Organization

Culture and 12
Change
> TOLERANCE FOR AMBIGUITY
Change creates anxiety and breaks fixed patterns in life and can be afraid
Insight
us from past habits and conditions. of anything “new.”
Uncertainty puts many things out of Have we been talking about you? Or Learning
our control. Depending on your toler-
ance for ambiguity, you may be more
are you willing and able to work with
less structure? Do you enjoy flexibility,
About Yourself
or less comfortable dealing with these setting your own goals, and mak-
realities. ing decisions? Are you excited An instructor who gives precise
assignments and accepts no
Which alternatives in the Tolerance by prospects of change and new
deviations or one who gives
for Ambiguity Double Check box best opportunities? open-ended assignments and
describe you? What are the insights for It’s important to find a good lets students suggest alternatives?
your tolerance for ambiguity? fit between your personal prefer-
It takes personal flexibility and lots ences and the pace and nature In a typical course,
of confidence to cope well with unpre- of change in the career field and do you prefer...
dictability, whether in a college course organizations in which you choose
or in a work situation. Some people to work. To achieve this fit, you An instructor who keeps modifying
struggle with the unfamiliar. They have to understand your tolerance the course syllabus using student
feedback or one who gives out
prefer structure, security, and clear for ambiguity and how you react
a detailed syllabus and sticks to it?
directions. They get comfortable with in change situations.

BUILD SKILLS AND COMPETENCIES AT END OF CHAPTER <GET TO KNOW

■ Engage in Further Reflection on Your Tolerance for Ambiguity YOURSELF BETTER
■ Take the Self-Assessment—Change Leadership IQ
■ Prepare for the Team Exercise—Force-Field Analysis
■ Solve the Career Situations for Organizational Culture and Change
■ Analyze the Case Study—“Apple, Inc.: People and Design Create the Future”
 LEARNING Organization Culture
DASHBOARD and Change
TAKEAWAY 1 TAKEAWAY 2 TAKEAWAY 3
12
Organizational Cultures Multicultural Organizational Change
• Understanding organizational Organizations • Models of change leadership
culture • Multicultural organizations and • Incremental and transformational
• The observable culture performance change
• Values and the core culture • Organizational subcultures • Phases of planned change
• Diversity issues and organizational • Change strategies
cultures • Resistance to change

LEARNING CHECK 1 LEARNING CHECK 2 LEARNING CHECK 3

There’s little doubt that discomfort with change can bog organizations and
their leaders down, making it hard for them to keep pace with new envi-
ronmental challenges. When General Motors was struggling to restructure
during the financial crisis, board chairman Ed Whitacre fired then CEO Fritz
Henderson. Whitacre and GM’s board were frustrated with the slow pace of
change and wanted more measurable progress. They believed the firm and
its executives should take more risks; and, they held Henderson accountable
for being slow to make needed changes happen. Notably, they were critical of
what was being called “GM’s cautious culture.”2

Organizational Cultures
Think of the stores where you shop; the restaurants that you patronize; the place
where you work. What is the “climate” like? Do you notice, for example, that the
stores of major retailers like Anthropologie, Gap, Hollister, and Banana Republic
have atmospheres that seem to fit their brands and customer identities?3 Such as-
pects of the internal environments of organizations are important in management,
Organizational culture is the system and the term used to describe them is organizational culture. This is the system
of shared beliefs and values that guides of shared beliefs and values that shapes and guides the behavior of its members.4
behavior in organizations.
It is also often called the corporate culture, and through its influence on employees
and customers it can have a big impact on performance.5
The organizational culture is what you see and hear when walking around an
organization as a visitor, a customer, or an employee. Look carefully, check the
atmosphere, and listen to the conversations. Whenever someone speaks of “the
way we do things here,” for example, that person is shedding insight into the orga-
nization’s culture. Just as nations, ethnic groups, and families have cultures, orga-
nizations also have cultures that create unique identities and help to distinguish
them from one another.
296
 Organizational Cultures 297

Understanding
Organizational Culture ManagementSmarts
At Zappos.com, a popular e-tailer of Questions for reading an organization’s culture
shoes, CEO Tony Hsieh has built a fun,
creative, and customer-centered cul- • How tight or loose is the structure?
ture. He says: “The original idea was • Do most decisions reflect change or the status quo?
to add a little fun,” and then everyone • What outcomes or results are most highly valued?
joined in the idea that “We can do it bet- • What is the climate for risk taking and innovation?
ter.” Now the notion of an unhappy Zap- • How widespread are empowerment and worker involvement?
pos customer is almost unthinkable. • What is the competitive style, internal and external?
“They may only call once in their life,” • What value is placed on people, as customers and employees?
says Hsieh, “but that is our chance to • Is teamwork a way of life in this organization?
6
wow them.” Hsieh’s advice is that if you
“get the culture right, most of the other stuff, like brand and the customer service,
will just happen.”7 Amazon.com CEO Jeff Bezos liked Zappos so much he bought the
company, and the Girl Scouts send executives to study Zappos’ culture and bring
back ideas for improving their own.

Types of Organization Cultures

Management Smarts offers ideas for reading organizational cultures based on things
such as innovation and risk taking, teamwork, people orientation, and emphasis on
outcomes. When such questions are asked and answered, different culture types
can be identified. The consulting firm LeadershipIQ, for example, describes four
common organizational cultures this way. Hierarchical cultures emphasize tradition
and clear roles; dependable cultures emphasize process and slow change; enterpris-
ing cultures emphasize creativity and competition; and, social cultures emphasize
collaboration and trust. How do these options sound to you? According to Leader-
shipIQ, employees give enterprising cultures the highest marks for engagement and
motivation, and as good places to work.8

Strong Organizational Cultures

The best organizations are likely to have strong cultures that are clear, well defined,
and widely shared among members. These cultures encourage positive work be-
haviors and discourage dysfunctional ones. Have you visited Disneyland or Disney
World? Think about how the employees acted, how the park ran, and how con-
sistently and positively all visitors were treated. Strong organizational cultures like
Disney’s respect members while being customer driven and performance oriented.9
One of the ways organizations build strong and positive cultures is through
socialization. This is the process of helping new members learn the culture and Socialization is the process through
values of the organization.10 Socialization often begins in an anticipatory sense which new members learn the culture of
an organization.
with one’s education, such as teaching business students the importance of pro-
fessional appearance and interpersonal skills. It continues with an employer’s
orientation and training programs, which, when well done, can have a strong in-
fluence on the new member. Disney’s strong culture is supported by major invest-
ments in socializing and training new hires. Founder Walt Disney is quoted as
saying: “You can dream, create, design and build the most wonderful place in the
world, but it requires people to make the dream a reality.”11
298 O RGANIZATION CULTURE A N D CHANGE

Respect for Traditions Helps Strong Disney

Culture Travel the World
Organizational culture is a core competency at Disney, Inc. Each new hire attends a pro-
gram called Traditions. It informs them on the company history, its language and lore,
and its founding story. The goal is to make sure people learn the culture and commit to
making the Disney dream a reality. Attention to detail, organizational pride, and keeping
the magic alive are described and taught as essential parts of shared Disney identities.
And it works—the Disney culture is strong and clear to employees and visitors alike. Walt
Disney’s legacy has endured as families around the world continue to enter his lands of
Ke Xin/Color China Photos/Zuma Press enchantment.

