Organizational

culture, change and

Principles of

Management,

Dr Anugamini Priya

Symbiosis Institute of Business Management

‘Culture’

“A pattern of shared basic assumptions that the group learned as it

solved its problems that has worked well enough to be considered

valid and is passed on to new members as the correct way to

perceive, think, and feel in relation to those problems.

-- Edgar Schein

• A common perception held by the organization’s members; a

system of shared meaning.

• A set of values and beliefs that is unique to any one organization.

16–3

What Is Organizational Culture? (cont’d)

Culture Versus Formalization

A strong culture increases behavioral consistency and can act as a

substitute for formalization.

Organizational Culture Versus National Culture

National culture has a greater impact on employees than does their

organization’s culture.

Nationals selected to work for foreign companies may be atypical of the

local/native population.

Key Characteristics of Corporate 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 exhibit precision,

analysis and attention to detail.

Outcome Orientation: The degree to which management focuses on results or outcomes

rather than on the techniques and processes used to achieve those outcomes.

Contd..

People Orientation: The degree to which management decisions are take

into consideration and the effect of outcomes on people within the

organization.

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 easy going

Stability: The degree to which organizational activities emphasize

maintaining the status quo in contrast to growth.

Functions of organizational culture

Defines the boundary between one organization and others.

Conveys a sense of identity for its members.

Facilitates the generation of commitment to something larger than self-interest.

Enhances the stability of the social system.

Serves as a sense-making and control mechanism for fitting employees in the

organization and for shaping behavior

Helps organizational members attribute sense and meaning to organizational

events, and reinforces the values in the organization.

16–6

16–7

Do Organizations Have Uniform Cultures?

Dominant Culture

Expresses the core values that are shared by a

majority of the organization’s members.

Subcultures

Mini cultures within an organization, typically

defined by department designations and

geographical separation.

16–8

Do Organizations Have Uniform Cultures? (cont’d)

Core Values

The primary or dominant values that are accepted throughout the

organization.

Strong Culture

A culture in which the core values are

intensely held and widely shared.

Layers of organizational culture

Typical organizational Behaviors-

artifacts

• Form the most observable level of culture

• Consist of behavior patterns and outward manifestations of

culture, such as perks provided to executives, dress codes, the

level of technology utilized (and where it is utilized), and the

physical layout of work spaces.

• Some notable characteristic behaviors may have considerable

longevity – such as rites, ceremonies, organizational myths, and

“shop talk.”

https://www.artsfwd.org/3-levels-of-organizational-culture/

Practices

Practices are observable cultural customs such as taboos (culturally

forbidden behaviours) and ceremonies

Personal Enactment: behavior that reflects the organization's values.

Ceremonies and Rites : Ceremonies can be divided into organizational

rites, including rites of passage, rites of enhancement, rites of renewal

etc. - sets of activities that are enacted repeatedly on important

occasions.

Contd..

Stories : rich carriers of organizational culture that give meaning

and identity to organizations and help orient new employees.

There are stories about the boss, stories about getting fired or

whether lower-level employees can rise to the top or how the

company deals with crisis situations etc.

Rituals: Everyday practices that are repeated frequently are

known as rituals. Typically unwritten, rituals send a clear message

about the way things are done in an organization.

Symbols

A symbols is any visible object, act, or event that conveys

meaning to others.

Symbols communicate the culture through unspoken messages,

and include company logos, company colors, and even mental

images held by employees.

Examples:

Dress

Office layout

Slogans

ceremonies

Language

Language is a shared system of vocal sounds, written signs,

and/or gestures used to convey meaning among members of a

culture.

The Nike swoosh was inspired by the Greek

goddess Nike, the winged goddess of victory.

The swoosh symbolizes her flight. It conveys the

meaning of a brand of sports shoes

Values

https://www.artsfwd.org/3-levels-of-organizational-culture/

Values are the basic beliefs

people hold that specify

general preferences and

behaviours, and define what is

right and wrong.

Organizational values are

frequently expressed through

norms–characteristic attitudes

and accepted behaviors that

might be called “the unwritten

rules of the road”

Cultural values are

reflected in a society’s

morals, customs and

established practices

Norms are rules that

govern behaviours of

groups of people.

Forms of values

An espoused value is what organizational members say they

value, like ethical practice.

Enacted values are values reflected in the way individuals

actually behave, and may differ from espoused values.

Fundamental Assumptions

• An organization’s underlying assumptions grow out of values,

until they become taken for granted and drop out of awareness.

• Shared assumptions are the thoughts and feelings that members

of a culture take for granted and believe to be true.

https://www.artsfwd.org/3-levels-of-organizational-culture/

Types of organizational culture

Formal Control

Orientation

Forms of Attention

Flexible

Stable

Internal External

Clan

Culture

Bureaucratic

Culture

Market

Culture

Entrepreneurial

Culture

Source: Adapted from Hooijberg, R., and Petrock, F. On cultural change: Using the competing values framework to help

leaders execute a transformational strategy. Human Resource Management, 1993, 32, 29-50; Quinn, R. E. Beyond Rational

Management: Mastering the Paradoxes and Competing Demands of High Performance. San Francisco: Jossey-Bass, 1988.

