Organizational culture, and change management

Introduction

This study is based on organizational culture, and change management This study provides an overall idea about the particular subject area and it provides very important knowledge base in both practical and theoretical manner.

Accordingly in the first part of the study the concept of culture of an organization has been studies as a one learning outcome of the module. Under that a framework of analyzing organizational culture has been described. After that the internal and external factors which could influence organizational culture has been explained, accordingly as the final description of the first learning outcome the current organizational culture has been evaluated.

After a comprehensive understanding on culture of the organizations a study has been expanded to study understand the impact of change that underpins individual and organizational performance. In that section the concept behind organisational values the values to an individual and as well the affect of manger’s personal values in working with team members has been explained properly.

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As the third learning outcome the relationship between organizational culture and change management has been understood and accordingly it was identified how organizational culture can affect organizational change management process and then it was assessed how organizational culture and change management can affect individual behaviour. Also ultimately it is discussed how individual values can influence the behaviour of team.

All together this study covered a vast area in the subject area of organizational behaviour and change management.

Universal Supplier (Pvt) Ltd is UK based company, they import many food items from various Asian countries, and among that Sri Lanka is major country. Universal suppliers are newly established company, it is not alder than 10 years, but its progress is very successful. World is change every day, new technologies are emerge and customer anticipation and satisfactions are change day by day therefore every business has to upgrade their standard. Universal suppliers have understood change system, so they give more priority to change their management and products relative to market change.

The Concept of Culture

To achieve this learning objective there are three main areas which has to be address. First one is the to determine a framework for analyzing organizational culture and then Explanation on internal and external factors that influence organizational culture and at last of this section the consideration was given to evaluate the current Organizational culture.

Determine a framework for analyzing organizational culture

Organizational or corporate culture is the pattern of values, norms, beliefs, attitudes and assumptions that may not have been articulated but shape the way in which people behave and things get done. Norms are unwritten rules and behaviors.

In a very simple way we can say the culture of an organization is the typical way of doing things in the organization. It particularly relates to the behavior pattern and the relationship. The culture of an organization develops as an evolution of long time. It is normally created by the people who work in the organization both the managers and the workforce.

So this framework for analyzing organization should be developed in a manner considering on above said ideas of the organizational culture.

There seems to be wide range of agreement that organizational culture refers to a system of shared meaning held members that distinguishes the organization from other organizations. This system of shared meaning is, on closer examination, a set of key elements that in aggregate capture the essence of and organization’s culture.

These elements are the core of the framework which can use to analyze the organizational culture. Those are as follows.

Innovations and risk tasking – The degree to which employees are encourages to be innovative and take risk.

Attention to detail – The degree to which employees are expected to exhibit precision, analysis, and attention to detail.

Result Orientation – The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve those outcomes.

People Orientation – The degree to which management decisions take in to consideration 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 than easy going.

Stability – The degree to which organizational activities emphasize maintaining the status quo in contrast to growth

Each of these elements exists on a continuum from low to high. Appraising the organization on these seven characteristics or the elements and then gives a composite picture of the organization’s culture.

Explanation on internal and external factors that influence organizational culture to Management Practices

Internal Factors

The actions of Top Management – The actions of the top management also have major impact on the organization’s culture. Through what they say and how they behave, senior executives establish norms that filter down through the organizations as to whether risk taking is desirable, how much freedom managers should give their employees, what is appropriate dress, what action will pay off in terms of pay raises, promotions and other rewards.

Human resources Practices – Once culture is in place there are practices within the organization that act to maintain it by giving employees a set of experience. For example many of the human resources practices reinforce the organization’s culture. The section process, performance evaluation criteria, training career development activities, the promotions procedures ensure that those hired people fit in with the culture.

Socialization – No matter how good a job the organization does in recruiting and selection, new employees are not fully indoctrinated in the organizations culture. May be most important, because they are unfamiliar with the organizations culture, new employees are potentially likely to disturb the beliefs and customs that are in place. The organizations will therefore want to help new employees adapt to its culture. This adaptation process is called as Socialization.

External Factors

The context of Community – The people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of the community. This matter have two sides one is community as a external factor how look at the organization and the other hand employees also come from that community that will effect to the internal factors also. Organizations that promotes a spiritual culture recognize that people have both a mind and a spirit seek to find meaning and purpose in their work, and desire to connect with other human being and be part of a community.

Government Rules and Regulations – This is also having another high effect on organizational culture. Especially in the areas like how to treat for the employees, regulations o customer relations and like that the government rules and regulations also may have a effect on organization’s culture.

