Change Management And Organizational Culture Management Essay

Change Management And Organizational finis Management taste1. INTRODUCTIONThis assignment discusses on ii major tack circumspection solutions, which atomic number 18 glossiness and lead, pertaining to a heathen swap. The nature of heathen variety will be discussed in dickens parts which ar the diametric preludees to viewing heathenish inter carg adeptn in an makeup leading to its implications and two reasons why heathenish depart is needed. Culture and leading atomic number 18 inherent in a ethnic transport beca c all told they ar fundamentally archetypeually intertwined (Section 3). In gardening, we will be discussing the several(predicate) places of how finish is divided up which leads to the issue on sub refinings and deepen sub fashion. Furthermore, different comees to motion a heathenish switch will be discussed as well. In lead, theories on laborious-hitting leaders styles will be looked into together with guidelines on how to effe ct a heathenish mixed bag. type present studies and recommendation will be laid out for for separately unrivalight-emitting diode issue. Beginning with the end in mind, change agents leading a cultural change will induct a deeper soul of its of import issues and recommendations for an effectual and successful change.2. THE NATURE OF CULTURAL CHANGEThe scientific get on views close as an object or a thing that organisations have. McKinsey 7s framework (Peters Wa limitan, 1982) illustrates culture, divided determine, as one of the several components (strategy, skills, staff, system, structure etc) of an organisation. Thus, cultural change is delimit as unlike other spurts of organisational change, it is the change of dual-lane beliefs, values and behaviours of organisational members quite an than solely focusing on the systems and structures within which volume work (Waterhouse Lewis, 2004353).However, the anthropological greet sees culture as what an organisati on is or is world. Anthropologist suggests that if cultures in societies be regarded as something societies be, should non organisations be view in the same charge as well? In support of this view, one suggests that, since organisation finally resides in the heads of the mint involved, telling organisational change implies cultural change (Morgan, 1986138). on that headland ar two implications resulting from the intellection that organisational change is cultural change. The archetypical is that since cultural change is organisational change, no distinction made between a strategy for cultural change and a strategy for organisational change (Bates, 1994). The second is that cultural change is non about what we study, earlier the authority one looks at an organisation. Therefore, in a cultural change, one moldiness think culturally rather than to think about culture (Bate, 1994).Although there is no hard and spry rule when it comes to deciding which shape up is es timable, one must therefore recognize balanced view that the anthropological approach is good for schemes sake epoch the scientific approach is helpful for practise. 2 main reasons for a cultural changeThe first reason lies in the question, what cause organisations to change if cultural change implies organisational change? One main answer is that the environment is ever- changing and so methods utilize today whitethorn not be relevant and successful for tomorrow. Now, basic assumptions sh ard among members are subscribe toed as methods and sufficees in an organisational of how people work and solve problems. Thus the change in methods implies change in basic assumptions which means a cultural change.The second reason lies in the perception that there is a relationship between an organisations performance and its culture (Kotter Heskett, 1992). Furthermore, researchers argue that this positive link will exist only if the culture has the ability to adapt to changes. Therefor e, changing culture hind end result in higher performance in an organisation.3. TWO CHANGE MANAGEMENT ISSUES Organisational Culture LeadershipCulture and leadership are the non-negotiables in cultural change as they are conceptually intertwined (Schein, 1992 pg2). Culture begins with leaders who instil values and assumptions on an organisation which in eon are taken for disposed(p) if proven to be successful. In this case, the culture this instant defines leadership (Schein, 1992 pg2). fictional character in point Richard Branson, CEO of Virgin Corporate, is famous for his radical, magnetic and wrong leadership style. In 2007, he pulled out a publicity stunt during the launch of Virgin America by jumping off the Palms gambling casino Hotel in a bungee rope (Yaqoob, 2007). The point is- the reason to Virgins phenomenal culture is largely rooted in Bransons leadership. Thus, one whitethorn alike understand his leadership style by examining Virgins culture.Since cultures begin with leaders, developing and transforming culture has to begin with leaders too and this justifies the need to examine culture and leadership as the two major change management issues in whatsoever cultural change of an organisation.4. ORGANISATIONAL CULTUREAlthough many writers have associated organisational culture as an organisations climate (Schneider, 1990), embedded skills (Argyris Schon, 1978), habits of thinking (Hofstede, 1980) and shared meanings (Geertz, 1973), they just appear uneffective to hit it on the nail. They are merely descriptions of what culture is precisely not its