Week 12 Summarized

SEM 501: Leading People

Week 12

Date: December 2nd, 2025
Institution: UNIVERSITY OF ALBERTA

Leading Culture and Change

Essential Questions

  • What is organizational culture (or climate)?

  • What is the strategic value of managing organizational culture?

  • How can leaders facilitate culture change?

Understanding Culture and Change

Challenges of Organizational Culture

  • Culture as Context:

    • Organizational culture is defined as the shared social knowledge within an organization regarding its rules, norms, and values that shape employee attitudes and behaviors.

    • Culture provides a social context for members by conveying what is important, guiding how to interpret information, and establishing expectations of behavior.

Key Points

  • Natural Emergence of Culture:

    • Culture naturally emerges in any setting where humans interact, as illustrated by the ASA Model (Attraction-Selection-Attrition) that explains how cultures become established and homogeneous over time.

  • Importance of Managing Culture:

    • Managing culture aids a company in effectively implementing its strategic plan, as emphasized by Jennifer Chatman.

  • Resistance to Change:

    • Cultures, akin to individuals, generally resist change, posing challenges in managing and shifting culture.

The Nature of Culture

The Visibility of Culture

  • Iceberg Analogy:

    • Organizational culture is likened to an iceberg, where only a portion is visible (observable elements) while deeper values and assumptions remain hidden.

  • Observable Elements:

    • Symbols: Logos, images, uniforms.

    • Physical Structures: Office layout and design.

    • Language: Jargon, slang, and organizational slogans.

    • Stories: Anecdotes, legends, and myths shared among cohorts.

    • Rituals: Planned routines (daily/weekly).

    • Ceremonies: Formal events with an audience of organization members.

Hidden Aspects of Culture

  • Espoused Values:

    • The consciously held beliefs and values by the organization and its members, representing what individuals genuinely care about.

  • Basic Underlying Assumptions:

    • Ingrained beliefs and norms that shape expectations and behaviors—elements often taken for granted.

Types of Organizational Culture

Cultural Categories

  • Fragmented Culture: Employees are distanced and disconnected.

  • Mercenary Culture: Employees share similar thoughts but lack friendliness.

  • Networked Culture: Employees are friendly yet think differently and act independently.

  • Communal Culture: Employees are both friendly and share similar thoughts.

  • Behavioral Focus: Some cultures may emphasize specific areas such as safety, customer service, creativity, or diversity.

Strength of Organizational Culture

Characteristics of a Strong Culture

  • Strong cultures are defined by:

    • High agreement among employees regarding how things should be done.

    • High intensity in behavior consistent with expectations.

    • Strong motivation to act based on shared beliefs.

Dynamics of Strong Culture

Comparison (Jennifer Chatman Video):

Strong Culture

Warring Factions

Vacuous Beliefs

Weak Culture

High Agreement

Low Agreement

High Agreement

Low Agreement

High Intensity

Low Intensity

Low Intensity

Low Intensity

Advantages and Disadvantages of Strong Culture

Advantages

  • Distinction from competitors.

  • Fosters employee identification with the organization.

  • Encourages desired employee behaviors.

  • Provides stability within the organization.

Disadvantages

  • Challenges in merging with other organizations.

  • Attraction of similar employees, leading to limited diversity.

  • Potential for extreme behaviors (cult-like aspects).

  • Possible difficulties in adapting to change.

Emergence of Culture

The ASA Model

Key Processes

  • Attraction: People gravitate towards groups perceived to hold similar values and beliefs.

  • Selection: Organizations choose members that align with core values.

  • Attrition: Members who do not fit leave the organization voluntarily or involuntarily.

Consequence of ASA Model

  • As a result of these processes, organizations become increasingly homogeneous over time, reinforcing cultural strength.

Culture Change Process

Stages of Change

  1. Analysis and Diagnosis: Assess need for change.

  2. Understanding and Managing Resistance: Recognize pushback.

  3. Change Interventions: Implement successful strategies.

  4. Evaluation of Change Process: Review questions and outcomes.

Culture vs. Climate

Definitions (Schneider, Ehrhart, & Macey, 2011)

  • Culture: Describes shared values, core assumptions, and belief patterns within an organization.

  • Climate: Reflects individual experiences regarding the work environment.

Historical Context

  • Both culture and climate concepts have evolved over time, giving insights into organizational behavior.

