Class -SYBBA Subject -Organisational Behaviour
Meaning & Definition
Organizational Culture
Organizational culture, also known as corporate culture, refers to the values, attitudes, beliefs and behaviors that characterize and contribute to organization's unique social and emotional work environment. Organizational culture is unique for every organization and one of the hardest things to change and consists of written and unwritten rules that have been developed over time.
Defination
According to O' Reilly,
"organisational Culture is the set of assumption beliefs ,values and norms that are shared by an organisation 's member."
Organizational culture is the collection of values, expectations, and practices that guide and inform the actions of all team members. Think of it as the collection of traits that make your company what it is. A great culture Exemplifies positive Traits that lead to improved performance, while a dysfunctional company culture brings out qualities that can hinder even the most successful organizations.
- Formation of Organisational Culture
Define your strategy:
the vital first step. Even before you are able to align your Organisational Culture with your strategy, you have to clearly define what that strategy is.
Understand your current Organisational Culture:
it’s important for you to get an impartial understanding of how your Organisational Culture is today. You can do this by seeking inputs for different areas of your organisation before you establish an overall view of the situation.
Identify areas of improvement:
Once you have clearly defined your strategy and have an overview of your current Organisational Culture, you are ready to identify the gaps where improvements could be made.
Create an action plan:
once you put together the big picture, you are now ready to create an action plan. In most cases you will have too many gaps to address at one time and that is why we suggest starting with the most beneficial ones to your organisation.
Monitor the progress:
In order to ensure consistent monitoring, we recommend creating what we call Culture Squads. This means tasking a group of people with driving and monitoring change. Hofstede Insights provides training and mentoring for this as well.
Re-evaluate regularly:
Consider evaluating and re-evaluating your Organisational Culture on a regular basis in order to make sure you are continuously moving in the right direction. This also helps you to understand if the actions you are taking are having the desired impact on your Organisational Culture or if different actions could have more impact.
- Sustaining Organisational Culture
1. Focus on the Positive.
The power of positivity can be especially helpful to those who need a little boost in employee morale. Negative talk (gossip, complaining and criticizing) can bring down even the best organization. It’s toxic to your culture, and your bottom line, so don’t let those Negative Nellies drag you down! Next time you catch yourself saying something negative, don’t be the Grinch, instead create Seuss’s Land of Fott-fa-Zee.
2. Ensure Shared Values.
Skills and competencies are important, but behaviors are often rooted in one’s personal values. Have your team explore their values and share them with their colleagues. It is eye opening for staff to discover how their values impact them as a person, and what is important to their teammates. Be sure to hire employees who model behaviors that fit your values.
3. Give and Receive Feedback.
When giving feedback, be specific, focus on the observed behavior, and describe the impact it had. It’s important to address conflict and how to have comfortable conversations. Most people love giving positive feedback but dread the tough stuff. If you’re used to structuring your feedback and developing a strong level of trust amongst your team, the tough stuff won’t feel so difficult anymore.
4. Follow-Through.
Following-through builds trust and shows your commitment to getting the job done. Consider when your residents have a special request or a complaint, don’t you want your employees to resolve the issue and follow up afterwards? If you agree, then you need to model this behavior to your employees too.
5. Care About Your Team Members.
If you want your people to care about your residents, not just checkoff tasks on a list, then you must care about your people! And show them that you do.
6. Play to Strengths and Look for the Bright Spots.
At first glance this sounds like focusing on the positive, and it is, but it’s more than that. Let’s use recruitment as an example, when you are focused on strengths and what’s going well, you’ll want to look towards your superstar employees to find out: How did we find them? What about them makes them special? How do we keep them? How can we replicate what’s most important? If it was referral, consider ramping up your referral process. If they came from a local school, consider increasing your presence at this school. If it was someone who randomly applied online, how did they find you? What search terms were used? Ask them what it was that attracted them to you?
7. Set Expectations.
All employees should know what is expected of them and in a field where we are struggling to retain employees past the honeymoon phase, setting expectations right from the start is critically important. Explain the importance of the organizational culture and the mindset that comes with being person-centered and focused on continuous performance improvement.
8. Evaluate Processes and Procedures.
If you’re committing to continuously improving, and not falling behind the times, you’ll need to have systems in place to constantly evaluate and look for opportunities. You’ll also want to make sure that your current processes or procedures aren’t causing a bottleneck or hindering employees from doing the right thing.