definition and as Schein puts it, none of them are the culture of an organisation (Schein, 1992 pg10).In this view, Schein defines culture as a shared pattern of (1) basic assumptions that a croakn group has invented, discovered or developed (2) in skill to cope with its problems of external adaptation and internal integration, and that have (3) worked well copious to be covered valid and, therefore, to be taught to radical members as the correct way to perceive, think, and tone of voice in relation to those problems (Schein, 1992 pg12).4.1 Dimensions of Organisational CultureThe understanding of what organisational culture is leads one to question, What constitutes to an organisations culture? To answer this, there are two models of cultural dimensions. The first is the cultural web model (Johnson Scholes, 1992) which lays out six dimensions (stories, symbols, power, structure, controls and rituals) constituting culture. The second is the levels of culture model (Schein, 1992) which describes ternary dimensions in degrees of depth1. Artefacts (surface level) This refers to the physical architecture of the organisation, the mannerisms, bone up and even gossips/stories of the organisation (Schein, 1992 pg17).2. Espoused values (middle level) They are strategies, goals and philosophies of the organisation.3. Basic assumptions This refers to the way things are done in the organisation (e.g. processes of solving issues) that are taken for granted, changing these requires much time and tummy be very difficult and fretfulness provoking (Schein, 1992).Iceberg conceptThe knowledge of what constitutes to an organisations culture provides a clear, nationwide and deep understanding of it. Furthermore, one stinkpot derive from this knowledge a clear direction of what require to be changed and worked on in a cultural change.When managing a cultural change, one must be cognisant of not falling into the error of the Iceberg concept (Watson, 2002). Cultural changes are ofttimes reflected only at the top of the iceberg (e.g. physical appearances, attires, reverie etc) while the processes and basic assumptions among the members have not changed or are not changing.Therefore, it is our recommendation that change agents look into the dimensions of the organisations culture (maybe as a checklist) ensuring all(prenominal) aspect are taken into account o f for a successful change. aspect in point (http//www.income.com.sg/aboutus/releases/2009/aug28.asp) Since the start of a cultural revolution led by Mr Tan Suee Chieh, CEO of Income cooperative, many aspects of the Incomes culture have been changed. At the surface level (Artefacts), Incomes logo was re-designed, particularly from red to o mountain chain, to give a brain of relevance and vibrancy. At the deeper level, philosophies and strategies are re-constructed from a work-life balanced perspective to a competitive oriented one. Basic assumptions have been changed to pass on members to be take initiatives rather than wait for a top-down rate.4.2 SubculturesSpeaking of shared shared basic assumptions, an important question one must consider is, to what extent are they shared? To answer this, Martin suggests that there are trinity perspectives to view it (Martin, 2002).The Integration perspective refers to a unanimous consensus of the organisations culture shared across every le vel and department with no room for equivocalness. specialisation perspective refers to a certain level of ambiguity and inconsistency in interpretation resulting in a collection of subcultures. Members who have shared norms and beliefs tend together forming subcultures. Subcultures may or may not be from the same subgroups or divisions of an organisation and the norms and beliefs they share often arise from changing demands. Subcultures may also be a place to express common sorrow and conflicts. Fragmentation/ambiguity perspective has a high level of ambiguity and unclear consistent or inconsistent manifestations. Subcultures are unbounded and are extremely dynamic.In other words, organisations can either only have single cultures with no subcultures or a collection of subcultures with a/no overarching culture. It is useful to understand this when overcoming electrical resistance as subcultures can be a resistant to change.4.3 ResistanceUnfortunately, change resistance are inev itable and often begins at the initial stage when motivating members to change. Subcultures, fears, anxieties, uncertainties, misunderstandings and the inertia to change can contribute to change resistance resulting in a stall in the change process. character in point (Madslien, 2010) Lufthansa and British Airways found hard to persuade members to accept operational changes as they could not win the paddy wagon and minds of their staff. The contributing factor is plausibly that there is a great inertial in members to change.We recommend change agents six ways to overcome resistance to change (Kotter Schlesinger, 1979)1. Education and persuasion- Provide information for the need for change.2. Participation and involvement- Empowering members with the sense of ownership in the change.3. Facilitation and support- Provide counselling and coaching.4. Negotiation and agreement- Embrace the give and take spirit.5. Manipulation and cooptation- Distort information forcing them to accept ch ange.6. Direction and trust (coercion)- Similar to the aggressive approach where it commands/directs members to change if not they have to face certain consequences.Change agents may also use