Chapter 16 – Organizational Culture and Change

How is organizational culture defined?

A system of shared meaning held by members that distinguishes an organization, made up of values, beliefs, and assumptions.

What are the three main characteristics of organizational culture?

1. Shared values and beliefs
2. Shared assumptions
3. Artifacts/visible elements (stories, rituals, symbols, language)

What are the four types of culture in the Competing Values Model?

1. Clan (Internal + Flexible) – collaboration, support
2. Adhocracy (External + Flexible) – innovation, risk-taking
3. Market (External + Stable) – results-oriented, competitive
4. Hierarchy (Internal + Stable) – structured, rule-based

What is a dominant culture vs a subculture?

Dominant culture – values shared by the majority
Subculture – develops in departments, locations, teams, or shared experiences

What differentiates strong vs weak cultures?

Strong culture – widely shared, intensely held values, clear expectations, lower turnover
Weak culture – values vary widely, little impact on behavior, more ambiguity

What are the four main mechanisms employees learn culture?

Stories, rituals, material symbols, language

How is organizational culture created?

Founder’s personality, values, and vision shape culture through selection, socialization, and role modeling

What are the three stages of socialization?

1. Prearrival – preexisting values/attitudes
2. Encounter – compare expectations to reality
3. Metamorphosis – internalize norms and values, feel competent

What are institutional vs individual socialization practices?

Institutional – standardized, formal, collective, mentor-based, strips old identity
Individual – informal, variable, affirms individual identity

Difference between espoused vs enacted culture?

Espoused = what leaders say they value
Enacted = what is actually rewarded/observed

What is the effect of ethical or sustainable cultures?

Ethical → reduce misconduct, burnout, increase engagement
Sustainable → improve reputation, innovation, productivity, financial performance

How does a positive culture operate?

Focus on employee strengths, growth, recognition, belonging, and engagement (risk: toxic positivity)

How does an ethical culture operate?

Leaders model integrity, ethical codes, training, rewards ethical behavior, punish unethical, protect whistleblowers

How does an innovative culture operate?

Organic structures, high communication, slack resources, idea champions, rewards for creativity

What are the two major sources of change?

External forces (workforce, technology, economy, competition, social trends, politics)
Internal forces (planned change within organization)

What is the difference between planned and unplanned change?

Unplanned – reactive, unexpected
Planned – proactive, goal-oriented, adapts organization and behavior

What are Lewin’s three steps to manage change?

1. Unfreezing – loosen old behavior
2. Movement – implement change quickly
3. Refreezing – stabilize new behavior

What are Kotter’s eight steps for change?

Unfreezing: create urgency, build coalition, develop vision/strategy, communicate vision
Movement: empower people, create short-term wins, consolidate gains
Refreezing: anchor new behaviors in culture

What is Action Research?

Change process using data collection and analysis to guide actions collaboratively; five steps: diagnosis, analysis, feedback, action, evaluation

What is Organizational Development (OD)?

Human-centered, values-based methods to improve effectiveness and well-being through growth, collaboration, participation, meaning-making

Name four main OD techniques.

1. Process consultation – guide managers to solve interpersonal/workflow issues
2. Team building – improve trust, communication, coordination
3. Intergroup development – reduce intergroup conflict, solve problems collaboratively
4. Appreciative Inquiry – strength-based change (Discovery, Dreaming, Design, Destiny)