Cultural Change and Change Management Essay
Cultural Change and Change Management
List some of the complexities of cultural change, and explain shy, in your opinion, change is so difficult to manage. Cultural change takes place in organization when the current culture is not in accordance with the goals and objectives o the company or is not fulfilling the changes that have taken place in the external and the internal environment of the organization. The cultural change usually involves a radical transformation of the policies and [procedures in the origination as well as changes to the values, beliefs and norms that exist between the different people related to the organization itself.
In most cases when cultural change tales place it is a result of restructuring of the organization as well. The problems and complexities that are presented by the process of cultural change in the organization pertain to the immense task of defining a new culture for the people in the organization. Usually the old culture is instilled in the members of the organization, as they have gotten used to operating according to the rules, policies, procedures and norms dictated by the old culture, therefore when a cultural change has to take place, all the members have to be informed and briefed about the specific changes taking place.
The problems in the process of cultural change take place when the cultural change meets resistance from the people in the organization itself. Other complexities of cultural change include defining the salient points of the old culture, establishing how the new culture is different form the old culture, devising programs through which the new culture can be taught to the people in the company and established as the norms in the organization. Additionally the strenuous process of cultural change and the time required form the cultural change to take place in an organization itself pose as complexities for the organization.
Cultural change is often difficult and a very strenuous process as “organizational cultures are formed for a reason. Perhaps the current organizational culture matches the style and comfort zone of the company founder. Culture frequently echoes the prevailing management style. ” (Heathfield, 2007) This as mentioned before is very difficult to change as people have to be taught all over again as to how top adjust to the new culture and what are the norms depicted by the new culture.
Moreover the complex process of cultural change also has face brutal retribution from the hesitant and resisting parties who can openly initiate protests against the company. One thing that has to be kept in mind regarding the process of cultural change in organization is that cultural change is never possible in a top down flow form of the hierarchy in the organization. The cultural is supposed to be derived and specifically for the people of the organization. This means that culture has to rise for the bottom to the top of the organizational structural.
In this manner most of the complexities listed can be avoided. 2. What happens when two companies merge? Does one culture dominates the other, or does a new culture emerge? Explain, and use examples. In most cases when two companies merge the two companies usually try to keep their organization cultures intact. However if the organization change that is taking place is the kind related to a merger then there is a high chance that despite the efforts of the organization to retain their corporate cultures, a new culture emerges.
This new culture shares the same values with the previous culture in the organizations and provides for the beliefs and norms that are present in both the organizations. However in case of an acquisition where one company takes over the other company by acquiring large number of shares in it or outright the company, in such cases the cultural change that takes place pertain to adoption of the culture that is present in the dominant or acquiring organization.
In this case the resistance against the cultural change is much intense and stronger as people are usually opposed to the culture of the acquiring organization. However the best policy that is suggested for managing cultural changes in organizations when a consolidation or a merger Is taking place is to develop and establish a new culture which is in accordance with the previous cultures in the organization and provides for the new organization structure as well by being cohesive in nature and adapted to the operations and the environment of the organization.
An example of cultural change coming about as a change in the organization structure exists in the case of Swiss Re Americas Division. “The Swiss Re Americas Division provides a striking example of culture change and subsequent improved performance. In 2000, the division scored in the lowest percentile for each of the four culture traits, and was running at a loss. Following a series of substantial changes, by 2002 the organization had improved its strategic mission, level of adaptability, degree of involvement of its people, and its internal consistency.
” (Denison, 2007) The company is now a highly profitable entity which has been operating in a smooth fashion due to is cultural change 3. Describe in your own words the `Flux and Transformation` metaphor presented by Schein. Under what condition does this work best? Why? The organization exists in a flux which can stir transformation. This metaphor states that the organization is a stable entity in an unstable environment. As a result the organization can be effected by the changes that take place in the environment in a dramatic manner.
However it can also be argues that the environment is not a separate entity form the organization, but actually a part of the organization itself. This is derived form the fact that organizations are always operating and determining strategies which adapt to the changes that take place in the environment. In fact the environment established the sustainability of the organization. Schein used the metaphor of ‘Flux and Transformation’ in the case of Multicom to demonstrate how the organization theory.
According to ‘Flux and Transformation’ Schein depicted that it is possible for comprehend the logic behind the change talking place in a company. Through the use of the metaphor the self image of the company can be said to derive the position it holds in the market and the understanding it forms of its environment. Schein was able to establish in his works that metaphor analysis can be used to identify the inherent culture in the organizations and the various components of the culture and the subcultures that need to change or can derive a change.
Schien was also of the opinion that the results of the metaphor analysis could also be used to form perspectives for the organization change and the change in its culture. The flux and transition metaphor as a result suggests that it possible to influence change in an organization which can derive a transformation in the culture that exists in it. 4. When is culture change absolutely necessary for an organization? List at least three examples, and describe them.
A change is in the cultural change is absolutely necessary when the culture is not in tune with the orientation of the company and poses a hindrance in the achievement for the long term strategic goals and objectives of the company. The cultural change that takes place however can be a result of various factors. One of which is cultural change through the existence of a subculture. It is possible for a string subculture to exist in an organization which can derive the change in the currently existing culture in the organization.
In cases where the subculture is more relevant to the strategy of the company, then it is possible for the subculture to emerge in the organization as the main culture which can be adopted by the organization. The other reason as to why change can become absolutely necessary for the organization’s culture when a new technology is being adopted. The new technology adoption can bring about changes to the business activities and the way business operations can conducted in the business.
This can affect the culture of the organization and the orientation of the organization, making it necessary to change the culture in order to correspond to the technology changes that are taking place in the organization. The third example where it can become necessary to change the culture of the organization is in the even of a merger, or a consolidation of the business the change in the business structure as well as the different business that are undertaken by the organization derive change for the culture in the organization.
This is because the new organizations can bring their own cultures along with them and when the organization is working as a complete entity, it needs to form a cohesive organization culture which can cater to all aspects of the organizational and its different business divisions. References Denison, D. , (2007), Is Your Company’s Culture Helping Or Hindering – Diagnosing company culture to build high performance, retrieved November 23, 2007 form http://64. 233. 183. 104/search?
q=cache:AEFEY-xIEDIJ:www. imd. ch/research/challenges/upload/Is_your_companys_culture_helping_or_hindering. pdf+%22example+of+culture+change%22+%22mergers%22&hl=en&ct=clnk&cd=2&gl=pk Heathfield, S. M. , (2007), How to Change Your Culture: Organizational Culture Change, retrieved November 23, 2007 form http://humanresources. about. com/od/organizationalculture/a/culture_change. htm Morgan, G. , (2006), Images of Organization, Publisher: Sage Publications Inc, ISBN-10: 1412939798