organizational culture and managing resistance july 2007

Organizational Culture and Managing Resistance

July 2007July 2007

July 2007Organizational Culture and

Managing Resistance 2

“When the rate of change outside exceeds the rate of change inside, the end is in sight”

Jack Welch, Chairman / CEOGeneral Electric Co



The IssuesThe Issues

Culture and its functions The strength & health of a cultureCulture elements and role of each element Forces and pressures for changeResistance to change (reasons and type of resistants)The Change equation Managing Change



Organizational Culture

Culture: The set of values, guiding beliefs, understandings, ways of thinking, and norms shared by members of an organizationFunctions of culture

Internal integrationExternal adaptation



Culture:Internal Integration

Determines how members relate to one anotherConstitutes a collective perspective of organization members (values, beliefs, norms)Shared by most members of the organizationSystematically "passed along" to new membersShapes members' views of the organization and its purposeShapes members' views of the job and its purpose Cont.



Culture: Internal Integration (Cont.)

Provides sense of identity for membersGuides and controls behaviorEnhances internal cooperationGuides decision-makingEnhances commitmentProvides justification for behaviorAllows anticipation of actions of others



Culture:External Adaptation

Influences how organization meets goals and deals with outsidersInfluences perceptions of the organization by outsidersGuides and controls behavior with/of outsidersShapes expectations of outsiders



The Strength of Culture

Depth: The degree of agreement among members about the importance of specific cultural values, beliefs, norms (i.e., how many people agree & how strongly)

Breadth: The number of cultural elements (values, beliefs, norms) on which there is agreement



The Health of a Culture

The healthy culture helps the organization adapt to the external environment

The unhealthy culture can drive the organization in the wrong direction and thus be dysfunctional



Cultural Elements

Hidden Elements

Visible Elements

Question: Does the hidden manifest in the visible?Question: Does the visible inform the hidden?



Hidden Elements

Values about what is importantAssumptions & beliefs about what is trueAttitudes toward others and issuesNorms about appropriate & inappropriate behavior

Visible Elements

Rituals and

ceremonies

Symbols

Language & Slogans

Heroes Stories

Language and Slogans

Intended to convey cultural meaning to employees and/or stakeholdersEasy to pick up, remember, & repeat

Quality is Job 1WorkSmarterNot Harder

الشعب خدمة فى الشعب الشرطة خدمة فى الشرطة

SymbolsThings that stand for something elseMaterial objects that hold cultural meaning

OPEN



Rituals and CeremoniesRituals and Ceremonies

Celebrations of an organization’s valuesProvide dramatic examples of culture



Heroes

Company role models whose ideals, character, and support of the organizational culture highlight the values and norms a company wishes to reinforce

Our Founder



Stories, Legends, & Myths

Narrative examples repeated among employees to inform (often new) employees about cultureStories: based on factLegends: based on facts but embellishedMyths: consistent with culture but not based on fact



Forces for change

PeoplePeople TechnologyTechnology

CompetitionCompetition

Information Information Processing & Processing &

CommunicatioCommunicationn

Increasing diversity in age, education, ethnicity, and background.

Manufacturing in space, internet, artificial intelligence

Increasing globalization of markets

Computer, satellite communications, video conferencing



Pressures for Organization Change



Resistance to Change

No matter how well designed and planned your change program is, not everyone will be singing its praises

Employees resist change for a wide variety of reasons, ranging from a straightforward intellectual disagreement over facts to deep-seated psychological prejudices.



Reasons of Resistance

Ignorance: a failure to understand the situation or the problemMistrust: motives for change are considered suspiciousDisbelief: a feeling that the way forward will not work“Power-Cut”: a fear that sources of influence and control will be eroded.



Loss: change has unacceptable personal costsInadequacy: the benefits from the change are not seen as sufficientAnxiety: fear of being unable to cope with the new situation.Comparison: the way forward is disliked because an alternative is preferredDemolition: change threatens the destruction of existing social networks.

Reasons of Resistance (cont.)



Types of Reactants to Change

1.Enthusiasts 2.Followers 3.Objectors 4.Underground



Types of Reactants to Change (cont.)(1) Enthusiasts • Are intrinsically wedded to the change idea. • They may agree dispassionately that the change will be of benefit to the organization• They may stand to receive some personal gain from the change• Enthusiasts will use opportunities to broadcast approval for the change • They will try to convince others of its merits.•They will also model the new behavior early and will volunteer for membership of teams. •These early adopters may also make good choices as trainers and coaches during the implementation process.