Bureaucratic Culture

In this type of culture the behaviour of employees is governed by

formal rules and standard operating procedures.

Such a culture perpetuates stability.

Organizations with bureaucratic culture tend to produce

standardized goods and services, examples:

Government ministries

Fast food establishments

Clan Culture

In a clan culture the behaviour of individuals are shaped by

tradition, loyalty, personal commitment, extensive socialization

and self-management.

A clan culture achieve unity through socialization.

Long-term employees serve as mentors

Members are aware of the organization’s history and have an

understanding of the expected manner of conduct and

organizational style.

Members share feelings of pride in membership.

Peer pressure to adhere to important norms is strong

Market Culture

In a market culture, the values and norms reflect the significance

of achieving measurable and demanding goals mainly concerning

those that are financial and market based.

Companies with a market culture tend to focus on Sales growth;

Profitability & Market share

In a market culture the relationship between individuals and the

organization is contractual (previously agreed).

Individuals are responsible for their performance; whereas the

organization promises specific rewards for levels of performance.

Managers are not judge on their effectiveness as role models or

mentors; but on monthly, quarterly, and annual performance goals

based on profit.

Entrepreneurial Culture

Organizations existing in the

context of an entrepreneurial

culture are characterized by

high levels of risk taking

and creativity.

There is a commitment to

experimentation, innovation,

and being on the leading

edge.

Steve Jobs – Apple

Socialization

Socialization is the process by which people lean valves, norms, behaviours

and social skills. It is the means by which new members are brought into a

culture.

Step 1

• Careful selection

Step 2

• Challenging early work assignments

Step 3

• Training to develop capabilities with culture

Step 4

• Reward and sustain culture

Step 5

• Adoption of cultural value policies

Step 6

• Reinforce culture with ritual, stories rites

Step 7

• Role model to sustain culture

16–25

A Socialization Model

E X H I B I T

16–2

16–26

Stages in the Socialization Process

Prearrival Stage

The period of learning in the socialization process that occurs before a new employee joins the organization.

Metamorphosis Stage

The stage in the socialization process in which a new employee changes and adjusts to the work, work group, and organization.

Encounter Stage

The stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge.

Successful socialization is

reflected in

Unsuccessful socialization is

reflected in

Job satisfaction

Role clarity

High work motivation

Understanding of culture, perceived control

High job involvement

Commitment to organization

Tenure

High performance

Internalized values

Job dissatisfaction

Role ambiguity and conflict

Low work motivation

Misunderstanding, tension, perceived lack of control

Low job involvement

Lack of commitment to organization

Absenteeism, turnover

Low performance

Rejection of values

Possible Outcomes of the Socialization

Process

16–28

How Organization Cultures Form

16–29

Creating An Ethical Organizational

Culture

Characteristics of Organizations that Develop High Ethical Standards

High tolerance for risk

Low to moderate in aggressiveness

Focus on means as well as outcomes

Managerial Practices Promoting an Ethical Culture

Being a visible role model.

Communicating ethical expectations.

Providing ethical training.

Rewarding ethical acts and punishing unethical ones.

Providing protective mechanisms.

16–30

Creating a Customer-Responsive Culture

Key Variables Shaping Customer-Responsive Cultures

1. The types of employees hired by the organization.

2. Low formalization: the freedom to meet customer service requirements.

3. Empowering employees with decision-making discretion to please the

customer.

4. Good listening skills to understand customer messages.

5. Role clarity that allows service employees to act as “boundary spanners.”

6. Employees who engage in organizational citizenship behaviors.

Creating a Customer-Responsive Culture (cont’d)

Managerial Actions :

• Select new employees with personality and attitudes consistent

with high service orientation.

• Train and socialize current employees to be more customer

focused.

• Change organizational structure to give employees more control.

• Empower employees to make decision about their jobs.

16–31

Creating a Customer-Responsive Culture (cont’d)

Managerial Actions (cont’d) :

• Lead by conveying a customer-focused vision and demonstrating

commitment to customers.

• Conduct performance appraisals based on customer-focused

employee behaviors.

• Provide ongoing recognition for employees who make special

efforts to please customers.

16–32

16–33

Spirituality and Organizational Culture

Workplace Spirituality

The recognition that people have an inner life that nourishes and is nourished by

meaningful work that takes place in the context of the community.

Characteristics:

• Strong sense of purpose

• Focus on individual development

• Trust and openness

• Employee empowerment

• Toleration of employee expression

16–34

Reasons for the Growing Interest in

Spirituality

As a counterbalance to the pressures and stress of a turbulent pace of

life and the lack of community many people feel and their increased

need for involvement and connection.

