Organizational culture
HOI2022
Denhardt5e_PPT121.pptxManaging Human Behavior in Public and Nonprofit Organizations
Fifth Edition
Robert B. Denhardt, Janet V. Denhardt, Maria P. Aristigueta, and Kelly C. Rawlings
Chapter 12: Organizational Culture and Change
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Introduction
Change evident in all realms
Complex demand for ethics, accountability
Resistance to change, loss of the known
Loss of productivity due to hall talk
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Change evident in all realms: The environment of public, nonprofit organizations and private sector is rapidly changing. Technological changes bringing about changes in work practices. With these, there are changes in the workforce and the expectations of workers.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Introduction
Overcome Resistance to Change
Communicate, clarify the current problems
Involve people in the change process
Give period of adjustment
Different Types of Changes
Incremental and discontinuous
Strategic and grassroots
Dramatic, systematic and organic
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Strategic change: Refers to those choices made by executives, senior managers, consultants, and others whom they involve in planning activities, leading to changes that are both broad range (typically organization-wide) and long term.
Grassroots changes: Changes that take place at the local or street level and involve middle-level and supervisory- level managers as well as workers on the front line of the organization.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
First step in bringing an organizational change Manager should understand the process of change.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Approaches to Understanding Change: Classic Approaches
Interplay of forces affecting social change
Driving or restraining forces
Shift in balance of forces
Use of action research model
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Interplay of forces affecting social change: Both forces are trying to bring about change and forces trying to resist change. To use a football analogy, at any given point in the game, the position of the ball on the field actually is the result of many plays by each team and many moves by individual players. one force driving change might be the additional information that will become available if the new system is implemented. On the other hand, a restraining force might be that conversion to the new system will be costly.
Driving or restraining forces: One force driving change might be the additional information that will become available if the new system is implemented. A restraining force might be that conversion to the new system will be costly.
Shift in balance of forces: People must recognize the need for change and begin to loosen their resistance to change. The second step is the change itself, by way of implementing, and the new knowledge and behaviors that are required to make it work are learned. The third step is refreezing the situation where effort is made to make it part of the organization’s routine way of operating. This maybe accomplished through training, encouragement, and new reward systems.
Use of action research model: A scientific approach to address real organizational or social problems which is carried out in partnership with people experiencing the issue. This model involves a cyclical process in which initial research in the organization provides information to guide further action and eventually evaluation.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Approaches to Understanding Change: Open Systems and Organizational Learning
Motivate individual learning to develop insight and perceptions
Espoused theories and theories-in-use
Single-loop and double-loop learning in organizations
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Espoused theories and theories-in-use: An espoused theory is one we describe when people ask us what ideas govern our actions. But in reality, the theory that governs our actions is called the theory-in-use.
Single-loop and double-loop learning in organizations: Both types of learning are required in organizations, although single-loop learning is the more common type. Single-loop learning refers to learning new strategies, while double-loop learning refers to learning new governing variables. Where members face routine or repetitive issues, and where the desired end states are clear, single-loop learning is appropriate. Where members face decisions that are more complex and “nonprogrammable,” double-loop learning is more appropriate.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Approaches to Understanding Change: Open Systems and Organizational Learning
Application of systems theory
The relation between an organization and its environment
The interdependence of all elements of the organization
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Approaches to Understanding Change: Open Systems and Organizational Learning
Senge’s 5 discipline for learning organization
Personal mastery
Mental models
Shared vision
Team learning
Systems thinking
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Personal mastery: Connects personal skills like skills of individual learning, spiritual growth, and self-mastery, with organizational learning.
Mental models: The way in which we see the world, including our assumptions of how things work, with innovation and learning.
Shared vision: The organization is connected and bound together by a common aspiration.
Team learning: Capacity of a collection of individuals to come together and combine their individual energies in an integrated team effort. Shared vision of work translates into organizational learning.
Systems thinking: Human actions are connected through a system of interrelated events.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Approaches to Understanding Change: Open Systems and Organizational Learning
Elements for building great public organizations
Defining “great”
Level 5 leadership
First considering who
The hedgehog concept
Turning the flywheel
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Defining great: Calibrating success without business metrics. Public organizations should strive for excellence in delivering services.
Level 5 leadership: Getting things done within a diffuse power structure. True leaders are those who empower people.
First considering who: Getting the right people on the bus. True leaders should know how to attract the right people. They know how to overcome social sector constraints and recruit motivated and competent people.
The hedgehog concept: Rethink the economic engine without a profit motive. Passion refers to the organization’s values and core mission; best at refers to the activities that are unique to the organization; resource engine refers to the appropriate combination of time, money, and brand.