National Culture – it is needed to taken in to account if accurate predictions are to be made about organizational behavior in different countries. But does national culture override the organization’s culture. Is an IBM facility in Germany, for example more likely to reflect German ethic culture or IBM’s corporate culture? This example should be taken in to account to national culture override the organization’s culture.

Evaluate the current Organizational culture

Here if we take the McDonalds organization the organizations culture can be identified as follows.

Organizational culture to cope up with National culture

McDonald’s company adjusts to cooking differences in various cultures. In the case of India, McDonalds offered vegetarian burgers to practicing Buddhists. Asian countries preferring spicy taste saw the introduction of spicy burgers, chicken and seasoning. This provides options for customers to purchase food with either the American taste or the local taste. McDonalds achieves balance by maintaining standardization in products but adjusting to the local taste.

Company operations

Operations Customer Oriented Product and service delivery of McDonalds is customer cantered. This means that McDonalds’ primary concern is the satisfaction of its customers. This is ensured by applying a strict standard of food and service quality. Under direct Supervision of Mother Company Periodically, representatives from the mother company visit certain branches in order to ensure the maintenance of quality standards, to discover problems and issues, and to provide updates on operation, management and marketing techniques.

Relationship with the Employees

The company applies the employment policy of providing sufficient training to its workforce. Prior to starting work, newly hired employees are given a rundown of the rules and regulations, company practices and the goals of the company. After this, the employees are introduced to the different components of the menu, process of food preparation, food-packaging techniques, serving of food, handling the cash register, and establishing rapport with customers. New employees are given practical exercises for experience.

Change Management Process

The change management process is one of basic skill in that most Managers and larders need to be competent in there management process. There are very less working environments where change management is not important and not implemented.

In here we are looking basic principles of change management, and provide some guideline on how these principles can be implemented.

When leaders and managers are planning to manage changes, there are five main philosophies which need to be remember

Various people respond various way to change

Everybody has basic needs which have to be fulfil

Changes regularly involves a loss, and people go through the “loss curve”

Anticipation need to be managed rationally

Fears have to be deal with changes

The some techniques in the change management practitioner’s belt are well known in the business and trade press. The effective organizational change in their implementation and realization are required the introduction of lean manufacturing, 360° feedback, executive coaches, six sigma, CRM, just-in-time supply and manufacturing processes such as kanban and kaizen, Total Quality Management, or enterprise applications such as SAP, and etc

Importance (Objectives)of Change Management to the Organization

1. To allow changes while, at the same time, maintaining or improving service stability and availability.

2. To increase the probability of change process success.

3. To reduce and minimize the ratio of changes that needs to be backed out of due to inadequate preparation.

4. To ensure that all parties affected are informed of planned changes.

5. To provide a record of changes implemented to assist with and shorten problem determination time.

6. To ensure that technical and management accountability for all changes is identified.

7. To assist with the accuracy of predictions of impact, such as response time, utilization, etc.

8. To ensure that all affected parties are not only informed, but necessary documentation and training is in place prior to the implementation.

Organization Culture and Change Management Process

The organization culture and change management process are interrelated. There are many impact cultural impacts for change management process. Ever organization has unique culture, so management system also adapted surrounding that culture and if they implement any change process they have to adapt that change process with their culture, otherwise they have to change organization culture. Company motivation process is often to improve the effectiveness of this employee in order to improve the financial status of the company. Some organizational cultures are making barriers to implement changes, so they have to overcome those resistant against to change. Most of manager and leaders are not willing to do changes, because they have some fear about it success or failure. Cultural changes or changes adaptation to culture are required to success of changes, because these two cannot be separated. Good relationship between organization culture and change management process always bring success of change.

Model for the Changing Process

Change is not conventional; it does not chase the particular order in change management models were suggested. So, when look at these models of change management, permit a lot of flexibility when referring a model rather than referring any model too rigidly, The way of implementation of changes are differ and depending on which model is used, but we can fallow basic steps those are essential to follow and those are common to any personal or organizational changes.

Model for the Changing Process

Kotter’s Eight Change Model

John Kotter’s eight change model is so suitable compare with the other all models for Universal Supplier change process. It has eight steps to fallow for the appropriate change process that will be applied to Universal Supplier.

