URGENT - Managing Change - Case Study Business Proposal - Need completed in 24 hours

MCLecture10CultureCB217.pptx

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Managing Change Week 10 Semester 2, 2017

Culture

Org culture – focus on the layers of org culture. Change can bring in the culture of the org

Internalising change can become part of the culture

Compiled: Assoc Prof Chris van Tonder

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ORGANISATIONAL CULTURE

Nature of Culture (‘What’)

The Importance of Culture (‘Why’)

Different Perspectives on CULTURE

What is culture?

Culture is ‘how things are done

around here’. It is what is typical of

the organization, the habits, the

prevailing attitudes, the grown-up

pattern of accepted behaviour.

(Drennan, 1992:3)

Earlier we spoke about resistance. People resist because it touches their beliefs and values.

Accepted behaviour = org culture. Changing this will take time.

Compiled: Assoc Prof Chris van Tonder

Figure 5.1 The major elements of culture

(Cummings & Huse, 1989 in Burnes, 2009)

Organisational Culture: Key ELEMENTS

Basic Assumptions

Values

Norms

Artefacts

Unwritten beliefs and rules that govern a group’s behaviour … expectations

Unconscious taken-for-granted assumptions; accepted, expected behaviours

That which is important, valued in the organisation

Visible manifestations of culture- logo, uniform…

Unaware, invisible

Aware, Visible

Mention about the Cummings and Huse research and literature. Mention the onion layers of culture. Each layer peels off to show another. Deepest end is basic assumptions. Very deep into the org. these are the guidelines of the org. As a Uni, access to a wide source of research, student info, etc. Then come the values – patience, fairness, etc. Then the norms – unwritten rules that govern a behaviour. Unhidden rules – eg of SOM meeting – lunch is served.

Basic Assumptions – relate to the accepted behaviour of orgs. Eg, McDonalds – being proactive for CSR, etc. Apple – leader in innovation. Google – creativity Ritz Carlton – service.

Values – Visions of the company. Vision of the company. Purpose of the org

Norms – unwritten discipline. Explain norms -SOM – meeting during lunch with food supplied

Artefacts – visible parts of the culture. Logo, uniform, etc. Coles changing the artefacts. Change in slogan, etc

Culture change at coles – Wefarmers acquired coles – massive changes. 70% were contractors – how can you build culture if you don’t know that you are going to work here tomorrow? Now 2/3rd is perm staff!

Compiled: Assoc Prof Chris van Tonder

We do not work in a vacuum.

Organisations are miniature societies.

The way we work and behave is shaped, directed and tempered by the culture of the organisation to which we belong e.g.

Creating a common behaviour is important to ‘culture’ …it becomes part of the structure of the organisation.

IMPORTANCE of Organisational Culture

Creating a common behaviour. This is why this is important. This then creates a kind of structure to the org

Compiled: Assoc Prof Chris van Tonder

…therefore…Organisational Culture

Defines the behaviour of those working in/for the organisation… how they should behave in a given set of circumstances

Legitimises certain forms of action & prescribes other forms

Ensures that actions of employees are judged in terms of ‘expected norms of behaviour’

Implications?

Reporting misuse of…

The culture creates the legitimate things. Eg of accepting gifts within curtin

Compiled: Assoc Prof Chris van Tonder

Three Alternative Views on CULTURE

Wilson’s culture perspectives

The INTEGRATION perspective: This portrays a strong or desirable culture - where there is organisation-wide consensus and consistency.

The DIFFERENTIATION perspective: This emphasises that consensus only occurs within the boundaries of a subculture. At the organisational level, differentiated subcultures may co-exist in harmony, conflict or indifference to each other.

The FRAGMENTATION perspective: This approach views ambiguity as the norm, with consensus and dissension co-existing in a constantly fluctuating pattern influenced by events and specific areas of decision- making (e.g. Frost et al, 1991). Rather than the clear unity of the integration perspective, or the clear conflicts of the differentiation viewpoint, fragmentation focuses on that which is unclear. It is not good for successful change. (Wilson, 2001: 357)

Diff perceptions of culture. Ways in which cultures can be viewed.

Wilsons – coming from psychology.

Integration persp – across the org there is an agreement on the behaviours.

Diffe persp – will see some diff in orgs. Some people have difference in opinions, etc. Generation differences. Still there are common benefits. The focus is on the similar things

Frag perspective – ambiguity of a culture. One day very focused on CSR and the other – no focus. No consistency over a long period of time. Frag is not good for successful change. Eg of AU – mining tax – on and off. CO tax – on and off. Refuge policies – keep changing.