The Observable Culture of Organizations

Organizational culture is usually described from the perspective of the two levels
shown in Figure 12.1. The outer level is the “observable” culture, and the inner level
is the “core” culture.12 As suggested by the figure, you might think of organizational
culture as an iceberg. That which stands out above the surface and is more visible
to the discerning eye is the observable culture. What lies below the surface and is
harder to see is the core culture.
The observable culture is visible and readily apparent at the surface of every
organization. It is expressed in the way people dress at work, how they arrange
FIGURE 12.1 Levels of organiza- their offices, how they speak to and behave toward one another, the nature of
tional culture—observable culture their conversations, and how they talk about and treat their customers. Test this
and core culture in the organiza-
tional “iceberg.”
out the next time you go in a store, restaurant, or service establishment. How
do  people look, act, and behave? How do
they treat one another? How do they treat
customers? What’s in their conversations?
Heroes Are they enjoying themselves? When you
Ceremonies answer these questions, you are starting to
Rites and rituals identify the observable culture of the orga-
Legends and stories
Metaphors and symbols
nization.
The observable culture is also found in
Observable Culture— the stories, heroes, rituals, and symbols
Visible actions and events that are part of daily organizational life.
In the university it includes the pageantry
of graduation and honors ceremonies; in
Core Culture—Underlying values
sports teams it’s the pregame rally, sidelines
peptalk, and all the “thumping and bump-
Innovation and risk taking
Ethics and integrity
ing” that takes place after a good play. In
Social responsibility workplaces like Apple, Zappos, and Ama-
Customer service zon, it’s in the stories told about the found-
Performance
ers and the firm’s history. It’s also present in
Teamwork
spontaneous celebrations of a work accom-
plishment or personal milestone such as a
coworker’s birthday.
 Organizational Cultures 299

When you are trying to understand the observable culture of an organization,

look for the following:13
• Heroes—the people singled out for special attention and whose accomplish-
ments are recognized with praise and admiration; they include founders and
role models.
• Ceremonies, rites, and rituals—the ceremonies and meetings, planned and spon-
taneous, that celebrate important events and accomplishments.
• Legends and stories—oral histories and tales, told and retold among members,
about dramatic sagas and incidents in the life of the organization.
• Metaphors and symbols—the special use of language and other nonverbal ex-
pressions that communicate important themes and values of the organization.

Values and the Core Culture of Organizations

A second and deeper level of organizational culture is the core culture. It consists The core culture consists of the core
of the core values or underlying assumptions and beliefs that shape and guide values, or underlying assumptions and
beliefs that shape and guide people’s
people’s behaviors. You know core values, so to speak, when you experience them. behaviors in an organization.
This may be when you are trying to claim lost luggage at an airline counter and are Core values are beliefs and values
treated really well, or are returning a product to a retail store and are greeted with a shared by organization members.
smile and “no questions asked.” Values set in the core culture are a strong influence
on how such transactions play out. And when customer experiences aren’t as posi-
tive as these, the culprit may well be weak or just plain bad core values.
Values in some of the best companies have been found to emphasize perfor-
mance excellence, innovation, social responsibility, integrity, worker involvement,
customer service, and teamwork.14 Examples of values driving strong-culture firms
include “service above all else” at Nordstrom; “science-based innovation” at Merck;
“encouraging individual initiative and creativity” at Sony; and “fanatical attention to
consistency and detail” at Disney.15

Value-Based Management
Don’t be fooled by values statements alone when trying to read or understand an
organization’s core culture. It’s easy to write a set of values, post them on the Web,
and talk about them. It’s a lot harder to live up to them. If core values as stated are
to have any positive effects, everyone in the organization from top to bottom must
reflect the values in day-to-day actions. In this sense managers have a special re-
sponsibility to “walk the values talk” and make the expressed values real.

Management Decisions at Tom’s of Maine Are

Guided by Core Values
After a big investment in a new deodorant, Tom’s of Maine founder Tom Chappell
was dismayed when he learned that customers were not happy with it. But having
founded the company on values that include fairness and honesty in all matters, he
decided to pull the product from the market and reimburse customers who had pur-
chased it. Even though the costs of the recall were high, Tom did what he believed
Glen Argov/Landov LLC. was the right thing. In this case, his decision not only lived up to the full spirit of the
company’s values, it set a positive example for others in the firm to follow.
300 O RGANIZATION CULTURE A N D CHANGE

How would you react if you found out senior executives in your organiza-
tion talked up values such as honesty and ethical behavior, but then acted quite
differently—perhaps by spending company funds on lavish private parties and
personal travel? Most likely you’d be upset and justifiably so.
Value-based management actively The term value-based management describes managers who actively help de-
develops, communicates, and enacts velop, communicate, and enact core values within an organization. Although you
shared values.
might tend to associate value-based management with top executives only, the
responsibility extends to all managers and team leaders. Like the organization as a
whole, any work team or group will have a culture. The nature of this culture and its
influence on team outcomes will have a lot to do with how the team leader behaves
as a values champion and role model.

FOLLOW > ONE OF FORD’S SENIOR MANAGERS SAYS: “I’ VE NEVER HAD
THE STORY SUCH CONSISTENCY OF PURPOSE BEFORE.”

Alan Mulally Makes His Mark on Ford’s Culture

transformed Ford into a more nimble and healthy operation
has been one of the more impressive jobs I’ve seen.”
In addition to making changes to modernize plants and
streamline operations, Mulally tackled Ford’s bureaucracy—
particularly functional chimneys and a lack of open commu-
nication. Ford previously had a culture that “loved to meet”
and in which managers got together to discuss the message
they wanted to communicate to the top executives. Mulally
changed all that. He pushed transparency and data-based
decision making, cooperation between divisions, and global
Laura Rauch/©AP/Wide World Photos

operations that build vehicles to sell in many markets. When

some of the executives balked, he says, “I didn’t permit it.”
And after four years, one of Ford’s senior managers says:
“I’ve never had such consistency of purpose before.”
Ford is a dividend-paying stock once again. Of course,
the future for the global economy is still uncertain and lots
of challenges lie ahead. But for now Mulally has certainly
done his job well and gained lots of respect for his executive
prowess. That’s pretty good for an airplane executive who
stepped in to drive a firm in the auto industry. Now the next
big question for Ford may well be: who’s going to replace
Mulally? He’s due for retirement soon.

