Cultural Change in Organization

Dr. B. D. Tripathi

Organizational Change as Cultural Process

External factors Rapid technological changes, Change in industries & markets, New National & International business policies based on Global economy, Increased competition Internal Factors Behavioral practices, structures, Culture The Process of change - Shift Vs. Transform In 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 are defined more in terms of affiliation, , the relationship they have with others. The past state of affairs undergo gradual transformation, so as to become new state of affairs

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

Growth States , functions & Mechanism of change

Growth stage Birth & early growth Founder/family domination Succession Phase Functions of Culture 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 Culture as battle ground between conservatives and liberals Potential successor are seen as preservers or changer of culture elements

Change mechanism

1.Natural Evolution, 2. Self guided evolution through Orgn. Therapy, 3.Managed evolution through Hybrids 4. Managed revolution through outsiders Organizations Mid-life Cultural integration are declines as sub-cultures are Expansion of spawned product/market Loss of goals, values and assumptions create crisis identity Vertical Integration Opportunity to manage direction of cultural change is Geographical Expansion provided Acquisition & mergers

Growth States , functions & Mechanism of change

Growth stage Change mechanism Functions of Culture 5.Planned change and Orgn. Development, 6.Technolo gical seduction, 7.Change through scandals , explosion of myths, 8. Incrementalism

Organizational Culture becomes a constraint on innovation maturity Culture preserves the glories of the past, hence is valued as Maturity or decline of a source of self-esteem , defense markets Increasing internal stability & or stagnation Lack of motivation to change
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 to evolve

Growth States , functions & Mechanism of change

Growth stage Destruction Options Bankruptcy and reorganization Takeover and reorganization Merger and assimilation Change mechanism Functions of Culture Culture changes at fundamental levels Culture changes through massive replacement of people

9. Coercive persuasion 10. Turnaround 11.Reorganization, destruction, rebirth

Can Culture really change ?

Deal end Kennedy (2000) analyzed & reflected the belief that it is difficult to change the culture particularly in Scheins terms at mid life or maturity stage. Culture developed from beginning, developed along with Organization & passed from generation to generation will be difficult to change and involves all kinds of relations between individual & groups. If the external factors have strong influence on the organizational culture, the values, belief and behaviours that employees bring, there are chances of change, provided external environment changes in line with the desired changes If Org. culture is seen as dependent on internal factors and internal requirements such as choice of technology , particular strategy pursued and activities being under-taken , it is believed that culture can be directed and changed

Can Culture really change ?

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 how best the orgn. Know itself and the environment in which it operates. Higher the degree of awareness, better it can be interpret and dealt.

Can Culture really change ?

Schein (2004) advocates and further suggests that the members of organization should examine corporate culture together and assess main assumptions. Some of these need to be abandoned or re-defined so that members involved can help decide the way the orgn. need to evolve, where leader may play key role in development of as self guided evolution and managing the process A certain degree of culture change is always necessary. Bringing few unconscious values and norms to the surface and redefining them may lead to anxiety among people involved feel, that their sense of identity and integrity is threatened. The role of leader as transformational leader provide that reassurance through communication a vision of things should be and the future will be 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.

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 from where and how to start and the outset of transformation to B will depend upon how does national organization interprets its own situation

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 particularly Innovations

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 culturally different subsidiaries particularly in context of organizational change There is always a risk that the multinational ultimately continuously become estranged from national roots. A true multinational does not subordinate national culture , but regards it as source of learning& increased synergy within the Co.

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 The Quadrants are contradictory or competing on the diagonal. Hence named Competing Values (CV)

Mapping Corporate Culture Change

Flexibility & discretion

Internal Focus and Integration

Clan
Hierarchy

Adhocracy

Market

External focus and differentia tion

Stability & Control

The Competing values framework

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 of Orgn. It can work well if goal is efficiency & Orgn. Environment is stable and simple Also values stability and control, but focused on external rather than internal factors. This culture value profit , productivity, competitive advantage and achievement

Market Culture
Clan Culture Adhocracy

Focuses on internal issues and flexibility and discretion rather than seeking stability and control. It values team spirit, participation, consensus and mutual support
Focus on External issues and values flexibility. Its values are adaptability and Innovation

Characteristics of Quadrants
The categorization is not clear-cut.. All organizations have 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 and profitability 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 predominant . High performance entails , balancing of conflicts and demands.

Orgn. Culture assessment Process

Cameron & Quinn (1999) used questionnaire covering six items. 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)

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 displayed clan 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