Formalized religion hasn’t worked for many people.

Job demands have made the workplace dominant in many people’s

lives, yet they continue to question the meaning of work.

The desire to integrate personal life values with one’s professional life.

An increasing number of people are finding that the pursuit of more

material acquisitions leaves them unfulfilled.

36

Hofstede Model

Power distance

Uncertainty avoidance

Individualism vs. Collectivism

Masculinity vs. Femininity

Long vs. Short term orientation

16–38

How Organizational Cultures Have an Impact on

Performance and Satisfaction

Change management

Change Management

• George Box- "essentially, all models are wrong, but some are useful”

• Organizational change management (OCM) is a structured approach

in an organization for ensuring that changes are smoothly and

successfully implemented, and that the lasting benefits of change are

achieved.

• That is easier said than done.

• The complexity and unpredictability of human behavior will ensure

that the field of change management will continuously produce more

frameworks to study and more models to adopt.

Kotter’s Eights Steps to Change

Benefits

1. Focus on buy-in of employees as the focus for

success

2. Clear steps which can give a guidance for the

process

3. Fits well into the culture of classical

hierarchies

Limitations

1. The model is clearly top-down, it gives no

room for co-creation or other forms of true

participation.

2. Can lead to frustrations among employees

if the stages of grief and individual needs

are not taken into consideration.

Establish a Sense of Urgency

Form a powerful, guiding coalition

Develop a vision & Strategy

Communicate the vision

Remove Obstacles &

empower action

Plan and create short-term wins

Consolidate gains

Anchor in the culture

More at :http://www.kotterinternational.com/our-principles/changesteps/changesteps

Bridge’s Transition Model

Benefits

1. You can use the model to understand how

people feel as you guide them through

change. It clarifies the psychological effect of

change.

Limitations

1. While the model is useful for implementing

change, it's not a substitute for other

change management approaches. It cant be

used as an independent change

management model.

Bridges(1991)- what is going on when an organizational change

takes place - differentiates between change and transition,

according to him.

Change is a situational and happens without people transitioning

and transition is psychological and is a three phase process

where people gradually accept the details of the new situation

and the changes that come with it.

ENDING NEUTRAL ZONE NEW BEGINNING

End what ‘used to be’; identify

who is losing what, openly

acknowledge the loss, mark the

endings and continuously repeat

information about what is

changing and why.

Individuals within the

organization feel disoriented

with falling motivation and

increasing anxiety. Ensure that

people recognize the neutral

zone and treat it as part of the

organization's change process.

Gain acceptance of the purpose;

Communicate a picture of how

the new organization will look

and feel ; Communicate and gain

a step-by-step understanding of

how the organization will change

More at : http://www.mindtools.com/pages/article/bridges-transition-model.htm

Roger’s Technology Adoption Curve

Benefits

1. Helps in creating an understanding of the

audience for change.

2. Provides inputs to identify opinion makers and

influencers.

Limitations

1. People need not fall into one Change Adoption

Category; they drift from category to category

depending on the specific change/innovation.

2. The adoption terms are accurate only in hindsight;

they tell you nothing about how a population might

respond to a change/innovation.

Based on the theory of diffusion of innovation(1962),

Describes the adoption or acceptance of a new product or

innovation, according to the demographic and psychological

characteristics of defined adopter groups.

Illustrated as a classical normal distribution or "bell curve.“

The curve creates the foundation of 5 step process of technology

adoption- Knowledge, Persuasion, Decision, Implementation,

Confirmation

More at : http://en.wikipedia.org/wiki/Diffusion_of_innovations

Kubler- Ross Five Stage Model

The Change Curve

Benefits

1. An individual’s reaction to change is well

captured, this forms a good foundation to

develop communication strategy

Limitations

1. Not all change is bad. This model assumes

the worst reaction to change.

2. It is difficult to identify the transition

between stages.

3. Difficult to apply to a group

1960s by Elisabeth Kubler-Ross to

explain the grieving process.

She proposed that a terminally ill

patient would progress through 5

stages of grief when informed of

their illness.

The curve, and its associated

emotions, can be used to predict how

performance is likely to be affected

by the announcement and subsequent

implementation of a significant

change.

More at :

http://www.exeter.ac.uk/media/universityofexeter/humanresources/documents/learningdevelopment/the_change_curve.pdf

Prosci’s ADKAR Model

Benefits

1. It encapsulates the business/process

dimension of change and the individual

dimension of change

2. Provides a clear management checklist to

manage change

Limitations

1. Misses out on the role of Leadership and

principles of programme management to

create clarity and provide direction to

chnage

ADKAR is a goal-oriented change management model

that allows change management teams to focus their

activities on specific business results.

The model was initially used as a tool for determining if

change management activities like communications and

training were having the desired results during

organizational change.

More at : http://www.change-management.com/tutorial-adkar-overview.htm