Explains the aspects of organisational culture and change and how change can be managed in an organization.

1. Organizational
culture, change and
Principles of
Management,
Dr Anugamini Priya
Symbiosis Institute of Business Management

2. ‘Culture’
“A pattern of shared basic assumptions that the group learned as it
solved its problems that has worked well enough to be considered
valid and is passed on to new members as the correct way to
perceive, think, and feel in relation to those problems.
-- Edgar Schein
• A common perception held by the organization’s members; a
system of shared meaning.
• A set of values and beliefs that is unique to any one organization.

3. 16–3
What Is Organizational Culture? (cont’d)
 Culture Versus Formalization
 A strong culture increases behavioral consistency and can act as a
substitute for formalization.
 Organizational Culture Versus National Culture
 National culture has a greater impact on employees than does their
organization’s culture.
 Nationals selected to work for foreign companies may be atypical of the
local/native population.

4. Key Characteristics of Corporate Culture
Innovation and Risk Taking: The degree to which employees are encouraged to be
innovative and take risks.
Attention to Detail: The degree to which employees are expected exhibit precision,
analysis and attention to detail.
Outcome Orientation: The degree to which management focuses on results or outcomes
rather than on the techniques and processes used to achieve those outcomes.

5. Contd..
People Orientation: The degree to which management decisions are take
into consideration and the effect of outcomes on people within the
organization.
Team Orientation: The degree to which work activities are organized
around teams rather than individuals.
Aggressiveness: The degree to which people are aggressive and
competitive rather easy going
Stability: The degree to which organizational activities emphasize
maintaining the status quo in contrast to growth.

6. Functions of organizational culture
 Defines the boundary between one organization and others.
 Conveys a sense of identity for its members.
 Facilitates the generation of commitment to something larger than self-interest.
 Enhances the stability of the social system.
 Serves as a sense-making and control mechanism for fitting employees in the
organization and for shaping behavior
 Helps organizational members attribute sense and meaning to organizational
events, and reinforces the values in the organization.
16–6

7. 16–7
Do Organizations Have Uniform Cultures?
Dominant Culture
Expresses the core values that are shared by a
majority of the organization’s members.
Subcultures
Mini cultures within an organization, typically
defined by department designations and
geographical separation.

8. 16–8
Do Organizations Have Uniform Cultures? (cont’d)
Core Values
The primary or dominant values that are accepted throughout the
organization.
Strong Culture
A culture in which the core values are
intensely held and widely shared.

9. Layers of organizational culture

11. Typical organizational Behaviors-
artifacts
• Form the most observable level of culture
• Consist of behavior patterns and outward manifestations of
culture, such as perks provided to executives, dress codes, the
level of technology utilized (and where it is utilized), and the
physical layout of work spaces.
• Some notable characteristic behaviors may have considerable
longevity – such as rites, ceremonies, organizational myths, and
“shop talk.”
https://www.artsfwd.org/3-levels-of-organizational-culture/

12. Practices
 Practices are observable cultural customs such as taboos (culturally
forbidden behaviours) and ceremonies
 Personal Enactment: behavior that reflects the organization's values.
 Ceremonies and Rites : Ceremonies can be divided into organizational
rites, including rites of passage, rites of enhancement, rites of renewal
etc. - sets of activities that are enacted repeatedly on important
occasions.

13. Contd..
 Stories : rich carriers of organizational culture that give meaning
and identity to organizations and help orient new employees.
There are stories about the boss, stories about getting fired or
whether lower-level employees can rise to the top or how the
company deals with crisis situations etc.
 Rituals: Everyday practices that are repeated frequently are
known as rituals. Typically unwritten, rituals send a clear message
about the way things are done in an organization.

