Change Management

Culture & Change

Organisational culture
Characteristics and typologies

Organisational culture

Organisations are made up of formal and informal

components
Formal: systems, structures, technology, goals and financial
resources
Informal: values, beliefs, politics and attitudes held by
management and employees

The success of transformational processes depends

largely on the organizations formal and informal
components as well as its pervasive and prevailing
culture

The meaning of culture

There are countless definitions of culture, for instance:

Culture is the collective programming of the
human mind that distinguishes the members of
one human group from those of another. Culture in
this sense is a system of collectively held values
Hofstede,1981

The meaning of culture

By its nature, culture is deep-seated and, therefore,

quite resistant to change
Yet culture can be changed, in fact it is changing all the time

The meaning of culture

Three perspectives can be identified

1. Culture can be managed
2. Culture may be manipulated
3. Culture cannot be consciously changed

In companies (as in society) culture is constantly being

managed and manipulated
However, change agents find it very hard to change
culture consciously

How to achieve culture change

Five essential steps:

1. assess the current situation;
2. picture the aimed for situation;
3. work out how (part of) the organisation can be moved away
from its current culture to a more desirable one
4. intervene to bring about the cultural change
5. monitor outcomes and adjust as needed

Characteristics of organisational culture

(S.P. Robbins & T.A. Judge 2013)

Innovation and risk-taking

encourage innovation and risk taking.

Attention to detail
encourage precision, analysis and attention to detail.

Outcome orientation
focus on results or outcomes rather than on techniques and processes to achieve
outcomes.

People orientation
management decisions consider the effect of outcomes on people.

Team orientation
work activities are organised around groups rather than individuals.

Aggression
people are aggressive and competitive rather than easy-going.

Stability
organizational activities emphasise maintaining the status quo (not growth).

Appraising an organisation

Innovation and risk-taking

Attention to detail
Outcome orientation
People orientation
Team orientation
Aggression
Stability

Hig
h
Hig
h
Hig
h
Hig
h
Hig
h
Hig
h
Hig
h

Low
Low
Low
Low
Low
Low
Low

Hofstedes different levels of culture

SYMBOLS
HEROES
RITUALS

VALUES

Also watch
Simon Sineks
TED talk:
Start With
Why

The cultural web

Stories

Rules,
rituals and
routines

Symbols

The
prevaili
ng
paradig
m

Control
systems

Power
structures

Organisatio
nal
structures

Create a cultural web

Task

The prevailing organisational paradigm:

Philosophy laid down by (recently deceived) founder who ran the
company for over 40 years.
A people oriented organisation also dedicated to high task
performance
Provider of long-term employment
Aware of success while also aware of the need continuously to
analyse the environment to detect new markets
committed to incremental rather than radical changes
Create a cultural web for this organisation
(rituals and routines stories symbols power structure
organisational structure control systems

Task

Create a cultural web

Stories about
the founder and his
influence on the
company policies
and practices a
people oriented
company
frequent needs to
expand
warehousing spaces
as example of
Rituals
and routines
continuing
success
Walkabout
management. Always
available to
employees
Management can be
interrupted
Lots of talking
yearly employee

Stories

Rules,
rituals and
routines

Symbols

Paradig
m

Control
systems

Power
structures

Organisati
onal
structures

Symbols
New building and
warehouses
Swimming pool and
leisure facilities for
employees and
families
IIP award
Quality award
Award for excellence
in the use of IT
Power structures
Long serving
managers and
workforce
You can work your
way up
Positions based on
expertise, not
qualifications

Task

Create a cultural web

Stories

Rules,
rituals and
routines

Control Systems
IT controls most
operations
Error measurement
help given to
improve

Symbols

Paradig
m

Control
systems

Power
structures

Organisati
onal
structures

Organisational
structures
Hierarchical at
head office
bureaucracy with
human face
team working in
the branches with
team based
rewards
profit -related pay
responsibilities
clearly defined

The Competing Values Framework

The Competing Values Framework of Quinn, Rohrbaugh

Quinn and Rohrbaugh (1983) discovered two major
dimensions underlying organisational effectiveness.

1. The first dimension = organisational focus

From an internal emphasis on the well-being and development of
employees
to an external focus on the well-being and development of the
organisation itself.

2. The second dimension = organisational preference

From stability and control to flexibility and change.

