Cultural Change in Organization
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Transcript of Cultural Change in Organization
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Cultural Change in Organization
Dr. B. D. Tripathi
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Organizational Change as Cultural Process
External factorsRapid technological changes, Change inindustries & markets, New National & International businesspolicies based on Global economy, Increased competition
Internal FactorsBehavioral practices, structures, Culture
The Process of change - Shift Vs. TransformIn doing Orientation of Anglo-Saxon culture, people & groups
are defined as what do they do, what they achieve.Organizational change is perceived more as liners function i.e.putting the past in back & pushing on with new
In being Orientation of Eastern culture, people & groups aredefined more in terms of affiliation, , the relationship theyhave with others. The past state of affairs undergo gradualtransformation, so as to become new state of affairs
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The Mechanism of Change
Schein (2004) lists, what he call secondary means
should be consistent with primary means.
The design and structure of the Organization
The systems and procedure used
The rites and rituals used in an organization
The design and layout of the organizations physical
space Stories of important events and people
Formal statements of the organizations philosophy
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Growth States , functions & Mechanism of change
Growth stage Functions of Culture
Birth & early growth
Founder/family
domination
Culture is distinctive competence & source of identity
Glue to hold Organization together, Org. strives for
integration & clarity, Heavy emphasis on socialization as
evidence of comittement
Succession Phase Culture as battle ground between conservatives and liberals
Potential successor are seen as preservers or changer ofculture elements
Organizations Mid-life
Expansion of
product/market
Vertical Integration
Geographical Expansion
Acquisition & mergers
Cultural integration are declines as sub-cultures are
spawned
Loss of goals, values and assumptions create crisis identity
Opportunity to manage direction of cultural change is
provided
Change mechanism 1.Natural Evolution, 2. Self guided evolution through
Orgn. Therapy, 3.Managed evolution through Hybrids
4. Managed revolution through outsiders
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Growth States , functions & Mechanism of change
Growth stage Functions of Culture
Organizational
maturity
Maturity or decline of
markets
Increasing internal
stability & or stagnation
Lack of motivation to
change
Culture becomes a constraint on innovation
Culture preserves the glories of the past, hence is valued asa source of self-esteem , defense
Transformational
option
Culture change is necessary& inevitable, but not all
elements of culture can or must change
Essential elements of culture must be identified, preserved
Culture change can be managed or simply allowed toevolve
Change mechanism 5.Planned change and Orgn. Development, 6.Technolo -
gical seduction, 7.Change through scandals , explosion of
myths, 8. Incrementalism
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Growth States , functions & Mechanism of change
Growth stage Functions of Culture
Destruction Options
Bankruptcy and
reorganization
Takeover and
reorganization
Merger and
assimilation
Culture changes at fundamental levelsCulture changes through massive replacement of people
Change mechanism 9. Coercive persuasion 10. Turnaround
11.Reorganization, destruction, rebirth
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Can Culture really change ?
Deal end Kennedy (2000) analyzed & reflected the belief that it isdifficult to change the culture particularly in Scheins terms at mid
life or maturity stage.
Culture developed from beginning, developed along withOrganization & passed from generation to generation will be difficultto change and involves all kinds of relations between individual &groups.
If the external factors have strong influence on the organizationalculture, the values, belief and behaviours that employees bring,there are chances of change, provided external environment changesin line with the desired changes
If Org. culture is seen as dependent on internal factors and internalrequirements such as choice of technology , particular strategypursued and activities being under-taken , it is believed that culturecan be directed and changed
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Can Culture really change ?
It depends how the change is initiated. Some concentrate on
the role of leader as facilitator/change agent, where as other s
focus on three levels as given by Schein norms, value and belief
; then behaviour and norms ; then symbols and artfacts
Both weak culture , poorly coordinated , lacking directed and
consistency as well as strong culture having rigid rules and
system, lacking innovations may doomed to extinct as
observed by Laurent (1989)
Laurent advocates a new conceptual differenciation, that howbest the orgn. Know itself and the environment in which it
operates. Higher the degree of awareness, better it can be
interpret and dealt.
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Can Culture really change ?
Schein (2004) advocates and further suggests that the members of
organization should examine corporate culture together and assessmain assumptions. Some of these need to be abandoned or re-definedso that members involved can help decide the way the orgn. need toevolve, where leader may play key role in development of as selfguided evolution and managing the process
A certain degree of culture change is always necessary. Bringing fewunconscious values and norms to the surface and redefining them maylead to anxiety among people involved feel, that their sense of identityand integrity is threatened.
