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CULTURAL WEB Change Management
Student Name [Email address]
1
Table of Contents Introduction .................................................................................................................................................. 2
Culture Web analysis on Heinz Australia ...................................................................................................... 2
Key forces for and against change ................................................................................................................ 5
Key Strength of the new culture ................................................................................................................... 6
Conclusion ..................................................................................................................................................... 9
References .................................................................................................................................................. 10
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Introduction
“It is not the strongest of the species that survives, nor the most intelligent that survives, it is
the one that is most adaptable to the change” Charles Darwin famously quoted about how
much change being important for survival and growth. It is the change in and around ourselves
based on the outside environment which ensures sustainability. The same theory is to be
applied on the organization, as the market has become dynamic and world is changing at the
breakneck speed it is important that organization around the world prepare themselves for the
continuous change and improvement to stay relevant in the market (Lepak, et al. 2006). In the
similar line, report discusses the case of Heinz Australia, which had turned into loss making
organization and everyone was doing the processes without thinking. Widdows, who turned
around the company in terms of culture and profitability is analyzed using the culture of web
analysis to understand his multi-dimensional change perspectives of the organization.The
theories and models of change management developed by thought leaders around the world
are used to implement the changes so that organization can implement such change
management practices related to culture web with greater ease at Heinz Australia. This essay
analyzes the Heinz Australia from the culture web and aims to explain important culture
changes that played important role in making the company profitable and self-sustainable to
become the market leader and innovative company.This report discusses how the elements of
culture web are instrumental in changing the culture at Heinz Australia and try to identify the
key forces for and against the change. Essay puts a strong argument that however be the
resistant to the changes based on external as well as the internal factors, organizations will
have to act upon the change management. Essay concludes that change management process
starts with problem identification which is instrumental step to solve any problem and moves
on identifying probable solution and selecting the best solution for the current environment
and implementing that change.
Culture Web analysis on Heinz Australia
Corporate Culture: To understand and analyze the culture changes at the Heinz Australia, first
we need to understand what corporate culture is and what constitutes it. People are most
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important ingredient of building a corporate culture. Hence the emphasis is on building a
system that is self-correcting and improves as and when the mistake happens (Newell et al.
2009). It is the corporate culture that defines the common goal and how the organization is
open or closed to changes, challenges and handling issues at hand. It is based upon the values
of the corporate that are more or less harmonious among its employees.
Weiner (2009, p. 8) also emphasizes that change management is inevitable in today’s world but
to execute the change management, the organization readiness for the change is of paramount
importance. Hence the readiness of the organization for the change comes from the
organization culture of the company and this is also reflected in the mindset of the people.
Because it is the people who form the organization.
The Culture Web and its Elements that Changed Heinz Australia and Continue to Evolve:
The same organization culture has been depicted as a form of cultural web by Graetz et al.
(2010)
The Culture Web
*Source: Textbook:(Graetz et al. 2010)
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The leadership changes carried out by Widdow’s for Heinz Australia with respect to the
corporate culture webis as follows.
Paradigm: Paradigm at Heinz Australia prior Widdow’s change was very negative, low risk and
punitive culture. The focus was very much inward where everything seemed like a too much
difficult or too much effort. Widdow brought in the feeling of positivity and transparency that
instilled confidence in the employee.
Routines and Rituals:Widdow’s defined one Mantra about the organization that “Great place to
Work”. Now to reflect this into every day ritual and routines, showing respect to each other and
listening to the opinion of everyone become part of their routine behavior in the organization
(Collins & Smith, 2006).
Stories:Stories spread across the organization by the senior management demonstrating ‘Walk
the talk’ approach in all their behaviors. This was led by Widdow’s on how we would behave
with towards others and how he expects other person to behave. Hence he served as a role
model for everyone in the organization whom everyone looked up to, including the senior
management and staff.