the expectancy possible action model (Vroom, 1964) to motivate members to change. The key is that members would be more motivated to change (if there is a reward/benefit at the end) by integrate all three aspects1. Valence- The willingness members to change for a particular outcome.2. Instrumentality- The effort members must put in to achieve a particular outcome. This must be weighed with the reward/benefit (equity) gained from change.3. Expectancy- The capability required of an individual to accomplish the occupation/s. brass in point (www.osl.ltd.co.uk) Joseph, general sales manager of global Property Agency Ltd, decided to propose a sales contend to motivate his staff for better sales. He believed that members would be motivated to play in more sales by rewarding them with cash rewar dsMembers may feel that the effort they must produce is more than the reward, although they may seem attractive. Thus, we recommend that change agents take in to account all three aspects of the expectancy model together in direct to motivate members to change.4.4 Two types (strategies) of cultural changeDevelopmental change focuses on strategies to hold on companionship and perseverance of an organisations culture while transformational change seeks for change and dis tenaciousness. To avoid a Castalian tragedy, we recommend change agents to integrate both(prenominal) strategies linking each strategy to a different point in the cultural development cycle (CDC) (Bate, 1994).Case in point (http//www.income.com.sg/aboutus/brands/index.asp) Income underwent a cultural revolution of both developmental and transformational change. It is developmental because the point of cultural change is for Income to remain to its cause by being relevant and competitive. It is transformational be cause the logo of Income is changed and the values and basic assumptions among members are re-constructed.In order for a comprehensive integrated strategy, one must consider the following1. The existing culture- Nature of present culture to be changed.2. Origins trajectory by means of time- A telescopic perspective to gain a get along picture.3. The CDC the stage an organisation has reached- The life cycle of its culture and stage where the organisation is at.4. The environmental context- The context outside the organisation where the culture is situated.5. The subjective dimension- The culture envisaged after change.4.5 Four approaches to effect cultural changeAggressive approachThe aim is to cause disruption of traditional values, fears and panic among members as a clear intention that change is on its way regardless how members feel or prefer. It is like someone barging into the meeting room forcing a change down the throats of everyone.Case in point (T. Nakajo T. Kono, 19 89) Japanese Brewery, Asahi, threw the idea of capitalism out of the window taught members the idea of communism. Food ration were reduced to anyone who resisted the change.Aggressors rent to use this approach only as the last resort for natural needion where radical times demand radical remedies (Dunphy Stace, 1988321). In other words, it is being cruel to be kind (Bate, 1994177).Furthermore, aggressors argue that unlike democracy that allows the competition to sip in, they should take the initiative and have a single show where there is no chance for negotiation but only perfect(a) submission.This approach is dangerous as it may backfire caused by attach in segmentation of unhappy members. Secondly, the aggressor may be too self-centred and motivated by selfish desires that the change may rig off its intended purpose.Conciliative approachConciliative approach believes that interdependence is key as it promotes incremental changes quietly without offending either the me smerism or opposition. Conciliatives see resistors as being reasonable and believe that both parties are able to work things out amiably.Conciliative use this approach because they feel they have a lack of power to compel members to change.Case in point (Mayo, 1989) Although Peter Bonfield, chairman of ICL, saw the need for a total cultural change he did not dare to cut it as he did not feel empowered to effect the change.Also, conciliatives use this approach because they want to avoid conflict. They believe it is always better to machinate than to collide with members who object the ways things are done. Lastly, conciliatives believe in promoting continuity for cooperative relations rather than discontinuity which breeds resistance. It is an attempt to avoid opposition done gradual continuous development (Renfrew, 1979).However, this approach may be time wasting as conciliatives are always afraid of conflict thus it is difficult to move on (Bate, 1994). Also, one need to critiqu e whether ultra changes possible through evolutionary change. caustic approachAs the design implies, this approach sees cultural change as a political process and aims to incrementally corrode the oppositions power until they become either submissive or unconnected (Bate, 1994187). This is achieved through networking and deviously manipulating relationships.They argue that cultural change has to involve networking as it is at the core of cultural development and change (Bate, 1994) empowering individuals which in looseness will collaborate with other individuals to effect a cultural change (Brass, 1984). Furthermore, they claim to focus on actions instead mouthing change it is a concept of pulling rather than pushing for change.This can be dangerous as it can subtly