flowchart TB
OC[Organisational Culture & Change] --> CU[Culture]
OC --> CH[Change Models]
OC --> OD[Organisation Development]
CU --> SC[Schein's 3 levels]
CU --> HA[Handy's 4 types]
CU --> HO[Hofstede dimensions]
CH --> LE[Lewin 3-stage]
CH --> KO[Kotter 8-step]
CH --> AD[ADKAR]
OD --> SE[Senge Learning Org]
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59 Organizational Culture: Organizational development and organizational change
59.1 Two Linked Topics
Organisational Culture is “the pattern of shared basic assumptions that a group has learned as it solved its problems of external adaptation and internal integration” (Edgar Schein). It is the invisible glue that holds an organisation together — its norms, values, language, rituals and stories. Organisational Change is the process by which organisations move from a current state to a desired future state — adjusting structures, processes, strategies, technology or culture. Organisation Development (OD) is the planned, system-wide, long-range effort to improve organisational effectiveness through behavioural-science interventions. Together these three — culture, change and OD — answer how organisations evolve, learn and stay relevant in turbulent environments.
59.2 Organisational Culture — Concept
59.2.1 Schein’s Three Levels (1985)
Edgar Schein — culture has three levels of visibility:
TipSchein’s Three Levels of Culture
| Level | Visibility | Content |
|---|---|---|
| Artefacts | Visible | Architecture, dress, language, ceremonies, logos |
| Espoused values | Articulated | Stated values, mission, philosophy |
| Basic underlying assumptions | Invisible / taken for granted | Deep beliefs, unconscious; the core |
59.2.2 Characteristics of Culture (Robbins’s Seven)
TipSeven Characteristics of Culture (Robbins)
- Innovation and risk-taking.
- Attention to detail.
- Outcome orientation.
- People orientation.
- Team orientation.
- Aggressiveness.
- Stability.
59.2.3 Types of Culture — Handy (1985)
Charles Handy’s four types:
TipHandy’s Four Culture Types
| Type | God | Working content |
|---|---|---|
| Power culture | Zeus | Centralised around a single individual; family firms |
| Role culture | Apollo | Bureaucratic; defined roles; civil service |
| Task culture | Athena | Project-oriented; matrix; expertise valued |
| Person culture | Dionysus | Individual stars; partnerships, professional firms |
59.2.4 Competing Values Framework — Cameron & Quinn
Four cultures: Clan, Adhocracy, Market, Hierarchy — on dimensions of flexibility vs stability and internal vs external focus.
59.2.5 Hofstede’s Cultural Dimensions
Geert Hofstede identified national culture dimensions (originally 4, later 6):
TipHofstede’s Six Cultural Dimensions
- Power distance (PDI) — acceptance of unequal power.
- Individualism vs Collectivism (IDV).
- Masculinity vs Femininity (MAS).
- Uncertainty avoidance (UAI).
- Long-term vs Short-term orientation (LTO).
- Indulgence vs Restraint (IVR) — added later.
59.2.6 Strong vs Weak Culture
TipStrong vs Weak Culture
| Strong | Weak |
|---|---|
| Core values widely shared | Inconsistent values |
| Strong loyalty | Low commitment |
| Clear behavioural norms | Ambiguous norms |
| Less need for written rules | Heavy reliance on rules |
59.3 Functions of Culture
TipFunctions of Culture
- Provides identity to organisation.
- Generates commitment.
- Enhances social-system stability.
- Shapes attitudes and behaviour.
- Distinguishes one organisation from another.
- Acts as control mechanism.
59.4 Organisational Change — Part B
59.4.1 Concept
Organisational change is “any alteration in the existing equilibrium” — in structure, technology, people, or processes. Drivers include technology, competition, regulation, demographics, M&A, and crisis.
59.4.2 Forces of Change
TipForces of Change
- External: technology, market, competition, regulation, social, political, economic.
- Internal: strategy, top-management change, employee attitudes, performance gaps.
59.4.3 Resistance to Change
TipSources of Resistance
- Individual: habit, security, economic factors, fear of unknown, selective information processing.
- Organisational: structural inertia, group inertia, threat to existing power, threat to expertise, resource allocations.
