change management of organizational culture Authors : Dennis Reiss, Zane Dzene, Gaëtan Oliva, Alexandre Alba, Isabel Hellmann, Ieva Tomaša and Victoria Lopez

1. Organizational culture

A) Definition  A system of shared values, assumptions, beliefs, and norms that unite the members of an organization.  Reflects employees views about “the way things are done around here.”  The culture specific to each firm affects how employees feel and act and the type of employee hired and retained by the company.

B) Functions of organizational management → Employee Self-Management  Sense of shared identity  Generation of commitment → Stability  Sense of continuity  Satisfies need for predictability ( прогнозируемость ), security, and comfort → Socialization  Internalizing ( усваивать )or taking organizational values as one’s own → Implementation ( выполнение ) Support of the Organization’s Strategy  If strategy and culture reinforce ( укрепляет )each other, employees find it natural to be committed to the strategy

C) Types of organizational cultures

 Clan oriented cultures are family-like, with a focus on mentoring, nurturing ( воспитание ), and “doing things together.”  Adhocracy oriented cultures are dynamic and entrepreneurial, with a focus on risk-taking, innovation, and “doing things first.”  Market oriented cultures are results oriented, with a focus on competition, achievement, and “getting the job done.”  Hierarchy oriented cultures are structured and controlled, with a focus on efficiency, stability and “doing things right.”

2. External and internal factors of change An organizational culture doesn´t always stay the same Two categories of factors

External factors: the country, the economic circumstances, the political pressure and laws, the losses of market shares/progress of competitors and the scarcity of natural resources. Internal factors: lack of attraction, change in the head of the society, outdated skills of employees

3. Methods of change management

A) The kurt Lewin Change Model  Unfreezing  Getting ready for the change/understanding why the change is necessary  Change  The main change process  See change as a process, not as a event  Refreezing  Establishing stability once the changes have been made

B) 4 steps of change management Change management is the systematic transition of a an organiziaton from a current organizational practice to another. You can devide it into 4 steps: 1. Analyse the system 2. Determine shared beliefs and values 3. Start developing the strategies 4. Communicate

1. Analyse the system  determine strengths and weaknesses  every organization already has an established system  People believe in this system  Analyze the system before doing change otherwise it could be devastating

2. Determine shared beliefs and values  Determine organizations shared beliefs  Observe (наблюдать) the departments in your organization  Employees play an important role in this context

3. Start developing the strategies Five important steps :  Flowchart of the current system  Weaknesses of the current system  Propsed changes and objectives of these changes  Create targets  Forecast

4. Communicate  Open forum with managers  Change democratic as possible   Pay attention to your employees, they might feel victimized

Resistance to change Four basic reasons why change is resisted :  self - interest (Individuals are more concerned with the implications (вовлечение) for themselves)  Misunderstanding  Communications problems  Inadequate (недостаточная) information  Low tolerance of change  Sense of insecurity (the fear that one will not be able to develop new skills and behaviors that are required in a new work setting)  Different assessment (оценка) of the situation  Disagreement over the need for change  Disagreement over the advantages and disadvantages

Overcoming resistance to change A manager need to:  Involve organizational members in the planning process;  Communicate effectively (A manager should be clear about the reason for the change and the anticipated (предполагаемые) outcomes)  Remove uncertainty and threat ( He should tell the truth and as much of it as possible; in the absence of information, people always assume the worst;)  Train people in new skills and behaviours (He should be patient, give them encouragement and forgive their mistakes);  Change the reward and work systems such as employee promotions, pay practices, performance practices;

5. Case of IBM and World Bank

A) IBM  IBM is an international corporation with operations in more than one hundred and sixty countries.  Initially the IBM organizational culture was concentrating on the United States.  IBM use strategy which would lead all employees to one goal, never the less company is international so the decisions is made in forums and locally to get company work efficiently.

B) World Bank  As of mid-2011, the World Bank remains a slow-moving traditional hierarchical bureaucracy, with an inward-looking perspective.  Information which is considered to be useful for the company now comes to from the employees.

Discussion 1. Motivation  Internal-positive:  Challenge  Desire  Passion  satisfaction,  Self-validation (утверждение, признание)  External-positive:  Recognition and appreciation from others  Financial rewards

Discussion 2. Threats  Internal-negative:  Threat  fear of failure  insecurity  External-negative:  Fear of loss of job or relationship  Insufficient (недостаточный) respect from others  financial or social pressures  pressure from significant (выжный) others

Thank you for your attention