Compiled: Assoc Prof Chris van Tonder

Jones et al (2006) Organisational Culture Inventory classifications

CONSTRUCTIVE cultures. Cultures in which members are encouraged to interact with others and approach tasks in ways that will help them to meet their higher-order satisfaction needs (includes Achievement, Self-Actualization, Humanistic-Encouraging and Affiliative cultures).

Passive/Defensive cultures. Cultures in which members believe that they must interact with people in defensive ways that will not threaten their own security (includes Approval, Conventional, Dependent and Avoidance cultures)

Aggressive/Defensive cultures. Cultures in which members are expected to approach tasks in forceful ways to protect their status and security. Can be beurocratic (includes Oppositional, Power, Competitive and Perfectionist cultures).

(Jones et al, 2006: 18)

Another more recent view. Coming from the org side of things. Interaction is the foundation of culture in orgs

Constructive – share knowledge and there is high team work. Focus is on high level of interaction.

Passive/Def again on and off. Level of competition amonst people is very high. Very defensive – don’t share their knowledge and each individual becomes a threat for the other person.

Jones – looked at culture and found out how it will lead to higher level of performance

Aggressive & Defensive – bearucratic side. Force people to work. Nobody is enjoying. Forced situation. Level of resistance is very high. Power plays an important role, Mention Foxconn video – forced culture and is aggressive.

Culture is a facilitator of the implementation of change that is why it is important to unerstand this.

Compiled: Assoc Prof Chris van Tonder

Hofstede’s national clusters

Scandinavia (primarily Denmark, Sweden and Norway): these cultures are based upon values of collectivity, consensus and decentralisation.

West Germany (prior to unification), Switzerland and Austria: these are grouped together largely as valuing efficiency – the well-oiled machine – and seeking to reduce uncertainty.

Great Britain, Canada, the USA, New Zealand, Australia and the Netherlands: these lie somewhere between 1 and 2 but cluster on the value they place on strong individuals and achievers in society.

Japan, France, Belgium, Spain and Italy: these are clustered on bureaucratic tendencies – the pyramid structure – favouring a large power distance.

Hi Collectivism

Hi Individualism

Hi Uncertainty avoidance

Hi Power Distance

Power Distance, Individualism vs Collectivism, Masculinity vs. Feminity, Long-term vs Short term orientation,

Done in detail in M-100. give the web site.

Compiled: Assoc Prof Chris van Tonder

ORGANISATIONAL CULTURE CHANGE

Going to focus on change of the culture of the org.

Culture Change: A contentious issue (3 Perspectives)

Optimists – culture can be changed, e.g. Peters and Waterman (1982).

Pessimists – culture cannot be changed, e.g. Hatch (1997)

Realists – parts of culture can be changed, e.g. Meek 1988).

Ogbonna and Harris (2002)

Where do you align?

Diff views – culture can be changed, canot be changed or some parts can be changed.

Compiled: Assoc Prof Chris van Tonder

RECALL Lect 9: Organisational CULTURE and Resistance

Changes challenge the culture (norms, values, expectations, beliefs) of members.

Changes threaten to force members to alter the very fabric of their beliefs.

Cultural change must be introduced before resistance can be overcome in changing systems and activities.

Just like nations, organisations have culture too. Explain the culture of giving in MS – Christmas gifts, old age homes, etc. so with Timberland.

After-the-fact of reducing his workforce by 70 000 employees Jack Welch of GE observed…

A company can boost productivity by restructuring, removing bureaucracy, and downsizing, but it cannot sustain high productivity without cultural change

(Quoted in Ghoshal and Bartlett, 2000, p. 201))

So, culture change is often necessary, but does not happen that quickly!

Compiled: Assoc Prof Chris van Tonder

Figure 5.1 The major elements of culture

Source: From CUMMINGS/WORLEY. Powerpoint® (IRCD only) for Cummings/Worley’s Organization Development and Change, 9th, 9E. © 2009 South Western, a part of Cengage Learning, Inc. Reproduced by permission. www. cengage.com/permissions

Can we change the deeply embedded core values and assumptions?

Or, do we only change the surface level of culture?

Do changes at the surface level eventually lead to real change in values and assumptions?

Points to ponder: Culture Change (Cont.)

Onion layers of the culture. So, we need to start at various levels. For eg if thre is laziness in the org. So, may need to start from Norms or the arefacts.

Coles – staying down

Compiled: Assoc Prof Chris van Tonder

Student notes …A way to implement a cult Cummings & Worley's six guidelines for cultural change which are in line with Kotter's eight-step strategy. The steps are as follow:

1. Formulate a clear strategic vision (stage 1,2 & 3 of Kotter, 1995, p. 2) In order to make a cultural change effective a clear vision of the firm’s new strategy, shared values and behaviours is needed. This vision provides the intention and direction for the culture change (Cummings & Worley, 2005, p.490).

