Analysis Of Organisational Change And Culture
Organisation change is the transformation of an organisation’s structure, processes, strategies, operational methods, technological methods and culture. It refers to any change that has an impact on the way work is performed and has significant effects on staffs. Organisational transformation can be continuous or occur for a particular period of time.Organisational changes can also be:
- In the structure of the organisation, organisation operation and size
- In working hours or practices
- In the way roles are carried out
- In the scope of a role that results in a change in working conditions, terms or environment.The reasons for changes can be illustrated as follows:
There are two types of changes:
- Planned change: This results from a deliberate decision to alter the organisation. It is an intentional goal oriented activity. The same can be referred as organizational development.
- Unplanned change: It is imposed on the organisation and is often unforeseen.
Organisation Development is a planned approach to improve employee and organisational effectiveness by conscious interventions in those processes and structures that have an immediate bearing on the human aspect of the organisation.A systematic approach to Organisation change is beneficial when change requires people throughout an organisation to learn new behaviors and skills. This can be achieved by setting expectations, employing tools to improve communication and proactively seeking ways to reduce misinformation. Stakeholders are more likely to invest in changes and remain committed to the changes throughout any discomfort associated with them.
Exhibit 1: Organisational Development structure
The Characteristics and values of organisation development
The basics characteristics of OD programs is as such:
- Leading Change
- Collaborative approach
- Performance orientation
- Humanistic orientation
- Systems approach
- Scientific method.
Exhibit 2: The Characteristics and values of organisation development
Large organisations often appoint a change consultant or change leader who will lead changes in order to provide rapid and sizeable economic improvements in the same organisations as per the forces for change.
There are 2 forces for change in organisation:
- External Forces
- Internal Forces
The Process of organisational changes
Organisations have as objectives to make profits, survive and grow in the industry or economy while the people working under the organisation have as objectives to satisfy their needs, wants and to accomplish a successful careers there.
OD, is therefore a process for change that can benefit both the organisation and the individual as follows:
The Change Agent in an organization
Change involves a sequence of organisational processes that occurs over time. Lewin (1951) suggests this process typically requires three steps: unfreezing, moving, and refreezingUnfreezing involves detaching by communication existing problems. Moving refers to the recognition of a need to change, specifically, cultural change and structural change to establish new values and processes. Refreezing refers to the reinforcement of changes in order to achieve renewed equilibrium.
One essential feature of OD is that its change agents can be internal or external consultants to the organisation. These agents establish a collaborative relationship that involves mutual trust, influence and jointly determined goals.
House Limited is a private international wealth management company based in Mauritius. The company provides both discretionary and non-discretionary investment management services to clients who require an internationally diversified investment portfolio.Because of the push from economic markets and investors and pressure for rapid changes, the boards of directors of an offshore company named AssetHouse Limited have appointed my firm as their change agent to bring a successful change within their organisation after years of failed change effort.My firm, Maingard and Associates Ltd, is a company specialising in organisational development & Training for various organisations in Mauritius. As a change agent, we have the skill and power to stimulate, facilitate and coordinate the change effect.
We provide a variety of tools to facilitate changes. Our main emphasis is on team building, personal development and participation. Action research is also emphasised and used to measure and evaluate change through constant feedback during the change process. The subsequent data-collection process involves both the researcher and the participants in the process of change. Strategic change, involves the alignment of the environment and the organisation’s strategy, providing the ability for the organisation to adjust to rapid changes in the environment.
Our roles as change agent to Asset
As a change agent, the change manager places employees in touch with data from outside the organisation or by helping organisation members to generate data from within the organization. The overall purpose is to help employees find solutions to problems through analysis of valid data.
We help members of the company derive implications for action from the present data through various trainings and we also provide the members with a new set of skill the ability to retrieve, translate, and use new data to solve future problems.
The change manager may train the members in the skills needed for valid evaluation of the effectiveness of action plans that have been implemented by assuming the role of a researcher and after having conducted a deep research about the organisation requirements.
External pressures: Advancements in technology is the major cause of change. Each technological alternative results in new forms of organization to meet and match the needs. Therefore, our agents have to change the systems from outside the organisation. We make use of various pressure tactics such as mass demonstrations, civil disobedience, and violence to accomplish these objectives.
Internal Pressures (Pressures for Change from Within the Organisation): Many deficiencies are noticed in the organisations with the passage of time. A change is necessary to remove such deficiencies as lack of uniformity in the policies, obstacles in communication, any ambiguity etc.
Therefore, the focus of activity for this type of change agent is the individual. The change agent may be concerned with employee morale and motivation, including absenteeism, turnover and the quality of work performed. The methods used include job enrichment, goal setting, and behavior modification. In order to change organizational structure so as to improve output and efficiency. Our change agent uses operations research, systems analysis, policy studies, and other forms of analytical approaches to change the organisation’s structure or technology.We also focus attention on internal processes such as intergroup relations, communication, and decision making. Our intervention strategy is often called a cultural change approach, because we thoroughly analyse the culture of the targeted organization.
