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Sources of Culture

Sources of Culture. Founder Change Agents Experience National, Regional Culture. Cultural Leadership. Maintaining/Changing Culture: Communicate Reward Set Examples. Possible Negative Aspects of Culture. Can impede change May not tolerate diversity of thought

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Sources of Culture

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  1. Sources of Culture • Founder • Change Agents • Experience • National, Regional Culture

  2. Cultural Leadership Maintaining/Changing Culture: • Communicate • Reward • Set Examples

  3. Possible Negative Aspects of Culture • Can impede change • May not tolerate diversity of thought • Can prevent successful mergers and acquisitions

  4. Merging Cultures • Bank of America acquired MBNA (2005) • B of A • “No-nonsense, low-cost operator” • Attire: Business Casual • Everyone participated in discussions • MBNA • Opulent headquarters, generous salaries, lavish perks • Attire: Jackets and Ties • Junior employees kept quiet

  5. Merging Cultures • Senior MBNA managers’ pay cut • MBNA Division: Still dressy in corporate offices and in front of clients; business casual in back offices. • B of A became more conscious of “how they look.” • B of A adopted MBNA’s approach of depending less on computerized decisions and more on human judgment in granting credit • Increasing participation in the MBNA division was difficult.

  6. Organizational Democracy • Organizational democracy is a system based on freedom, not fear and control. • Allows people to self-govern and determine their own destiny. • Designing organizations to realize human potential. • Includes being organic and cross-functional.

  7. Organizational Change:Two Metaphors • Calm Waters (Incremental, Evolutionary) • White Water Rapids (Radical, Revolutionary)

  8. External: Customers Competitors Technology Economic Social Political International Internal: Financial Problems Production Inefficiencies Employee Expectations/ Demands Management Goals Forces for Change

  9. Resistance to Change • Uncertainty • Fear of the unknown • Self-interest • e.g., Fear poorer job conditions or outcomes • Lack of understanding and trust • Don’t believe change necessary • Conflicts • Interdepartmental • Cultural • Personal

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