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Question 1: List one strength and weakness for each cultural perspective described in this case study. There are numerous cultural perspectives that have been provided. Three major cultural perspectives have been identified, these include: the integration perspective, ambiguity perspective, as well as the differentiation perspective.
The Strength of the cultural perspectives that is described in NAB: Cultural Change Program:
Integration Perspective at NAB: this is the most widely applied cultural change perspective. It may be reflected in highly visible and tangible manner all through the organization.
It should be noted that there has to be accord in the entire firm and it may be reflected via diverse mediums of organizations such as performance metrics and targets, informal and formal rules, business strategies, as well as management practices that govern traditions stories, together with manifestations. In the situation of NAB, business strategies were client- focused. For the creation of the visible manifestations of the firm’s desired culture, the priorities were observed within the mission, vision statements, as well as in the strategic objectives (Allaire and Firsirotu, 2006).
Differentiation Perspective: It views culture to incorporate various cultures. Given that it is highly focused on the inconsistencies that are got at the center of culture, it provides organization the opportunity of correcting inconsistencies thorough having better culture. When the inconsistencies are recognized, a number of cultural initiators may be identified with the firm, both externally and internally (Deal and Kennedy, 2002).
Ambiguity Perspective: The perspective, neither adheres to the differentiation nor the integration viewpoint of cultural perspective.
On the contrary, it offers the suggestion that the relationships that exist between cultural manifestations are not having highly effective clarity; rather, they are lacking clarity. With them, there is complete vagueness, as well as a contradiction. Individuals within any firm may have common values and views that they share with one another. However, on some values or views, they may differ. It is observed to be a highly realistic perspective concerning culture since it enables the workers to bring forward the issues that they are disagreeing with the line managers. When the issues are established, via the ambiguity perspective, various steps might be taken in order to resolve them. This will also ensure that the employees are satisfied. Besides, the employees will be involved in the organization’s culture (Denison, 2007).
Weakness for the cultural perspectives that are mentioned within NAB: Cultural Change Program: The Integration Perspective: This perspective’s weakness is that when the integration perspective is having any trait that is unfavorable, it will be transferred everywhere within the organization since it is always present within the entire organization. In some cases, culture persists in manners that are invisible and which cannot be detected in the firm. This can also be very harmful (Denison, 2007). Differentiation perspective: through this perspective, various inconsistencies that lie at the culture’s focal point, both internally and externally can be identified. Its weakness is that culture is depicted to be a group of several manifestations that may be contradictory to one another (Denison, Cho, and Young, 2000).
Ambiguity Perspective: with the ambiguity perspective, employees may agree on certain management issues. However, in other instances, they may pretend to be ignorant. In some cases, they might be completely indifferent. At the same time, they may oppose the entire managerial line. Therefore, the ambiguity perspective in organizations always brings various issues that may make the employees within the organization to be dissatisfied (Jain & Thomson, 2008). Question 2: Complete a force field analysis using Kurt Lewin’s change management model clearly illustrating the driving and restraining forces for change in a force field diagram.
The Kurt Lewin’s Change Management Model
Force Field Analysis (Lewin, 1951)
‘Force Field Analysis’ Model that was developed by Lewin Kurt is highly beneficial in providing a description of the present performance level. Force Field Analysis is highly useful technique for decision-making. It helps organizations in making various decisions through the analysis of various forces that are for and against a given change. In addition, through it, organizations have the capacity to effectively communicate the reason that is behind the decisions that are made. It can be applied for two main purposes: deciding whether to proceed with the change; and also to enhance success chances through strengthening various forces that supports the change and also weakening various forces that are against the change (Lewin, 1951).
In addition, Force Field Analysis refers to a tool that is applied in order to analyze systematically the various factors that are got within problems that are very complex. It always frames various problems in terms of pressures or the various factors supporting the status quo, as well as the pressures supporting change in the direction that is desired. A factor may be individuals, attitudes, resources, regulations, traditions, needs, values, desires among others. Being a change management tool, it plays a major role in helping in the identification of the various factors, which have to be monitored and addressed for change to be highly successful (Lewin, 1951). Procedure:
Step 1: Definition of the Problem
In this step, organizations determine the nature of their present situation which is not acceptable, and which requires modification. It is always very prudent to separate specific problem from the things, which are working very well (Maslen and Platts, 1994).