9. Create Opportunities for Collaboration.
We hear time and time again that teams are working in silos and that they aren’t working together to meet the resident’s needs. It’s important to create opportunities for team members to collaborate with each other.
10. Be Consistent.
Starting and stopping new things all the time will never lead to movement and it can cause employees to distrust management. Flavor of the month clubs aren’t effective, and no one likes a boss who says one thing and does another. It is better to pick one thing and follow through on it then to try all ten, only to get overwhelmed and give up.
It was so hard to narrow this list down to just 10 and one thing we just couldn’t leave off the list is telling stories. Bonus: You now have our top 11 Must Do’s!
11. Telling stories and using examples.
Stories paint a picture; they evoke emotion. Stories help people relate; they make an idea come to life. Next time you are working on updating your careers section of your website, your employee orientation, or even a simple newsletter, try including real life stories that provide insight into your culture. Stories are a powerful marketing tool!
WHAT IS ORGANIZATIONAL CHANGE MANAGEMENT?
Organizational change refers to the actions in which a company or business alters a major component of its organization, such as its culture, the underlying technologies or infrastructure it uses to operate, or its internal processes. Organizational change management is the process of guiding organizational change to a successful resolution, and it typically includes three major phases: preparation, implementation, and follow-through.
According to Cambridge Dictionary, organizational change is:
“A process in which a large company or organization changes its working methods or aims, for example in order to develop and deal with new situations or markets.”
Types of Organisational Changes
1. TRANSFORMATIONAL/RADICAL CHANGE
2. INCREMENTAL CHANGE
3. DEVELOPMENTAL CHANGE
4. REMEDIAL CHANGE
5. TRANSFORMATIONAL CHANGE
6. PROCESS & SYSTEM CHANGE
7. PEOPLE & CULTURE CHANGE
8. STRUCTURAL CHANGE
9. MERGER/ACQUISITION CHANGE
10. DE-MERGER CHANGE
11. DOWNSIZING CHANGE
12. RELOCATION CHANGE
1. Transformational Change
Transformational change is a type of organizational change that seeks to create significant, fundamental shifts in how an organization operates and organizes itself. This type of change involves introducing new strategies, processes, systems, and structures that shift the way the company operates.
Transformational change is typically considered as more radical because it can involve overhauling existing operations or introducing larger, systemic solutions that may span across multiple departments. This type of organizational change requires a deep level of commitment from leaders and employees alike, as it often requires them to let go of traditional ways of doing things in order to embrace new systems and procedures.
2. Incremental Change
Incremental change is a type of organizational change that introduces small, but meaningful changes to an organization’s systems, processes, and structures. This type of change is often seen as the opposite of transformational change, as it involves making gradual, iterative adjustments to existing operations rather than embarking on a complete overhaul.
Incremental change is a type of organizational change that can help businesses increase their efficiency and effectiveness. Unlike transformational change, incremental change focuses on small, targeted adjustments instead of large-scale overhauls. This type of change typically involves making small improvements and modifications to existing systems, processes, and structures in order to maximize productivity and output.
3. Developmental Change
Developmental change is a type of organizational change that seeks to build on the existing processes, structures, and capabilities of an organization in order to bring about meaningful improvements. This type of change typically involves introducing new systems, technologies, and tools that enable greater efficiency and effectiveness in the workplace.
Unlike transformational and incremental changes which often require a complete overhaul of existing operations, developmental change focuses on building upon existing systems, processes, and structures to bring about meaningful improvements. This type of organizational change involves introducing new tools and technologies that help employees become more productive and efficient.
4. Remedial Change
Remedial change is a type of organizational change that involves making corrections or improvements to existing systems, processes and structures in order to bring about more efficient and effective operations. This type of change often involves troubleshooting and problem-solving existing issues as well as implementing strategies that can help simplify procedures and eliminate areas of inefficiency.
Unlike transformational and developmental changes which focus on introducing new strategies and technologies to drive growth, remedial change focuses on addressing existing problems in order to make operations more efficient and effective.
5. Process and System Change
Process and system change is a type of organizational change that involves making adjustments to existing processes and systems in order to improve efficiency and effectiveness. This type of change often involves the introduction of new technologies, systems, and tools that not only make operations more efficient but also introduce new ways of working.
Process and system change can help businesses increase their efficiency and effectiveness by introducing new technologies, systems, and tools that enable greater efficiency and productivity in the workplace.