14. Symbols
 A symbols is any visible object, act, or event that conveys
meaning to others.
 Symbols communicate the culture through unspoken messages,
and include company logos, company colors, and even mental
images held by employees.
 Examples:
 Dress
 Office layout
 Slogans
 ceremonies

15. Language
 Language is a shared system of vocal sounds, written signs,
and/or gestures used to convey meaning among members of a
culture.
The Nike swoosh was inspired by the Greek
goddess Nike, the winged goddess of victory.
The swoosh symbolizes her flight. It conveys the
meaning of a brand of sports shoes

16. Values
https://www.artsfwd.org/3-levels-of-organizational-culture/
Values are the basic beliefs
people hold that specify
general preferences and
behaviours, and define what is
right and wrong.
Organizational values are
frequently expressed through
norms–characteristic attitudes
and accepted behaviors that
might be called “the unwritten
rules of the road”
Cultural values are
reflected in a society’s
morals, customs and
established practices
Norms are rules that
govern behaviours of
groups of people.

17. Forms of values
An espoused value is what organizational members say they
value, like ethical practice.
Enacted values are values reflected in the way individuals
actually behave, and may differ from espoused values.

18. Fundamental Assumptions
• An organization’s underlying assumptions grow out of values,
until they become taken for granted and drop out of awareness.
• Shared assumptions are the thoughts and feelings that members
of a culture take for granted and believe to be true.
https://www.artsfwd.org/3-levels-of-organizational-culture/

19. Types of organizational culture
Formal
Control
Orientation
Forms of Attention
Flexible
Stable
Internal External
Clan
Culture
Bureaucratic
Culture
Market
Culture
Entrepreneurial
Culture
Source: Adapted from Hooijberg, R., and Petrock, F. On cultural change: Using the competing values framework to help
leaders execute a transformational strategy. Human Resource Management, 1993, 32, 29-50; Quinn, R. E. Beyond Rational
Management: Mastering the Paradoxes and Competing Demands of High Performance. San Francisco: Jossey-Bass, 1988.

20. Bureaucratic Culture
 In this type of culture the behaviour of employees is governed by
formal rules and standard operating procedures.
 Such a culture perpetuates stability.
 Organizations with bureaucratic culture tend to produce
standardized goods and services, examples:
 Government ministries
 Fast food establishments

21. Clan Culture
 In a clan culture the behaviour of individuals are shaped by
tradition, loyalty, personal commitment, extensive socialization
and self-management.
 A clan culture achieve unity through socialization.
 Long-term employees serve as mentors
 Members are aware of the organization’s history and have an
understanding of the expected manner of conduct and
organizational style.
 Members share feelings of pride in membership.
 Peer pressure to adhere to important norms is strong

22. Market Culture
 In a market culture, the values and norms reflect the significance
of achieving measurable and demanding goals mainly concerning
those that are financial and market based.
 Companies with a market culture tend to focus on Sales growth;
Profitability & Market share
 In a market culture the relationship between individuals and the
organization is contractual (previously agreed).
 Individuals are responsible for their performance; whereas the
organization promises specific rewards for levels of performance.
 Managers are not judge on their effectiveness as role models or
mentors; but on monthly, quarterly, and annual performance goals
based on profit.

23. Entrepreneurial Culture
 Organizations existing in the
context of an entrepreneurial
culture are characterized by
high levels of risk taking
and creativity.
 There is a commitment to
experimentation, innovation,
and being on the leading
edge.
Steve Jobs – Apple

24. Socialization
 Socialization is the process by which people lean valves, norms, behaviours
and social skills. It is the means by which new members are brought into a
culture.
Step 1
• Careful
selection
Step 2
• Challenging
early work
assignments
Step 3
• Training
to develop
capabilitie
s with
culture
Step 4
• Reward
and
sustain
culture
Step 5
• Adoption
of
cultural
value
policies
Step 6
• Reinforce
culture with
ritual,
stories rites
Step 7
• Role
model to
sustain
culture

25. 16–25
A Socialization Model
E X H I B I T
16–2

26. 16–26
Stages in the Socialization Process
Prearrival Stage
The period of learning in the socialization process that occurs before a new
employee joins the organization.
Metamorphosis Stage
The stage in the socialization process in which a new employee changes and adjusts to
the work, work group, and organization.
Encounter Stage
The stage in the socialization process in which a new employee sees what the
organization is really like and confronts the possibility that expectations and reality
may diverge.

