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Introduction to Organizational Culture And Organizational Change


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Organisational Culture and Organisational change

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Introduction to Organizational Culture And Organizational Change

  1. 1.  Definition: Edgar Schein “Organizational culture refers to a pattern of basic assumptions discovered or developed by a group as it learns to cope with its problems of external adoption and internal integration that has worked well enough to be considered valuable, and therefore, to be taught to new members as the correct way to perceive, think and feel, in relation to those problems.”  Every organization develops and maintains a unique culture, which provides guidelines and boundaries for the behavior of the members of the organization.  It is a product of inputs and outputs . The inputs are the beliefs, norms, assumptions, values and the outputs are the courses of actions i.e. the goals, work task, planning, decision making and the procedures.  A good organization culture is both a talent attractor as well as a talent retainer.
  2. 2. Internal Factors • Employees. • Management. • Leadership Styles. • Goals and Objectives. External Factors • Clients and External Parties. • Competition. • Location.
  3. 3. Dominant culture and Sub culture:-  Dominant culture is a set of core values that are shared by a majority of the organizational members.  It is a macro view of the organization’s personality.  Sub-culture refers to the set of values that are shared by the members of a division or department.  These are the result of problems or experiences that are shared by the members of a particular department or unit.
  4. 4. Strong Culture and Weak Culture:-  A strong culture is characterized by the organization’s core values being intensely held and widely shared.  The degree of sharedness depends on two factors: orientation and rewards.  When core values are not shared with high degree of intensity, it forms weak culture.  It can be characterized by high employee turnovers and work absenteeism.
  5. 5. Organizational Change
  6. 6. Concept: It is the process by which organizations move from their present state to some desired future state to increase their effectiveness.
  7. 7. • Started in 1865 as pulp and paper company in Helsinki. • Bought into Rubber business. • Cable wiring in 1920. • Then Invest in electronics and started making television and computer monitor. • Finally in 1980, Nokia executive sensed an emerging market for mobile communication.
  8. 8. Nature of Organizational change • It disturbs the old equilibrium. • It affects the organization. • Organizational change is a continuous process
  9. 9. • Reactive changes: These are compulsory changes. • Proactive changes : These changes are desirable to do so.
  10. 10. • According to Thomas and Bennis, “Planned Change is the deliberate design and implementation of a structural innovation, a new policy or goal, or a change in operating philosophy, climate or style. • Process of planned change
  11. 11. • Action for change comprises three stages: unfreezing, changing, and refreezing.
  12. 12. Organizational change can be known by understanding why individuals change. Individuals generally experience two types of changes, these are:-  External Reasons  Internal Reasons
  13. 13.  Government rules and regulations- The changes of government’s rules and regulations in the basic cause of change of organizations  Competition- Organizations need to come up the challenges posed by competitors to survive in the market  Technological advances- Rapid changes of updated technologies causes an organization to change  Changes in people requirements- The changing requirements of the people also causes organizations to change themselves with their requirements.
  14. 14.  Change in leadership- Leadership changes the cultures and the values of an organization  Introducing new technologies- Introduction of new technology is bound to have an impact for other functions inside the organizations  The domino effect- Domino effect means the change as a result of which a series of related factors get changed  For meeting crisis- The unforeseen happenings makes an organization unstable which becomes the stimulus for thorough self-assessment to overcome the crisis before it occurs.
  15. 15.  Resistance to change is the first problem that the managers face in the management of change.  People and Society try to resist many types of changes
  16. 16. Individual Resistance Group Resistance Organizational Resistance
  17. 17. • Degree of force in resistance depends on how people feel about the change. • Individual’s feeling either real or emotional may be seen in the context of three types of factors: economics, psychological and social.
  18. 18. People may perceive that they will be adversely affected by the change in terms of their need satisfaction in the following ways- • Skill Obsolescence- People sense that the change poses a threat of replacing them. • Fear of Economic Loss- People may feel that the change may reduce their job option and turn into technological unemployment. • Reduce Opportunity for Incentives- People may feel that in the new system, they will have lower opportunity to earn incentives.