6. People and Culture Change
People and culture change is a type of organizational change that focuses on transforming an organization’s culture, values, and behaviors in order to drive greater efficiency and effectiveness. This type of change often involves introducing new corporate policies, procedures, and systems that help to create an environment where employees feel supported, valued, and empowered.
Additionally, these changes often involve incentivizing employees to make the changes they need to ensure the organization operates at peak efficiency. Through organizational change management, leaders are able to create a culture of engagement, innovation, and collaboration.
7. Structural Change
Structural change is a type of organizational change that alters the way an organization is structured in order to improve efficiency and effectiveness. This type of change often involves introducing new policies, procedures, and systems that help to streamline operations and eliminate areas of waste.
Additionally, structural change often involves re-organizing departments and teams in order to better align the organization’s goals, objectives, and strategies. This type of organizational change seeks to increase effectiveness by restructuring the organization’s hierarchy in order to streamline operations and create a more cohesive team structure.Structural change can also involve introducing new job roles and adjusting existing ones. By introducing new job roles, organizations are able to better allocate resources and ensure that the right people with the right skillsets are in the right positions.
8. Merger and Acquisition Change
Merger and acquisition change is a type of organizational change that involves the merging or acquisition of two or more businesses. This type of change often involves combining resources, personnel, and operations from multiple organizations into one.
Mergers and acquisitions (M&A) can be used as a strategy to drive growth and expansion for a business. M&As are a common form of organizational change in which two or more businesses combine their resources, personnel, and operations into one organization. This type of change often involves combining the strengths of each company to create a stronger organization.
9. De-merger change
De-merger change is a type of organizational change that involves the splitting of an organization into two or more separate entities. This type of organizational change is often used when an organization has grown too large, and there is a need to streamline operations and simplify structures in order to improve efficiency.
De-merger change is a type of organizational change that seeks to break up an organization into smaller parts, in order to allow it to become more agile and efficient. It involves the separation of business units, departments, or other parts into distinct entities, while still maintaining some degree of organizational control and integration.
10. Downsizing Change
Downsizing change is a type of organizational change that involves reducing the size of an organization. This type of change often involves cutting costs and reducing personnel in order to achieve greater efficiency and productivity. Downsizing can be used as a strategic measure when an organization needs to focus its resources on core operations or when the organization has become too large for its current structure and size.
11. Relocation Change
Relocation change is a type of organizational change that involves the moving of an organization or parts of it to a new location. This could be the physical relocation of staff, offices, and departments or the transfer of operations to another jurisdiction or country.
Relocation changes can be complex, but they often offer numerous benefits to organizations that choose to implement them. By transferring operations to a new location, organizations are able to consolidate operations, reduce overhead costs and improve the efficiency of their processes.
In addition to cost savings, relocating an organization can also provide access to new markets and customer bases, as well as a local competitive advantage. This type of change allows businesses to take advantage of new opportunities in different geographic regions, cultures, and countries.
12. Rebranding Change
Rebranding change is an important type of organizational change that involves making modifications to the organization’s brand or public image, in order to create a more compelling and attractive image. This type of change can be triggered by a variety of different factors, including changes in the marketplace, shifts in customer preferences, and external influences.
Organizations often feel the need to rebrand after going through a merger or acquisition. Merging two companies can create a new entity with a different set of assets, capabilities, and positioning in the marketplace. Rebranding allows organizations to leverage those changes to create a unique identity that will differentiate them from competitors and attract customers.
Forces for Organizational Change
Change is inevitable in the life of an individual or organisation. In today’s business world, most of the organisations are facing a dynamic and changing business environment. They should either change or die, there is no third alternative. Organisations that learn and cope with change will thrive and flourish and others who fail to do so will be wiped out. The major forces which make the changes not only desirable but inevitable are technological, economic, political, social, legal, international and labor market environments. Recent surveys of some major organisations around the world have shown that all successful organisations are continuously interacting with the environment and making changes in their structural design or philosophy or policies or strategies as the need be.
