Change Management Corporate Culture

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Change Management -Written assignment

Trimester 3

GLC-HR-2009-11

Submitted To: Submitted By:

Dr. Saritprabha Das Deepshikha Satayarthi - 40

Edwin Thekakekera - 08

Ketaki - 56

Komal Rathore - 13

Raveena Beniwal - 43

Shailee Mehta - 35

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UNDERSTANDING CORPORATE CULTURE

AND

CHANGE MANAGEMENT


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CONTENTS

Defining Organizational Culture

Defining Corporate Culture

Defining Change Management and the related Models

Dimensions of Corporate Culture

Types of Corporate culture

Role of Senior Management

How Corporate culture can help in bringing about change

ARTICLE : Managing Change: Understanding Corporate Culture( Characteristics

and Benefits)

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Organizational Culture

Organizational culture is an idea in the field of Organizational studies and management

which describes the psychology, attitudes, experiences, beliefs and values (personal and

cultural values) of an organization. It has been defined as "the specific collection of values

and norms that are shared by people and groups in an organization and that control the way

they interact with each other and with stakeholders outside the organization.

According to Charles Handy, there are four types of Organizational Culture:

A Power Culture which concentrates power among a few.

In a Role Culture, people have clearly delegated authorities within a highly defined

structure.

By contrast, in a Task Culture, teams are formed to solve particular problems. Power

derives from expertise as long as a team requires expertise.

A Person Culture exists where all individuals believe themselves superior to the

organization.

According to G. Johnsondescribed a cultural web, identifying a number of elements that

can be used to describe or influence Organizational Culture:

The Paradigm: What the organization is about; what it does; its mission; its values.

Control Systems: The processes in place to monitor what is going on.

Organizational Structures: Reporting lines, hierarchies, and the way that work

flows through the business.

Power Structures: Who makes the decisions, how widely spread is power, and on

what is power based?

Symbols: These include organizational logos and designs, but also extend to symbols

of power such as parking spaces and executive washrooms.

Rituals and Routines:

Stories and Myths: build up about people and events, and convey a message aboutwhat is valued within the organization.

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Corporate Culture

Organizational culture is not the same as corporate culture. It is wider and deeper concepts, something

that an organization 'is' rather than what it 'has'.

Corporate culture is the total sum of the values, customs, traditions and meanings that make a company

unique. Corporate culture is often called "the character of an organization" since it embodies the vision of

the companys founders. The values of a corporate culture influence the ethical standards within acorporation, as well as managerial behavior.

Change Management and related Models

Change is an inevitable part of life. As time passes changes happen. Organizations need

to change with time. Globalization and competition are the two main drivers of change

in organization. The process of bringing about change in the organization is known as

change management.

Change Management is an approach that is structured to make change in the

individual , team , society and organization form its current state to the desired state.

There are four main types of organizational change:

Planned Change: Change that is intentional and goal oriented

Unplanned Change: Change that takes place without pre planning or preparation and is

accidental

First order Change: Also known as transactional change , here the change is in some

particular features of the organization but the fundamental structure and process of theorganisational remain the same. E.g. Organisation Climate

Second Order Change: This change is also known as transformational change. Here,

the nature of the organization is substantially and fundamentally changed or altered.

Organisation / Corporate Culture.

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Kurt Lewin Is The Father Of Change Management.

He has given the following model of change:

Kotters 8 Step Change Model

Dimensions of Corporate culture

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UNFREEZE MOVE REFREEZE


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Corporate culture is shaped by the following:

Types of Corporate Culture

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Incubator

organizations secondary to

individual fulfillment

existence precedes

organization

aim at self-expression and

self-fulfillment

personal and egalitarian

minimal structure; minimal

hierarchy

emotional commitment

creative, innovative

Guided Missile

highly Egalitarian

task-oriented, impersonal

team approach emphasized

cross-disciplinary

performance emphasized

loyalty to professions /

project greater than to

company

Motivation intrinsic

Family

personal, close face-to-face

Eiffel Tower

hierarchal

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relationship

hierarchal ("father knows

best")

power-oriented (leader is

fatherly figure)

home-like work atmosphere

long-term relationships of

employee to company; high

loyalty

values, norms, atmosphere

set by father" or "elder

brother"

structure more important than

function

leader is boss (not father)

relationships specific; status

ascribed

highly bureaucratic,

depersonalized

rules dominate; roles before

people

careers depend upon

professional qualifications

symbolic of machine age

Senior management may try to determine a corporate culture .

Every organization has its own unique culture or value set. Most organizations don't consciously try

to create a certain culture. The culture of the organization is typically created unconsciously, based

on the values of the top management or the founders of an organization.

The importance of corporate culture is growing as the result of several recent developments.