  19. 19. Psychological factors are based on people’s emotions, sentiments and attitudes towards change. Major psychological factors responsible for resistance are • Ego Defensiveness- A change may affect the ego of the people affected by the change and in order to defend their ego, people resist change • Status Quo- People do not want any disturbance in their existing equilibrium of life and work pattern. • Low Tolerance for Change- Some people have very low level of tolerance for change and ambiguity as compared to others. • Lack of Trust in Change Agent-. If people have low degree of confidence in the change agent, they show resistance to change efforts. • Fear of Unknown- The lack of certainty creates stress and confusion in the mind of people.
  20. 20. People form their own social groups at the workplace for the satisfaction of their social needs. The major social factors affecting resistance to change are • Desire to maintain Existing Social Interaction- When there is any change, there existing social interaction is likely to be changed which people do not want. • Feeling of Outside Interference- A change bought by the change agent is considered to be an interference in the working of people
  21. 21. People may feel the likely impact of a change individually but they express it in the form of group resistance. Nature of Group Dynamics- - Group Dynamics refers to the forces which operate in a group determining behavior of its members. Nature of group dynamics are • Change agent and target people belong the same group. • If group is highly cohesive and members have developed strong belongingness to the group. • The degree of group attractiveness to its members • Group can exert more pressure on those factors of members which are responsible for group being attractive to the members • The degree of prestige of a group, as interpreted by the members • Any attempt to change the groups norms by any outside force
  22. 22. Vested Interests- In a group some members become more influential than others. These persons may use the groups as a means for satisfying their own needs.
  23. 23. Many organizations are designed to be innovation-resisting. The major reasons for organizational failure to change are • Counting Past Successes- Some organization hide their failure to change in the guise of past successes. • Stability of System- The organization may design a system through which it may derive many benefits. • Resource Limitations- It may not be possible for the organization to bring necessary change due to limitation of resources. • Sunk Cost- Once the assets are acquired, these can be used for specific period. Now if the change is required, it creates a problem to these assets. • Inter-organizational Agreement- If any change is to be incorporated with an organization, the organization has to take into account the wishes to other linked organization too.
  24. 24. There are six main approaches to manage resistance to change in an organizational culture. They are : 1. Education and Communication: If reason of resistance to change is misunderstanding or inaccurate then employees must be educated about the changes through one on one discussion, memos, group representations, or reports. 2. Participation: Where the initiator does not have all information they need to design the change and where others have considerable power to resist. When employees are involved in the change effort they are more likely to buy into change rather than resist it. This approach is likely lower resistance and those who acquiesce to change.
  25. 25. 3. Facilitation and Support: Another strategy for managing resistance to change is providing support and empathy to those employees who have trouble dealing with the change. 4. Negotiation: Negotiation particularly with group of powerful individuals resisting to change is yet another strategy to deal with potential resistance to change. For this, a specific reward package can be negotiated with the powerful individuals to meet their individual needs. 5. Manipulation and Co-optation: When other tactics will not work or are too expensive. An effective manipulation technique is to co-opt with the resisters. Co-option involves the patronizing gesture in bringing a person into change management planning group for the sake appearances rather than substantive contribution.
  26. 26. 6. Coercion: Last on the list of suggested tactics is coercion. The organization, as a last resort, can apply direct threats on the resisters to make them ready to accept proposed change.
  27. 27. • Organizational change takes place for a number of reasons. Often this is because of changes in the internal and external environment. Change is never done alone. It takes the interactivity of every aspect of an organization (leaders, individual contributors, tools) to make change management successful. Training and development ensures that managers have the skills and competencies required to manage their team through a process of change. It enables them to deal with the change process and to monitor and evaluate change. This helps to reduce possible resistance to change and establish if the change objectives were achieved.