cultural change in organization

7/28/2019 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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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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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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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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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

cultural change in organization

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