Companies are encouraging employees to be more responsible and act and think like owners. Inexchange for more flexible work schedules, employees are expected to always be "on-call."

With the demise of more traditional communities (e.g. neighborhoods, etc.), companies are filling

employees' need to belong to a community. At the same time companies are encouraging teamworkand the formation of teams.

Culture plays a vital role. Leaders must learn to harness the positive aspects of a culture in the

change efforts. Culture is much like the water in an aquarium. While it is largely invisible, itschemistry and life-supporting qualities profoundly affect its inhabitants.

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http://en.wikipedia.org/wiki/Senior_managementhttp://en.wikipedia.org/wiki/Senior_management


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An organization requiring transformation is like an aquarium polluted by too many algae, and

requires restoration. Leaders effecting an organizational transformation must understand the vitalrole that corporate culture plays in any change efforts.

The biggest problem with such a task is that the most powerful individuals stand to lose the most. Often,

they will resist the changes necessary to move ahead in order to avoid losing power.

Resistance to change

Even though change is an inevitable part of life , most people are resistant to change. The reasons for thesame are as follows:

Individual Factors Group Factors

Corporate Culture and Change Management

.

Corporate culture can help in bringing about change in the following ways:

Provide the key to mastering change. - Corporate culture is an ever-evolving process and invariably it is

a part of change that takes place in an organization. Corporate culture if implemented properly will help inMastering change so that whatever the change may be, it can be incorporated into the organization without

creating any huge difficulties / neglect from employees.

Build new standards of communication that get better results - Agreement on beliefs and valuesfacilitates communication. If Management wants to connect with all of their staff, they need to combine

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three styles of effective communication: emotional, factual, and symbolic. These can be built into the

corporate culture, thus making it a part of the organization itself.

Create greater customer satisfaction - Customer satisfaction has become the most important aspect ofany service industry; corporate culture can help you by preparing you to give the customer what they must

have i.e. build a communication that allows your people to succeed and increase the speed and value of

organizational learning.

Cooperation between employees - Shared values may enhance goodwill and mutual trust, encouraging

cooperation. This will help in any new implementation, as there would be a coordinated and collective

effort from all.

Decision-making - Shared beliefs and values lead to more efficient decision making since there are fewerdisagreements about which premises should prevail.

Employee Commitment - Strong cultures foster strong identification and feelings through beliefs and

values the employee can share with others. This would help the company accommodate change or

implement anything new keeping in mind that they have a set of committed employees. Therefore they

need not worry about attrition as a result of any change that may be implemented.

Corporate behavior - Culture helps organization members make sense of their behavior by providing

justification for it. This would enable a smooth implementation of any change that might be proposed.

In the end we need to keep in mind that corporate culture could be used as a perfectly crafted tool toimplement any change. A good corporate culture will by all means help in change and a perfect

implementation would fasten and ease the change implementation that is required.

So, while practice may never make perfect when it comes to organizational change, understanding and

managing corporate culture can influence the final outcome of your change efforts.

ARTICLE: Managing Change: Understanding Corporate Culture

(A Nutshell Description of Corporate Culture and Change)

Many organisations today are hard pressed to change as they are driven by a strong need tochange through this digital and the K-economy era. There is no alternative. They have to

change to enable their organisations to compete and survive. However, many CE0s are

unhappy because many of the changes implemented are not sustainable.

The scenario sounds too familiar. An organisation suddenly realizes the need to change due

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to external pressure of competition. It decides to take a quick and simple way, i.e. undertake

training for staff to improve their competency and motivation. Their staff members are sent

off to a nice resort for a couple of days where they brainstorm issues, develop strategies to

resolve problems, build team spirit and nurture a sense of camaraderie. When the staff

members come back, they are all charged up for two weeks and then the enthusiasm

subsides and everyone goes about doing things the old beaten way. The issues are still there.

The result is that there is no iota of change happening. It is likewise with the

implementation of change initiatives, be they TQM or business process reengineering or the

GRID management approach all started well but have not ended up well.

As a consultant, I have been posed the most common question from CEOS: How do you

sustain a change initiative and the enthusiasm for continuous improvement?

There is one great strategic flaw in the way most organisations go about implementing

change. They go about managing change in a superficial manner through merely changingthe structure, process, strategy and technology without addressing the fundamentals that

drive the organisation. And these fundamentals are the components that influence and guide

the behaviour of people in organisations. It is these very basic components that make up the

corporate culture of an organisation. Unless an organisation takes time to shape its corporate

culture to the desired change, the effort and results will not be sustainable.

Corporate culture is the way people do things in an organisation. It is a set of norms

comprising of beliefs, attitudes, core values and behavioural patterns shared by people in an

organisation.