15

The Competing Values Framework

R HU
E
LA M
T AN
IO
N
S

Flexibility

MENTOR

S
M
E
ST ION
SY AT
N V
E O
P NN
O I

Understanding
Understanding
self
self &
& others,
others,
communicating
communicating
effectively,
effectively,
developing
developing
subordinates
subordinates
Building
Building teams
teams
Participative
Participative
decision
decision making
making
Managing
Managing
conflict
conflict

INNOVATOR

FACILITATOR

BROKER

External

Internal

Manage
Manage projects
projects
Design
Design work
work
Manage
Manage across
across
functions
functions

MONITOR

IN
P TE
R
O RN
C
E AL
SS

PRODUCER

COORDINATOR DIRECTOR

Control

R
AT
G IO
O N
A A
L L

Monitor
Monitor personal
personal
performance
performance
Manage
Manage
organisational
organisational
performance
performance

Living
Living with
with
change
change
Thinking
Thinking
creatively
creatively
Creating
Creating change
change
Presenting
Presenting ideas
ideas
Negotiating
Negotiating
agreement
agreement

Managing
Managing time
time &
&
stress
stress
Productivity
Productivity is
is all
all
Vision,
Vision, planning,
planning,
goals
goals
Designing
Designing &
&
organising
organising
Delegating
Delegating
effectively
effectively

16

The Competing Values Framework

17

Leadership, management and change

Leadership (change & movement)
1.

Establishes direction

creates a vision
clarifies the big picture
sets strategies
2.

1.

Motivates and inspires

energises
empowers subordinates and
colleagues
satisfies unmet needs

Planning and budgeting

establishes agendas
sets timetable
allocates resources

Aligns people

communicates goals
seeks commitment
builds teams, coalitions and
alliances
3.

Management (order and consistency)

2.

Organising and staffing

provides structure
makes job placements
established rules and
procedures
3.

Controlling and problem-solving

develop incentives
generate creative solutions
take corrective action

18

STRONG

Leadership
WEAK

CHANGE / TRANSFORMATION

Leadership, management and change

Transformation efforts
can be successful for a
while, but often fail after
short term results
become erratic.

Good leadership
+ good management
= highly successful
transformation

Transformation efforts
go nowhere.

Short-term results are

possible through cost
cutting, mergers and
acquisitions. Real
transformation doesnt
get started easily. Major
long-term change is
rarely achieved.

WEAK

Management
STRONG
ORDER / CONSISTENCY
19

Leadership - Deal and Kennedys typology

Dates from the 1980s

Questionable in light of political and regulatory changes
Trompenaars updated the typology in 2004

Leadership - Deal and Kennedys typology

High-risk
Tough
guy
macho
culture

Fast feedback
Work
hard/pla
y hard
culture

Bet
your
compan
y
culture
Process
culture

Low-risk

Slow feedback

Leadership - Deal and Kennedys typology

Work hard/play hard culture

Sales organisations
office equipment
computer companies
FAST

Oil companies
aircraft manufacturers
capital goods
Process culture

Banks
insurance companies
accounting firms
Feedback
SLOW

HIGH

Entertainment industry
software industry
investment banking
management consulting

Risk

Bet your company culture

LOW

The tough guy macho culture

The influence of national

culture on organisational
culture
Based on Geert Hofstedes research

The influence of national culture

Two conflicting visions: Convergence vs Divergence

1. Convergence = industrialisation and globalisation push
organisations towards standardised configurations and
standardised management practices.
2. Divergence = different languages, religion, laws, politics
in national cultures sustain local differences in
organisational cultures, even within multinational
companies.

The influence of national culture

Cultural orientations of societies

1.
2.
3.
4.
5.
6.

People are either good or bad

Dominate your world or live in harmony with it
Individualism vs. collectivism
A widely referenced
framework
Orientation to either doing or being
Past- or future oriented?
Peoples use of space

The influence of national culture

The USA and The Netherlands:

Individualistic
Assertive language
Promotion is often based on individual knowledge and skills

Japan & China

Group-oriented.
Stress on responsibilities and reporting in collective terms
Personal contacts, contacts who vouch for trustworthiness and
ability to work with others are essential for employment and
promotion

How would the above national cultures accept favouring

family friends when making decisions?

The influence of national culture

Hofstedes dimensions of national culture

1.
2.
3.
4.
5.
6.

Power distance
individualism/collectivism
masculinity/femininity
uncertainty avoidance
long-term/short-term orientation
Indulgence versus Restraint

Geert Hofstedes website

National cultures @ Taminco & Kemira/ChemSolutions

National cultures @ Taminco & Eastman

National cultures @ Taminco ChemSolutions Eastman

Comparison
94

91

82
75
68

65

63

62

59

57

54

57

46
40

38

33
26

Power Distance

Individualism

26

Masculinity
Belgium

Uncertainty Avoidance
Finland

USA

Long Term Orientation

Indulgence

What about Belgium?

65 on the power distance scale
Power tends to be centralised (originally in Brussels, now in Flanders &
Wallonia)
The superiors have privileges and are often inaccessible
Attitude towards managers is quite formal
Access to information is associated with power, therefore unequally distributed

75 on the individualism index

Belgians favour individual private opinions, and take care of themselves
Work relationship are contract based, focus is on the task and autonomy is
favoured.
People voice their opinion, but us an indirect style towards power holders.
The Belgian (French) contradiction: Belgians are highly individualist,
yet they need a hierarchy. Managers are advised to have personal
contact with everybody in the structure.

What about Belgium?

