change management of organizational culture
Authors : Dennis Reiss, Zane Dzene, Gaëtan Oliva, Alexandre Alba, Isabel Hellmann, Ieva Tomaša and Victoria Lopez
A) Definition
A system of shared values, assumptions, beliefs, and norms that
unite the members of an organization.
Reflects employees views about “the way things are done around
here.”
The culture specific to each firm affects how employees feel and
act and the type of employee hired and retained by the company.
B) Functions of organizational management
→ Employee Self-Management
Sense of shared identity
Generation of commitment
→ Stability
Sense of continuity
Satisfies need for predictability (прогнозируемость), security, and comfort
→ Socialization
Internalizing (усваивать)or taking organizational values as one’s own
→ Implementation (выполнение) Support of the Organization’s Strategy
If strategy and culture reinforce (укрепляет)each other, employees find it natural to be committed to the strategy
C) Types of organizational cultures
Clan oriented cultures are family-like, with a focus on mentoring, nurturing (воспитание), and “doing things together.”
Adhocracy oriented cultures are dynamic and entrepreneurial, with a focus on risk-taking, innovation, and “doing things first.”
Market oriented cultures are results oriented, with a focus on competition, achievement, and “getting the job done.”
Hierarchy oriented cultures are structured and controlled, with a focus on efficiency, stability and “doing things right.”
2. External and internal factors of change
An organizational culture doesn´t always stay the same
Two categories of factors
External factors: the country, the economic circumstances, the political pressure and laws, the losses of market shares/progress of competitors and the scarcity of natural resources.
Internal factors: lack of attraction, change in the head of the society, outdated skills of employees
A) The kurt Lewin Change Model
Unfreezing Getting ready for the change/understanding why the change is
necessary
Change The main change process
See change as a process, not as a event
Refreezing Establishing stability once the changes have been made
B) 4 steps of change management
Change management is the systematic transition of a an organiziaton from a current organizational practice to another. You can devide it into 4 steps:
1. Analyse the system
2. Determine shared beliefs and values
3. Start developing the strategies
4. Communicate
1. Analyse the system
determine strengths and weaknesses
every organization already has an established system
People believe in this system
Analyze the system before doing change otherwise it could be devastating
2. Determine shared beliefs and values
Determine organizations shared beliefs
Observe (наблюдать) the departments in your organization
Employees play an important role in this context
3. Start developing the strategies
Five important steps :
Flowchart of the current system
Weaknesses of the current system
Propsed changes and objectives of these changes
Create targets
Forecast
4. Communicate
Open forum with managers Change democratic as possible
Pay attention to your employees, they might
feel victimized
Resistance to change
Four basic reasons why change is resisted :
self - interest (Individuals are more concerned with the implications (вовлечение) for themselves)
Misunderstanding
Communications problems
Inadequate (недостаточная) information
Low tolerance of change
Sense of insecurity (the fear that one will not be able to develop new skills and behaviors that are required in a new work setting)
Different assessment (оценка) of the situation
Disagreement over the need for change
Disagreement over the advantages and disadvantages
Overcoming resistance to change
A manager need to:
Involve organizational members in the planning process;
Communicate effectively (A manager should be clear about the reason for the change and the anticipated (предполагаемые) outcomes)
Remove uncertainty and threat ( He should tell the truth and as much of it as possible; in the absence of information, people always assume the worst;)
Train people in new skills and behaviours (He should be patient, give them encouragement and forgive their mistakes);
Change the reward and work systems such as employee promotions, pay practices, performance practices;
A) IBM
IBM is an international corporation with operations in more than one
hundred and sixty countries.
Initially the IBM organizational culture was concentrating on the United
States.
IBM use strategy which would lead all employees to one goal, never the
less company is international so the decisions is made in forums and
locally to get company work efficiently.
B) World Bank
As of mid-2011, the World Bank remains a slow-moving traditional
hierarchical bureaucracy, with an inward-looking perspective.
Information which is considered to be useful for the company now comes
to from the employees.
Discussion
1. Motivation Internal-positive:
Challenge
Desire
Passion
satisfaction,
Self-validation (утверждение, признание)
External-positive: Recognition and appreciation from others
Financial rewards
https://www.youtube.com/watch?v=hcz1aZ60k7w
Discussion
2. Threats Internal-negative:
Threat
fear of failure
insecurity
External-negative: Fear of loss of job or relationship
Insufficient (недостаточный) respect from others
financial or social pressures
pressure from significant (выжный) others