move from change-directed to order-directed and relationships formed are considered as at large(p) which may shift frequently.Indoctrinative approachThis approach sees cultural change as a learning process (Schein, 1985) whereby members are being educated of the tender culture through intentional training and workshops. This approach is used to change the underlying assumptions of members in an organisation and give in the raw meaning to them.Case in point (Financial Times, 27 March 1991) British Telecom organise a successful three-day course (Project Sovereign) to educate staff the new culture- the new BT will not allow customer calls to get lost.Case in point (Andrew Mayo, Director of Personnel, ICL International, 1989) ICL International conducted major educational programmes to educated members why we are doing what we are doing, to know why they have to shift their thinking.However, this approach faces a problem whether members will buy the message conveyed. Furthermore, the new messages conveyed may not be realistic in actual practise.Change agents may face the issue of how to select the best approach. Thus, we recommend using each approach in different stages of the CDC in a sequentia l/continuum way (although they are distinct and independent). For example, the Aggressive approach can be used in the unfreezing stage followed by the Conciliative (hearing from members suggestions) and Indoctrinative approach during the cognitive reconstructing stage. Lastly, the Corrosive approach can be used for networking to sustain change.5. LEADERSHIPAlthough Stogdill suggests, There are al roughly as many definitions of leadership as there are persons who have attempted to define the concept (Stogdill 1974 pg259), we believe the most appropriate definition is- leadership is a process whereby an individual influences a group of individuals to achieve a common goal (Northouse 2004 pg 3). And process denotes that leadership and learning are indispensable to each other (John F. Kennedy).Moving on from the definition of leadership, one must also consider the different theories on understanding effective leadership in practise. The development of leadership theories can be understo od in two categories and they are the unequivocal and appear approach in chronological order. We have characterised the two approaches in that the classical approach focuses on the hardware of leadership (which includes traits, intentions, behaviours etc) while the emerging approach looks into the software of leadership (relationships, emotional/social intelligence, charisma etc).5.1 Classical approachTrait theoryTrait theory is simply a response to the question of, what qualities distinguish an individual as a leader? It believes that effective and successful leadership styles are dependent on certain traits. Examples of leadership traits are self-efficacy, physical characteristics, conscientiousness and skills distinguish a leader from an habitual man (Carlyle, 1841). These traits are argued to be inherited as leadership cannot be created or promoted and it cannot be taught or learned (Drucker, 1954 pg158).However, behavioural theory suggests that people can learn such traits through learning and observing others. accord to the managerial grid theory (Blake Mouton, 1964), there are five different leadership styles resulting from two dimensions of behaviours (concern for people and concern for task) country club style, devoid management, middle of the road, team management and authority compliance.Although both theories agree that effective leaders must possess certain traits, they differ in that behavioural theory believes that such traits can be acquired. Thus, a learning position is important for effective leadership (Schein, 1992).Situational theoryUnlike trait and behavioural theories, Situational theory argues that successful leadership styles are dependent on the situational contexts (Hemphill, 1949). Therefore, it is life-or-death that leaders examine the situation prior to effecting any change.Case in point (Hogan, 2003) Enron, a real-life example of situational theory, was caught in a major grease in 2001 for insider trading and conspira cy. Due to this situation, an immediate action was taken by dismissing many senior management and leaders.Contingency theoryContingency theory is an expansion of situational theory that suggests effective leadership styles are dependent on the situation and environmental variables such as the groups atmosphere, task structure and leaders power position (Fielder, 1967). The Vroom-Yetton contingency model elaborates Fielders theory stating that personal characteristics and attributes of the leader are important contingent elements too (Vroom Yetton, 1973).Therefore, there is no right leadership style but only the best depending on the environment after carefully examining it.Functional theoryFunctional theory dismisses the idea that effective leaders possess a common set of traits but propose that they possess the competence to handle a wide range of different situations (Gill, 2006). According to the Action Centred Leadership model (Adair, 1973), there are three areas a leader must consider1. Task- Accomplishing the teams goal.2. Team- The development and structure of teamwork.3. Individual- Empowering and helping individuals develop full potential.As all three aspects are interdependent, it is important for a leader to strike a balance among them in order for the group to succeed.Leadership stylesAn expansion of Lewins theory of three