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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-1Copyright 2007 Pearson Education Canada
Chapter 10
Organizational Cultureand Change
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-2Copyright 2007 Pearson Education Canada
Chapter Outline
What Is Organizational Culture?
Creating and Sustaining Culture Matching People With Organizational Cultures
The Liabilities of Organizational Culture
Approaches to Managing Change Resistance to Change
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-3Copyright 2007 Pearson Education Canada
Organizational Culture
1. What is the purpose of organizational culture?
2. How do you create and maintain organizationalculture?
3. What kind of organizational culture might suit you?
4. Can organizational culture have a downside?
5. How do organizations manage change?
6. Why do people and organizations resist change?
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-4Copyright 2007 Pearson Education Canada
Henry Mintzberg on Culture
Culture is the soul of the organization
the beliefs and values, and how they are
manifested. I think of the structure as the
skeleton, and as the flesh and blood. And
culture is the soul that holds the thing
together and gives it life force.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-5Copyright 2007 Pearson Education Canada
Organizational Culture
The pattern of shared values, beliefs, and
assumptions considered to be the appropriate
way to think and act within an organization.
Culture is shared.
Culture helps members solve problems.
Culture is taught to newcomers.
Culture strongly influences behaviour.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition10-6
Copyright 2007 Pearson Education Canada
Exhibit 10-1 Layers of Culture
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition10-7
Copyright 2007 Pearson Education Canada
Levels of Culture Artifacts
Aspects of an organizations culture that you see, hear, and feel
Beliefs
The understandings of how objects and ideas relate to each
other
Values
The stable, long-lasting beliefs about what is important
Assumptions
The taken-for-granted notions of how something should be in
an organization
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition10-8
Copyright 2007 Pearson Education Canada
Characteristics ofOrganizational Culture Innovation and risk-taking
The degree to which employees are encouraged to be innovative and take
risks. Attention to detail
The degree to which employees are expected to exhibit precision, analysis,and attention to detail.
Outcome orientation
The degree to which management focuses on results or outcomes rather
than on technique and process.
People orientation
The degree to which management decisions take into consideration theeffect of outcomes on people within the organization.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition10-9
Copyright 2007 Pearson Education Canada
Characteristics of OrganizationalCulture
Team orientation
The degree to which work activities are organized around teams
rather than individuals.
Aggressiveness
The degree to which people are aggressive and competitive rather
than easygoing.
Stability The degree to which organizational activities emphasize
maintaining the status quo in contrast to growth.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition10-10
Copyright 2007 Pearson Education Canada
Exhibit 10-2 Contrasting
Organizational Cultures
Organization A Organization B
Managers must fully document
all decisions.
Creative decisions, change, and risks
are not encouraged.
Extensive rules and regulations exist
for all employees.
Productivity is valued over employee
morale.
Employees are encouraged to staywithin their own department.
Individual effort is encouraged.
Management encourages and
rewards risk-taking and change.
Employees are encouraged to
run with ideas, and failures are
treated as learning experiences.
Employees have few rules and
regulations to follow.
Productivity is balanced with treating
its people right.
Team members are encouraged to interactwith people at all levels and functions.
Many rewards are team based.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition10-11
Copyright 2007 Pearson Education Canada
Cultures Functions Boundary-defining Conveys a sense of identity for organization
members
Facilitates commitment to something largerthan ones individual self-interest
Social glue that helps hold an organization
togetherProvides appropriate standards for what
employees should say or do
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition10-12
Copyright 2007 Pearson Education Canada
Cultures Functions
Serves as a sense-making and control
mechanism
Guides and shapes the attitudes and behaviour of
employees
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition10-13
Copyright 2007 Pearson Education Canada
Do Organizations Have UniformCultures? Organizational culture represents a common
perception held by the organization members.
Core values or dominant (primary) values are acceptedthroughout the organization.
Dominant culture Expresses the core values that are shared by a majority of the
organizations members.
Subcultures Tend to develop in large organizations to reflect common
problems, situations, or experiences.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition10-14
Copyright 2007 Pearson Education Canada
Exhibit 10-3 How OrganizationalCulture Forms
Selection
criteria
Socialization
Organization's
culture
Philosophy
of
organization's
founders
Topmanagement
Selection
criteria
Socialization
Organization's
culture
Philosophy
of
organization's
founders
Topmanagement
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition10-15
Copyright 2007 Pearson Education Canada
Creating and Sustaining Culture:Keeping a Culture Alive Selection
Identify and hire individuals who will fit in with the
culture.
Top Management
Senior executives establish and communicate the norms
of the organization.