Turning the flywheel: Building momentum by building the brand. Organizations should recognize which is their particular advantage and work on building it.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Approaches to Understanding Change: Large Systems Change
Change result of systemic focus on the whole
Characteristics of the system
Habit-governed habit diminishes awareness
Realizing presence
Change in self and community
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Change result of systemic focus on the whole: No single individual or group could have created global warming, yet globalized institutions have made possible a worldwide phenomenon seemingly beyond the reach of individuals to affect in any significant way. If this is the case, then it makes more sense to speak of change not in terms of what one individual or leader can do, but rather how the species can learn and grow.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Approaches to Understanding Change: Large Systems Change
Characteristics of the system
Connecting with new possibilities
Scharmer’s U pattern
Concept of emergence
Connection between active, thoughtful people initiates change
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Scharmer’s U pattern: (1) downloading, (2) saying, (3) sensing, (4) presence, (5) crystallizing, (6) prototyping, and (7) performing.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Organizational Culture
Understanding organizational change using concept of culture
Members of an organization share certain ideas about everything.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Organizational Culture: Elements of Organizational Culture
Three levels
Artifacts of the culture
Espoused beliefs and values of organization
Basic underlying assumptions of organization
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Artifacts of the culture: Elements of the social and physical environment that are easy to see, hear and feel; things such as physical layout, technological preferences, typical language patterns, and the day-to-day operating routines that guide people’s behavior.
Espoused beliefs and values of organization: The ideas, goals, and aspirations about the way the organization ought to be.
Basic underlying assumptions of organization: The patterns of believing or acting that are taken for granted to the point where they are not even questioned.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Organizational Culture: Elements of Organizational Culture
6 elements of the notion given by Ott
Origin and spread of organizational culture
Influence of various factors
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6 elements of the notion given by Ott:
1. Organizational culture is the culture that exists in an organization, something akin to a societal culture.
2. It is made up of such things as values, beliefs, assumptions, perceptions, behavioral norms, artifacts, and patterns of behavior.
3. It is a socially constructed, unseen, and unobservable force behind organizational activities.
4. It is a social energy that moves organization members to act.
5. It is a unifying theme that provides meaning, direction, and mobilization for organization members.
6. It functions as an organizational control mechanism, informally approving or prohibiting behaviors.
Origin and spread of organizational culture: Important aspects of a specific organization’s culture are derived from the larger societal culture, specifically its standards and expectations concerning the role of public and nonprofit organizations in society and the desired behavior of those engaged in public and nonprofit service. affected by their founding legislation, by political sentiment concerning their work, and by the imprint of early and important leaders within the organizations.
Influence of various factors: Nonprofit organizational cultures are also influenced by the values of the sector and its charitable roots, organizational missions and public mandates, the intentions of funders, and expectations of stakeholders. Whatever their derivation, the cultures of public and nonprofit organizations, like those of other organizations, are likely to be transmitted overtly to members through the processes of hiring, orientation, performance appraisal, and promotion, as well as more subtly through conversations and communications concerning “the way things are done around here.”
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Organizational Culture: Changing Organizational Culture
Shape values and attitudes to change the actions of the members
Advent of culture of innovation
Significance of mission, vision, and values
Achieving cultural change in a 5-step approach
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Advent of culture of innovation: Members will discard their traditional aversion to risk and innovation in favor of experimentation and change.
Significance of mission, vision, and values: They serve as the foundation for the organizational culture. These can also help frame and support change in an organizational culture. For example, the city of Williamsburg, Virginia, has a statement of vision that has been in place for over a decade.
Achieving cultural change in a 5-step approach:
1. Establishing a superordinate goal
2. Goal setting
3. Ensuring integrity
4. Accessibility of the managers
5. Developing and implementing a measurement system
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Organizational Culture: Types and Styles of Organizational Culture
Study of Cameron and Quinn’s (2011) Competing Values Framework
Finding of Groysberg et al
Influence via participation
Limitations of the approaches
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Study of Cameron and Quinn’s (2011) Competing Values Framework: Identifies four major culture types based on the extent to which they fall along two different dimensions: 1) an emphasis on flexibility and discretion or stability and control and 2) an internal or external focus and integration.
Finding of Groysberg et al: There are two primary dimensions to cultural styles to consider: 1) how people interact (independence to interdependence) and 2) how they respond to change (flexibility to stability). Also recommends, 1. Articulate the aspiration or desire for change. 2. Select and develop leaders who align with the target culture. 3. Use organizational conversations about culture to underscore the importance of change. 4. Reinforce the desired change through organizational design.
