Organization Culture

and
Change Management
www.humanikaconsulting.com
Organization Culture
A system of shared
values, assumptions, beliefs
, and norms that unite the
members of an
organization.

Reflects employees views

about the way things are
done around here.

The culture specific to each

firm affects how employees
feel and act and the type of
employee hired and
retained by the company.
 In order to
survive, organizations and
their cultures must
continuously evolve and
change.
Conditions prompting change

Economic crises
Changes in laws or regulations
Social developments
Global competition
Demographic trends
Explosive technological changes
 Cultures change when an
organization
discovers, invents or develops
solutions to problems it
faces.
 Managing Organizational Change

Organization culture can facilitate or inhibit

change in an organization.
A firm attempts to change organizational
culture because the current culture hinders
the attainment of corporate goals.
Environmental and internal forces can
stimulate the need for organization change.
 Environmental Forces
Put pressure on how a firm conducts its
business and its relationships with
customers, suppliers, and employees.
Environmental forces include:
Technology
Market forces
Political and regulatory forces
Social trends
 Internal Forces
Come from decisions made within the
company.
May originate with top executives and
managers and travel in a top-down
direction.
May originate with front-line employees or
labor unions and travel in a bottom-up
direction.
Organization Culture
Issues
 Three important issues in an
Organizations Culture

Ethics
Diversity of employees
Leadership behavior
 How does all this fit together ?

Managers and leaders

must use good leadership
practices to be sure to
introduce, develop, rewar
d, and cement ethical
practices and positive
ways of working with
diversity into the
organization culture
Changing Organizational Culture

Top leaders can set the tone for a culture and

for culture change.
 Involve the keepers and holders of
the culture.
Build on what all organizational
members share.
Teach new members how to behave.

Leaders who strive for high-quality products

and services understand
Implementing Organizational Change

Top-down Change

Change Agents

Bottom-up Change
 Targets for Change

Individuals
Groups
The Organization
The Environment
 Individual Targets

Changes in this area are triggered by new

staffing strategies or by an effort to
enhance workforce diversity.
The number and skills of the human resource
component.
Improving levels of employee motivation and
performance.
 Group Targets
Involves changes in the nature of the relationship
between managers and subordinates or the
relationships within work groups.
 Organizational Targets
Changes in any of the following
areas:
Basic goals and strategies of the
organization
Products, quality, or services
offered
Organizational structure
The composition of work units
Organizational processes such as
reward, communication, or
information processing system
The culture
Environmental Targets
Involves changing sectors of
an organizations environment
For example, changes in
products or services offered
may require new technology or
a new distribution system.
 Change agents should take the
following steps to obtain a successful
change outcome
1. Establish a sense of 5. Empower others to act on
urgency. the vision.
2. Form a powerful 6. Plan and create short-term
coalition of supporters of wins.
change. 7. Consolidate improvements
3. Create a vision of change. and produce still more
4. Communicate the vision change.
of change. 8. Institutionalize new
approaches.
Change Agents Profile
ACTION !
BREAKTHROUGH