2. Display Top-management commitment (stage 4 of Kotter, 1995, p. 2) It is very important to keep in mind that culture change must be managed from the top of the organization, as willingness to change of the senior management is an important indicator (Cummings & Worley, 2005, page 490). The top of the organization should be very much in favour of the change in order to actually implement the change in the rest of the organization. De Caluwé & Vermaak (2004, p 9) provide a framework with five different ways of thinking about change.

3. Model culture change at the highest level (stage 5 of Kotter, 1995, p. 2) In order to show that the management team is in favour of the change, the change has to be notable at first at this level. The behaviour of the management needs to symbolize the kinds of values and behaviours that should be realized in the rest of the company. It is important that the management shows the strengths of the current culture as well, it must be made clear that the current organizational does not need radical changes, but just a few adjustments. (See for more: (Deal & Kennedy, 1982; Sathe, 1983; Schall; 1983; Weick, 1985; DiTomaso, 1987)

4. Modify the organization to support organizational change The fourth step is to modify the re is to connect it to organizational membership, people can be selected and terminate in terms of their fit with the new culture (Cummings & Worley, 2005, p. 491).

5. Select and socialize newcomers and terminate deviants (stage 7 & 8 of Kotter, 1995, p. 2)

6. Develop ethical and legal sensitivity Changes in culture can lead to tensions between organizational and individual interests, which can result in ethical and legal problems for practitioners. This is particularly relevant for changes in employee integrity, control, equitable treatment and job security (Cummings & Worley, 2005, p. 491).

So – how do we begin to implement culture change ?

Dobson’s guide to changing culture

Step 1 Change recruitment, selection and redundancy policies to alter the composition of the workforce so that promotion and employment prospects are dependent on those concerned possessing or displaying the beliefs and values the organisation wishes to promote.

Step 2 Reorganise the workforce to ensure that employees and managers displaying the required traits occupy positions of influence

Step 3 Effectively communicate the new values. This is done using a variety of methods such as one-to-one interviews, briefing groups, quality circles, house journals, etc. However, the example of senior managers exhibiting the new beliefs and values is seen as particularly important.

Step 4 Change systems, procedures and personnel policies, especially those concerned with rewards and appraisal. Dobson (1988)

Give MS eg – changing voice mail daily by Pickup

Various steps to bring in culture change.

Bring in new blood (younger ones maybe?)

Focus recognition, hierarchy and promotions

Tell the new values. Create comms channels

Then, the change happens and then focus on the changed system

These are some proposed guidelines

Compiled: Assoc Prof Chris van Tonder

Guidelines for changing culture (Cummings & Worley, 2001)

Formulate a clear strategic vision.

Display top-management commitment.

Model culture change at the highest level.

Modify the organisation to support organisational changes.

Select and socialise newcomers and terminate deviants.

Develop ethical and legal sensitivity.

(Cummings and Worley, 2001: 509 – 511)

Better to give MS voice mail change here.

Cummings – famous for change in culture. More like a model for changing culture

The vision provides the purpose and direction for cultural change

5th point – have inductions and comm mechanisms for the new culture. Not exactly kick out people – early retirements

6th pt – if people are being terminated, there can be ethical and legal sensitivity. This needs to be sorted out and organised carefully.

Compiled: Assoc Prof Chris van Tonder

Meek’s 1988 Caution…

Culture as a whole cannot be manipulated, turned on or off, although it needs to be recognised that some [organisations] are in a better position than others to intentionally influence aspects of it.... culture should be regarded as something an organisation ‘is’, not something it ‘has’: it is not an independent variable nor can it be created, discovered or destroyed by the whims of management.

(Meek, 1988:469–470)

Critique of ‘Culture’ Change

Strong cultures

…can make organisations resistant to certain types of change.

…may only suit organisations at certain stages in their development.

…can bring short-term benefits but may also bring long-term stagnation and decline.

Organisations also have sub-cultures.

Timescale for changing culture: 6 to 15 years.

Ethics: should we seek to control or manipulate people’s emotions?

Culture cannot be controlled.

When we talk about change in culture. Tied to resistance to change.

Each org has a subculture.

Need to consider ethics when we talk about culture

Culture cannot be controalled. Can be directed and can be out of control.

Compiled: Assoc Prof Chris van Tonder

Conclusions

No clear agreement about the NATURE or the malleability of culture.

Managers must make choices based on their own circumstances and perceived options.

Managers may find it difficult to agree among themselves or gain compliance from others. In such situations, there is a tendency for conflict and power battles to occur.

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Have your say now!

That’s it for today!

In life …Knowing when and how to change is important!

Compiled: Assoc Prof Chris van Tonder