Corporate Culture and Change Management

1. Corporate Culture and Change Management

2. Agenda Introduction Glossary Corporate Culture Change Management Change in corporate culture Summary Q&A

3. Glossary Change Agent: An outside consultant who has training in behavioral science in an organization by means of an organization development programme. Change Management: A structured approach to shifting and transitioning of individuals, teams and organization from a current state to a desired future state. It is an organizational process aimed at empowering employees to accept and embrace changes in their current business environment.  Organizational Development: The activity of improving the ability of an organization to achieve it goals by the more effective use people. Management by Objectives: Process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization.

4. Corporate Culture

5. Roots � early 1980s Anthropology - culture is seen in an interpretive way, a metaphor to organizations as it defines them as being cultures Sociology - on the other hand, takes the functionalist view, seeing culture as something that is possessed by the organizations

6. Approaches Schein

7. Approaches Charles Handy Born in 1932 Irish�author/philosopher Specialising in�organisational behaviour�and�management 2nd in Thinkers 50 a private list of the most influential living management thinkers honorary�Doctor of Laws�by�Trinity College, Dublin

8. Approaches Handy � 4 cultures concentration of power of a family-owned business personalities rather than expertise power radiates out from the centre, usually a key personality bureaucracy in its purest form procedures, rules and systems, authority decision are taken in the apex and the pillars implement it power role

9. Approaches task person Path determined collectively by the individuals No hierarchies, no formal management control Not appropriate for business organizations

10. Approaches Hofstede identified 5 dimensions of culture in power distance uncertainty avoidance individualism vs. collectivism masculinity vs. femininity time orientation

11. Approaches Robert A. Cooke, PhD Constructive Cultures - interaction and tasks approach in ways that help them meet their higher-order satisfaction needs  Passive/Defensive Cultures � interaction ways that will not threaten their own security  Aggressive/Defensive Cultures � approach tasks in forceful ways to protect their status and security

12. Influencing elements The Paradigm Control Systems Organizational Structures Power Structures Symbols Rituals and Routines Stories and Myths

13. Strong and healthy culture Acceptance and appreciation for diversity Regard , fair treatment and respect for each employee Employee pride and enthusiasm for the organization  Equal opportunity for each employee Strong communication with all employees Strong company leaders with a strong sense of direction and purpose Ability to compete in industry innovation , customer service and price Lower than average turnover rates Investment in learning and training

14. Change Management

15. Conflict in an Organization Overlooked in the past , Damaging the Organization, No HarmonyToday: Treated Seriously, free expression, encourage communication, benefits 5 types: Indv., Indv.-Indv., Indv. � G, G � G, Org. � Org. sources: Sharing of Resource, Goals, interdependence activities, Values, Not clearly defined responsibilities.

16. Change Taylor to Mechanization, Tech. , Marketing, management  Most changes: Disjointed and Piecemeal Approach Today: systematic comprehensive look at problem, Looking at a WHOLE Organization Structure ?Economic environment; Industrial Revolution  vs.Now: greater independence, Complicated Regulation, More Competition, Merging of Resources

17. Change Trend of population growth , Increase in education and more graduate employees, Human interaction skills (more and bigger projects) Alvin Tofler : Ad-Hocracy vs Bureaucracy

18. Change Management

19. Change Management Changes are never easy: esp. Restraints on unilateral decisions  Managerial Attitude : Constant, Necessary, Beneficial , Effective Planned

20. Change Management Missionary Strategic Changes Operational Changes Technological Changes Changing the attitudes and behaviors of personnel

21. Change Management

22. Change Management multidisciplinary practice, evolved as a result of scholarly research, thus: begins with a systematic diagnosis of the current situation ?determine both the need for change and the capability to change. The objectives, content and the process of change should all be specified as part of a change management plan.

23. Change Process: Kurt Lewin : - Feels the need to do things differently. - Changes being made in Behavior of indv. Or process- re-freezing (accepted by the person)

24. Resitance: time dealing with resistance; more �effective� if understand why ?! Lack of understanding of the need for change No trust to initiator, Not heard of the real reason � Uncertainty of the effect effect on life, cope with change, job security Self-interest take away something they value. (e.g a loss of prestige or financial benefits.)

25. War on Resistance ! Communication and Education � Participation Negotiation� Coercion � � Support from top Management �

26. War on Resistance !

27. Models of Change Agents Leadership models senior managers, identifying and delivering strategic/transformational changes Management models middle-level managers/functional specialists , delivering or supporting specific elements of strategic change Consultancy models external or internal consultants who , operate at any level Team models teams that operate at various levels in an organization and which are composed of the requisite managers, employees and consultants

28. Schools of Change Management

29. Individual Perspective School Behaviorist:Individuals : passive recipient of external & Objective data Human actions: conditioned by their expected consequences.change behavior ?change the conditions that cause it. All behaviour is learned

30. Individual Perspective School

31. Individual Perspective School Gestalt field psychologist individual�s behaviour: product of their environment and people function as a whole. Each person possesses positive and negative characteristics. �Therefore a human does not just react to external stimuli, the individual uses reason to interpret the stimuli.� Change in individual's understanding of themselves and the situation in question, will lead to changes in behavior in the organization. Both of these schools have proved influential in the management of change and in many cases are put into practice in tandem.

