ORGANIZATIONAL

CULTURE & CHANGE

Basic Structure and function of Culture

Culture is the common programming of the minds in a

group which differentiates one group from the other. It is

shaped by
Shared values beliefs and attitudes
A need for identity, security and belongingness
Legends, stories, myths and taboos.
Scriptures, laws, norms, rules
Symbols, totems, customs, flags, anthems
Rituals
Rewards and punishments
Modelled upon Heroes behaviour in the group

Stories

Rituals

Elements of
Culture
Heroes

Symbols &
Language

Different National culture

Hofstedes Study:
Individualism/collectivism, Power distance
Uncertainty avoidance,Masculinity/femininity
Trompenaarss Study
Universalism versus particularism
Individualism versus collectivism
Neutral versus emotional
Specific versus diffuse
Achievement versus ascription

Individualism, Collectivism
Individualism concerned with self and immediate

family. Collectivism refers to a social framework

where people consider themselves as part of group
or community.
For e.g USA and Japan

Power Distance
Power Distance: The extent to which less powerful

members accept unequal distribution of power. High

power distance culture workers follow orders without
questioning the authority
e.g: India, Malaysia, Singapore : high PD

US, Denmark, Mexico Low PD

Uncertainty Avoidance
The extent to which people feel threatened by ambiguous

situations e.g Japan. & US

Try to avoid uncertainty by
Career Stability
Formal rules
Rejecting deviant ideas/ behaviour

Masculinity/ Femininity
Masculinity is the extent to which dominant values

emphasize accumulation of wealth & other material

things
Femininity refers to the extent culture emphasizes
relationship among people, quality of work life, concern
for others.

Fons Trompenaars Cultural dimensions

Universalism Vs Particularism: Rules as universally

applicable or gets modified as per particular situations.

Highly Universalist culture are US and European
Countries, Particularist are Venejuela , erstwhile Soviet
Union, Asian countries of Indonesia and China.
Individualism Vs Collectivism: same as Hofstede

Fons Trompenaars Cultural dimensions

Neutral and affective: less or free show of emotions.
Specific vs diffuse: Large or narrow public space. US and

Swiss culture highly specific, China and Spain diffuse

cultures.
Achievement vs Ascription: Status based on performance
or based on seniority, gender or social connections.

Organizational Culture

Based on enduring values embodied in

organizational norms, rules, standard operating

procedures, and goals

People use these elements to guide their

actions and decisions when faced with
uncertainty and ambiguity.

Effects of Organizational Culture on

Employee Behavior and Performance

Allows employees to understand the firms

history and current approach.
Fosters commitment to corporate philosophy
and values.
Serves as a control mechanism for employee
behaviors.
Certain cultural types may produce greater
effectiveness and productivity.

Intensity of
Core Values

Commitment to
Core Values

Strong Versus
Weak Cultures
Level of Behavioral
Control

Level of Employee
Turnover

How Organizational Cultures Form

Top
Management
Philosophy
of the
Organizations
Founders

Selection

Socialization

Organizational
Culture

Organizational Rites and Ceremonies

TYPE

EXAMPLE

POSSIBLE
CONSEQUENCES

Rites of
passage

Orientation
programmes

Facilitate transition into

new roles; minimize
differences in way roles
are carried out

Rites of
enhancement

Company
ceremonies
e.g. Awards

Enhance power & identity;

emphasize value of proper
behavior

Rites of
integration

Office
Party

Encourage common feelings

that bind members
together

Case The complex dynamics of

culture change
1. What were basic elements of ICICI
2.
3.

4.

5.

Culture?(stories, rituals, symbols, heroes)

How was it different from Bank of Maduras
culture?
What were the main challenges to cultural
integration in case of M & A?
How were the organizational rites
performed for smooth transition and culture
change?
How culture is a negotiated Outcome?

Maintaining Organizational Culture

Methods of Maintaining Organizational Culture
What managers and teams pay attention to
Reactions to organizational crises
Managerial role modeling
Criteria for rewards
Criteria for selection and promotion
Organizational rites, ceremonies, stories
Recruit
employees
who fit

Organizational
Culture

Remove
employees
who deviate

What is Organizational Change?

The process by which

organizations move from their

present state to some desired
future state to increase their
effectiveness

Organizational Development - OD
A process of planned change based on the
principles of applied behavioural science.

MODEL OF PLANNED CHANGE

Entering
and
Contracting

Planning
and
Diagnosing Implementing
Change

Evaluating
and
Institutionalizing
Change

Model of Change

Unfreezing

Changing

Refreezing

Lewins Three-Step Process

Lewins Force-Field Theory of

Change
Theory of change which argues that two

sets of opposing forces within an

organization determine how change will
take place
Forces for change and forces making

organizations resistant to change

To change an organization, managers must

increase forces for change and decrease

forces resisting change

Changing the Status Quo

Desired
State
Restraining
Forces

Status
Quo
Driving
Forces
Time

Overcoming
Resistance to Change
Education and
Communication

Participation

Negotiation

Facilitation
and Support

Manipulation

Coercion

Employee Readiness for Change

High

High

Low
High readiness

Moderate to
indeterminate
readiness

Low

Level of Dissatisfaction
with the Current
Situation

Perceived Personal Risk from Change

Moderate to
indeterminate
readiness

Low readiness

John Kotters 8 Step model

Kotter updated the process, in his 2014

book Accelerate.
Run the steps concurrently and continuously
Form a large volunteer army from up, down and across

the organization to serve as the change engine

Function in a network flexibly and agilely outside of, but in
conjunction with, a traditional hierarchy
Operate as if strategy is a dynamic force by constantly
seeking opportunities, identifying initiatives to capitalize
on them, and completing them quickly and efficiently