Socialization
Organizations need to teach the culture to new employees.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-16
Copyright 2007 Pearson Education Canada
A Socialization Model
Prearrival Encounter Metamorphosis
Socialization Process Outcomes
Commitment
Productivity
Turnover
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-17
Copyright 2007 Pearson Education Canada
Exhibit 10-5Four-Culture Typology
Fragmented
Networked
Low
High
Solidarity
Mercenary
Low High
Communal
Sociab
ility
Source: Adapted from R. Goffee and G. Jones, The Character of a Corporation: How Your Companys Culture Can Make or Break Your Business (New York: HarperBusiness, 1998), p. 21.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-18
Copyright 2007 Pearson Education Canada
Finding Your Culture Networked culture:you possess good social skills and empathy;
you like to forge close, work-related friendships; you thrive in arelaxed and convivial atmosphere.
Mercenary culture:you are goal-oriented, thrive on competition,like clearly structured work tasks.
Fragmented cul ture:you are independent, have a low need to bepart of a group atmosphere, are analytical rather than intuitive.
Communal cul ture:you have a strong need to identify with
something bigger than yourself and enjoy working in teams.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-19
Copyright 2007 Pearson Education Canada
The Liabilities of Culture
Culture can have dysfunctional aspects in someinstances.
Culture as a Barrier to Change When organization is undergoing change, culture may impede
change.
Culture as a Barrier to Diversity
Strong cultures put considerable pressure on employees to
conform. Culture as a Barrier to Mergers and Acquisitions
Merging the cultures of two organizations can be difficult, ifnot impossible.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-20
Copyright 2007 Pearson Education Canada
Strategies For Merging Cultures
Assimilation
Separation Integration
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-21
Copyright 2007 Pearson Education Canada
Change Agents
People who act as catalysts and assume the
responsibility for managing change activities.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-22
Copyright 2007 Pearson Education Canada
Outside agents
Can offer an objective perspective.
Usually have an inadequate understanding ofthe organizations history, culture, operating
procedures, and personnel.
Dont have to live with the repercussions
after the change is implemented.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-23
Copyright 2007 Pearson Education Canada
Internal agents
Have to live with the consequences of their
actions.
May be more thoughtful.
May be more cautious.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-24
Copyright 2007 Pearson Education Canada
Approaches To Managing Change
Lewins Three-Step Model
Kotters Eight-Step Plan for Implementing
Change
Action Research
Appreciative Inquiry
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-25
Copyright 2007 Pearson Education Canada
Exhibit 10-6 Lewins Three-StepChange Model
RefreezingMovingUnfreezing
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-26
Copyright 2007 Pearson Education Canada
Lewins Three-Step Model ForImplementing Change Unfreezing
Change efforts to overcome the pressures of both
individual resistance and group conformity.
Moving
Efforts to get employees involved in the change process.
Refreezing
Stabilizing a change intervention by balancing driving and
restraining forces.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-27
Copyright 2007 Pearson Education Canada
Exhibit 10-7Unfreezing the Status Quo
Time
Drivingforces
Restrainingforces
Desiredstate
Statusquo
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-28
Copyright 2007 Pearson Education Canada
Unfreezing
Arouse dissatisfaction with the current state.
Activate and strengthen top management support.
Use participation in decision making. Build in rewards.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-29
Copyright 2007 Pearson Education Canada
Moving Establish goals.
Institute smaller, acceptable changes that
reinforce and support change.
Develop management structures for change.
Maintain open, two-way communication.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-30
Copyright 2007 Pearson Education Canada
Refreezing
Build success experiences.
Reward desired behaviour.
Develop structures to institutionalize the change. Make change work.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-31
Copyright 2007 Pearson Education Canada
Exhibit 10-8 Kotters Eight-Step Plan
for Implementing Change1. Establish a sense of urgency.
2. Form a coalition.
3. Create a new vision.
4. Communicate the vision.
5. Empower others to act.
6. Develop short-term wins.7. Consolidate improvements.
8. Reinforce changes.Source: Based on J. P. Kotter,Leading Change (Boston: Harvard Business School Press, 1996).
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-32
Copyright 2007 Pearson Education Canada
Action Research
A change process based on the systematic
collection of data and then selection of a
change action based on what the analyzed data
indicate.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-33
Copyright 2007 Pearson Education Canada
The Process of Action Research
Diagnosis
Analysis
Feedback
Action
Evaluation
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-34
Copyright 2007 Pearson Education Canada
Appreciative Inquiry
An approach to change that seeks to identify
the unique qualities and special strengths of an
organization, which can then be built on to
improve performance.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-35
Copyright 2007 Pearson Education Canada
Steps of Appreciative Inquiry
Four Ds
Discovery
Dreaming
Design
Destiny
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-36
Copyright 2007 Pearson Education Canada
Exhibit 10-9 Sources of Individual
Resistance to Change
Security
Economicfactors
Individual
Resistance
Fear of
the unknown
Selective
information
processing
Habit
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-37
Copyright 2007 Pearson Education Canada
Cynicism About Change
Feeling uninformed about what washappening.