Organizational Climate and Culture

Key Components (Schneider, Ehrhart, & Macey, 2011)

  • Leadership values people and fosters a culture of well-being.

  • Policies and practices are aligned with strategic relevance.

  • A strong culture aids in talent retention and competitiveness in the market.

  • Effective organizational culture correlates with overall effectiveness.

Managing Organizational Culture

Importance of Organizational Culture

  • Crucial for aligning beliefs, norms, and expectations which influence behaviors.

Strategies for Management

  1. Recruiting and Selecting People: Identify individuals who fit organizational culture.

  2. Socializing People: Ensure new employees understand values and expected behaviors.

  3. Rewarding People: Reinforce desired behaviors through recognition and reward systems.

Vision, Strategy, and Culture

Elements of Alignment

  • Guiding Beliefs: Why the organization exists.

  • Strategy/Objectives: What the organization aims to achieve.

  • Daily Beliefs: How the organization operates on a day-to-day basis.

Defining Organizational Culture

Definition

  • Organizational Culture: "Culture is a pattern of beliefs and expectations shared by the organization’s members. These beliefs and expectations produce norms that (can) powerfully shape the behaviors of individuals and groups."

Norms

  1. Expectations about attitudes and behaviors (appropriate vs. inappropriate).

  2. Social standards that guide interpretation and evaluation of actions.

Distinctions in Organizational Culture

Dominant Culture vs. Subcultures

  • Dominant Culture: Represents core values shared by most members of the organization.

  • Subcultures:

    • Enhancing: More fervently adheres to dominant culture values.

    • Orthogonal: Accepts core values but holds additional, non-conflicting beliefs.

    • Counterculture: Opposes dominant values, promoting alternative beliefs.

Important Organizational Norms

Critical Norms

  • Norms that can either facilitate or obstruct critical tasks and include:

    • Continuous improvement and innovation.

    • Employee responsibility and autonomy.

    • Adaptability to change.

    • Dedication to quality and teamwork.

    • Efficient workflows.

Innovation and Continuous Improvement

Long-Term Effectiveness

  • Key Principle: Cultures strategically aligned without fostering innovation will not sustain performance.

  • Reference: Kotter and Heskett, Corporate Culture and Performance.

Promoting Innovation Through Culture

Organizational Innovation

  • Defined as the successful application of creative ideas within the organization. - Innovation Equation: Innovation = function(Creativity, Implementation)

  • Creativity: Generation of novel ideas by individuals or groups.

  • Implementation: Processes to execute creative ideas successfully.

Cultural Norms Supporting Creativity

Key Aspects

  • Support for Risk:

    • Rewards for innovative ideas.

    • Management's positive attitudes towards change.

    • Encouragement to challenge norms.

  • Tolerance of Mistakes:

    • Embracing errors as part of growth.

    • Freedom to modify approaches.

    • Negative view of complacency.

Cultural Norms Supporting Implementation

Essential Characteristics

  • Effective Functioning:

    • Emphasis on teamwork and shared objectives.

    • Open information sharing.

  • Urgency:

    • Quick decision-making.

    • Flexibility and adaptability.

    • Empowerment to act independently.

Tools for Managing Organizational Culture

  1. Recruitment and Selection of Employees.

  2. Socialization and Training Programs.

  3. Reward and Recognition Systems.

Tool #1: Recruitment and Selection

Process Overview

  • Selection: Mutual choosing process between the organization and candidates.

  • Considerations:

    • Characteristics of candidates and recruiters.

    • The process itself and its impacts on culture.

Tool #2: Socialization and Training

Socialization Process

  • Definition: The means through which new members learn essential values, behaviors, and social knowledge.

  • Techniques:

    • Creating learning opportunities.

    • In-the-field training experiences.

    • Sharing organizational folklore and legends.

Tool #3: Reward System

Elements of Effective Rewarding

  • Rapid Feedback: Swift acknowledgment of desired behaviors.

  • Comprehensive Rewards: Consistency in rewards for performance.

  • Public Recognition: Continuous recognition efforts.

  • Role Models: Consistent adherence to top values propagated at senior levels.

Conclusions and Implications

  • Key Takeaway: Organizational culture is a powerful force clarifying priorities and coordinating member efforts without intensive supervision.

  • Management Strategy: Focus on creating an environment where employees feel encouraged and empowered to excel.

  • Proactive Approach: Utilize selection, socialization, and rewards to communicate important cultural values, emphasizing that culture management is essential and should not be left to chance.