The role of leader as transformational leader provide that reassurance
through communication a vision of things should be and the future willbe brighter and happier for the Orgn.
The process of culture change require considerable efforts and time .All those involved in process must have clear insight of Orgn.assumptions, which hinder or help future of Orgn. Besides motivation.
A transformational leadership is critical in this process.
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Organizational change in a Global Environment
The organizational change in companies working across a number
of cultures in not only instrumental ( becoming cost effective or
market oriented ) but transformational ( new way of thinking).
How does a multinational deals with policy changes, or internal as
well as external factors.
Conflict between Organizational and national cultures:
The National companies of multinationals are likely to prefer
different ways of bringing cultural changes, which HQ want to
implement. In context of transformation from A to B, the path
followed differ form one organization to other . It depends fromwhere and how to start and the outset of transformation to B
will depend upon how does national organization interprets its
own situation
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The Concept of International Corporate Culture
People with similar education, work experience are developing
their own business culture. The companies they serve also have
commonalities in production system, quality control, workers
rights, welfare & environmental issues, resulting to establishment
of more internationally accepted norms and business practices.
The same is supported by Rohit Despharade et. al. (1998) ,
whatever be the origin of Company each successful Multi national
promoted competitive, entrepreneurial values and particularlyInnovations
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Continued ..
These companies have adopted an organizational culture at
the expense of National culture. A shared organizational
culture of many multinationals is pushing aside as well as
downplays the deep routed nature of national cultures , but
also discourages transfer of know how between the culturallydifferent subsidiaries particularly in context of organizational
change
There is always a risk that the multinational ultimately
continuously become estranged from national roots. A truemultinational does not subordinate national culture , but
regards it as source of learning& increased synergy within the
Co.
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Mapping Corporate Culture
Cameron and Quinn (1999) categorized Orgn.Effectiveness perspective and associated types of
Orgn.
Two dimensions are used to differentiate effectiveness
criteria : one emphasizes either flexibility & description
or stability & control ; Other emphasizes on either
internal orientation (integration & Unity) or external
orientation (differentiation and rivalry). These two
dimensions produce four quadrants, which represent
different values for judging the Organization TheQuadrants are contradictory or competing on the
diagonal. Hence named Competing Values (CV)
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Mapping Corporate Culture Change
ClanAdhocracy
Hierarchy Market
Flexibility & discretion
Stability & Control
External
focusand di-
fferentia
tion
InternalFocus and
Integration
The Competing values framework
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Characteristics of CV Framework
Hierarchy
Culture
Values tradition, continuity, rationalization and regulation, It
focuses more on internal than external (market) issues, and
values stability and control over flexibility and discretion. This is
traditional command & control model ofOrgn. It can work well
if goal is efficiency & Orgn. Environment is stable and simple
Market
Culture
Also values stability and control, but focused on external ratherthan internal factors. This culture value profit , productivity,
competitive advantage and achievement
ClanCulture
Focuses on internal issues and flexibility and discretion rather
than seeking stability and control. It values team spirit,participation, consensus and mutual support
Adhocracy
Focus on External issues and values flexibility. Its values are
adaptability and Innovation
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Characteristics of Quadrants
The categorization is not clear-cut.. All organizationshave some aspects of all four cultures.
An Adhocracy , which is intent on creativity and
flexibility still needs to have Hierarchy values, not to
go out of control. For a Market culture if market andprofitability become dominant compared to individual
and their health. Similarly for Clan culture if
individualism become so important that Orgn. Tasks
becomes secondary.
However over time only one culture tend to pre-
dominant . High performance entails , balancing of
conflicts and demands.
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Orgn. Culture assessment Process
Cameron & Quinn (1999) used questionnaire covering sixitems. The first part of questionnaire cover the existing
culture of the Organization and later part about what
respondents feel about culture to meet future challenges.
Once the present & future profiles of the Organization are
set they can be examined from several angles
1. What type of culture is most heavily emphasized (
What basic assumptions, styles and values are
dominant)2. What discrepancies are there between present & future
profiles ( What measures are needed to close the gap)
3. What is the degree of congruence between individual
responses to the questions (Values & assumptions)
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Orgn. Culture assessment Process
The survey of Desfarde used CV frame work & found that
1. Japanese Co.s fostered hierarchy and clan values and
stressing competition and performance
2. English Co.s fostering adhocracy values also displayedclan values of loyalty & cohesiveness
3. The French Co.s fostered hierarchy values , but
embraced the virtues of entrepreneurship & innovation
associated with adhocracy.
These results confirm the competing nature of frame
work