27. Successful socialization is
reflected in
Unsuccessful socialization is
reflected in
 Job satisfaction
 Role clarity
 High work motivation
 Understanding of culture, perceived
control
 High job involvement
 Commitment to organization
 Tenure
 High performance
 Internalized values
 Job dissatisfaction
 Role ambiguity and conflict
 Low work motivation
 Misunderstanding, tension, perceived
lack of control
 Low job involvement
 Lack of commitment to organization
 Absenteeism, turnover
 Low performance
 Rejection of values
Possible Outcomes of the Socialization
Process

28. 16–28
How Organization Cultures Form

29. 16–29
Creating An Ethical Organizational
Culture
 Characteristics of Organizations that Develop High Ethical Standards
 High tolerance for risk
 Low to moderate in aggressiveness
 Focus on means as well as outcomes
 Managerial Practices Promoting an Ethical Culture
 Being a visible role model.
 Communicating ethical expectations.
 Providing ethical training.
 Rewarding ethical acts and punishing unethical ones.
 Providing protective mechanisms.

30. 16–30
Creating a Customer-Responsive Culture
 Key Variables Shaping Customer-Responsive Cultures
1. The types of employees hired by the organization.
2. Low formalization: the freedom to meet customer service requirements.
3. Empowering employees with decision-making discretion to please the
customer.
4. Good listening skills to understand customer messages.
5. Role clarity that allows service employees to act as “boundary spanners.”
6. Employees who engage in organizational citizenship behaviors.

31. Creating a Customer-Responsive Culture (cont’d)
 Managerial Actions :
• Select new employees with personality and attitudes consistent
with high service orientation.
• Train and socialize current employees to be more customer
focused.
• Change organizational structure to give employees more control.
• Empower employees to make decision about their jobs.
16–31

32. Creating a Customer-Responsive Culture (cont’d)
 Managerial Actions (cont’d) :
• Lead by conveying a customer-focused vision and demonstrating
commitment to customers.
• Conduct performance appraisals based on customer-focused
employee behaviors.
• Provide ongoing recognition for employees who make special
efforts to please customers.
16–32

33. 16–33
Spirituality and Organizational Culture
Workplace Spirituality
The recognition that people have an inner life that nourishes and is nourished by
meaningful work that takes place in the context of the community.
Characteristics:
• Strong sense of purpose
• Focus on individual development
• Trust and openness
• Employee empowerment
• Toleration of employee expression

34. 16–34
Reasons for the Growing Interest in
Spirituality
 As a counterbalance to the pressures and stress of a turbulent pace of
life and the lack of community many people feel and their increased
need for involvement and connection.
 Formalized religion hasn’t worked for many people.
 Job demands have made the workplace dominant in many people’s
lives, yet they continue to question the meaning of work.
 The desire to integrate personal life values with one’s professional life.
 An increasing number of people are finding that the pursuit of more
material acquisitions leaves them unfulfilled.

36. 36
Hofstede Model
 Power distance
 Uncertainty avoidance
 Individualism vs. Collectivism
 Masculinity vs. Femininity
 Long vs. Short term orientation

38. 16–38
How Organizational Cultures Have an Impact on
Performance and Satisfaction

39. Change management

40. Change Management
• George Box- "essentially, all models are wrong, but some are useful”
• Organizational change management (OCM) is a structured approach
in an organization for ensuring that changes are smoothly and
successfully implemented, and that the lasting benefits of change are
achieved.
• That is easier said than done.
• The complexity and unpredictability of human behavior will ensure
that the field of change management will continuously produce more
frameworks to study and more models to adopt.