W hy is it that a CEO brought in from outside the industry

fared the best as the Big Three automakers went into
crisis mode during the economic downturn? That’s a ques-
WHAT’S YOUR TAKE?
tion that Ford Motor Company’s chairman, William Clay Ford What are the advantages of taking a top leadership job
Jr., is happy to answer. And the person he’s talking about is and coming from outside of the industry? What are the
Alan Mulally, a former Boeing executive hired by Ford to re- potential disadvantages? Can part of Mulally’s success be
tool the firm and put it back on a competitive track. attributed to confidence and a willingness to make major
Many wondered at the time if an “airplane guy” could changes at Ford right from the beginning? What are the
run an auto company. It isn’t easy to come in from outside lessons here for any manager taking a new position in
an industry and successfully lead a huge firm. But Mulally’s any organization? And how about the person who follows
management experience and insights proved well up to the Mulally as Ford’s next CEO. Will Mulally’s success make the
task. One consultant says: “The speed with which Mulally has task easier or harder?
 Multicultural Organizations 301

Workplace Spirituality
It is becoming popular to discuss workplace spirituality along with value-based Workplace spirituality creates mean-
management. Although the first tendency might be to associate “spirituality” with ing and shared community among
organizational members.
religion, the term is used more broadly in management to describe an organiza-
tional culture in which people find meaning and a sense of shared community in
their work. The foundation for workplace spirituality is respect for the full value of
human beings. The guiding principle is that people are inwardly
enriched by meaningful work and a sense of personal connection
with others inside and outside of the organization.16 Sample Values in Spiritual
A culture of workplace spirituality will have strong ethics founda- Organizational Cultures
tions, recognize human dignity, respect diversity, and focus on linking
jobs with an organization’s contributions to society. Anyone who works • Meaningful purpose
in or leads a culture of workplace spirituality should derive pleasure • Trust and respect
from knowing that what is being accomplished is personally mean-
• Honesty and openness
ingful, created through community, and valued by others. The decision
making at Tom’s of Maine by CEO Tom Chappell in the last photo • Personal growth and development
essay meets this test. Even though his decision to recall an unpopular • Worker friendly practices
product and give customer refunds had a high monetary cost for the
• Ethics and social responsibility
company, it lived up to his sense of ethics and his firm’s core values.17

LEARNING CHECK 1

TAKEAWAY QUESTION 1 What is organizational culture?

Be sure you can • define organizational culture and explain the importance of strong cultures to organizations
• define and explain the process of socialization • distinguish between the observable and core cultures
• explain how value-based management helps build strong culture organizations • describe how workplace
spirituality gets reflected, or not, in an organization’s culture

Multicultural
Multiiculltura
al Organizations
Org
ganizzatiions
In his book, Beyond Race and Gender, consultant R. Roosevelt Thomas Jr. makes the
link between organizational culture and diversity.18 He believes that the way people
are treated at work—with respect and inclusion, or with disrespect and exclusion—
is a direct reflection of the organization’s culture and its leadership. He also believes
that organizations whose cultures respect diversity gain performance advantages
from the wide mixture of talents and perspectives they can draw upon.
The term multiculturalism refers to inclusiveness, pluralism, and respect for di- Multiculturalism in organizations
versity in the workplace. In a truly multicultural organization the organizational involves inclusiveness, pluralism, and
respect for diversity.
culture communicates and supports core values that respect and empower the full
A multicultural organization has a
diversity of its members. Such a multicultural organization has these characteristics.19 culture with core values that respect
diversity and support multiculturalism.
• Pluralism—Members of both minority cultures and majority cultures are influ-
ential in setting key values and policies.
• Structural integration—Minority-culture members are well represented in jobs
at all levels and in all functional responsibilities.
• Informal network integration—Various forms of mentoring and support groups
assist in the career development of minority-culture members.
302 O RGANIZATION CULTURE A N D CHANGE

• Absence of prejudice and discrimination—A variety of training and task-force

activities address the need to eliminate culture-group biases.
• Minimum intergroup conflict—Diversity does not lead to destructive conflicts
between members of majority and minority cultures.

Multicultural Organizations and Performance

What many call the “business case for diversity” is increasingly clear. The Gallup
Management Journal reports that a racially and ethnically inclusive workplace is
good for morale. In a study of 2,014 American workers, those who felt included were
more likely to stay with their employers and recommend them to others.20 And in
respect to gender diversity, a Catalyst study also found that firms with at least three
female board members achieved a higher return on equity than did firms with no
women on their boards.21 But Thomas Kochan and his colleagues at MIT warn that
the presence of diversity alone does not guarantee a positive performance impact.
It’s only when diversity is backed by training and supportive human resource prac-
tices that the advantages are gained. In other words, respect for diversity must be
firmly embedded in the organizational culture. Kochan et al. summarize their find-
ings with this guidance.22
To be successful in working with and gaining value from diversity requires
a sustained, systemic approach and long-term commitment. Success is
facilitated by a perspective that considers diversity to be an opportunity for
Organizational subcultures are everyone in an organization to learn from each other how better to accom-
groups of people who share similar
beliefs and values based on their work
plish their work and an occasion that requires a supportive and cooperative
or personal characteristics. organizational culture as well as group leadership and process skills that can
Ethnocentrism is the belief that one’s facilitate effective group functioning.
membership group or subculture is
superior to all others.
Generational subcultures form among
Organizational Subcultures
persons who work together and share Like society as a whole, organizations contain a mixture of organizational subcul-
similar ages, such as Millennials and
Baby Boomers. tures. These are cultures common to groups of people that share similar values and
Gender subcultures form among per- beliefs based on their work responsibilities and social identities. Subcultures often
sons who work together and share the complicate the task of tapping the full potential of diverse workforces and creating
same gender identities.
truly multicultural organizations. Just as with life in general, ethnocentrism—the
belief that one’s membership group or subculture is superior to all
Tips for Working with the others—can creep into organizations and adversely affect the way
Millennial Generation people relate to one another.
Age differences create generational subcultures in organiza-
• Challenge them—give meaningful tions.23 Several generations can mix in an organization today, rang-
work. ing from post–World War II Baby Boomers to the latest Internet
• Reward them with responsibility and generation.24 Just imagine the possible conflicts when today’s col-
recognition for accomplishments. lege graduates end up working for older managers who grew up
with quite different life experiences and values. Harris and Con-
• Ask their opinion, avoid command-
ference Board polls report that younger workers tend to be more
and-control approaches.
dissatisfied than older workers.25 They are also described as more
• Link them with an experienced mentor. short-term oriented, giving higher priority to work–life balance, and
• Give frequent feedback; they’re used expecting to hold several jobs during their careers. 26
to instantaneous gratification. Gender subcultures form in organizations as persons of the
same gender share identities. Research shows that when men
 Multicultural Organizations 303