Limitations of the approaches: Resistance of people to rise from the regular and deep-seated, successful changes occur over a period of time, advent of ethical questions for managers to manipulate employees.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Approaches to Bringing About Change: Change Through Management Action or Reorganization
By unilateral action of managers
Follow hierarchical order
Restructuring or redesigning in organization
Motive is to best meet objectives
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Approaches to Bringing About Change: Change Through Management Action or Reorganization
By unilateral action of managers
Follow hierarchical order
Restructuring or redesigning in organization
Motive is to best meet objectives
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Approaches to Bringing About Change: Change Through Management Action or Reorganization
Grouping of employees into departments
Structural possibility via mechanistic and organic structure
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Structural possibility via mechanistic and organic structure: Mechanistic structures are highly formalized, specialized, standardized, and centralized. Organic structures, on the other hand, emphasize horizontal rather than vertical relationships and are much “looser”—more flexible, adaptable, and responsive. Nonprofit organizations often exemplify the organic structure type because it aligns well with their commonly held values regarding “the desirability of shared power, permeable organizational boundaries to facilitate collaboration, easy movement of members into and out of the organization, and an ability to innovate quickly to address needs.”
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Approaches to Bringing About Change: Change Through Organization Development
Based on the behavioral sciences
Aimed at system wide improvements in functioning
Focus on improving individual human capabilities, especially process skills
Guided by external consultant hired to facilitate group’s development
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Approaches to Bringing About Change: Change Through Organization Development
OD consultant’s diagnostic and perspective role
Employing process consultation technique
Use of interventions facilitate change
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Employing process consultation technique: The client must learn to see the problem for himself and be actively involved in generating a remedy. The OD consultant neither tells the client what to do nor prescribes a remedy. Rather, the consultant recognizes the client’s autonomy by working with the manager and those throughout the organization in identifying issues, developing solutions, and implementing those that are proposed. Argyris took these points in consideration – valid and useful information which can be used to change the system, free choice to maintain autonomy, internal commitment in the way of feeling of responsibility about the choice and its implications by the members.
Use of interventions facilitate change: T-group, Process consultation, Third party intervention, Survey feedback, Quality of work life, Team building.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Approaches to Bringing About Change: Change Through Appreciative Inquiry
Focus on emphasizing the strengths rather than weaknesses
Use of conversation
5 phases of AI process by Cooperrider and Whitney
Role of leadership advisory team
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Use of conversation: Conversation deals with what the organization does best and how it might build on its successes to better meet the future. Conversations are stimulated that focus on key organizational issues, not from the perspective of what is wrong, but from the perspective of what the organization is doing right. This enables members of the organization to share best practices (sometimes called the “positive core”) and to develop a shared commitment to excellence across the board.
5 phases of AI process by Cooperrider and Whitney: Discovery, Dream, Design, Destiny, Definition.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Approaches to Bringing About Change: Change Through Six Sigma and the Lean Method
Six Sigma employs statistical analysis to locate process errors that produce defects.
Identify need and work process of Six Sigma
Merging of Six Sigma with Lean methodology
Cons of the system
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Identify need and work process of Six Sigma: The organization needs to decide what is wants to achieve from implementation of Six Sigma: a full-scale business transformation, strategic improvements limited to one or two critical needs, or solving persistent problems within the organization.
Once an organization has decided on what it wants to achieve, many employees and managers in the organization train for different roles: Black Belt, Green Belt, Master Black Belt, Champion, and Implementation Leader. The people in these roles have specific tasks that should be successfully implemented. The Black Belt works with a team on a specific Six Sigma project and it is their responsibility to get the team started, building confidence, observing and participating in training, managing team dynamics, and striving for successful results at the end. The Green Belt brings the new Six Sigma tools into day-to-day activities. Most employees in the organization are trained to perform this role. The Master Black Belt is an expert in Six Sigma analytical tools and trains Black Belts and their teams. The Champion is the person who provides the resources, informs the management on the Six Sigma progress, and makes sure that ongoing projects align with organizational goals. The Implementation Leader’s role and goal is to drive Six Sigma thinking, tools, and habits across the organization and to help the effort reap financial and customer benefits.
Merging of Six Sigma with Lean methodology: Termed as Lean Six Sigma. The Lean approach has commonly been used to eliminate waste, variation, and work imbalance and is unique because it focuses on enabling people to actively participate in the implementation of the changes and ultimately in achieving the goals of the organization motivating the employees to give their best to the organization. It makes the people of the organization look at the product from the perspective of the customer.
Cons of the system: Process carried out in a piecemeal way, making it difficult to assess overall benefits. Organizations have to be prepared to implement all necessary steps properly, they have to train their employees in how to perform new roles, and they have to be persistent with the established goals if they want to enjoy the benefits.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
Approaches to Bringing About Change: Change Through the Arts
Initiates experimental work in day-to-day work
Dynamics of leadership and teamwork witnessed
Researching two cases
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Initiates experimental work in day-to-day work: Leadership brought in jazz musicians to demonstrate improvisation in communities of practice. Consultants such as Michael Jones and John Kao sat down at the piano and merged their speaking careers with spontaneous performances from the keyboard. Acting companies brought Shakespeare into the boardroom, and visual artists developed activity modules for executives, working with clay and other sculpted materials to create tangible expressions of their personal missions.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
The Management of Change
Managers are specifically hired to “fix” existing agencies or organizations.
