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Managing Change

Managing Change. Lecture 2 Organizational Culture, Structure and Change. LECTURE OUTLINE. 2.0 Introduction 2.1 The culture 2.2 National culture 2.3 From breadth to convergence 2.4 Culture and change. 2.0 INTRODUCTION.

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Managing Change

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  1. Managing Change Lecture 2 Organizational Culture, Structure and Change

  2. LECTURE OUTLINE 2.0 Introduction 2.1 The culture 2.2 National culture 2.3 From breadth to convergence 2.4 Culture and change

  3. 2.0 INTRODUCTION • The invisible hand of culture – both in terms of national and global can affect the ways in which organizations and people react to change • This in turn influences the ways in which change initiatives are implemented • No matter whether the change is small or big, the Manager must anticipate resistance to changes

  4. 2.1 THE CULTURE • Is the glue that hold people together in national or work groups. • It is composed of values, beliefs and underlying assumptions that are deeply held. • Based on an intangible factor that is usually firmly rooted and hard to change.

  5. Organizational Culture • The pattern of basic assumptions; invented, discovered or developed, to cope with problems of adaptation and integration so as for the new members to perceive, think and feel in relation to these problems (Schein). • The set of key values, beliefs, understandings, and norms that members of an organization share (Daft, 2008). • A system of shared meanings and common beliefs held by organizational members that determines, in a large degree, how they act towards each other (Robbins, 2007.

  6. Three Levels of Culture • Visible Artifacts – that is the constructed environment which is exemplified by technology, architecture, dress code • Values that govern behaviour – identified by what people say – the real reasons may be concealed or unconscious • Underlying assumptions – determine how group members perceive, think and feel - really helps to understand culture

  7. Artifacts • Stories/legends • Rituals/ceremonies • Organizational language • Physical structures/décor Shared values • Conscious beliefs • Evaluate what is good or bad, right or wrong Shared assumptions • Unconscious, taken-for-granted perceptions or beliefs • Mental models of ideals Three Levels of Culture Visible Invisible (below the surface) Source: Daft, 2008

  8. Factors that can influence culture • The beliefs and values of the organization's founder – vision and mission • The societal norms of the country in which the organization operates • Past practices of the organization - The way things have been done • The behavior of top management

  9. Mintzberg’s (1989) Organizational Structure More readings: • http://www.12manage.com/methods_mintzberg_configurations.html • http://www.provenmodels.com/22/five-configurations/mintzberg

  10. Charles Handy’s (1993) 4 Main Types of Organizational • POWER CULTURE – Influenced by one person – effectiveness depends on the charisma and leadership qualities of the individual • ROLE CULTURE – Depended on functions, authority and bureaucracy • TASK CULTURE – Dependent on teams of experts working together – Success depends on getting the best to complete a task • PERSON CULTURE - Groups or individuals who come together to design a culture – opportunity to develop personal aims and objectives

  11. Fons Trompenaar’s (1994) description • The family culture which is personal, paternal & hierarchical • The Eiffel Tower culture – bureaucratic • The guided missile culture – which is task oriented • The incubator culture – which nurtures individual creativity

  12. 2.2 NATIONAL CULTURE • National culture can result from one nation attributing characteristics to another, which can result in stereotyping and prejudice. • The members of the organization bring their own individual experiences, beliefs and values.

  13. Hofstede’s Five Dimensions of National Culture • Individualism-collectivism. • Power distance. • Uncertainty avoidance. • Masculinity-femininity. • Long-term/short-term orientation (Source: Schemerhorn et al., 2005)

  14. 1. Individualism-collectivism • The cultural tendency to emphasize individual or group interests. • Preferences for working individually or in groups. • Example of an individualistic culture — United States. • Example of a collectivist culture — Mexico

  15. 2. Power distance • The willingness of a culture to accept status and power differences among members. • Respect for hierarchy and rank in organizations. • Example of a high power distance culture — Indonesia. • Example of a low power distance culture — Sweden.

  16. 3. Uncertainty avoidance • The cultural tendency toward discomfort with risk and ambiguity. • Preference for structured versus unstructured organizational situations. • Example of a high uncertainty avoidance culture — France. • Example of a low uncertainty avoidance culture — Hong Kong.

  17. 4. Masculinity-femininity • The tendency of a culture to value stereotypical masculine or feminine traits. • Emphasizes competition/assertiveness versus interpersonal sensitivity/relationships. • Example of a masculine culture — Japan. • Example of a feminine culture — Thailand

  18. 5. Long-term/short-term orientation • The tendency of a culture to emphasize future-oriented values versus present-oriented values. • Adoption of long-term or short-term performance horizons. • Example of a long-term orientation culture — South Korea. • Example of a short-term orientation culture — United States.

  19. 2.3 FROM BREADTH TO CONVERGENCE • Central to the Convergence theory is the logic of industrialization – Changes in technology, revolutionalised large scale production and product complex divisions of labour • Divergence theorists take the opposite view - people will respond differently to the forces, such as technology that drives changes - Individuals influenced by national culture • Refer to the case study on page 69 and 70

  20. 2.4 CULTURE AND CHANGE Schein’s (1984) 3 Distinct Stages of an Organization's Life • The early stages of formation – provides a source of identity and strength • The middle stages – responses to challenges from the external and internal environment – at this stage very complex & challenging blends would take place • The matured stage – suffer from complacency and outdated strategies

  21. Aspects of Organizational Operation that Influences Changes • Performance – sticking to rules or seeking results • Objectives – changes would be smoother where there is consultation on objectives • Planning – successful planning involves questioning of objectives and not just identifying steps needed to achieve • Consultation – good ideas could emerge from this approach • Procedures – operational procedures are good guidelines for

  22. Aspects of Organizational Operation that Influences Changes • Communication – good internal communication facilitates those involved in being informed of goals identified • Decision-making – Centralized or decentralized depending on the organizational structure and set-up • Loyalty expectations – expecting loyalty to objectives usually means better adaptability to change • Risk-taking – calculated risks minimizes undue loses

  23. References • Daft, R.L. (2008). The New Era of Management, 2nd Edition. Thomson South-Western, Ohio. • McShane and Glinow. (2008). Organizational Behavior, 4th Edition. McGraw-Hill. • Robbins, S.P. and Coulter, M. (2007). Management, 9th Edition. Prentice-Hall, USA. • Schermerhorn, J.R., Hunt, J.G. and Osborn, R.N. (2005) Organizational Behavior 9th Edition, Wiley

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