FACTS > 74% OF WORKING ADULTS SAY THEY DON’T HAVE

FOR
F
FO ANALYSIS ENOUGH TIME FOR THEIR CHILDREN

Organization Cultures Must Face Up to Emerging Work–Life Trends

I f you have any doubts regarding the importance of work–

life issues and their implications for organizational cultures
and management practices, consider these facts:
• Both Baby Boomers (63%) and Millennials (69%) want op-
portunities to work remotely at least part of the time.

• 78% of American couples are dual-wage earners. YOUR THOUGHTS?

• 63% believe they don’t have enough time for their
What organizational culture issues are raised by these facts?
spouses or partners.
What should employers do to best respond to the situation
• 74% believe they don’t have enough time for their children. described here? And when it comes to you, are you prepared
• 35% are spending time caring for elderly relatives. to succeed in a work culture that doesn’t respect these facts?
• Both Baby Boomers (87%) and Millennials (89%) rate Or, are you preparing right now to always find and be attrac-
flexible work as important. tive to employers that do?

work together, a subgroup culture may form around a competitive climate where
sports metaphors are common and games and stories often deal with winning and
losing.27 When women work together, the subculture may give more emphasis to
personal relationships and collaboration.28
Ethnic subcultures or national subcultures form in the workplace among Ethnic subcultures or national
people sharing the same background in terms of ethnicities, home countries, or subcultures form among people who
work together and have roots in the
world regions. The world of work today is one of diverse cultural communities. And same ethnic community, country, or
it’s often a more complicated world than it looks at first glance. Current events, for region of the world.
example, sometimes show how difficult it can be for members of “African American”
or “Latino” or “Anglo” cultures to fully understand and respect one another.29 We
often talk about improving cross-cultural understandings across national boundar-
ies. Shouldn’t the same understandings help us relate better to one another in the
same workplace?
The many possible subcultures in organizations also include occupational and Occupational and functional
functional subcultures that form among persons that share the same professions subcultures form among persons
who share the same skills and work
and skills.30 And, people from different occupations and functions can have difficulty responsibilities.
understanding and working well with one another. Employees in a business firm, for
example, may consider themselves “systems people” or “marketing people” or “man-
ufacturing people” or “finance people.” When such identities are overemphasized,
members of the functional groups spend most of their time with each other, develop
a shared “jargon” or technical language, and view their roles in the organization as
more important than those of the other functions. It’s easy under such conditions for
teamwork across the occupational or functional boundaries to suffer.

Diversity Issues and Organizational Cultures

The very term diversity basically means the presence of differences. But what hap-
pens when those differences are distributed unequally among organizational
subcultures and power structures? That is, what happens when one subculture is in
“majority” status while others become “minorities”?
304 O RGANIZATION CULTURE A N D CHANGE

FIGURE 12.2 Glass ceilings as

barriers to women and minority
cultures in traditional
organizations.

Dominant
Culture:
White males Glass ceiling limiting
advancement of women
• Hold most top and minorities
positions
• Present at all levels
• Included in entry-level
hiring
Minority Cultures:
Women, people of color,
other minorities
• Hold few top positions
• Largely distributed in
lower-middle levels
• Included in entry-level hiring

Glass Ceilings
Even though organizations are changing, there is still likely to be more workforce
diversity at lower and middle levels than at the top. Look at Figure 12.2. It depicts
The glass ceiling is an invisible barrier the glass ceiling as an invisible barrier that limits the advancement of women and
to advancement by women and minori- minorities in some organizations. What are the implications for minority members
ties in organizations.
seeking to advance and prosper in an organization where the majority culture con-
sists of white males? How easy is it for women and persons of color to move up
when promotions are controlled by decision makers who are part of an alternative
and dominant culture?
Take the case of women. They constitute more than 50% of the U.S. workforce
and hold 53% of entry-level jobs. So, why were there only 18 female CEOs of Fortune
500 firms in 2012? Why did women hold just 3% of CEO positions and 19% of top
executive jobs in publicly traded companies?31
One reason why more women aren’t getting to the top is that so many plateau or drop
out at earlier career stages. Sometimes called “falling off the cliff,” this glass ceiling effect
isn’t always based on outright gender prejudice. But it can trace to male-dominant orga-
nizational cultures that make it hard for women to advance.32 Ambitious women may
lack female role models and have difficulty finding top managers to advocate and spon-
sor their career progress. Executive mindsets may have a hard time tolerating women
who want both families and careers. Even as employers put into place family-friendly
human resource policies, some women still feel forced at times to choose between ca-
The leaking pipeline problem is where reer and family—a choice that career often loses. The term leaking pipeline problem
glass ceilings and other obstacles cause is used to describe situations where qualified and high-performing women drop out of
qualified and high-performing women
to drop out of upward career paths. upward career paths for these and other glass ceiling reasons.

Harassment and Discrimination

The subculture challenges faced by minorities and women can range from misunder-
standings and lack of sensitivity on the one hand to outright sexual harassment and
discrimination on the other. Data from the U.S. Equal Employment Opportunity Com-
mission (EEOC), for example, show that a growing number of bias suits are being filed
by workers and that sex discrimination is a factor in some 30% of them.33 The EEOC
also reports an increase in pregnancy discrimination complaints.34 Pay discrimination
 Organizational Change 305

is another issue. A senior executive in the computer industry reported her surprise
at finding out that the top performer in her work group, an African American male,
was paid 25% less than anyone else. This wasn’t because his pay had been cut to that
level, she said. It was because his pay increases had always trailed those given to his
white coworkers. The differences added up significantly over time, but no one noticed
or stepped forward to make the appropriate adjustment.35
Sometimes members of minority cultures try to adapt through tendencies
toward biculturalism. This is the display of majority culture characteristics that Biculturalism is when minority mem-
seem necessary to succeed in the work environment. For example, one might find bers adopt characteristics of majority
cultures in order to succeed.
gays and lesbians hiding their sexual orientation from coworkers out of fear of
prejudice or discrimination. Similarly, one might find an African American carefully
training herself to not use certain words or phrases at work that might be consid-
ered as subculture slang by white coworkers.

