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Organisational culture and change management

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Explains the aspects of organisational culture and change and how change can be managed in an organization.

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Organisational culture and change management

  1. 1. Organizational culture, change and Principles of Management, Dr Anugamini Priya Symbiosis Institute of Business Management
  2. 2. ‘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.
  3. 3. 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.
  4. 4. 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.
  5. 5. 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.
  6. 6. 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
  7. 7. 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.
  8. 8. 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.
  9. 9. Layers of organizational culture
  10. 10. 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/
  11. 11. 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.
  12. 12. 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.
  13. 13. 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
  14. 14. 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
  15. 15. 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.
  16. 16. 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.
  17. 17. 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/
  18. 18. 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.
  19. 19. 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
  20. 20. 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
  21. 21. 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.
  22. 22. 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
  23. 23. 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 capabilitie s 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
  24. 24. 16–25 A Socialization Model E X H I B I T 16–2
  25. 25. 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.
  26. 26. 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
  27. 27. 16–28 How Organization Cultures Form
  28. 28. 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.
  29. 29. 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.
  30. 30. 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
  31. 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
  32. 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
  33. 33. 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.
  34. 34. 36 Hofstede Model  Power distance  Uncertainty avoidance  Individualism vs. Collectivism  Masculinity vs. Femininity  Long vs. Short term orientation
  35. 35. 16–38 How Organizational Cultures Have an Impact on Performance and Satisfaction
  36. 36. Change management
  37. 37. 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.
  38. 38. 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
  39. 39. 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
  40. 40. 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
  41. 41. 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
  42. 42. 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
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Explains the aspects of organisational culture and change and how change can be managed in an organization.


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