Step 2: Definition of the Change Objective
This stage entails the determination of the desired situation, which is worth working to attain. There is need for organizations to be very specific (Maslen and Platts, 1994).
Step 3: Identification of the Driving Forces
This stage entails the determination of the various pressures or factors which support change in the direction that is desired. It also entails determining the forces’ relative strengths. In addition, the driving forcesshould be placed on a chart on Force Field Analysis diagram in labeled arrows with the arrow’s length reflecting each force’s relative strength. It is also very prudent to determine the interrelationships between the various driving forces.
Step 4: Identification of the Restraining Forces
At this stage, it is very prudent to determine the pressures or factors which resist the change that is proposed. These forces should be represented in the diagram like the ones of the driving forces. The interrelationships between the restraining forces should also be determined (Maslen and Platts, 1994).
Step 5: Development of a Comprehensive Change Strategy
The diagram that is created in stage three, as well as stage four reflect the thing that can be referred to as a quasi-stationary equilibrium state. Though this is a state that is comparatively stable, movement may be attained through changing the various factors that are presently contributing to the equilibrium. It should be noted that change might occur due to a combination of any these: strengthening one of the various driving forces, as well as the addition of new driving forces, reducing or removing the restraining forces (Lewin, 1951). The Driving Forces are always positive reasonable, economical, reasonable, and conscious.
On the other hand, the Restraining Forces are always negative emotional, social, unconscious, psychological, as well as emotional. When organizations are handling dealing with a change or when they are managing change or when they are reacting to given change, the two set of the forces ought to be considered. Lewin made the suggestion that to in order make change to be very easy, as well as long lasting the various forces that are working against the given change ought to be minimized instead of increasing the forces that are for the given change. He also made the suggestion that force modification will be beneficial in ensuring the maintenance of the status quo in a very easy manner instead of changing or instead of increasing the change forces (Thomas, 1985).
The above steps can be reduced into three steps:
Step 1: Unfreezing: in this step, the strength of the forces that are mandating the present equilibrium is reduced.
Step 2: Moving: in this step,the new values of the organization, behaviors, as well as attitudes are developed. They are beneficial in helping to move the firm forward.
Step 3: Refreezing: in this stage, when the changes have been made, the various forces ought to be stabilized. This is to ensure that a new equilibrium is maintained (Miner, 2007). However, in some cases, it is always criticized because when an organization is within an environment that is rapidly moving, it will not have the capacity to ‘refreeze’. In a case like that, refreezing will make the organization to be staid and stale. Lewin points out that Refreezing ought not to be viewed as a permanent phase, but a short term phase. In addition, it is highly significant for obtaining certain types of stability in organizations (Maslen and Platts, 1994). The arrow lengths are depicting the quantity of the forces. When a given change is implemented within an organization, the point of equilibrium is moved. For the movement of the equilibrium, driving forces must be increased or added. In addition, resistance forces ought to be reduced or removed (Thomas, 1985).
On the contrary, when the driving forces are enhanced, the intensity of resistance will also be enhanced. Hence, it is always good to minimize the resistance. This may be done through the use of various techniques such as motivation, commitment, as well as involvement (Maslen and Platts, 1994). Question 3: which cultural change perspective was adopted by NAB during its change program? The Australian Prudential Regulatory Authority (APRA) has identified numerous limitations in the bank’s internal control framework. In addition, there has also been the claim that various cultural issues lay at the center of the collapse of NAB. In order to obtain an enhanced comprehension of the processes and construct of the entity, effective analysis of the culture through the application of symbolism should be done. On the contrary, analyzing culture through the application of symbolism always lacks measurement scale; hence, it does not offer a ready-made formula to be applied in order to measure change, analysis, as well as improvement. In addition, it is always believed that individuals do not have the capacity to manage the things that they do not have the capacity to comprehend.