54 on the masculinity scale (Wanting to be the best = masculine / liking what you
do = feminine)

Confrontational win-lose negotiating style (Anglo style) wont work

in Belgium
Winning a discussion is less important than reaching a compromise
Flanders: 43 on the masculinity scale; Wallonia: 60
Flanders has a more feminine culture

94 (!) on the Uncertainty avoidance index

Teachings and trainings tend to be deducted
In management, rules and security are welcome; if lacking, it
creates stress
A change of policies is considered stressful (which makes
negotiations between the North and the South very stressful)

What about Belgium?

82 (!) on the long-term orientation scale

Belgians share a pragmatic culture
They believe that truth depends on situation, context and time
They adapt to changed conditions, are thrifty and persevere in
achieving results

57 on Indulgence (= the way we control our desires and

impulses)
Belgians are not restrained; they want to realise their
impulses and desires
They have a positive attitude and a tendency towards optimism
Leisure time is considered important

What about Finland?

33 on power distance
Finnish people like to be independent and accept hierarchy for
convenience only
Power is decentralized; managers facilitate and empower. They count
on the experience of their team members.
Employees dislike control and want to be consulted
Communication is direct and participative.

63 on the individualism index

Finland is an individualist society where individuals care for
themselves
Offence causes guilt and the loss of self-esteem
Employer-employee relationship is contract-based on mutual
advantage; promotion is supposed to be based on merit only.

What about Finland?

26 on masculinity
Finland is a feminine society that focuses on working in order to live
people value equality, solidarity and strive for consensus
conflicts are resolved by compromise and negotiation. Effective managers
are supportive
focuses on well-being and status is not shown.

59 on the Uncertainty Avoidance dimension

Finland avoids uncertainty; it maintains rigid codes of relief and behaviour
there is an emotional rule need for rules, time is money, people have an
urge to be busy and work hard, they insist on being precise and punctual
innovation is often resisted in favour of security

What about Finland?

38 on the long-term orientation index

This low score shows that Finnish culture is normative.
People are normative in their thinking and want to establish
the absolute truth
They respect traditions: focus on achieving quick results and
are not inclined to save

57 on the indulgence scale

Finland is an indulgent country where people want to realise
their impulses and desire
Finnish people tend to be positive and optimistic they enjoy
life and leisure time

Taminco and ChemSolutions: compare notes

Task

Consider Hofstedes insights and discuss in groups:

Could these insights be relevant to Tamincos and
ChemSolutions?
Would you advise Taminco to assess ChemSolutions
organisational culture based on Hofstedes theories?
Why? How would you do that?
What do you expect to get out of an assessment based
on Hofstede's theories?

The importance of national cultures

Gerhardt (2008) re-examined Hofstedes studies and

concluded:
The differences between national cultures may be weaker
than had been argued.
The differences do not necessarily constrain organisational
cultures.
Still, national cultural differences are important in some
circumstances
especially when deciding whether to localise or standardise
organisational culture and management practices

Culture and Change

In defence against or in support of change?

Organisational structure is relevant to the ease with

which change comes about.
Organisational culture is closely related to
organisational structure.
Hence, structural characteristics as well as attitudes,
beliefs and values are more likely to act as barriers
against change.

Compatibility matrix

Schwartz and Davies acknowledge that changing the

culture is often necessary and important, but also
difficult and risky
They devised a measuring tool based on the description
of
how management tasks are handled
in various relationships.

Their matrix is used as a means to assess the degree of

cultural compatibility with the proposed strategic
change

Compatibility matrix

The results of the compatibility matrix are confronted

with the proposed strategy changes

Unacceptable
risk
Manageable
risk
Negligable risk
Low
High

Importance of change to
the organisational strategy

The importance of the changes to the strategy and the degree

to which they are compatible with the culture determines
their position in the new matrix

Low

Level ofHigh
culture compatibility

Compatibility matrix

Low
High

Importance of change to
the organisational strategy

Example: change to matrix structure is needed, yet the

culture resembles a role culture, the need for a matrix
structure will be positioned in the top right cells of the
matrix

Low

Level ofHigh
culture compatibility

Would you use a compatibility matrix?

Task

Consider the use of the compatibility matrix for the

cultural change in ChemSolutions after the merger
with Taminco
Write in the cells of the main part of the matrix, words and/or
phrases that encapsulate the different relationships (listed
horizontally) according to the management of the tasks (listed
vertically).
In the final column on the right, summarise the corporate culture
for each task
In the bottom row, summarise the corporate culture for each of
the relationships
What do the summaries tell you about this organizations
overall culture?

Task

Relevance of culture change to organisational change

Incompatibility between strategy and culture may result

in resistance to change.
This allows managers to choose whether to

Ignore the culture;

manage around culture;
try to change the culture to fit the strategy;
Change the strategy to fit the culture
(perhaps by reducing performance expectations.)

Relevance of culture change to organisational change

Ignoring the culture

risk of future problems such as disruption to operations and
lack of progress

Managing around the culture

very real possibility (there's always more than one way to
achieve desired goals)

Changing the culture

a popular form of management intervention
a difficult and lengthy process, particularly of the culture's
strong