Diversity Leadership
There should be no doubt that all workers want the same things everyone wants—
respect for their talents and a work setting that allows them to achieve their full
potential. It takes an inclusive organizational culture and the best in diversity lead-
ership at all levels of organizational management to meet these expectations.
R. Roosevelt Thomas describes the continuum of leadership approaches to diversity
shown here. The first is affirmative action, in which leadership commits the organiza-
tion to hiring and advancing minorities and women. The second is valuing diversity, in
which leadership commits the organization to education and training programs de- Managing diversity is a leadership
signed to help people better understand and respect individual differences. The third approach that creates an organizational
culture that respects diversity and sup-
and most comprehensive is managing diversity, in which leadership creates an orga- ports multiculturalism.
nizational culture that allows all mem-
bers, minorities and women included,
to reach their full potential.36 Leaders
committed to managing diversity build Affirmative Action Valuing Differences Managing Diversity
organization cultures that are what Create upward mobility Build quality Achieve full
for minorities and relationships with utilization of diverse
Thomas calls diversity mature.37 They women respect for diversity human resources
have a diversity mission as well as an
organizational mission, and they view
diversity as a strategic imperative.

LEARNING CHECK 2

TAKEAWAY QUESTION 2 What is a multicultural organization?

Be sure you can • define multiculturalism and explain the concept of a multicultural organization • identify
common organizational subcultures • discuss glass ceilings and employment problems faced by minorities and
women • explain Thomas’s concept of managing diversity

Organizational
Org
gan
niza
ation
nall Change
Ch
hang
ge
What if the existing culture of an organization is flawed, doesn’t drive high perfor-
mance, and needs to be changed? What if organizational subcultures are clashing
and adjustments must be made? What can a leader do if diversity isn’t valued on a
team or in an organization?
 306 O RGANIZATION CULTURE A N D CHANGE

We use the word change so much that the tendency may be to make culture
changes like these seem easy, almost a matter of routine. But that’s not always the
case.38 Former British Airways CEO Sir Rod Eddington once said that “Altering an
airline’s culture is like trying to perform an engine change in flight.”39

Models of Change Leadership

A change leader takes initiative in A change leader is someone who takes initiative to change the existing pattern of be-
trying to change the behavior of another havior of another person or social system. These are managers who act as change agents
person or social system.
and make things happen, even when inertia has made systems and people reluctant to
embrace new ways of doing things. Managers who are strong change leaders are alert to
cultures, situations, and people needing change, open to good ideas and opportunities,
and ready and able to support the implementation of new ideas in actual practice.
In theory, every manager should act as a change leader. But the reality is that peo-
ple show major tendencies toward staying with the status quo—accepting things
as they are and not wanting to change. Figure 12.3 contrasts a true “change leader”
with a “status quo manager.” Whereas the status quo manager is backward-looking,
reactive, and comfortable with habit, the change leader is forward-looking, proactive,
supportive of new ideas, and comfortable with criticism. At Xerox, for example, CEO
Ursula Burns talks about the “Xerox family” when referring to her firm’s corporate

ETHICS > SOME MANAGERS USE DECEPTION TO AVOID LOSING POWER

ON THE LINE WHILE GIVING THE APPEARANCE OF SHARING POWER

Hidden Agendas in Organizational Change

Some managers are afraid of losing power while sharing
power during organizational change. So, they resort to hid-
den agendas. They handpick key members to be on change
teams. They ask them to also take prominent roles in discus-
sions and support only the “right” ideas. The goal is to make
sure that change heads in the preferred direction while still
giving everyone a sense of being included and empowered.
It’s a way of sharing power but still getting your way.
Image Source/Alamy

ETHICS QUESTIONS

Although this situation happens frequently in organiza-

tions, does that make it right? What are the ethical issues
involved? When is such an approach more or less likely to
be ethical? As a manager, would you handpick the leaders
of a change effort in order to get your way—even if that
S haring power is a popular choice for change strategy. It
means allowing others to have a role in decision making
and be involved throughout the change process. It gets a lot
meant that alternative points of view were excluded from
the process? What if your boss selected you to represent
your department on a task force just because you agreed
of good ideas on the table and helps generate all-important
with his or her favored approach? If you knew that most
“buy-in” to support the proposed change. But, suppose the
people in your department disagreed, would you do what
ideas offered and the ensuing conversations move in a di-
your boss wanted or would you try to represent the wishes
rection that top management thinks is the wrong pathway?
of the majority of your department?
What happens then?
 Organizational Change 307

FIGURE 12.3 Change leaders

F
Change Status quo vversus status quo managers.
leaders managers
Confident of ability Threatened by
Willing to take promote Creativity change
risks avoid Bothered by
and and
Seize opportunity and even uncertainty
actively innovation
Expect surprises discourage Prefer predictability
support
Make things Support the status
happen quo
Wait for things to
happen

culture. But when speaking to employees as a change leader, she also says: “When
we’re in the family, you don’t have to be as nice as when you’re outside the family. I
want us to stay civil and kind, but we have to be frank—and the reason we can be
frank is because we’re all in the same family.”40

Top-Down Change
Top-down change is where senior managers initiate changes with the goal of im- In top-down change, the change initia-
proving organizational performance. Although it sounds straightforward, research tives come from senior management.

indicates that some 70% or more of large-scale change efforts in American firms ac-
tually fail; only 20% of European firms report “substantial success” with large-scale
change, while 63% report “occasional” success.41
The most common reason for the failure of top-down change is poor implemen-
tation. And without doubt, people are more committed to implement plans that
they have played a part in creating. Change programs have little chance of success
without the support of those who must implement them. Any change that is driven
from the top and perceived as insensitive to the needs of lower-level personnel can
easily fail. As the lessons in Management Smarts show, successful top-down change
is led in ways that earn the support of others throughout the organization.42