1. External Forces for Organizational Change
External environment affects the organisations both directly and indirectly. The organisations do not have any control over the variables in such an environment. Accordingly, the organisation cannot change the environment but must change themselves to align with the environment. A few of these factors are:
- Technology: Technology is the major external force which calls for change. The adoption of new technology such as computers, telecommunication systems and flexible manufacturing operations have profound impact on the organisations that adopt them. The substitution of computer control for direct supervision, is resulting in wider spans of control for managers and flatter organisations. Sophisticated information technology is also making organisations more responsive. Both the organisations and their employees will have to become more adaptable. Many jobs will be reshaped. Individuals who do routine, specialized and narrow jobs will be replaced by workers who can perform multiple in decision making. Managements will have to increase their investment in training and education of the employees because employees skills are becoming obsolete more quickly. Japanese firms have progressed rapidly because they are very fast in adopting new technological innovations.
- Marketing Conditions: Marketing conditions are no more static. They are in the process of rapid change as the needs, desires and expectations of the customers change rapidly and frequently. Moreover, there is tough competition in the market as the market is flooded with new products and innovations everyday. New methods of advertising are used to influence the customers. Today the concept of consumerism has gained considerable importance and thus, the consumers are treated as the kings. Moreover, the competition today has some significant new twists. Most markets will soon be international because of decreasing transportation and communication costs and the increasing export orientation of business. The global economy will make sure that competitors are likely to come across the ocean as well as from across town. Successful organisations will be those who can change in response to the competition. Organisations that are not ready for these new sources of competition in the next decade may not exist for long.
- Social Changes: Social and cultural environment also suggest some changes that the organisations have to adjust for. There are a lot of social changes due to spread of education, knowledge and a lot of government efforts. Social equality e.g. equal opportunities to women, equal pay for equal work, has posed new challenges for the management. The management has to follow certain social norms in shaping its employment, marketing and other policies.
- Political Forces: Political environment within and outside the country have an important impact on business especially the transnational corporations. The interference of the government in business has increased tremendously in most of the countries. The corporate sector is regulated by a lot of laws and regulations. The organisations do not have any control over the political and legal forces, but they have to adapt to meet the pressure of these forces. In our country, the economic policy has liberalized the economy to a large extent. Many of the regulatory laws have been amended to reduce the interference of the Government in business. An organisation is also affected by the world politics. Some of the changes in the world politics which have affected business all over the world are e.g. the reunification of Germany, Iraq’s invasion of Kuwait, the break of Soviet Union etc.
2. Internal Forces for Organizational Change
Internal forces for organizational change are too many and it is very difficult to list them comprehensively. However, major internal causes are explained as follows:
- Nature of the Work Force: The nature of work force has changed over a passage of time. Different work values have been expressed by different generations. Workers who are in the age group of 50 plus value loyalty to their employers. Workers in their mid thirties to mid forties are loyal to themselves only. The youngest generation of workers is loyal to their careers. The profile of the workforce is also changing fast. The new generation of workers have better educational qualifications, they place greater emphasis on human values and question authority of managers. Then behavior has also become very complex and leading them towards organisational goals is a challenge for the managers. The employee turnover is also very high which again puts strain on the management. The work force is changing, with a rapid increase in the percentage of women employees, which in turn means, more dual career couples. Organisations have to modify transfer and promotion policies as well as make child care and elder care available, in order to respond to the needs of two career couple.
- Change in Managerial Personnel: Change in managerial personnel is another force which brings about change in organisation. Old managers are replaced by new managers which is necessitated because of promotion, retirement, transfer or dismissal. Each managers brings his own ideas and way of working in the organisation. The informal relationships change because of changes in managerial personnel. Sometimes, even though there is no change in personnel, but their attitudes change. As a result, the organisation has to change accordingly. Changes in the organisation are more fast when top executives change. Change in top executives will lead to important changes in the organisation in terms of organisation design, allocation of work to individuals, delegation of authority, installation of controls etc. All these changes will be necessitated because every top executive will have his own style and he will like to use his own ideas and philosophies.
- Deficiencies in Existing Management Structure: Sometimes changes are necessary because of some deficiencies in the existing organisational structure, arrangement and processes. These deficiencies may be in the form of unmanageable span of management, larger number of managerial levels, lack of coordination among various departments, obstacles in communication, multiplicity of committees, lack of uniformity in policy decisions, lack of cooperation between line and staff and so on. However, the need for change in such cases goes un-recognised until some major crisis occurs.
- To Avoid Developing Inertia: In many cases, organisational changes take place just to avoid developing inertia or inflexibility. Conscious managers take into account this view that organisation should be dynamic because any single method is not the best tool of management every time. Thus, changes are incorporated so that the personnel develop liking for change and there is no unnecessary resistance when major changes in the organisation are brought about.
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