(Source: http://www.google.co.uk/images?clien)

Step One: Create Urgency

This may help to Universal supplier spark the initial motivation to get things moving company has low distribution network so they want to expand it all over the UK, still it spread only within boundary of London. Company has threat from their market, because there are many competitors arising with new entrance. Company has opportunity to expand its other region in UK; because London is more competitive place many business organizations are located there, not only UK they have opportunity to penetrate other EU countries Like French. Company competences are enough for penetrate and expand the market network, but they should strengthen it further.

Step Two: Form a Powerful Coalition

The effective change leaders don’t need to follow the traditional company hierarchy. To lead change, company management level need to bring all together a coalition, or team, of influential people whose power comes from several of sources, including job title, status, expertise, and political importance

Step Three: Create a Vision for Change

The universal Supplier change process vision is to be a leading food supplier in UK and change objective is expansion of market network all over the UK and Penetrates to other EU countries such as French. When the first start thinking about change. There will probably be many great ideas and solutions floating around. Link these concepts to an overall vision that people can grasp easily and remember.

Step Four: Communicate the Vision

Change vision is communicated all the stakeholders of Universal Supplier. There are various methods is implicated for success of vision communication.

Step Five: Remove Obstacles

Universal Supplier has some obstacles from importing process. There are many rules and regulation impose when importing of products, and employee knowledge and skills are not enough for achieve that change. Therefore company has to remove those obstacles by using various strategies

Step Six: Create Short-term Wins

Company should create short term wins like annual target coverage, 10% change coverage. Company should be given a taste of achievement early in the change process. It will be encourage employees to reach to final goal in changing process

Step Seven: Build on the Change

Company need to implement continuous improvement and change build on going changes. In here final goal is penetrate to other EU countries that should be achieved in the change process. Continuous improvement is very important for going to final target.

Step Eight: Anchor the Changes in Corporate Culture

The Cooperate culture regularly identifies what gets done, so the values behind the company or person vision must show in daily work. Required continuous commitment to ensure those changes are seen in every aspect of organization, this will help that change a solid place in Universal supplier (Pvt) Ltd

Resistant to Change

There are many reason to change, those are due to lack of understanding, poor communication process, cultural and belief barriers, norms, conflict, company structure, technological capabilities, Managerial attitudes and style. Therefore managers and other executives need recognise and identify different form of resistance:

1. Threat of power on an individual basis

2. Threat of power on an organization basis

3. Losing the control by employees

4. Increasing the control of employees

5. Economic factor and limitation

6. Fear for the Job’s security

7. Implication on personal objectives and plans

8. Misunderstanding about changes

9. Fear of unknown

10. Limited resources allocation

There are many factors for create resistance again changes. Organization should identify those barriers (resistant) to changes and need to find out overcome those resistant otherwise changes are not implemented successfully.

Successful Method of Implementation of Change

There are several key parameters that need to be observed if change is to be successful, those are:

1. Idea and the need for the change: Idea generally should be serious, and otherwise there is not a perceived need for change.

2. Adaptation: Adaptation is occurred after key persons make decision chose to a head with planed objectives. Executives and general employees should help to success of change process, and major organizational changes should be sign on legal documents by the board of directors

3. Resources: Change is not happened without resources, it requires allocated resources within time frame, specially required adjustable budget, and proper human resource, technology and etc.

4. Implementation: Implementation is occurred after create change decision with organizational plan. Capital approval, employee training, arranging of materials and equipments are very important in implementation process.

Conclusion

This assignment analyses a broad area in organizational culture, and change management process.

In the first part of the study the concept of culture of an organization has been studies in broad term under three main study areas. Which are organizational culture external internal factors affect for organizational culture and assessing a current organizational culture of an organization.

In the second section a comprehensive understanding on culture of the organizations a study has been expanded to study understand the impact of changes that underpin individual and organizational performance. In that section the concept behind organisational culture and the changes to an individual and as well the affect of manger’s personal values in working with team members has been explained properly.

In the final section relationship between culture and changes has been understood and accordingly it was identified how organizational culture can affect organizational change process and then it was assessed how organizational culture can affect individual and organizational changes. Also ultimately it is discussed model of change process, resistant to changes and successful method to implementation of changes.

Universal Supplier (Pvt) Ltd is UK based company, they import many food items from various Asian countries, and among that Sri Lanka is major country. Universal suppliers are newly established company, it is not alder than 10 years, but its progress is very successful. World is change every day, new technologies are emerge and customer anticipation and satisfactions are change day by day therefore every business has to upgrade their standard. Universal suppliers have understood change system, so they give more priority to change their management and products relative to market change.