Symbolic Aspects:The symbolic expression of the great place to work was reflected in behavior
of the employees who were always ready contribute, challenge the complacency and innovate
new ideas. It is not an easy task to do but Widdow’s could achieve by constantly communicating
the same to its employees.
Power Structures: Widdow’s emphasized on removing the power structure and showing to its
employee that organization actually cares and respects them. The work life balance and mutual
trust between employer and employee was displayed by various initiatives such as flexible
working week, staff can take Friday off on daytime savings, and removing the monitoring of
staff.
Organizational Structures:Organizational structure at the Heinz Australia was changed by
reducing the 25% salaried staff, restructuring the board members by bringing in the middle
level board members. This clearly makes a statement that innovative ideas for the organization
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comes from the middle and bottom level employees and to listen to them we need to bring
them on to the board. This also created the attitude change among its employee.
Control System:Control system is nothing but the measurement and reward system. Everyone
who contributed with innovative ideas, were rewarded by Widdow’s and the higher
management. This acts as a motivation for others as well as the one contributing the idea to
think and act more towards the betterment of the company. This is a continuous process where
everyone working on the day today activity decides to do it in better way and suggests it to the
superior. It was not the case earlier because people were afraid of speaking and thinking aloud.
The change in attitude and culture of the organization helped everyone to be more open and
positive.
Key forces for and against change
Key forces for and against the change are identified using the cultural web analysis of the
organization. During the analysis each element of the web describes the forces against the
change and the forces that can support the change.
Key Forces for the Change: Based on the Organization structure element, it becomes clear that
organization has been restructured to invite people from the middle management and
encourage their inputs. This will work for the new change to be implemented in the
organization as people will be more receptive towards the change.The symbolic aspect of
analysis states that behavior of the middle management has changed and it has become more
respectful and receptive towards the new ideas (Vinding, 2006). Hence this shows the trust in
the vision of the company and employee will be showing same level of behavior with the
subordinates and other members in and out of organization. The attitude and the positive work
environment of the company has played the major role in implementing the changes suggested
by Widdow’s. This has also led to the low attrition rate in the company that show loyalty for the
company.
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Key Forces against the Change: The key forces against the changes for the organization was
identified in the routine and ritual analysis of the employee which showed very negative and
depressing work environment, lack of confidence by the higher management which felt that
every task is too much of an effort or too much difficult. This takes the optimism and faith out
of organization and becomes a inward focusing organization. The power structure also
suggested that board members did not include any one of the middle management hence there
was too much autonomy at the top and ideas and opinion of lower management were not
heard. For any organization to live Innovation is the important factor else the organization will
die (Roberts, 2007). Similarly in case of Heinz Australia, Innovation which was missing prior to
Widdow’s joining made the organization dull and dead. Lack of innovation and experiment led
to organization slipping into complacency and stagnancy.
Key Strength of the new culture
All the changes carried out as a part of change management has to comply with the overall
strategic objective of the company. The changes of openness, trust, challenging the status quo
that has been brought in the company is the basic ingredient of the innovative culture (Adams,
Bessant& Phelps, 2006).
Attitude and Behavior
The biggest strength of new culture is the change in the attitude and behavior of individual in
the way they treat each other with respect and hear everyone out with the opinion. This
ensures that nobody is taken for granted. The core belief of the company which was earlier
inward looking has now shifted to great place to work where innovation and experimentation
are encourages rather than looked down. The message was loud and clear from the top
management that we want to change, survive and grow with the help of employee
engagement, operational efficiency and desire to excel.
Openness and Transparency
Cultural norm determines what kind of knowledge is transferred in the given situation. Cultural
norm for the organization can range from rules, expectation, rewards and punishment. The
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advantage for the Heinz Australia is that it has developed the culture of openness and
transparency, hence company is in the strong position because in the environment of
openness, knowledge flows to right people such that they are well equipped to handle the
future problems (Kang & Snell, 2009).
