Management of Business HOMEWORK (URGENT!!!)
Principles of Management
Topic 05 – Creating a Corporate Culture and Change
2
Topic 05 – Learning Outcomes
1. Understand culture and corporate culture and differences of culture
2. Explain the three major aspects of organizational culture.
3. Identify the process through which it can be developed & sustained.
4. Use classification systems to identify various types of organizational culture.
5. Identify the sources of resistance to change.
6. Understanding the nature of culture and tools for change
PRINCIPLES OF MANAGEMENT
KHE-LCD-SGD-00038 1
3
Corporate or organisation culture is the personality of the organisation based on the organisation employees and their behaviours.
Corporate Culture
4
Corporate Culture (Cont’d)
A system of shared meanings and common beliefs.
“The way we do things around here” that influences what employees do, and how they conceptualise, define analyse, and resolve issues.
PRINCIPLES OF MANAGEMENT
KHE-LCD-SGD-00038 2
5
Strong and Weak Culture
Strong Culture
Weak Culture
6
3 Aspects of a Company culture
Visible culture
Espoused values
Core values
PRINCIPLES OF MANAGEMENT
KHE-LCD-SGD-00038 3
7
Sources of Organizational Culture
Organisations Founder
Past Practices of the
Organisation
Behaviour of Top
Management
8
Key Effects of Organizational Culture
Employee Self Management
Stability Socialization Achieve Organization’s
Strategy
PRINCIPLES OF MANAGEMENT
KHE-LCD-SGD-00038 4
9
Tips on Using Organizational Culture as a Business Tool
Determine if culture is strong or weak
Align vision to the organizational culture
Provide an orientation program to all new employees to teach the culture in a consistent way
10
Managing Cultural Processes
Cultural Symbols
Rituals and Ceremonies
Company Heroes
Stories Language Leadership
Class Activity
PRINCIPLES OF MANAGEMENT
KHE-LCD-SGD-00038 5
11 Source: https://thechangeleader.com/part-ii-find-leaders-to-drive-company-change/
Managing Organisational Change
Organisational change management is the systematic approach and application of knowledge, tools and resources to deal with change.
12 Source: http://bdellium.com/does-your-fiduciary-decision-making-process-need-an-upgrade/
Types of Change
Planned Unplanned
PRINCIPLES OF MANAGEMENT
KHE-LCD-SGD-00038 6
13
Forces of Change
External Environmental forces arise outside the organization
Internal forces arise inside the organization
14
Resistance to Change
Who wants change?
Who to wants change?
PRINCIPLES OF MANAGEMENT
KHE-LCD-SGD-00038 7
15
Reasons of Employees resistance to change
Resistance to change
Lack of understanding
and trust
Cultures that value tradition
Different perspectives
and goals Uncertainty
Self-interest
16
Models to overcome resistance of change
• Lewin’s 3 Step Model1
• Force field Analysis Model2
PRINCIPLES OF MANAGEMENT
KHE-LCD-SGD-00038 8
17
Lewin’s 3 Step Model
Class Activity
Unfreeze
• Ensure that employees are ready for change
Change
• Execute the intended change
Refreeze
• Ensures that the change becomes permanent
18
Force field Analysis Model
Driving forces
Driving forces
Driving forces
Restraining forces
Restraining forces
Restraining forcesDesired
conditions
Current conditions
Before change After change
PRINCIPLES OF MANAGEMENT
KHE-LCD-SGD-00038 9
19
Implementing Organizational Change
Top-down change
Change Agents
Bottom-up change
20
Tactics for Introducing Change
Communication and education
Employee involvement
Negotiation
Coercion
Top management support
Class Activity
PRINCIPLES OF MANAGEMENT
KHE-LCD-SGD-00038 10