Lack of communication and respect from onessupervisor.
Lack of communication and respect from ones
union representative. Lack of opportunity for meaningfulparticipation in decision making.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-38
Copyright 2007 Pearson Education Canada
Exhibit 10-11 Sources of
Organizational Resistance to Change
Organizational
Resistance
Threat to established
resource allocations
Structural
inertia
Threat to established
power relationships
Limited focus
of change
Threat to
expertise
Group
inertia
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-39
Copyright 2007 Pearson Education Canada
Overcoming Resistance to Change
Education and communication
This tactic assumes that the source of resistance lies in misinformation orpoor communication.
Best used: Lack of information, or inaccurate information
Participation and involvement
Prior to making a change, those opposed can be brought into the decisionprocess.
Best used: Where initiators lack information, and others have power toresist
Facilitation and support
The provision of various efforts to facilitate adjustment.
Best used: Where people resist because of adjustment problems
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-40
Copyright 2007 Pearson Education Canada
Overcoming Resistance to Change
Negotiation and agreement
Exchange something of value for a lessening of resistance.
Best used: Where one group will lose, and has considerable power toresist
Manipulation and cooperation
Twisting and distorting facts to make them appear more attractive.
Best used: Where other tactics wont work or are too expensive
Explicit and implicit coercion
The application of direct threats or force upon resisters.
Best used: Speed is essential, and initiators have power
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-41
Copyright 2007 Pearson Education Canada
Summary and Implications
1. What is the purpose of organizationalculture?
Organizational culture provides stability and
gives employees a clear understanding of theway things are done around here.
2. How do you create and maintain culture?
An organizations culture is derived from the
philosophy of its founders. It iscommunicated by managers and employeesare socialized into it.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-42
Copyright 2007 Pearson Education Canada
Summary and Implications
3. What kind of organizational culture might suit you?
Organizational cultures can be analyzed in terms of membersfriendliness (sociability) and task orientation (solidarity).
4. Can organizational culture have a downside?
A strong culture can have a negative effect, includingpressure-cooker cultures, barriers to change, difficulty increating an inclusive environment, and hindering mergersand acquisitions.
5. How do organizations manage change?
Kurt Lewin argued that successful change should follow
three steps: unfreezing, moving, and refreezing. John Kotterbuilt on Lewins work to offer an eight-step model. Twoother theories include action research and appreciativeinquiry.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-43
Copyright 2007 Pearson Education Canada
Summary and Implications
6. Why do people and organizations resist change?
Individuals resist change because of basic human
characteristics such as perceptions, personalities,and needs. Organizations resist change because
they are conservative and because change is
difficult.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-44
Copyright 2007 Pearson Education Canada
OB at Work
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-45
Copyright 2007 Pearson Education Canada
For Review
1. How can an outsider assess an organizations culture?
2. What defines an organizations subcultures?
3. Can an employee survive in an organization if he or sherejects its core values? Explain.
4. What benefits can socialization provide for theorganization? For the new employee?
5. Describe four cultural types and the characteristics ofemployees who fit best with each.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-46
Copyright 2007 Pearson Education Canada
For Review
6. How can culture be a liability to an organization?
7. How does Lewins three-step model of change deal with
resistance to change?8. How does Kotters eight-step plan for implementing
change deal with resistance to change?
9. What are the factors that lead individuals to resistchange?
10.What are the factors that lead organizations to resistchange?
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-47
Copyright 2007 Pearson Education Canada
For Critical Thinking
1. How are an individuals personality and anorganizations culture similar? How are they different?
2. Is socialization brainwashing? Explain.3. Can you identify a set of characteristics that describes
your colleges or universitys culture? Compare themwith several of your peers lists. How closely do theyagree?
4. Resistance to change is an irrational response. Do youagree or disagree? Explain.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-48
Copyright 2007 Pearson Education Canada
Point-CounterPoint Why Culture Doesnt
Change
Culture develops over many
years, and becomes part ofhow the organization thinks
and feels.
Selection and promotion
policies guarantee survival of
culture. Top management chooses
managers who are likely to
maintain culture.
When Culture Can
Change There is a dramatic crisis.
There is a turnover in
leadership.
The organization is young and
small.
There is a weak culture.
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Chapter 10, Nancy Langton and Stephen P. Robbins,Fundamentals of Organizational Behaviour, Third Canadian Edition 10-49
Breakout Group Exercises
Form small groups to discuss the following:
1. Identify artifacts of culture in your current or previousworkplace. From these artifacts, would you conclude that theorganization has a strong or weak culture?
2. Have you or someone you know worked somewhere where theculture was strong? What was your reaction to that strongculture? Did you like that environment, or would you prefer towork where there is a weaker culture? Why?
3. Reflect on either the culture of one of your classes or theculture of the organization where you work, and identify
characteristics of that culture that could be changed. How mightthese changes be made?