Loyalty and Commitment
Another key strength of the organization is that employee has developed a sense of loyalty
towards the company that is reflected in the lower attrition rate, also the level of engagement
with the superiors is high, this ensures that new learnings and knowledge stays within the
organization and is spread across the company to benefit others. This is possible because
employees has themselves answered the question why Heinz Australia is a great place to work.
When the employee themselves connect with the organization, it becomes a strategic force
where everyone is working together to achieve the common goal.
Self-learning mode of Continuous Improvement
Final key strength of the company is putting itself into the self-learning mode in present as well
as the future. The company is continuously learning and improving upon its mistakes and trying
harder to achieve better results. This is a process that has been set in and it will go a long way
in gaining the competitive advantage for the company.
Hence overall of culture of innovation and positivity has brought many direct as well indirect
benefits to the company which can sustain longer.
Aspect of organization that needs to be monitored and sustained
Sustain the Positive and Innovative Environment
We live in a very dynamic and globalized which has its advantages as well as the disadvantages.
The advantage being innovation at any corner of the world reaches you at the blink of a second.
This shows that how much we are coupled with the external environment. But it also has its
problem. Crisis in the external world also affect us and we are not immune to it. The global
financial crisis that brought challenges to many companies to shut down its operations. In the
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time of such challenges, the aspect of Heinz Australia is not to bring back the culture of
negativity and pessimism and continue with the Mantra of great place to work. The positive
environment surrounded by the innovativeness and openness has provided the platform for the
employee to meet the challenges of the external world.
Avoid Complacency
Second aspect that company need to monitor is that even after becoming profitable and
successful, management should not become complacent. The basic behavior of mutual respect
and trust has to prevail for the organization to take leap bound. As the organization matures
and profitability becomes routine, it also tends to become complacent and stagnant (Alves et
al., 2007). Company has to ensure that culture of creativity and innovativeness prevails and
employee continuously communicated about the management vision.
Transparency and fairness
In terms of corporate ethics and practices, company has to treat its employee fairly. According
to cultural web – control system, the practice of reward and recognition to the right and
deserving candidate should be the practice in each unit of the company. This ensures that
deserving candidate is motivated to perform even better for the next time and other sub
ordinates are motivated to achieve the same.
Lead by example
Corporate culture of great place to work will have to sustained, to ensure that employees are
engaged with the organization and are willing to go extra mile to achieve the best. Widdow has
taken a great effort in changing the mindset and attitude of the individual to achieve the best
out of everyone and make the company profitable (Chen&Huang, 2009). His story of heroism
and selfless act should become part of story system of the cultural web as it will ensure that
employee have someone to look up to.
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Innovations are facilitated by the flexibility and Heinz Australia has become flexible by being
open and innovative. This aspect has to be sustained over the period to bring in new innovation
and differences.
Conclusion
Heinz Australia which had slide into the pessimistic, inward focusing organization where people
were apprehensive to talk out openly was transformed into a successful and profitable
enterprise under the leadership of Widdow. The reason why Widdow was able to turn around
this organization was analyzed using the culture of web and the changes implemented by him
were focused on making the organization more open, transparent and sending the right
message to employee that Heinz Australia is the great place to work. The message was
delivered to the employees by higher and senior management by walking the talk. As the
culture of respect, mutual trust and openness evolved, people started discussing lot more ideas
and opinions. This lead to the lot of innovative thinking and experimentation that put Heinz
Australia on the path of profitability. First step in solving any problem is identifying one.
Widdow was quick enough to identify the problem of attitude and negativity, and took a
conscious effort to turn it around. The cultural web also helped in identifying the process of
change management adopted by Widdow and how it helped organization and its employee
turn more receptive towards the change rather than being reluctant. The paradigm of
negativity, lack of confidence and inward thinking shifted to the more open, transparent and
young organization that is not afraid to experiment and explore. Hence the cultural web
analysis helps a lot in identifying and analyzing the problems from various perspectives and to
come understand which system needs to be focused on for improvement.
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