Bottom-Up Change
Bottom-up change tries to tap into ideas and initiative at lower organizational lev- In bottom-up change, change initiatives
els and let them percolate upward. Such change is made possible by management come from all levels in the organization.
commitments to empowerment, involvement, and participation.
Many organizations are so large it is easy for good ideas to get lost. One way
to unlock the potential for bottom-
up change is through “diagonal slice
meetings” where top managers meet ManagementSmarts
with samples of workers from across
functions and levels. They solicit ideas How to lead organizational change
about what might be wrong and what
• Establish a sense of urgency for change.
changes might be made to improve
• Form a powerful coalition to lead the change.
things. Another way is to build an or-
• Create and communicate a change vision.
ganizational culture around the belief
• Empower others to move change forward.
that workers should be encouraged to
• Celebrate short-term “wins” and recognize those who help.
use their job knowledge and common
• Build on success; align people and systems with the new ways.
sense to improve things.
• Stay with it; keep the message consistent; champion the vision.
At General Electric, former CEO Jack
Welch harnessed bottom-up change
308 O RGANIZATION CULTURE A N D CHANGE

through a widely benchmarked program called Work-Out. In Work-Out sessions

employees confront their managers in a “town meeting” format with the manager
in front listening to suggestions. The managers are expected to respond immedi-
ately and support positive change initiatives raised during the session. Welch felt
that approaches like this facilitate change because they “bring an innovation debate
to the people closest to the products, services, and processes.”43

Incremental and Transformational Change

Planned changes at top levels are likely to be large-scale and strategic reposition-
ing changes focused on big issues that affect the organization as a whole. Lower-
level changes often deal with adjustments in structures, systems,
Organizational Change Pyramid technologies, products, and people to support strategic position-
ing. Both types of changes—incremental and transformational—
Few are important in the organizational change pyramid shown here.44
strategic,
large-scale
Incremental change is modest, frame-bending change. It basi-
changes to cally bends or nudges existing systems and practices to better align
reposition organization
them with emerging problems and opportunities. The intent isn’t
Major changes to improve
performance through new to break and remake the system, but to move it forward through
structures, systems, technologies, continuous improvements. Common incremental changes in or-
products, and people
ganizations involve evolutions in products, processes, technolo-
Frequent, smaller-scale changes
to fine tune performance, enable short- gies, and work systems. Transformational change, by contrast,
term gains, and provide continuous is radical or frame-breaking change that results in a major and
improvements in operations
comprehensive redirection of the organization.45 It is usually led
from the top and creates fundamental shifts in strategies, culture,
Incremental change bends and adjusts structures, and even the underlying sense of purpose or mission.
existing ways to improve performance. Incremental changes keep things tuned up—like the engine in a car, in between
Transformational change results in a transformations—as when the old car is replaced with a new one.
major and comprehensive redirection of
the organization.
Phases of Planned Change
Managers seeking to lead change in organizations can benefit from a simple but
helpful model developed many years ago by the psychologist Kurt Lewin. He rec-
ommends that any planned change be viewed as a process with the three phases.
Phase 1 is unfreezing—preparing a system for change; phase 2 is changing—making
actual changes in the system; and phase 3 is refreezing—stabilizing the system af-
ter change.46 In today’s fast-paced organizational environments we can also talk
about another phase called improvising—making adjustments as needed while
change is taking place.47

Unfreezing
Planned change has a better chance for success when people are ready for it
Unfreezing is the phase during which a and open to doing things differently. Unfreezing is the phase in which a situ-
situation is prepared for change. ation is prepared for change and felt needs for change are developed. The goal
is to get people to view change as a way of solving a problem or pursuing an
opportunity.
Some call unfreezing the “burning bridge” phase of change, arguing that in order
to get people to jump off a bridge you might just have to set it on fire. Managers can
 Organizational Change 309

FIGURE 12.4 Lewin’s three phases

F
Change leader’s task: create a felt need for change of planned organizational change.
o

Phase 1
Unfreezing This is done by:

Establishing a good relationship with the people involved.

Helping others realize that present behaviors are not effective.
Minimizing expressed resistance to change.

Change leader’s task: implement change

Phase 2
Changing This is done by:

Identifying new, more effective ways of behaving.

Choosing changes in tasks, people, culture, technology, structures.
Taking action to put these changes into place.

Change leader’s task: stabilize change

Phase 3
Refreezing This is done by:

Creating acceptance and continuity for the new behaviors.

Providing any necessary resource support.
Using performance-contingent rewards and positive reinforcement.

simulate the burning bridge by engaging people with facts and information that
communicate the need for change—environmental pressures, declining perfor-
mance, and examples of benchmarks or alternative approaches. And as you have
probably experienced, conflict can help people to break old habits and recognize
new ways of thinking about or doing things. Errors at the unfreezing stage include
not creating a sense of urgency for change and neglecting to build a coalition of
influential persons who support it.

Changing
Figure 12.4 shows that unfreezing is followed by the changing phase, where actual Changing is the phase where a planned
changes are made in such organizational targets as tasks, people, culture, technol- change actually takes place.

ogy, and structure. Lewin believes that many change agents commit the error of
entering the changing phase prematurely. They are too quick to change things and
end up creating harmful resistance. In this sense the change process is like building
a house; you need to put a good foundation in place before you begin the framing. If
you try to implement change before people are prepared and feel a need for it, there
is an increased likelihood of failure.

Refreezing
The final phase in Lewin’s planned change process is refreezing. Here, the manager Refreezing is the phase at which
is concerned about stabilizing the change. Refreezing is accomplished by linking change is stabilized.
change with appropriate rewards, positive reinforcement, and resource support. It
is important in this phase to evaluate results, provide feedback to the people in-
volved, and make any required modifications in the original change.
310 O RGANIZATION CULTURE A N D CHANGE

When refreezing is done poorly, changes are too easily forgotten or abandoned
with the passage of time. The most common error at the refreezing stage is declar-
ing victory too soon and withdrawing support before the change is really fixed in
normal routines. Also, in today’s dynamic environments there may not be a lot of
time for refreezing before things are ready to change again. We end up preparing for
more change even before the present one is fully implemented.

Improvising
Although Lewin’s model depicts change as a linear, step-by-step process, the reality
is that change is dynamic and complex. Managers must not only understand each
phase of planned change, they must be prepared to deal with them simultaneously.
Improvisational change makes con- They should also be willing to engage in the process of improvisational change
tinual adjustments as changes are being where adjustments are continually made as things are being implemented.48
implemented.
Consider the case of bringing new technology into an organization or work unit.
A technology that is attractive in concept may appear complicated to the new us-
ers. The full extent of its benefits or inadequacies may not become known until it
is tried. A change leader can succeed in such situations by continually gathering
feedback on how the change is going and then improvising to revise and customize
the new technology to best meet users’ needs.

Change Strategies
Strategy is a major issue when a manager actually tries to move people and sys-
tems toward change. Figure 12.5 summarizes three common strategies used to make
things happen during the planned change process—force-coercion, rational persua-
sion, and shared power.49 Managers, as change agents and leaders, should under-
stand each strategy and its likely results.

