CHANGING ORGANIZATIONAL CULTURES: and their impact on employees

Presented by:

Section 3 Group 8: Dagar Katyal Mohammed Khurram Prachi Sawant Shuchita Shekhar Vivek Joseph

Company cultures are like country cultures. Never try to change one.Try, instead, to work with what you've got.
- Peter Drucker

The Story
y Defining organizational culture y What shapes an organizations culture y The employee perspective y Change : The inevitable y New age cultural drivers y Coping up y Change and You

Defining organizational culture The way we do things!!

Organizational culture refers to a system of shared meaning held by members that distinguishes the org from other organizations.

An active living phenomenon through which people jointly creates and recreates the worlds in which they live.

Functions performed by Org. culture

y Employee Self Management y Sense of shared identity y Generation of commitment y Stability y Sense of continuity y Satisfies need for predictability, security and comfort y Socialization y Internalizing or taking organizational values as ones own y Implementation Support of the Organizations Strategy y If strategy and culture reinforce each other, employees find it natural to be committed to the strategy

Levels of Organizational Culture

Visible Culture Expressed Values

Core Values

Org. Culture and Employee

What shapes an organizations culture

y Leadership philosophy : Core beliefs, value system y Leadership style : authoritarian, participative, declarative y People orientation : how important are your employees y Rituals Routines : daily practices, work hours etc y Assumptions and beliefs

The employee perspective

Organizational culture is the social glue that bonds people together and makes them feels part of the organization experience.

y Culture affects performance and not vice-versa y Defines daily behaviour and org. performance y Affects employee morale, retention, commitment, y y y y y

productivity, innovation Defines boundaries Defines the expectations of your job, peers, seniors Conveys a sense of identity Acts as a control mechanism Creates a climate: the shared beliefs and perceptions

If you dont use culture, culture will use you

y If you are not aware, it will shape you y Human beings Copy, Coach and Correct each other into a

group y E.g. Enron, Satyam

Change the inevitable

y Organizational cultures do not change easily y It is a gradual process : measured in years. y What brings change in the org. culture:
y Crisis y Leadership change y Org. size y Cultural strength : Weak or rigid cultures lead to employee frustration,

dissatisfaction, weakening performance of employee and org. as a whole y Changing customer needs : Increased sensitivity to customer needs; demands change in employee perceptions, behaviours, expectations y Structural changes: Business alignments, mergers and acquisitions, y Strategic refocus: Change in business processes, a paradigm shift

New age cultural drivers

y Changing businesses : Growing trend of mergers and

acquisitions has increased the need for adapting cultures.

Statistics reveal 90 percent of acquisitions don't live up to expectations commonly due to culture clashes

y Employee retention: Differentiation at the work place

has become a major concern in the current environment of increasing skills, talents, innovation and creativity based roles. y The Humane Touch : Increasing sensitivity to employee needs its about giving people tools to imagine new possibilities. E.g. Google work culture

Coping up
y Organizations change when the people in them change. y Humans have a natural tendency to resist change. y Organizational culture must be nurtured to accept change at all y y y y y y

levels The cultural shift is not a day long task. Communication across hierarchy Employee engagement Incremental changes Process changes require training E.g. Cultural changes at P&G
aggressive decisions reduction in hierarchy, retrenchment of employees, focus on coaching, team collaboration]

y [ earlier style Autocratic, no employee interaction, no need analysis,

Change and You

"People don't resist change. They resist being changed! -Peter Senge

y YOU as a leader of tomorrow:

y Selling change for the sake of change

itself provides little motivation to the intended recipients to embrace the cause. y Part of planning and formalizing this process is to establish the mandate, soft sell the process and highlight the planned benefits. y People need to see the positive side of change y It is very important that people understand the why part of the process. Failure to convey information in a meaningful way can create confusion which hinders the uptake.

Change and You (Cont.)

It is not about Why Change, it is about Why do we resist change

y Strong leadership and team leaders

can help to win the support of the broad majority.

y Effective leadership requires the clear,

concise and positive articulation of the change process. y A failure to properly manage the change process can result in a dysfunctional culture where people try to apply old outdated modes of operation that are incompatible with new and improved ways to do things. y Match the culture before hiring y Periodic assessment of the impact on performance

If you want to change the culture, you will have to start by changing the organization.
- Mary Douglas