change management of organizational culture

Authors : Dennis Reiss, Zane Dzene, Gaëtan Oliva, Alexandre Alba, Isabel Hellmann, Ieva Tomaša and Victoria Lopez

1. Organizational culture

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

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Internal factors: lack of attraction, change in the head of the society, outdated skills of employees

3. Methods of change management

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;

5. Case of IBM and World Bank

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

Thank you for your attention