Force-Coercion Strategies
A force-coercion strategy pursues A force-coercion strategy uses formal authority as well as rewards and punish-
change through formal authority and/or ments as the primary inducements to change. A change agent that seeks to create
the use of rewards or punishments.
change through force-coercion believes that people are motivated by self-interest
and by what the situation offers in terms of potential personal gains or losses.50

FIGURE 12.5 Alternative change

Change Strategy Power Bases Managerial Behavior Likely Results
strategies and their leadership
Direct forcing Faster, but low
implications. Force–Coercion Legitimacy
and unilateral action commitment and only
Using formal authority to Rewards temporary compliance
create change by decree Political maneuvering
and position power Punishments and indirect action

Rational Persuasion Expertise Informational efforts

using credible knowledge,
Creating change through demonstrated facts, and
rational persuasion and logical argument
empirical argument

Shared power Reference Participative efforts

to share power and involve
Developing support for others in planning and Slower, but high
change through personal implementing change commitment and longer-
values and commitments
term internalization
 Organizational Change 311

In direct forcing, the change agent takes direct and unilateral action to “command”
that change take place. In political maneuvering, the change agent works indirectly
to gain special advantage over other persons and thereby make them change. This
involves bargaining, obtaining control of important resources, forming alliances, or
granting small favors.
The force-coercion strategy of change usually produces limited results. Although
it can be quickly tried, most people respond to this strategy out of fear of punish-
ment or hope for a reward. The likely outcome is temporary compliance; the new
behavior continues only as long as the rewards and punishments are present. For
this reason, force-coercion may be most useful as an unfreezing strategy that helps
people break old patterns and gain willingness to try new ones. The earlier example
of General Electric’s Work-Out program applies here.51 Jack Welch started Work-Out
to create a forum for active employee empowerment of continuous change. But he
didn’t make the program optional; participation in Work-Out was mandatory. Part
of Welch’s commitment to change leadership was a willingness to use authority to
unfreeze the situation and get Work-Out started. Once the program was under way,
he was confident it would survive and prosper on its own—and it did.

Rational Persuasion Strategies

Change agents using a rational persuasion strategy attempt to bring about change A rational persuasion strategy pur-
through persuasion backed by special knowledge, empirical data, and rational sues change through empirical data and
rational argument.
argument. A change agent following this strategy believes that people are inher-
ently rational and guided by reason. Once the value of a specific course of action is
demonstrated by information and facts, the change agent assumes that reason and
rationality will cause the person to adopt it. A good rational persuasion strategy
helps both unfreeze and refreeze a change situation. Although slower than force-
coercion, it can result in longer-lasting and more internalized change.
To succeed with the rational persuasion strategy, a manager must convince oth-
ers that a change will leave them better off than before. This persuasive power can
come directly from the change agent if she or he has personal credibility as an

Recommended
Reading
Change by Design: How Design Thinking Transforms
Organizations and Inspires Innovation (HarperCollins, 2009)
by Tim Brown
Tim Brown is CEO of the respected design firm IDEO, serving clients like
Fisher-Price, Procter & Gamble, and Target. He says that organizations that
unlock “design thinking” can achieve radical and highly beneficial changes that
improve performance dramatically. Brown describes design thinking as com-
bining “the designer’s creative problem-solving skills” with the “larger strategic
initiatives” of the organization. An example is IDEO’s work with Kaiser Perma-
nente health centers. After a team brought together design experts, nurses,
and technologists, they ended up making major changes in how nurses staff
©Euler/AP/Wide World Photos
hospital shifts.
312 O RGANIZATION CULTURE A N D CHANGE

“expert.” It can also be borrowed in the form of advice from consultants and other
outside experts, or gained from credible demonstration projects and identified
benchmarks. Many firms, for example, benchmark Disney to demonstrate to their
own employees the benefits of a customer-oriented culture. A Ford vice president
says: “Disney’s track record is one of the best in the country as far as dealing with
customers.”52 In this sense, the power of rational persuasion is straightforward: if
the culture works for Disney, why can’t it work for us?

Shared Power Strategies

A shared power strategy pursues A shared power strategy uses collaboration to identify values, assumptions, and goals
change by participation in assessing from which support for change will naturally emerge. Sometimes called a normative–
change needs, values, and goals.
reeducative strategy, this approach is empowerment based and highly participative.
It involves others in examining personal needs and values, group norms, and operat-
ing goals as they relate to the issues at hand. Power is shared as the change agent
and others work together to develop consensus to support needed change. Because
it entails a high level of involvement, this strategy is often slow and time consuming.
But power sharing is likely to result in longer-lasting, internalized change.
A change agent shares power by recognizing that people have varied needs
and complex motivations. He or she understands that organizational changes
involve changes in attitudes, values, skills, and significant relationships, not just
changes in knowledge, information, or practices. Thus, this change agent is sen-
sitive to the way group pressures can support or inhibit change. Every attempt
is made to gather opinions, identify feelings and expectations, and incorporate
them fully into the change process.
The great “power” of sharing power in the change process lies with unlocking
the creativity, experience, and energies of people within the system. Some managers
hesitate to engage this strategy for fear
of losing control or of having to compro-
ManagementSmarts mise on important organizational goals.
But Harvard scholar Teresa M. Ama-
Why People May Resist Change bile points out that they should have
the confidence to share power regard-
• Fear of the unknown—not understanding what is happening or what ing means and processes, if not overall
comes next.
goals. “People will be more creative,” she
• Disrupted habits—feeling upset to see the end of the old ways of doing says, “if you give them freedom to decide
things.
how to climb particular mountains. You
• Loss of confidence—feeling incapable of performing well under the new needn’t let them choose which moun-
ways of doing things.
tains to climb.”53
• Loss of control—feeling that things are being done “to” you rather than “by”
or “with” you.
Resistance to Change
• Poor timing—feeling overwhelmed by the situation or that things are mov-
ing too fast. When people resist change, they are most
• Work overload—not having the physical or emotional energy to commit to often defending something important
the change. to them that now appears threatened. A
• Loss of face—feeling inadequate or humiliated because the “old” ways change leader can learn a lot by listen-
weren’t “good” ways. ing to resistance and then using it as a
• Lack of purpose—not seeing a reason for the change and/or not under- resource for improving the change and
standing its benefits. change process.54 Check the common
 Organizational Change 313

