Managing Organizational

Culture and Change

Organizational Culture

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.

Core Values

Expressed Values

Visible CultureLevels of Corporate Culture

Functions Performed By Organizational CultureEmployee Self-Management

Sense of shared identityFacilitates commitment

StabilitySense of continuitySatisfies need for predictability, security, and comfort

Functions Performed By Organizational Culture Socialization

Internalizing or taking organizational values as one’s own

Implementation Support of the Organization’s Strategy If strategy and culture reinforce

each other, employees find it natural to be committed to the strategy

Creating and Sustaining Organizational Culture

Company Rituals and Ceremonies

Cultural Symbols

LanguageLeadershipOrganizational Policies

and Decision Making

Characteristics and Types of Organizational Culture

Cultural Uniformity versus Heterogeneity

Strong versus Weak Cultures

Culture versus Formalization

National versus Organizational Culture

Characteristics and Types of Organizational Culture

Types: Traditional Control or Employee Involvement Traditional control

emphasizes the chain of command relies on top-down control and orders

Employee involvement emphasizes participation involvement

Four Types of Culture Classification

Baseball team culture--rapidly changing environment

Club culture--seeks loyal, committed people

Academy culture--hires experts who are willing to make a slow steady climb up a ladder

Fortress culture--focused on surviving and reversing sagging fortunes

Types of Change

Planned Change--change that is anticipated and allows for advanced preparation

Dynamic Change--change that is ongoing or happens so quickly that the impact on the organization cannot be anticipated and specific preparations cannot be made

Forces for Change: Environmental Forces

Put pressure on a firm’s relationships with customers, suppliers, and employees.

Environmental forces include:TechnologyMarket forcesPolitical and regulatory agencies and lawsSocial trends

Forces for Change: Internal Forces

Arise from events within the company.

May originate with top executives and managers and travel in a top-down direction.

May originate with front-line employees or labor unions and travel in a bottom-up direction.

Resistance to Change

Self-Interest

Lack of Trust and Understanding

UncertaintyDifferent Perspectives

and Goals

Cultures that Value Tradition

Models of Organizational Change: The Star Model

The Star Model: Five Points

Types of change-evolutionary or transformational

StructureReward systemProcessesPeople

Lewin’s Three-Step Model of Organizational Change

Unfreezing--melting away resistance

Change--departure from the status quo

Refreezing--change becomes routine

Lewin’s Force Field Analysis Model

Increase driving forces that drive change

Reduce restraining forces that resist change

Or do both

Restraining forces

Driving forces

Status quo

Desired state

Time

Force-field Model of Change

Implementing Organizational Change

Top-down Change

Change Agents

Bottom-up Change

Eight Steps to a Planned Organizational Change

Establish a sense of urgency.

Form a powerful coalition of supporters of change.

Create a vision of change. Communicate the vision of

change.

Empower others to act on the vision.

Plan and create short-term wins.

Consolidate improvements and produce still more change.

Institutionalize new approaches.

Tactics for Introducing Change

Communication and Education

Employee Involvement

Negotiation

Coercion

Top-Management Support

Rs 500, Rs 1,000 notes banned: Congress' criticism of Modi's decision is at odds with country's mood

Changes inPM Modi decided to discontinue the existing Rs 1,000 and Rs 500 currency notes with effect from midnight on 8 November. PTI– In one fell swoop, Modi not only

reaffirmed his pro-people credentials but also burnished his image as a feisty fighter of black marketers and the corrupt. And this was no mean achievement. Of late, consistent attempts have been made by his rivals to bracket Modi as a 'pro-capitalist' prime minister.

Employee resistance due to• New roles

• Redundancy

• Added responsibilities

• Fear of unknown and possible loss of job

Congress has raised serious apprehensions over the ban imposed by Narendra Modi government over the use of Rs 500 and Rs 1000 notes from today midnight. Although it has welcomed the move as an instrument to fight corruption and black money, the party raised serious apprehensions over it’s fallout.

Congress spokesperson Randeep Surjewala questioned the timing of the decision taken by government, stating that it is the agrarian peak period and farmers would be left without cash in the market.

– Congress spokesperson Randeep Surjewala questioned the timing of the decision taken by government, stating that it is the agrarian peak period and farmers would be left without cash in the market.

– The paddy crop has already been cut, it’s in the market. And wheat crop and rabi crop currently being sown. Farmer is buying fertiliser, seeds and going to market today and needs lot of money for the inputs he has to get. What happens to those who are going to buy necessary articles for marriages including jewellery, clothes etc?” Surjewala said. “Are you not putting cumbersome burden on them by putting a limit on how much money can be withdrawn?” he further added.

Forms of Resistance

• Strikes

• Boycott

• Lockouts because of fear.

– “While Modi ji withdraws Rs 1000 note on one side, he introduces Rs 2000 note on the other side? Does it not defeat his own argument? Is the banking system in our country ready to tackle such situation, Government has to answer many questions,” Surjewala added.

– RAHUL GANDHI-The Congress vice-president is deeply agitated. He thinks that Prime Minister Narendra Modi has not acted in national interest. It's not a crackdown against corruption, black money, benami property or terror financing chain, but it is a move by a whimsical Prime Minister who is bent on harassing ordinary citizens of his country.

The Congress vice-president is deeply agitated. He thinks that Prime Minister Narendra Modi has not acted in national interest

Consequence of resistance• Production stoppages

• Paying labour for no job done.

– But it seems that Modi did have an ace up his sleeve. It would be naïve to assume that his decision was random, and that it had been reached at without giving proper attention to detail. In his monthly radio programme Mann Ki Baat, Modi had categorically forewarned the hoarders of black money to come clean and declare their assets under the 'voluntary disclosure' scheme. “This is the last chance for you,” he had warned in clear terms.

– Though his warning did yield some positive results, the initiative fell far short of the finance ministry's expectations. A large section of those involved in corruption and dealing with cash money chose to ignore the government’s scheme, in the fond belief that the government would hesitate in taking a drastic measure, as it could adversely affect the economy.

Suggestion• Education and communication

• Participation and involvement

• Facilitation and support

– Negotiation and agreement In 1969, when Gandhi had abolished the privy purse and nationalised the banks, the move had found unparalleled social resonance amongst the people; as it had challenged the status-quo and radically altered the hierarchy of the elite.

– In Modi’s case, the decision to invalidate the Rs 500 and Rs 1000 currency notes is perceived as an operation carried out in total secrecy to upstage the hoarders of black money. The fact that Modi’s move was a closely guarded secret enhances the credibility of the move. This is the precise reason why the Congress spokesperson's attempt to find fault with Modi’s decision appeared to be in vain.

Few examples of changes & responses Changes and their effects in Indian organizations• Political unrest by allies and opposition for diesel prices hike and

regulation on LPG cylinder distribution.• FDI in single and multi-brand retail created country wide protest last year, even its going now.• Cancellation of Niyamgiri Bauxite mining project for the safeguard of local tribal people.• TATA Motors shifted their NANO factory to Sanand, Gujarat on the face of resistance by local farmers from Singur, WB, in 2008.• Bank employees went on strike for two days in the month of August ’12 to protest higher management decisions.

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