(2) Followers Range from those that are generally compliant, wishing to take the path of least resistance, to those that are initially reserved to adapt.But eventually they adapt once they accept the inevitability of the change. These change recipients will do what is required, but no more.

Types of Reactants to Change (cont.)



(3) Objectors will display their resistance to change whenever the opportunity arises. They may disrupt meetings, not attend training, take unapproved leave and refuse to carry out instructions.Objectors will continue to use superseded systems and processes when others are taking up the new ways of doing things. They are not averse to arguing with managers and fellow workers and will try to convince others to continue with the old ways. In a unionized environment, resistance can take the form of strikes, lockouts, “work to rule”, legal challenges and boycotts.




(4) Underground

Change recipients working for the underground have solid motivations for not making their resistance public.

They may fear direct punishment, such as termination or fines, or more personal costs, such as ridicule or loss of status and authority.

Managers who are against the change but need to be seen to be in support of it are prime candidates for promoting underground resistance.

This style of resistance is, by its nature, always covert and can take many forms ; such as falsifying reports, inputting incorrect data, stealing, damaging infrastructure and equipment, using sarcasm, spreading rumors, excessive absences, shoddy work and “go slow”.




The Theory of 30 – 40- 30

30%30% 40% 40% 30% 30%

Enthusiasts FollowersObjectors & Underground



The Theory of 30 – 40- 30

70%70% 30% 30%

Enthusiasts

Objectors & Underground



A The individual, group or organisation level of dissatisfaction with the status quo

B A clear and shared picture of a better future - how things could be

C The capacity of individuals, groups and the organisation to change (orientation, competence and skill)

D Acceptable and “do-able” first action steps

E The cost (financial, time, “aggro”) of making the change to individuals, groups and the organisation.

THE CHANGE EQUATION:

FACTORS NECESSARY FOR EFFECTIVE CHANGE



A + B + C + Dmust be greater than E

The Change Equation



B + C +D means that the urgent will drive out the important and change will go to the “bottom of the in-tray”.

The Change Equation: When Elements Are Missing

Missing A The individual, group or organisation

level of dissatisfaction with the status quo



A + B + D means that with no investment to improve change management capacity,

anxiety and frustration will result.

The Change Equation: When Elements Are Missing

MissingC The capacity of individuals, groups and

the organisation to change (orientation, competence and skill)



The Change Equation: When Elements Are MissingA + B + C means that the change effort

will be haphazard and there will be a succession of false-starts.

MissingD Acceptable and “do-able” first action

steps



10 Commandments for Managing Change1. Analyze organization and its need for change 2. Create shared vision and common direction 3. Separate from past 4. Create sense of urgency 5. Support strong leader role 6. Line up political sponsorship7. Craft an implementation plan 8. Develop enabling structure 9. Communicate, involve people, and be honest 10.Reinforce and institutionalize change

A 4-Stage Process For Dealing With Resistance

1.Consider Different People2.Work With Values and Beliefs3.Understand and Relate to

Needs and Problems4.Tailor Your Message to Your

Audience.

1. Consider Different People

• Identify the “adopters” - the staff the change will affect

• Identify key professional and organisational groups

• Identify crucial opinion-leaders in the organisation.

2. Work With Values and Beliefs

• Assess what’s important to people with regard to the change at personal, professional and organisational levels

• Understand and relate to what people consider important.

3. Understand and Relate To Needs and Problems

• For all key players, assess “What’s in it for Me?”

• Don’t be too precious about the detail of the approach proposed

• Understand people’s problems and needs from different perspectives.

4. Tailor Your Message To Your Audience• Do “homework” - get to know

what’s important to individuals and groups

• Keep the message as simple as possible

• Use case studies and examples to show benefits

• Highlight multiple pay-offs from change

• Use both informal & formal communication.



Great Minds discuss ideas,Average minds discuss

events Small minds discuss people

Admiral Hymn Rickover



References References http://www.thedelphigroup.com/change.htmlhttp://www.ericdigests.org/2003-1/culture.htmhttp://gbr.pepperdine.edu/051/resistance.html#_edn3http://www.lotsofessays.com/viewpaper/1691941.htmlhttp://www.ra-gotessays.com/paper/27707/gotessays/managing_organizational_culture.htmlhttp://www.newfoundations.com/OrgTheory/Bolognese721.htmlhttp://www.orgdct.com/mergers_and_organizational_cultu.htmhttp://www.change-management.com/tutorial-change-leadership-mod3a.htmhttp://www.businessperform.com/html/resistance_to_change.html

organizational culture and managing resistance july 2007

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