59.4.4 Overcoming Resistance — Kotter & Schlesinger
Kotter and Schlesinger (1979) — six methods to deal with resistance:
TipSix Methods to Manage Resistance
- Education and communication.
- Participation and involvement.
- Facilitation and support.
- Negotiation and agreement.
- Manipulation and co-optation.
- Explicit and implicit coercion.
59.5 Models of Change
59.5.1 Lewin’s Three-Stage Model (1947)
Kurt Lewin — the father of social psychology:
TipLewin’s Three Stages
- Unfreezing — overcoming inertia; creating dissatisfaction with status quo.
- Change / Moving — implement the new state.
- Refreezing — institutionalise the change.
Lewin’s Force Field Analysis — driving forces and restraining forces; change occurs when drivers > restrainers.
59.5.2 Kotter’s Eight-Step Model (1996)
John Kotter — Leading Change:
TipKotter’s Eight Steps
- Establish a sense of urgency.
- Build a guiding coalition.
- Develop a vision and strategy.
- Communicate the change vision.
- Empower broad-based action.
- Generate short-term wins.
- Consolidate gains and produce more change.
- Anchor new approaches in the culture.
59.5.3 ADKAR Model — Prosci
TipADKAR Model
- Awareness of the need for change.
- Desire to participate and support the change.
- Knowledge on how to change.
- Ability to implement.
- Reinforcement to sustain the change.
59.5.4 Other Change Models
TipOther Change Models
- Bridges’ Transition Model — Ending, Neutral Zone, New Beginning.
- McKinsey 7-S — Strategy, Structure, Systems, Shared Values, Style, Staff, Skills.
- Burke-Litwin model — transformational and transactional factors.
- Action Research model (Lewin) — diagnose-action-feedback iteratively.
59.6 Organisation Development (OD)
OD is “a long-range, system-wide, planned effort to increase organisational effectiveness through behavioural-science interventions”. Roots in Kurt Lewin’s T-groups and NTL Institute (Bethel, USA, 1947). Associated with Beckhard, Schein, Bennis.
59.6.1 Characteristics of OD
TipOD Characteristics
- Planned and systematic.
- Long-term.
- Top-management supported.
- Whole-system in scope.
- Behavioural-science-based.
- Change agent driven (internal or external).
- Aimed at effectiveness and well-being.
- Uses experiential learning.
59.6.2 OD Interventions
TipMajor OD Interventions
| Level | Interventions |
|---|---|
| Individual | Coaching, mentoring, sensitivity (T-groups), MBO |
| Team / Group | Team-building, role analysis, intergroup interventions |
| Organisational | Survey feedback, structural redesign, Appreciative Inquiry, large-group interventions (Future Search, Open Space) |
| Process | Quality circles, TQM, Six Sigma, lean, BPR |
| Strategic | Strategic planning, alliance development, integrated strategic change |
59.6.3 Appreciative Inquiry (Cooperrider 1986)
A positive approach — instead of focusing on problems, ask “what is working well?” and amplify it. Four D’s: Discovery, Dream, Design, Destiny.
59.7 Learning Organisation — Senge (1990)
Peter Senge in The Fifth Discipline (1990) — a learning organisation has five disciplines:
TipSenge’s Five Disciplines
- Personal mastery.
- Mental models.
- Shared vision.
- Team learning.
- Systems thinking — the fifth discipline that integrates the others.
NoteDistractor warning
PYQs ask: Lewin’s three stages — Unfreezing, Change/Moving, Refreezing. Don’t reverse the order. Schein’s three levels — Artefacts, Espoused values, Basic assumptions (deepest).
59.8 Practice Questions
Q 01ScheinEasy
Schein's three levels of culture are:
View solution
Correct Option: A
**Schein (1985)** — three layers of culture.
Q 02LewinEasy
Lewin's three-stage change model is:
View solution
Correct Option: A
**Lewin 1947** — three stages.
Q 03HandyMedium
Charles Handy's four culture types are:
View solution
Correct Option: A
**Handy 1985** — Power (Zeus), Role (Apollo), Task (Athena), Person (Dionysus).
Q 04KotterMedium
Kotter's eight-step change model begins with:
View solution
Correct Option: B
**Step 1** — sense of urgency.
Q 05HofstedeMedium
Which is **not** one of Hofstede's cultural dimensions?