RESEARCH
BRIEF

Top Management Must Get—and Stay—Committed for Shared Power to

Work in Tandem with Top-Down Change

H arry Sminia and Antonie Van Nistelrooij’s case study of

a public-sector organization in the Netherlands sheds
light on what happens when top-down change and organi-
well structured with deadlines and a management hierar-
chy. Simultaneously, a “change strand” was initiated with
organization development interventions to develop in-
zation development based on shared power are used simul- formation and create foundations helpful to the success
taneously. of the project strand. The change strand involved confer-
Writing in the Journal of Change Management, they de- ences, workshops, and meetings. The goal was for both
scribe how top management initiated a strategic change strands to operate in parallel and eventually converge in
involving organization design, procedures, work standards, joint implementation.
and systems. Called the “project strand,” this change was What the researchers found was that top manage-
ment favored the project strand and resisted challenges
Intended and Realized Change to its decision-making prerogatives that came from the
change strand. Eventually, the shared power aspects of
Intended the change pretty much disappeared and activities cen-
Project strand change pathways tered around completing the project on schedule. Sminia
Top-down and Van Nistelrooij conclude that the change was ham-
Both change efforts pered by “management refusal to share power with the
work together
employees.”
Change strand
Shared power
YOU BE THE RESEARCHER

Realized Is it realistic to expect that top-down and bottom-up changes

Project strand change pathways can operate simultaneously? Can any shared power change
Top-down strategy be successful without full and continuing support
Top-down change from top management? How would you design research
dominates
projects to test these questions?
Change strand
Shared power Reference: Harry Sminia and Antonie Van Nistelrooij, “Strategic Management and
Organizational Development: Planned Change in a Public Sector Organization,”
Journal of Change Management, vol. 6 (March 2006), pp. 99–113.

sources of resistance as shown in Management Smarts. Surely you’ve seen some or all
of them. And honestly, haven’t you been a resistor at times?
Instead of viewing resistance as something that must be “overcome,” it’s often
better viewed as feedback. The presence of resistance usually means that some-
thing can be done to achieve a better “fit” among the planned change, the situa-
tion, and the people involved. Things to check when listening to feedback for clues
on how to improve the change process include the following.55
1. Check the benefits—Make sure the people involved see a clear advantage in
making the change. People should know “what is in it for me” or “what is in it
for our group or the organization as a whole.”
2. Check the compatibility—Keep the change as close as possible to the existing
values and ways of doing things. Minimizing the scope of change helps keep
it more acceptable and less threatening.
314 O RGANIZATION CULTURE A N D CHANGE

3. Check the simplicity—Make the change as easy as possible to understand and

use. People should have access to training and assistance to make the transi-
tion to new ways as easy as possible.
4. Check the triability—Allow people to try the change little by little, making ad-
justments as they go. Don’t rush the change, and be sure to adjust the timing
to best fit work schedules and cycles of high/low workloads.
In addition to these checkpoints, there are other positive ways to deal with resis-
tance to change.56 Education and communication uses discussions, presentations,
and demonstrations to educate people beforehand about a change. Participation
and involvement allows others to contribute ideas and help design and implement
the change. Facilitation and support provides encouragement and training, actively
listens to problems and complaints, and finds ways to reduce performance pres-
sures. Negotiation and agreement provides incentives to gain support from those
who are actively resisting or ready to resist.
Two other approaches for managing resistance are common, but they are also
risky in terms of negative side effects. Manipulation and co-optation tries to covertly
influence others by selectively providing information and structuring events in
favor of the desired change. Explicit and implicit coercion forces people to accept
change by threatening resistors with undesirable consequences if they don’t do
what is being asked.

LEARNING CHECK 3

TAKEAWAY QUESTION 3 What is the nature of organizational change?

Be sure you can • define change leader and change agent • discuss pros and cons of top-down change and
bottom-up change • differentiate incremental and transformational change • describe Lewin’s three phases of
planned change • discuss improvising as an approach to planned change • discuss pros and cons of the force-
coercion, rational persuasion, and shared power change strategies • list several reasons why people resist change
• describe strategies for dealing with resistance to change
 Management Learning Review 315

MANAGEMENT
LEARNING REVIEW

LEARNING CHECK SUMMARY

TAKEAWAY QUESTION 1 What is discrimination, job discrimination, and the glass ceiling
organizational culture? effect.
• Managing diversity is the process of developing an in-
• Organizational culture is an internal environment that clusive work environment that allows everyone to reach
establishes a personality for the organization and influ- their full potential.
ences the behavior of members.
For Discussion What can a manager do, at the work
• The observable culture is found in the rites, rituals, sto-
team level, to reduce diversity bias in the workplace?
ries, heroes, and symbols of the organization; the core
culture consists of the core values and fundamental
beliefs on which the organization is based. TAKEAWAY QUESTION 3 What is the nature
• In organizations with strong cultures, members behave of organizational change?
with shared understandings and act with commitment • Change leaders are change agents who take initiative
to core values. to change the behavior of people and organizational
• Key dimensions of organizational culture include such systems.
things as innovation and risk taking, team emphasis, • Organizational change can proceed with a top-down
concern for people, and performance orientation. emphasis, with a bottom-up emphasis, or a combina-
• Among trends in managing organizational cultures, tion of both.
value-based management and workplace spirituality • Incremental change makes continuing adjustments to
are popular directions and considerations. existing ways and practices; transformational change
For Discussion Of the various dimensions of organi- makes radical changes in organizational directions.
zational culture, which are most important to you as • Lewin’s three phases of planned change are unfreezing—
an employee? preparing a system for change; changing—making a
change; and refreezing—stabilizing the system.
TAKEAWAY QUESTION 2 What is a • Change agents should understand the force-coercion,
multicultural organization? rational persuasion, and shared power change strategies.
• People resist change for a variety of reasons, including
• Multicultural organizations operate with internal cul-
fear of the unknown and force of habit.
tures that value pluralism, respect diversity, and build
strength from an environment of inclusion. • Good change agents deal with resistance in a variety of
ways, including education, participation, support, and
• Organizations have many subcultures, including those
facilitation.
based on occupational, functional, ethnic, age, and
gender differences. For Discussion Can the refreezing stage of planned
• Challenges faced by members of minority subcul- change ever be satisfied in today’s dynamic
tures in organizations include sexual harassment, pay environments?

SELF-TEST 12

Multiple-Choice Questions
1. Pluralism and the absence of discrimination and 2. When members of minority cultures feel that they
prejudice in policies and practices are two important have to behave in ways similar to the majority cul-
hallmarks of __________. ture, this is called __________.
(a) the glass ceiling effect (a) biculturalism
(b) a multicultural organization (b) symbolic leadership
(c) quality circles (c) the glass ceiling effect
(d) affirmative action (d) inclusivity