Response to Organisational Change: Operational change management typically refers to more common changes in certain work processes, reporting structure or job roles.Before introducing a change, our change agent studies and understands employee’s attitudes so as to create a positive response. Three sets of factors-psychological, personal and social- govern the attitude of people.Every change is responded by the people working in the organisation. These responses may be positive or negative depending upon the fact as how they affect people.
As we study this change process, we notice that it must involve two basic ideas for the change to be effective. First, successful change requires a redistribution of power within the existing structure. Successful change is characterised by a greater degree of shared power within the organisational hierarchy. Second, this redistribution of power occurs as a result of a developmental change process. In other words, it is a sequential process rather than a sudden shift.
Exhibit 3 depicts six phases through which change may occur in within AssetHouse.
Resistance to change
Changing an organisation is often essential for a company to remain competitive. Failure to change may influence the ability of a company to survive. Yet, employees do not always welcome changes in methods.
Any change attempt will have to overcome the resistance on the part of people to be successful. Otherwise, the result will be loss of time and energy as well as an inability on the part of the organisation to adapt to the changes in the environment and make its operations more efficient. Individual resistanceIndividual sources of resistance to change reside in basic human characteristics such as perceptions, personalities and needs.
Organisational resistance means that the change is resisted at the level of the organisation itself. Some organisations are so designed that they resist new ideas, this is specifically true in case of organisations which are conservative in nature.
Managing resistance to change
To have a healthy organisation, it is important that we are able to face and manage the issues related to resistance to change.
Exhibit 4: methods for dealing with resistance to change
We also take note that rewards, both monetary and social encourage individuals and groups to take ownership for their new roles and responsibilities. To some extent this contributes positively to the organisation.
Change initiatives do not run themselves. They require substantial effort devoted to such tasks as monitoring implementation, keeping everyone informed of what’s happening, linking multiple change projects, locating unsolved problems, and taking clear coping action. If change occurs only in superficial elements, it would be misleading to declare change a success.
Culture also includes the organisation’s shared ideas, vision, values, norms, systems, symbols, language, assumptions, beliefs, and habits. It is one of the most important building blocks for a highly successful organization and an extraordinary workplace.
Culture expresses how the construct plays out in the workplace but at the same time it also consists of stress employee behavioral components, and how organisational culture directly influences the behaviors of employees within an organisation.The functions of culture are as such:
- Culture provides a sense of identity to members and increases their commitment to the organization.
- Culture is a sense-making device for the organisation’s members
- Culture reinforces the values of the organization
- Culture serves as a control mechanism for shaping behavior How cultures are embedded in the organisation?
- Formal/public statements
- Physical layout
- Explicit rewards, promotion criteria
- Stories, legends, myths
- Processes and outcomes, measurements
- Workflow and systems.
The impact of organisational culture on strategic management
Organisational culture plays an important role in the strategic management of companies. In fact, organisational culture is a factor that determines the survival or failure of organisations. In other word, to a certain extent, the strategic management is determined by the culture of organisation. Impact of culture on strategic management is analysed from 4 aspects by the change manager, which are customers, partners, employees and corporate social responsibility. Numerous outcomes are connected with organisational culture no matter directly or indirectly.In the organisational culture, people and groups interact with each other, including clients, partners and employees. Good organisational culture can bring into following benefits, including perfect customer service, efficient cooperation with partners, consistent employee performance and strong social responsibility.
The impact of organisational culture on employees
The individual beliefs or perceptions regarding the terms of exchange between the individual and organisation is referred as the psychological contract. Employees are often affected by organisational culture how to treat tasks and make objectives. It means that organisational culture influences their ways that make decisions, feelings. When they face difficulties and opportunities, they would act differently in different organizational culture. Only when employees acclimatise the organisational culture, they satisfy the job. The reason is that staff are identify with the culture and values. It is also a strategic management of the company for the employees. In other words, developing strong and productive cultures make the organization in accord with its vision and goals. The motivation and loyalty of employees are stirred up. It is easy for organisations to promote consistency and encourage coordination. In this situation, the strong organisational culture enables the organization to be more efficient. In addition, the team spirit in different departments can be increased in the organisation culture. To the contrary, weak culture cannot lead to alignment between organisation and employees.If they are not fit into the organisational culture, employees feel no relation to the company and lower job satisfaction which may result to broken contracts. Managing psychological contractsIn managing psychological contract in offshore business, a change manager has to be aware of the modern economic environment that changes their contracts and that of employees too. This dynamic and changing nature of psychological contract calls for organisations to understand the changes, renegotiate contracts when needed and continuously check the satisfaction level of their employees. There has to be an awareness that effective management should not start only when employees have been hired but before hiring. That is, from the company’s publication, to interview, negotiations and on boarding process are all significant in the formation of employee’s psychological contract. Furthermore, to add to existing knowledge other aspects such as financial, political or legal, can be studied under international business. We believe that since the subject of culture is very wide, a further study can include language differences and how it affects psychological contracts in international business.
Finally, an investigation on the kind of management styles multinationals use in managing psychological contract, would help ascertain what has worked and where challenges still exist. This would help in proposing recommendations thatmay be beneficial to a vast number of organizations.Therefore, by understanding the changing contracts, organisations are able to develop contracts that will enhance a good relationship with employees and promote a motivated and committed workforce.
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