main leadership styles which are autocratic, participative and laissez-faire (Lewin, 1939) resulted in a continuum of seven leadership styles (Tannenbaum and Schmidt, 1958)Figure 1 (www.mindtools.com) describes the seven leadership styles by arranging them in a single continuum. This means that leaders are not limit to choosing only one style (independent) but are able to select any point of degree within the continuum.5.2 Emerging approachTransformational/charismatic theoryTransformational theory suggests that effective leadership styles depend on the form of relationship between a leader and his members e.g. leaders and fol lowers encourage one another to higher levels of morality and motivation (Burns, 1978). This can be measured in the influence (trust, respect, inspiration and admiration) a leader has on his followers (Bass, 1985). The relationship between the leader and follower is extremely crucial and is likened to a magnetic force attracting people.Case in point herbaceous plant Kelleher, CEO of the Southwest Airlines, is an example of a transformational leader. Some call him the energiser bunny of the skies (Jones, 1994) and Americas funniest fly-boy (Beddington Loftus, 1998). His personality emanates a force that draws and influences others, producing warm and determined employees which ultimately define culture.5.3 Selecting the right theoryMost leaders face the question, How does one select the right theory or approach and apply it in a cultural change? Our first recommendation is that leaders can employ any one or more theories on a case by case basis. This means that if a leader needs t o learn how to connect with his staff in order to motivate them for change, he can employ the trait/behavioural and/or transformational theory. Or the leader can employ the situational/contingency theory in the case of examining and understanding the current situation prior to effecting change.Secondly, we recommend leaders to adopt all theories in a step by step manner consecutive criterion 1 (situational/contingency) Scan the environment to know what leadership needs are essential for change.Step 2 (trait) Select particular traits to meet particular demands for a successful change.Step 3 (styles) Select a style along the continuum model for conveying messages, leading members and motivating them for change.Step 4 (functional) Be clear on areas under each function that is needed to be considered when effecting changeStep 5 (transformational) Build and maintain relationships with members during the change for a successful outcome.To conclude, it is crucial to note that there are no right leadership styles or approaches, rather there are only the best ones depending on the situational context.5.6 Effecting a cultural changeWe now move on from selecting leadership styles to effect change to the actual locomote in effecting change. We recommend the use of Lewins three steps model to effect change as a guiding principle1. Unfreezing To weaken resistance to change (Schein, 1992) and motivate members for change (Lewin, 1951) in three stages.(a) invalidating selective information This refers to any information that shows an organisation that it is not meeting its goals in order to stir up discomfort and disequilibrium (Schein, 1992 pg299). (b) Anxiety and/or guilt Disconfirming data must generate anxiety/guilt in order to leave members with no choice but to accept change.(c) Psychological galosh Change is stressful (Korunka, 2003) as it removes members from their comfort zone (Jarrett, 2003) causing fears of doubtfulness and discouragement. Providing a psycholog ical safety net for members through adequate assurances (long term especially) relevant information and gratitude to members (Weick Quinn, 1999)2. Cognitive restructuring Redefine organisational traditional values, basic assumptions and processes etc through workshops and courses.3. Refreezing Constantly reinforce changes through artefacts reflections, certain behaviours and processes.Case in point (http//www.youtube.com/user/tansueechieh) Incomes CEO gave disconfirming data in his speech entitled, cultural revolution, awakening staff of their lethargy. Cognitive restructuring was accomplished through workshops and new companys statement. Furthermore, Income underwent a rebranding reflected in advertisements, new logo and new colours. These help to reinforce the changes and new culture of Income.Sustaining a new culture, be it a discontinuity or continuity change, is tedious and difficult. The role of rites theory, by Trice and Beyer (1990), suggests cultures can be beef up by rep eating a certain set of rituals. The six rites are the rites of passage (induction), enhancement (rewards), degradation (to publicly identify failures ATT case), conflict drop-off (acknowledge and resolve differing opinions), integration (foster cohesion) and renewal (maintenance).4. CONCLUSIONWe have began with the end in mind which is that change agents will have a deeper understanding of two major change management issues, which are culture and leadership, when managing a cultural change. This assignment has discussed issues pertaining to culture such as resistance, different perspectives and the iceberg concept. Issues pertaining to leadership such as the different theories and the guidelines on how to effect a cultural change have been described in detail as well. two change management issues are supported with case studies and recommendations to assist change agents make better decisions.(4,187 words in total)