ONE INTEGRAL CHANGE I WOULD LIKE TO BRING IN MY ORGANIZATION - GETCO

Presented by: (1) N K Patel (2) P R Patel (3) R S Thakkar (4) Khushbu Joshi

CHANGE WE HAVE FOCUSED : ORGANIZATION CULTURE

Organization Culture? Culture is the soul of the organization the beliefs and values, and how they are manifested. I think of the structure as the skeleton, and as the flesh and blood. And culture is the soul that holds the thing together and gives it life force.

WHAT IS CULTURE ?

Important assumptions that members shares in common. Culture has a significant role in long term performance of organization. It decides the success or failure of any organization. Each organization have its own culture.

CULTURE ?
1.

What is the purpose of organizational culture?

Organizational culture provides stability and

gives employees a clear understanding of the way things are done around here.

2. How do you create and maintain culture?

An organizations culture is derived from the philosophy of its founders. It is communicated by managers and employees are socialized into it.

CULTURE ?
3.

What kind of organizational culture might suit you? Organizational cultures can be analyzed in terms of members friendliness (sociability) and task orientation (solidarity). Can organizational culture have a downside? A strong culture can have a negative effect, including pressure-cooker cultures, barriers to change, difficulty in creating an inclusive environment, and hindering mergers and acquisitions. How do organizations manage change? Kurt Lewin argued that successful change should follow three steps: unfreezing, moving, and refreezing. John Kotter built on Lewins work to offer an eight-step model. Two other theories include action research and appreciative inquiry.

4.

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CULTURE ?
6. Why do people and organizations resist change? Individuals resist change because of basic human characteristics such as perceptions, personalities, and needs. Organizations resist change because they are conservative and because change is difficult.

LEVELS OF CULTURE

Artifacts Aspects of an organizations culture that you see, hear, and feel Beliefs The understandings of how objects and ideas relate to each other Values The stable, long-lasting beliefs about what is important Assumptions The taken-for-granted notions of how something should be in an organization

LAYERS OF CULTURE

CHARACTERISTICS OF ORGANIZATIONAL CULTURE

Innovation and risk-taking The degree to which employees are encouraged to be innovative and take risks. Attention to detail The degree to which employees are expected to exhibit precision, analysis, and attention to detail. Outcome orientation The degree to which management focuses on results or outcomes rather than on technique and process. People orientation The degree to which management decisions take into consideration the effect of outcomes on people within the organization.

CHARACTERISTICS OF ORGANIZATIONAL CULTURE

Team orientation The degree to which work activities are organized around teams rather than individuals. Aggressiveness The degree to which people are aggressive and competitive rather than easygoing. Stability The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.

CONTRASTING ORGANIZATIONAL CULTURES - GETCO

Existing Culture
Managers must fully document all decisions. Creative decisions, change, and risks are not encouraged. Extensive rules and regulations exist for all employees. Productivity is valued over employee morale. Employees are encouraged to stay within their own department. Individual effort is identified, but not rewarded. DOING culture

Dream Culture
Management encourages and rewards - risk-taking and change. Employees are encouraged to run with ideas, and failures are treated as learning experiences. Employees have few rules and regulations to follow. Productivity is balanced with treating its people right. Team members are encouraged to interact with people at all levels and functions. Many rewards are as individual well as team based. BEING" culture

CREATING AND SUSTAINING CULTURE:

Selection Identify and hire individuals who will fit in with the culture. Top Management Senior executives establish and communicate the norms of the organization.

Socialization Organizations need to teach the culture to new employees.

THE LIABILITIES OF CULTURE

Culture can have dysfunctional aspects in some instances. Culture as a Barrier to Change When organization is undergoing change, culture may impede change.

Culture as a Barrier to Diversity Strong cultures put considerable pressure on employees to conform.

CHANGE AGENTS

People who act as catalysts and assume the responsibility for managing change activities.

OUTSIDE AGENTS

Can offer an objective perspective. Usually have an inadequate understanding of the organizations history, culture, operating procedures, and personnel. Dont have to live with the effect after the change is implemented.

INTERNAL AGENTS

Have to live with the consequences of their actions. May be more thoughtful. May be more cautious.

LEWINS THREE-STEP CHANGE MODEL

Unfreezing

Moving

Refreezing

THREE-STEP MODEL FOR IMPLEMENTING CHANGE

Unfreezing

Change efforts to overcome the pressures of both individual resistance and group conformity.
Efforts to get employees involved in the change process. Stabilizing a change intervention by balancing driving and restraining forces.

Moving

Refreezing

UNFREEZING THE STATUS QUO

Desired state

Restraining forces Status quo

Driving forces Time

UNFREEZING

Arouse dissatisfaction with the current state. Activate and strengthen top management support.

Use participation in decision making.

Build in rewards.

MOVING

Establish goals.

Institute smaller, acceptable changes that reinforce and support change. Develop management structures for change.
Maintain open, two-way communication.

REFREEZING

Build success experiences. Reward desired behaviour.

Develop structures to institutionalize the change.

Make change work.

ACTION RESEARCH

A change process based on the systematic collection of data and then selection of a change action based on what the analyzed data indicate.

RESISTANCE TO CHANGE
Direct Costs
Saving Face

Forces for Change

Fear of the Unknown Breaking Routines Incongruent Systems Incongruent Team Dynamics

SOURCES OF INDIVIDUAL RESISTANCE TO CHANGE

Selective information processing

Habit

Individual Resistance Security Fear of the unknown

Economic factors

CYNICISM ABOUT CHANGE

Feeling uninformed about what was happening. Lack of communication and respect from ones supervisor. Lack of communication and respect from ones union representative. Lack of opportunity for meaningful participation in decision making.

SOURCES OF ORGANIZATIONAL RESISTANCE TO CHANGE

Threat to established resource allocations Structural inertia

Threat to established power relationships

Organizational Resistance

Limited focus of change

Threat to expertise

Group inertia

OVERCOMING RESISTANCE TO CHANGE

Education and communication This tactic assumes that the source of resistance lies in misinformation or poor communication. Best used: Lack of information, or inaccurate information Participation and involvement Prior to making a change, those opposed can be brought into the decision process. Best used: Where initiators lack information, and others have power to resist Facilitation and support The provision of various efforts to facilitate adjustment. Best used: Where people resist because of adjustment problems

OVERCOMING RESISTANCE TO CHANGE

Negotiation and agreement Exchange something of value for a lessening of resistance. Best used: Where one group will lose, and has considerable power to resist Manipulation and cooperation Twisting and distorting facts to make them appear more attractive. Best used: Where other tactics wont work or are too expensive Explicit and implicit coercion The application of direct threats or force upon resisters. Best used: Speed is essential, and initiators have power

SOME EXTERNAL FORCES FOR CHANGE

Information Technology

Globalization & Competition

Courtesy National Board of Antiquities, Finland

Demography

Organization Culture - Transformation Hierarchy Culture

It focuses more on internal than external (market) issues and values stability and control over flexibility and discretion. This is the traditional command and control model of organizations, which can work effectively if the goal is efficiency and the organizational environment is stable and simple

Market Culture
More focused on external rather than internal issues. This culture values profit, productivity, competitive advantage and achievement

SOME EXTERNAL FORCES FOR CHANGE

Information Technology

Globalization & Competition

Courtesy National Board of Antiquities, Finland

Demography