View solution
Correct Option: D
Universalism/Particularism — *Trompenaars*, not Hofstede.
Q 06SengeMedium
Peter Senge's *Fifth Discipline* is:
View solution
Correct Option: C
**Systems thinking** — fifth and integrating discipline.
Q 077-SMedium
McKinsey's 7-S framework does **not** include:
View solution
Correct Option: C
7-S: Strategy, Structure, Systems, Style, Staff, Skills, **Shared Values** (not Synergy).
Q 08Force fieldHard
Force Field Analysis was developed by:
View solution
Correct Option: B
**Lewin** — driving vs restraining forces.
Q 09ADKARMedium
ADKAR model of change stands for:
View solution
Correct Option: A
**ADKAR** — Prosci.
Q 10Cameron-QuinnHard
Cameron and Quinn's Competing Values Framework has four cultures:
View solution
Correct Option: A
**CVF** — Clan, Adhocracy, Market, Hierarchy.
Q 11ODMedium
OD is best described as:
View solution
Correct Option: B
OD — planned + system-wide + behavioural-science based.
Q 12AppreciativeHard
"Appreciative Inquiry" — focus on what's working — was developed by:
View solution
Correct Option: B
**Cooperrider 1986** — 4-D cycle.
Q 13ResistanceMedium
Which is **not** typically a method to deal with resistance to change (Kotter & Schlesinger)?
View solution
Correct Option: C
Ignoring is not among Kotter-Schlesinger's six methods.
Q 14Lewin ODMedium
The "father of OD / social psychology" is:
View solution
Correct Option: B
**Kurt Lewin** — T-groups, OD, action research.
Q 15BridgesHard
William Bridges' Transition Model has three phases:
View solution
Correct Option: A
**Bridges** — emotional transitions.
Q 16Strong cultureMedium
A **strong** culture is characterised by:
View solution
Correct Option: B
Strong culture — widely-shared values; clear norms; high commitment.
Q 17MatchMedium
Match each model with its author:
| Model | Author | ||
| (i) | Three-stage change | (a) | Senge |
| (ii) | Eight-step change | (b) | Cooperrider |
| (iii) | Fifth Discipline | (c) | Kurt Lewin |
| (iv) | Appreciative Inquiry | (d) | John Kotter |
View solution
Correct Option: A
Lewin, Kotter, Senge, Cooperrider.
Q 18PDIHard
**Power Distance Index** (Hofstede) measures:
View solution
Correct Option: A
Cultural acceptance of inequality / hierarchy.
Q 19Sub-cultureMedium
A **sub-culture** within an organisation typically:
View solution
Correct Option: B
Sub-culture — dominant + additional / unique values.
Q 20Action researchHard
"Action Research" model — diagnose, act, evaluate iteratively — is associated with:
View solution
Correct Option: A
**Lewin** — pioneered action research; foundational OD method.
59.9 Quick Recall
ImportantQuick recall
- Schein — three levels: Artefacts → Espoused values → Basic underlying assumptions.
- Handy — Power (Zeus), Role (Apollo), Task (Athena), Person (Dionysus).
- Cameron & Quinn CVF — Clan, Adhocracy, Market, Hierarchy.
- Hofstede’s 6 dimensions — PDI, IDV, MAS, UAI, LTO, IVR.
- Robbins’ 7 characteristics — innovation, attention to detail, outcome, people, team, aggressiveness, stability.
- Lewin (1947) — Unfreezing → Change → Refreezing; Force Field Analysis.
- Kotter (1996) — 8 steps starting with sense of urgency.
- ADKAR — Awareness, Desire, Knowledge, Ability, Reinforcement.
- Bridges — Ending, Neutral Zone, New Beginning. McKinsey 7-S — Strategy, Structure, Systems, Style, Staff, Skills, Shared Values.
- Kotter & Schlesinger (1979) — six methods to deal with resistance.
- OD — planned, long-range, system-wide; Lewin father.
- Cooperrider’s Appreciative Inquiry — 4-D (Discovery, Dream, Design, Destiny).
- Senge (1990) — five disciplines; Systems thinking is the fifth and integrating one.