It is these shared beliefs, core values and patterns of behaviour which influence the

performance of an organisation. Beliefs are the assumptions or perceptions about things,

which people and the organisation as a whole take as true or valid. For example, an

organisation may have a shared belief about the great potential of its people. Core values are

the primary or dominant values that are accepted throughout the organisation, e.g. the core

value of respect. A pattern of behaviour is the way people act towards one another. Forinstance, an organisation that has the belief in the potential of its people and has the core

value of respect will have the desired pattern of behaviour of treating people well.

KL Strategic Change Consulting Group, in its consulting work with over 250 Asian

organisations, has found that the corporate cultures of Asian organisations play a significant

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role in determining the capability and speed of leading change within the organisations as

well as in the industry. Thus corporate culture is important as it will determine whether or

not an organisation survives in the face of changes, turbulence and challenges in the

environment. The model developed by KL Strategic Change Consulting shows a direct

correlation in how an organisation's beliefs and assumptions influence the core values,

which in turn shape the behaviour of people. And it is this behaviour pattern that ultimately

affects the performance of an organisation.

Characteristics of Corporate Culture

How does one go about specifically to describe the corporate culture of an organisation?

There are certain characteristics that an organisation values, which distinguish it from other

organisations. It is this set of characteristics that provide a start for describing the corporate

culture of an organisation. Overall, organisation behaviour experts can agree that there are

about 10 characteristics which collectively provide insights into the essence of the culture of

an organisation. The following are the 10 differential characteristics:

1. Individual initiative: the degree of responsibility, freedom and independence that

individuals have

2. Risk tolerance: the degree to which employees are encouraged to be aggressive,

innovative and risk-taking

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3. Direction: the degree to which the organisation creates clear objectives and

performance expectations

4. Integration: the degree to which the units within the organisation are encouraged to

operate in a coordinated manner

5. Management support: the degree to which managers provide clear communication,assistance and support to their subordinates

6. Control: the number of rules and regulations, and the amount of direct supervision

that is used to oversee and control employee behaviour

7. Identity: the degree to which members identify with the organisation as a whole

rather than with their particular work group or field of professional expertise

8. Reward system: the degree to which reward allocations (i.e. salary increase and

promotions) are based on employee performance in contrast to seniority, favouritism

and so on

9. Conflict tolerance: the degree to which employees are encouraged to air conflicts

and criticisms openly

10.Communication patterns: the degree to which organisational communications are

restricted to the formal hierarchy of authority

To understand the corporate culture of an organisation, employees are invited to participate inrating these characteristics on a continuum from low to high that corresponds with a scale

from 1 to 10. By collating the input from a representative sample of employees, a composite

picture of the organisation culture can then be determined. This description will provide a

good starting point for employees to develop a common understanding about the

organisation, the way things are done and how people are supposed to behave.

The Benefits of Corporate Culture

How does corporate culture help an organisation? What benefits can an organisation derive

from developing a strong and conducive corporate culture? In our corporate culture work,

we have found that our clients benefited in the following ways:

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It helps align the company towards achieving its vision, mission and goals.

It increases the team cohesiveness of various departments, divisions or units within

an organisation as its corporate culture serves as the 'glue' that bonds people together.

It shapes the behaviour of staff at work by encouraging the assimilation of core

values and the desired behaviour, thereby enabling the organisation to be more

effective and efficient.

A common culture promotes consistency, resolves conflict and facilitates

coordination and control.

It increases staff motivation through a sense of belonging, loyalty and common

beliefs and values, which encourage them to think positively of themselves and their

organisations.

A strong culture enables an organisation to pull all its people together and maximisetheir potential; this certainly provides a competitive edge.

A study of 200 companies by Harvard Business School researchers John Kotter and James

Heskett found that corporate culture has a strong impact on the performance of

organisations. This landmark study provides four significant conclusions as follows:

Corporate culture can have a significant impact on a firm's long-term economic

performance.

Corporate culture will probably be an even more critical factor in determining thesuccess or failure of firms in this new millennium.

Corporate cultures that inhibit strong long-term financial performance are not rare;

they develop easily, even in firms that are full of reasonable and intelligent people.

Although difficult to change, corporate cultures can be made more performance

enhancing.

A company with a strong positive culture will motivate people to continue growing, learning

and improving. Research has shown that employees have higher motivation and satisfaction

working in organisations which are well managed with managers and employees who

practise sound principles, common beliefs and shared values.

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Thus it can be seen that to enable change initiatives and the enthusiasm for continuous

improvement to be sustained, organisations need to develop a conducive corporate culture

to support such efforts. They need to inculcate beliefs, assumptions and core values that

shape behaviour towards the desired results. To do this requires more than just simply

instituting a performance management system. It requires a mindset change of the way

people create their own identities, make sense of their working lives and find meaning from

their work. And that is going to the core of fundamental change the change in corporate

culture.

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Change Management Corporate Culture

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