ORGANISATIONAL

CULTURE AND CHANGE

Presented by, Nithya Nair Nimisha M N

CONTENTS
What is Organizational culture? Characteristics and Functions of Organizational culture. Need for change in existing culture. Forces of change. Resistance to change. How change can be done? Implementation of Change strategies. Models of change. Requirements for a successful change. References.

ORGANIZATIONAL CULTURE
A pattern of shared basic assumptions that was learned by a group as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. Edgar H. Schein In simple words , Organizational culture is a shared perception held by the members of an organization , ie a system of shared meaning.

HOW ORGANIZATIONAL CULTURE IS FORMED?

CHARACTERISTICS OF ORGANIZATIONAL
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 to exhibit precision, analysis, and attention to detail.

Outcome orientation
The degree to which management focuses on results or outcomes rather than on technique and process.

People orientation
The degree to which management decisions take into consideration 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 than easygoing.

Stability
The degree to which organizational activities emphasize maintaining the status quo in contrast to growth

WHY ORGANIZATIONAL CULTURE IS IMPORTANT?

Culture is important because it affects: What the organization considers to be right decisions. The attitudes of stakeholders to the organization. What individuals consider to be appropriate behaviours and how they interact with each other within the organization . How individuals, work groups and the organization as a whole deal with work assigned to them.

FUNCTIONS OF CULTURE

Social glue that helps hold an organization together

Provides appropriate standards for what employees should say or do.

Boundary-defining Conveys a sense of identity for organization members Facilitates commitment to something larger than ones individual self-interest Enhances social system stability Serves as a sense-making and control mechanism

Guides and shapes the attitudes and behaviour of employees

ASPECTS OF ORGANIZATIONAL CULTURE

Cultural Uniformity versus Heterogeneity Strong versus Weak Cultures Culture versus Formalization National versus Organizational Culture Organizational Fit

WHY A CHANGE IN EXISTING CULTURE?

It may be time for change when: Circumstances change Stakeholder expectations change Organizational demographics change Objectives change Ingrained attitudes and practices produce negative outcomes. When the existing culture is found to be hindering the growth of the organization.

MAINTAINING ORGANIZATIONAL CHANGE

Organization culture can facilitate or inhibit change in an organization. A firm attempts to change organizational culture because the current culture hinders the attainment of corporate goals. Environmental and internal forces can stimulate the need for organization change

FORCES FOR CHANGE-ENVIRONMENTAL

FORCES Put pressure on how a firm conducts its business and its relationships with customers, suppliers, and employees. Environmental forces include:

Technology Market forces Political and regulatory forces Social trends

FORCES FOR CHANGE-INTERNAL FORCES

Come from decisions made within the company. May originate with top executives and managers and travel in a top-down direction. May originate with front-line employees or labour unions and travel in a bottom-up direction.

WHY CHANGES ARE USUALLY RESISTED

Culture generally supports doing things the way they have always been done. Culture develops over many years, and becomes part of how the organization thinks and feels Top management chooses managers likely to maintain culture Lack of innovation can also resist a change in culture. Lack of trust and understanding. When the culture is immensely strong and rigid. Self interest. Uncertainty.

HOW TO CHANGE CULTURE?

Have top-management people become positive role models, setting the tone through their behaviour. Create new stories, symbols, and rituals to replace those currently in vogue. Select, promote, and support employees who espouse the new values that are sought. Redesign socialization processes to align with the new values. Change the reward system to encourage acceptance of a new set of values.

Replace unwritten norms with formal rules and regulations that are tightly enforced. Shake up current subcultures through transfers, job rotation, and/or terminations. Work to get peer group consensus through utilization of employee participation and creation of a climate with a high level of trust.