32. Group Dynamic School, �Change through teams or work groups. The focus of change must be at group level and should concentrate on influencing and changing the group norms (rules), roles (pattern of behavior) and values (ideas and beliefs). Team building, improving the team�s effectiveness through better management of task demands, relationship demands and group processes. The team analyzes its way of doing things and attempts to develop Strategies to improve the operation. This school has proved to be very influential in developing both the theory and practice of Change Management.

33. The Open System School Organizations are composed by a number of interconnected sub-systems: Organizational goals and values� Technical � Psychosocial � Managerial

34. The Open System School emphasizes on: Achieving overall synergy rather than optimizing the performance of any one individual part. Internal changes in one area affect other areas, and in turn have an impact on the external environment, and vice versa.

35. Approaches to CM Planned changes Vs. Emergent Change

36. Approaches to CM

37. Main models of Org. Change Incremental Punctuated equilibrium � Continuous transformation

38. Main models of Org. Change Incremental forms of change are more toward changing the activities, performance, behavior and attitude of individual and groups,  while Transformational changes are focused on the processes, structures and culture of the entire organization.

39. Organizational Development OD : an approach to the introduction of planned change, concentrating on the process of change rather than the content. Behavioral science techniques designed to build a more effective organization. The concept aims to help the organization gain insight into its own processes.  Emphasis: creating a more flexible open-minded organization, which is more receptive to change and where people can recognize the need for change and implement action themselves.

40. Organizational Development

41. Aspects of OD Members are encouraged to speak more openly about problems and inter-group activities are encouraged. Interacting Factors which govern the behavior of organizations: Structure Technology People Task

42. Aspects of OD It is often the case that there is too much rigidity in the organization and this does and allows creative ideas to be introduced. Methods which are used to overcome this situation: � Diversification Decentralization Venture groups ( a group is given the resource to develop a new idea )

43. Major problem in organizations:   Change is a threat to routine and their role in the organization. It is also true that many persons do now know what their role is !!!

44. Advantages and Objectives of OD Creating a working environment in which formal authority is supplemented by authority based upon knowledge and skill. � Increases the job satisfaction and enthusiasm of employees and encourages open communication. Increases the responsibility of individuals and groups in planning and implementing activities. Encourages confronting the problems of an enterprise rather than keeping them hidden.

45. Disadvantages of OD Difficult to convince staff of the need to change May be costly to implement Needs continual support by management and their conviction of the need for change.

46. Methods of Introducing Changes Task (Job enrichment, Job enlargement, redesign of jobs) � Structure (change basis of departmentation, span of control, authority delegation) Technology (new equipment) People (Team building, activity analysis, etc)

47. Stages of OD The Change Agent and senior executives discuss the aims, bearing in mind future needs The main problems and objectives are set out clearly An audit of the organization  Targets for improvement are set and agreed on A check on effect of plans is needed to ensure that the new methods are maintained.

48. Approaches to OD Classical approach Human Relations Contingency approach

49. Motivational Roar !!!!  There might be a quiz after the presentation!!

50. Changing Corporate Culture

51. Barriers of cultural change

52. Cummings and Worley�s 6 guidelines Formulate a clear strategic vision Display Top-management commitment Model culture change at the highest level Modify the organization to support organizational change Select and socialize newcomers and terminate deviants Develop ethical and legal sensitivity In line with Kotter�s 8 stages of change

53. The Normative Systems Culture Change Process developed in 1960 Over 1000 project applications 4 phases

54. Phase I Analysis, Objective Setting and Leadership Commitment Clear picture of the current situation Sets specific measurable objectives Commits leaders to a vision for change

55. Phase II System Introduction Introductory workshops: visualize and experience the desired culture Covered areas: Understanding Identifying goals Changing plan

56. Phase III Systems Integration Change takes place on multiple levels: Individual (self-help) Peer support Organizational support Leadership development

57. Phase IV Ongoing Evaluation, Renewal and Extension Evaluate phase I New performance, programmatic and cultural objectives are established Teaching others renews commitment

58. Example 1 GM + Toyota Fremont, California plant operating at a disastrously low level in 1982 Toyota � best production system of that time Joint plant � United Auto Workers, senior, complaining ex employees had priority People changed to a different way to think about what the company was about and their role in it Lead to productivity, quality, efficiency and good morale

59. Example 2 Levi�s 1985 - a group of minority and women managers complained of discrimination Retreat revealing hidden attitudes in conflict with values "Aspiration Statement" including desired beliefs, attitudes, and behavior Training sessions on leadership, diversity, and ethics Employee evaluations are based partially on how well they support the A. St.

60. Summary

61. Q&A

62. Thank you for your attention!http://Management-ibs.com