41. Kotter’s Eights Steps to Change
Benefits
1. Focus on buy-in of employees as the focus for
success
2. Clear steps which can give a guidance for the
process
3. Fits well into the culture of classical
hierarchies
Limitations
1. The model is clearly top-down, it gives no
room for co-creation or other forms of true
participation.
2. Can lead to frustrations among employees
if the stages of grief and individual needs
are not taken into consideration.
Establish a
Sense of
Urgency
Form a
powerful,
guiding
coalition
Develop a
vision &
Strategy
Communicate
the vision
Remove
Obstacles &
empower
action
Plan and
create short-
term wins
Consolidate
gains
Anchor in the
culture
More at :http://www.kotterinternational.com/our-principles/changesteps/changesteps

42. Bridge’s Transition Model
Benefits
1. You can use the model to understand how
people feel as you guide them through
change. It clarifies the psychological effect of
change.
Limitations
1. While the model is useful for implementing
change, it's not a substitute for other
change management approaches. It cant be
used as an independent change
management model.
Bridges(1991)- what is going on when an organizational change
takes place - differentiates between change and transition,
according to him.
Change is a situational and happens without people transitioning
and transition is psychological and is a three phase process
where people gradually accept the details of the new situation
and the changes that come with it.
ENDING NEUTRAL ZONE NEW BEGINNING
End what ‘used to be’; identify
who is losing what, openly
acknowledge the loss, mark the
endings and continuously repeat
information about what is
changing and why.
Individuals within the
organization feel disoriented
with falling motivation and
increasing anxiety. Ensure that
people recognize the neutral
zone and treat it as part of the
organization's change process.
Gain acceptance of the purpose;
Communicate a picture of how
the new organization will look
and feel ; Communicate and gain
a step-by-step understanding of
how the organization will change
More at : http://www.mindtools.com/pages/article/bridges-transition-model.htm

43. Roger’s Technology Adoption Curve
Benefits
1. Helps in creating an understanding of the
audience for change.
2. Provides inputs to identify opinion makers and
influencers.
Limitations
1. People need not fall into one Change Adoption
Category; they drift from category to category
depending on the specific change/innovation.
2. The adoption terms are accurate only in hindsight;
they tell you nothing about how a population might
respond to a change/innovation.
Based on the theory of diffusion of innovation(1962),
Describes the adoption or acceptance of a new product or
innovation, according to the demographic and psychological
characteristics of defined adopter groups.
Illustrated as a classical normal distribution or "bell curve.“
The curve creates the foundation of 5 step process of technology
adoption- Knowledge, Persuasion, Decision, Implementation,
Confirmation
More at : http://en.wikipedia.org/wiki/Diffusion_of_innovations

44. Kubler- Ross Five Stage Model
The Change Curve
Benefits
1. An individual’s reaction to change is well
captured, this forms a good foundation to
develop communication strategy
Limitations
1. Not all change is bad. This model assumes
the worst reaction to change.
2. It is difficult to identify the transition
between stages.
3. Difficult to apply to a group
1960s by Elisabeth Kubler-Ross to
explain the grieving process.
She proposed that a terminally ill
patient would progress through 5
stages of grief when informed of
their illness.
The curve, and its associated
emotions, can be used to predict how
performance is likely to be affected
by the announcement and subsequent
implementation of a significant
change.
More at :
http://www.exeter.ac.uk/media/universityofexeter/humanresources/documents/learningdevelopment/the_change_curve.pdf

45. Prosci’s ADKAR Model
Benefits
1. It encapsulates the business/process
dimension of change and the individual
dimension of change
2. Provides a clear management checklist to
manage change
Limitations
1. Misses out on the role of Leadership and
principles of programme management to
create clarity and provide direction to
chnage
ADKAR is a goal-oriented change management model
that allows change management teams to focus their
activities on specific business results.
The model was initially used as a tool for determining if
change management activities like communications and
training were having the desired results during
organizational change.
More at : http://www.change-management.com/tutorial-adkar-overview.htm