Therefore, this is the main reason as to why researchers, as well as practitioners must depend on the functionalist-integrative viewpoint of cultural change in order to get a much deeper insight into culture’s nature, as well as how culture may be managed effectively in order to attain the goals that are desired. The present, as well as the former executives of the bank share the functionalist-integrative perspective of culture. This should form a basis for APRA and PriceWaterhouse Coopers (PwC) to carry out proper investigations into the official losses of the Banks Trading. Functionalist-integrative viewpoint of culture lays much emphasis on various factors that are found to be prevalent within the entire organization. On the contrary, there is likelihood that foreign currency trading room where losses were incurred by the bank was totally distinct subculture to the firm. This illustrates that trading room of the bank was existing as a subculture to the firm, something that offers the suggestion that rogue traders always operate within functionalist-differentiation culture (Sorenson, 2002).
However, as illustrated by Dellaportas, Cooper & Braica (2007), a research that is focused on the bank’s foreign currency options trading room is attempting to adopt the integration perspective; however, it is at a very low level analysis. However the differentiation perspective is established to be better in the analysis of the relationships that exists between several subcultures in the organization. The multiple subcultures point out inconsistent cultural manifestations rather than being focused on a given subculture. Hence, it is established that the functionalist-integrative viewpoint is highly applicable and effective in the analysis of the culture within a single organizational department given that is its highly applicable, as well as effective on an organizational-wide basis (Dellaportas, Cooper & Braica, (2007; Graetz, Rimmer, Lawrence and Smith, 2006).
It should also be pointed out that integration viewpoint is highly opted by National Australian Bank during the change program. The steps that were taken by the firm in order to ensure cultural change include: Readjusting the major priorities in order to point out that National Australian Bank is an organization that is focused on the clients. Believing in making investments in its reputation, its people, as well as its culture Commencing to differentiate via its reputation and culture in order to ensure that their employees, customers, as well as the community benefits. Making visible manifestations of the culture via its visions, mission, as well as strategic objectives statements being reflected on whole portfolio of National Australian Bank group. Re-launching tangible change initiatives of National Australian Bank brand with an innovative, as well as a fresh logo. Regaining the public’s confidence through launching the brand and lobo with the Melbourne Commonwealth games of the year 2006. The bank was the top sponsor.
Focusing on various community developments
‘Developing various ‘team-oriented ‘ structures
Question 4: what would be your future recommendations to the CEO or HR team at NAB? There are numerous things that need to be done by the bank’s CEO, HR team in order to ensure its success in the future. First, there is a need for the new leaders that are appointed by National Australian Bank to make conscious efforts in order to effectively implement cultural changes in a manner that is highly effective. They should not focus mainly on the process; however, they should lay much focus on the gravity of the issue (Fairbairn, 2005). Additionally, within the firm, there were no clear responsibilities, as well as accountabilities. There is a need for the management of the firm to ensure that this is seriously fixed in order to ensure that change is effectively implemented y the organization.
Additionally, NAB is having a good news culture that ensures the prevention of bad news from arising. The issue is very serious since it is always good to adequately address bad news or problems in their nascent stage instead of waiting for them to be bigger. On the same note, NAB adheres to a Bureaucratic culture. It always tends to overcomplicate things. Therefore, through making a change, as well as enhancing the firm’s culture, there will be a positive difference. Generally, cultural changes always come along with very deep logic of personal commitment. The new CEO should view himself as the “Chief Ethics Officer” instead of a CEO (Trevino, Hartman and Brown, 2000).
Being a Chef Ethics Officer, the CEO should convey strict and strong ethics message that will help the co-leaders. In addition, being a leader, the CEO should have the knowledge of his responsibilities and powers. When these recommendations are put into place by the leadership of NAB, they will have the capacity to address the issues in a highly systematic manner. In addition, they will have the capacity to overcome the crisis. In addition, they will have the capacity to restore their brand image. The firm should also portray itself to be more focused on their customers rather than on profits given that when they portray themselves to be profit centered, they will engage in various activities that are unethical. Cases study 2
As pointed out by Child (2005), when determining if a team or a firm over- organized or under-organized, there are always strengths, as well as concerns which have to be taken into consideration. The strengths which should be looked into include: very high commitment to the firm, as well as its mission; norms of straightforwardness and honesty; smart, as well as articulate management; very high interest in learning, as well as growth; and general manager and founders as role-models (Bradford & Burke, 2005). In addition, various firms will always face constant struggles in order to shun the extremes of over-organizing and under-organizing. Every service provider always has a built-in inclination to get off balance organizationally on a single side or to another.
