
Types of Resisters
• THE BLOCKER
▫ Refuses – ask what they want
to do instead.
• THE ROLLER
▫ Seems confused – be specific and detailed.
• THE STALLER
▫ Puts you off, says “later” – ask why not now?
• THE REVERSER
▫ Says “ok” but does not do it (passive-aggressive).
▫ If you like the change, why did you not do it like you said
• THE SIDESTEPPER
▫ Asks you to delegate it to someone else – say “no, I asked
Types of Resisters
• THE THREATENER
▫ Complies but says others will not like it
– tell them “let me worry about that part.”
• THE POLITICIAN
▫ Tries to get out of it by saying you owe them something –
say “ok, but I need this now.”
• THE TRADITIONALIST
▫ That’s not the way we do things here!
▫ “Well we need to make an exception and do it this way
• THE ASSAULTER
▫ Gets verbally abusive – you can refuse to tolerate it or try to
Lewin’s Change Model
• Kurt Lewin – 1950s.
• Three steps used to change
people’s behavior, skills, and attitudes.
Reducing forces that maintain the status quo.
Learning new desirable behaviors, skills, and
Establishes the new status quo through positive
Lussier’s Change Model
• Five steps to effective change.
▫ DEFINE the change.
Clearly define what it is and the systems effects it will generate.
▫ IDENTIFY possible resistance.
Be prepared for all the reasons people will resist.
▫ PLAN the change.
Make a clear and reasonable plan – set a timetable.
▫ IMPLEMENT it.
Give the facts – what effects it will have on the people.
Involve the employees – ownership helps get commitment.
Provide support – get input and help from employees – listen to their
concerns – provide training.
▫ CONTROL it.
Follow-up to make sure it is working.
If not make corrections where necessary to attain the desired
• Consists of the shared values
and assumptions of how its
members will behave.
▫ Success and shared experiences also shape
• Learned mostly by observing people and events
in the organization.
▫ New people need to learn and become integrated
into an organization’s culture to be a part of it.
Five Ways to Learn the Culture
▫ Those who make outstanding contributions to the
▫ Often about the founders/heroes that make the
organization special – public statements and speeches can
also be stories.
▫ The organization’s philosophy statement(s).
▫ Plaques – pins – jackets – caps – business cards – signage.
▫ Awards dinners for top performers, etc.
Important Definitions Related to
• Most effective organizational structure is
STRONG and POSITIVE.
▫ Strong = have clear values that are shared to the
extent of similar behavior.
▫ Positive = has norms that contribute to effective
performance and productivity.
▫ Weak = no stated values and do not enforce
▫ Negative = experiences resistance and turmoil
that hinders effective performance.
• The relatively enduring quality of the internal
environment of the organization as perceived by
• The employee’s perception of the atmosphere of
the internal workings of the organization.
▫ Important because employees’
perceptions are the basis for
their attitudes toward their
jobs – and their attitudes
influence their behavior.
• Is a state of mind
based on attitudes
with the organization.
▫ Can vary at different levels within the
▫ Commonly measured on a continuum ranging
from high to low based on 7 dimensions of
7 Dimensions of Climate
▫ Constraints – rules – regulations – policies and procedures.
▫ Degree of control over your own job (autonomy).
▫ Degree of being reinforced or punished.
▫ Degree of satisfaction with human relations on the job.
▫ How much help you get and the level of cooperation.
• ORGANIZATIONAL IDENTITY & LOYALTY
▫ Degree to which employees identify with and feel loyal to.
▫ How much risk taking is encouraged.
• Ongoing process of change
used as a means of improving
the organization’s effectiveness
in solving problems and achieving its goals.
▫ A Change-Agent is a person responsible for an
Training = process of developing necessary skills to
perform the present job.
Development = process of developing the ability to
perform both present and future jobs.
The Training Cycle – 5 Steps
• DO A “NEEDS” ASSESSMENT
▫ Who needs training and what kind.
• SET GOALS
▫ What will they be able to do at end of training.
• PREPARE FOR THE TRAINING
▫ Decide what methods of training are best.
• CONDUCT THE TRAINING
• MEASURE AND EVALUATE THE RESULTS
▫ A “follow-up” to see what has been learned –
• Ongoing process of evaluating employee job
▫ Typically after someone is hired (during and after
their training) and on a quarterly, bi-annual, or
▫ Two objectives:
Development of the employee.
Evaluation of the employee.
More on Steps 2 & 3
▫ Describes performance levels in the areas of quantity,
quality, time, and cost.
▫ Refer to past feedback.
What were they supposed to do?
▫ Describe current performance.
Give specific examples of needed changes.
▫ Describe desired performance.
In detail and why it is important – more training.
▫ Get a commitment for change.
Must be a willingness to change/improve.
Include positive reinforcement and how follow-up will be done.
• An O.D. technique that uses questionnaires to gather
data that are used as the basis for change.
▫ Commonly used to measure climate.
• Six steps:
▫ Preliminary planning to develop survey.
▫ Questionnaire is given to all members of organization.
▫ Data analysis is conducted.
▫ Change agent gives results to management.
▫ Management evaluates and discusses with employees.
▫ Correction active plans are developed and implemented.
Force Field Analysis
• Technique that diagrams:
▫ Current level of performance.
▫ Forces that hinder change.
▫ Driving forces toward change.
• Particularly useful for group problem solving as it helps
people to visualize problems and solutions.
• An O.D. technique designed to help
work groups operate more efficiently.
▫ Typical agendas vary according to the
change agent and needs of the
organization – but usually include the
things we have discussed about team
• Goals of team building:
▫ Clarify goals and personal responsibilities.
▫ Identify obstacles/problems in the way.
▫ Develop team skills.
▫ Determine preferred style of teamwork.
▫ Use talents/strengths of all team members.
▫ Develop open/honest/trusting relationships.
Team Building Program Agenda
• Climate Building
▫ Change Agent develops trust and openness.
• Process & Structure Evaluation
▫ Team decides it’s ideal norms.
• Problem Identification
▫ Team identifies weak/strong areas.
• Problem Solving
▫ Priorities are set.
▫ To address the new skills needed.
▫ Summary – set follow-up – commitments.
Global Differences in Change
• Individual Based Cultures
▫ Concerned more about helping themselves.
▫ More likely to resist change if it does not directly benefit
▫ Overall they value change and the ability to deal with
• Slower to Change Cultures – Value Tradition More
▫ Asian countries and some Middle Eastern.
• Collective Based Cultures
▫ Tend toward improving the team effort.
▫ Japan, Mexico.
• Respond More to Power
▫ France, China, India.
• 4 Types of Changes
• Resistance to Change
• Change Models
• 2 Dimensions of Organizational
• 7 Dimensions of Organizational
• 5 Organizational Development
• The Training Cycle
• 5 Steps of Performance
• The Coaching Model
• Relationship between Org.
Culture, Climate, and
▫ Values and assumptions of
the ideal environment.
▫ Shared values and
assumptions of the actual
▫ Culture informs climate.
▫ Vehicle used to change
culture and/or climate in
search of improvement
toward the ideal.
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