Several factors lead existing managers to think of a systemwide organizational transformation.
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Several factors lead existing managers to think of a systemwide organizational transformation: For managers who have been in place for some time, new legislative mandates, a public crisis of confidence, dramatic changes in the environment, or a vague feeling that things could be working much better might lead managers to think in terms of a systemwide organizational transformation.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
The Management of Change: Steps in Organizational Transformations
Model of leadership by Denhardt and Denhardt on role played by local managers
Importance of managers’ learning capacities
Phases in the process by Nadler
Challenges of the system
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Model of leadership by Denhardt and Denhardt: Successful public and nonprofit managers hoping to lead change must (1) assess their organization’s environment and the need for change, (2) plan for change both strategically and pragmatically, (3) build support for the change process both through conversation and through modeling the change process in their own behavior, (4) implement specific changes while at the same time encouraging a broader positive attitude toward change and innovation, and (5) institutionalize the changes.
Importance of managers’ learning capacities: With respect to knowing themselves and their values, knowing their communities, knowing their organizations, and knowing their governing bodies.
Phases in the process by Nadler: Diagnosis, Clarification and coalition building, Action, Consolidation and refinement, Sustainability.
Challenges of the system: Managers often overestimate their own influence in organizations and underestimate how difficult it is to get people to change. They create crises by allowing financial losses to occur or allowing errors to blow up instead of being corrected.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
The Management of Change: Change and Innovation in Public and Nonprofit Organizations
Well informed manager
Change in leadership may lead to changes.
Policy of groping along and pragmatic incrementalism
Creating a culture in which people are encouraged to experiment
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Policy of groping along and pragmatic incrementalism: Behn (1988) argued that change in public organizations often is not so much a matter of rational planning in which a manager considers all courses of action and then settles on a strategy that guides all of his or her future actions. Instead, “an excellent manager has a very good sense of his objectives but lacks a precise idea about how to realize them.” But Denhardt pointed out that these managers are not moving forward randomly or without insight. Rather, they have a very clear idea of where they want to go, even though they might lack specific steps to reach those places. They do not have step-by-step plans, but they do have strategies, and from day to day and from moment to moment, they take advantage of opportunities to move in the desired directions. They might talk with stakeholder groups, encounter legislators in restaurants, or hold formal staff meetings. But in all of these settings, their messages remain much the same and fully consistent with the directions in which they want to move their organizations.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
The Ethics of Managing Change
Responsibility of managers and commitment of employees to manager
Being sensitive to concerns of others
What can be unethical behavior in managers?
Risk of organizational change efforts becoming dehumanizing
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Responsibility of managers and commitment of employees to manager: Managers deal with humans and play a significant role in shaping the lives of those within and outside of their organizations. They bear a special responsibility to their employees and the citizens they serve, a responsibility to engage in behavior that is not only efficient and effective but also ethical.
Managers bring about change through management action or reorganization. But in any effort to bring about organizational change, the wishes of the manager are, to some extent, imposed on other employees in the organization. If these people were left to their own will, then they might act in quite different ways. But because of their roles and commitments within the organization, they act in the way that their manager desires.
What can be unethical behavior in managers?: Managers who pursue organizational change for his/her own self-interest would be acting in an unethical manner. But public administrators have a further obligation as public servants. Also, if a manager acts outside of the law or his/her delegated authority in planning or implementing change, then this also would be considered unethical. Imposing their own values, coercion of employees to do something without rational arguments is also unethical. It also steps up to manipulation.
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
The Ethics of Managing Change
Value of individuals on as means to reach ends
Employees are forced into narrowly defined roles for regulation and control.
Maintaining sense of democratic responsibility
Efforts that promote autonomy and independent involvement the best ethical response
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Thinking
A Final Note on Personal Change
Capacity for effective listening
Capacity for empathetic understanding
Employee participation lead by manager
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Acting
Consider the emotional and psychological components of resistance to change
Clarify, communicate problems associated with the current way and benefits of the new
Involve people in change process
Identify forces that drive change and those that resist
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Acting
Understanding the existing norms, beliefs, and values of the organization
Take time to listen to citizens, employees, clients, legislators, and those in various interest groups
Think of building a capacity for learning in the organization
Remember the difference between single- loop and double-loop learning
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Denhardt, Managing Human Behavior in Public and Nonprofit Organizations 5e. SAGE Publishing, 2020.
Ways of Acting
If changes in the organization’s structure appear necessary, think twice.
Involvement of complex world of diverse networks in bringing about change
Employ a more organic, democratic, or participatory way of operating
Be attentive to the politics of change
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