The firms that are under-organized, their leaders always struggle mainly with efficiency: how things can be done. Because of inadequate organizing, organizational leaders always get it very hard to pull the correct “levers” and also to push the correct “buttons” in order to make the firms work (Bradford & Burke, 2005). Some of the various concerns which have to be looked into include individuals and systems failing to keep pace with the growth; lack of very clear structure, roles, as well as teamwork; lack of common direction, mission, as well as priorities; individuals are stretched to their limit; and the general manager and founders are both firm’s greatest strength, as well as the greatest weakness (DeKler, 2007).
There are several other signs of under-organization. administrators and staff are not sure of the activities that they should delegate and thee individuals to whom they should delegate; organizational members are unsure where they can serve best and where they can “plug in”; huge expenditures in terms of time, as well as effort is needed in order to get various programs adopted, as well as implemented; work load is distributed unevenly —some leaders and members are overworked whereas others are entirely left out; Leaders are very slow to respond and to discern to the members’ needs; Members of the organization are faintly aware of the congregational goals yet they are not well informed regarding the daily activities; The firm experiences huge programs overlapping, as well as consequent effort duplication (Carter, 2004). A firm that is unbalanced by excess organization is always challenged by effectiveness, the things that ought to be done. Over-organized firms have the capacity to move efficiently to make sure that various things are properly done. In addition, work is delegated smoothly, various job descriptions are effectively followed, and besides, committees deliberate (Schultz, D.P., Schultz, 2006). What are the implications for planning an OD intervention?
In the case, intervention planning was required since no individual took responsibility for anything. In addition, they had no structures or guidelines to follow in their work to the latter. Ben and Jerry needed to make it a family and fun work environment. To do this, they did not have the means to put authority in to force. When things got broken, no person could man up to take responsibility for the actions. Had Ben and Jerry ensured that there was authority over fun, it could have made the firm to avid this. If authority was replaced with friendship, they could have avoided the scenario. Is team building a good way to launch an OD effort in this case? Other approaches? Other than team building, several other approaches can be adopted by the firm. Among the various interventions that can be taken into consideration include: Organization Confrontation Meeting: through this change technique, the members of the organization will be mobilized in order to identify various problems, set various action targets, besides commencing to work on various problems.
In the case, it will most likely represent numerous meetings between the feuding groups within the organization. On the contrary, the data from the case offers the suggestion that the firm is not prepared for this kind of intervention (Murray, 2005). Inter-group relations: The interventions are specifically designed to enhance interactions between diverse groups, as well as departments within organizations. Microcosm group intervention entails a very small group of individuals whose backgrounds is closely matching the problems of the organization that are being looked into. Inter-group conflict model generally entails a consultant aiding two groups to comprehend the origin of their conflict besides choosing highly relevant solutions (Western, 2010). The various issues that face the firm are highly visible along alignment lines, focus, as well as leadership instead of a true conflict.
Large-group Interventions: The interventions entails gathering several stakeholders into a big meeting in order to clarify significant values; develop fresh working ways; to articulate a fresh organizational vision and also to provide solutions to various pressing problems of the organization. This appears like a very viable option majorly after a team building with some of the top team management. Trying this intervention prior to team building will have similar problems to confrontation meeting. It should be noted that OD is not a science, which may be placed into concise prescriptive. Ben & Jerry experienced issues that affected the entire organization. The firm’s board was not fully prepared to tackle its own issues. In addition, they become united in order to offer the leadership which was needed by the rest of the firm. Therefore, the starting point was the managers. The outdoor methods applied in this case may be effective activities for teambuilding. The other option applicable for the firm could have been intervention with the founders and the board and confronting them for lack of leadership, as well as their incapacity to effectively handle their own issues. What next steps would you recommend?
After the formation of the management team and its alignment with the founders and the board, there is a splendid opportunity of getting other individuals within the organization to be aligned with the management. In addition, they should be involved in the newly established goals. When the system is highly organized around certain goals, as well as missions, all individuals within the organization will work on the bigger issues. The innovative feature of the firm, as well as the level of commitment of the workers suggests the readiness for a large group involvement to take organization to better levels.
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