1.
Managing
Organizational
Culture and Change

2.
Organizational Culture
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.

3.
Core Values
Expressed Values
Visible Culture
Levels of
Corporate
Culture

4.
Functions Performed By Organizational
Culture
Employee Self-Management
Sense of shared identity
Facilitates commitment
Stability
Sense of continuity
Satisfies need for predictability, security, and
comfort

5.
Functions Performed By
Organizational Culture
Socialization
 Internalizing or taking
organizational values as
one’s own
Implementation Support of
the Organization’s Strategy
 If strategy and culture
reinforce each other,
employees find it natural to
be committed to the
strategy

6.
Creating and Sustaining
Organizational Culture
Company Rituals and
Ceremonies
Cultural Symbols
Language
LeadershipOrganizational Policies
and Decision Making

7.
Characteristics and Types of
Organizational Culture
Cultural Uniformity versus
Heterogeneity
Strong versus Weak Cultures
Culture versus Formalization
National versus
Organizational Culture

8.
Characteristics and Types of
Organizational Culture
Types: Traditional Control or Employee
Involvement
Traditional control
 emphasizes the chain of command
 relies on top-down control and orders
Employee involvement
 emphasizes participation
involvement

9.
Four Types of Culture
Classification
Baseball team culture--rapidly changing
environment
Club culture--seeks loyal, committed
people
Academy culture--hires experts who
are willing to make a slow steady climb
up a ladder
Fortress culture--focused on surviving
and reversing sagging fortunes

10.
Types of Change
Planned Change--change that is
anticipated and allows for advanced
preparation
Dynamic Change--change that is
ongoing or happens so quickly that the
impact on the organization cannot be
anticipated and specific preparations
cannot be made

11.
Forces for Change:
Environmental Forces
Put pressure on a firm’s relationships with
customers, suppliers, and employees.
Environmental forces include:
Technology
Market forces
Political and regulatory agencies and laws
Social trends

12.
Forces for Change: Internal Forces
Arise from events within the
company.
May originate with top executives
and managers and travel in a top-
down direction.
May originate with front-line
employees or labor unions and
travel in a bottom-up direction.

13.
Resistance to Change
Self-Interest
Lack of Trust and
Understanding
Uncertainty
Different Perspectives
and Goals
Cultures that Value
Tradition

14.
Models of Organizational Change: The
Star Model
The Star Model: Five Points
Types of change-evolutionary or
transformational
Structure
Reward system
Processes
People

15.
Lewin’s Three-Step Model of
Organizational Change
Unfreezing--melting away
resistance
Change--departure from the
status quo
Refreezing--change becomes
routine

16.
Lewin’s Force Field Analysis Model
Increase driving forces that
drive change
Reduce restraining forces that
resist change
Or do both

17.
Restraining forces
Driving forces
Status quo
Desired
state
Time
Force-field Model of Change

18.
Implementing Organizational Change
Top-down Change
Change Agents
Bottom-up Change

19.
Eight Steps to a Planned
Organizational Change
 Establish a sense of
urgency.
 Form a powerful coalition
of supporters of change.
 Create a vision of change.
 Communicate the vision of
change.
 Empower others to act on
the vision.
 Plan and create short-term
wins.
 Consolidate improvements
and produce still more
change.
 Institutionalize new
approaches.

20.
Tactics for Introducing Change
Communication and
Education
Employee Involvement
Negotiation
Coercion
Top-Management Support

21.
Rs 500, Rs 1,000 notes banned: Congress'
criticism of Modi's decision is at odds with
country's mood

22.
Changes in
PM Modi decided to discontinue the existing Rs
1,000 and Rs 500 currency notes with effect from
midnight on 8 November. PTI
– In one fell swoop, Modi not only
reaffirmed his pro-people credentials but
also burnished his image as a feisty fighter
of black marketers and the corrupt. And
this was no mean achievement. Of late,
consistent attempts have been made by
his rivals to bracket Modi as a 'pro-
capitalist' prime minister.

23.
Employee resistance due to
• New roles
• Redundancy
• Added responsibilities
• Fear of unknown and possible loss of job
Congress has raised serious apprehensions over the ban imposed by Narendra
Modi government over the use of Rs 500 and Rs 1000 notes from today
midnight. Although it has welcomed the move as an instrument to fight
corruption and black money, the party raised serious apprehensions over it’s
fallout.
Congress spokesperson Randeep Surjewala questioned the timing of the
decision taken by government, stating that it is the agrarian peak period and
farmers would be left without cash in the market.

24.
– Congress spokesperson Randeep Surjewala questioned the timing
of the decision taken by government, stating that it is the agrarian
peak period and farmers would be left without cash in the market.
– The paddy crop has already been cut, it’s in the market. And wheat
crop and rabi crop currently being sown. Farmer is buying fertiliser,
seeds and going to market today and needs lot of money for the
inputs he has to get. What happens to those who are going to buy
necessary articles for marriages including jewellery, clothes etc?”
Surjewala said. “Are you not putting cumbersome burden on them
by putting a limit on how much money can be withdrawn?” he
further added.

25.
Forms of Resistance
• Strikes
• Boycott
• Lockouts because of fear.
– “While Modi ji withdraws Rs 1000 note on one side, he introduces Rs
2000 note on the other side? Does it not defeat his own argument? Is
the banking system in our country ready to tackle such situation,
Government has to answer many questions,” Surjewala added.
– RAHUL GANDHI-The Congress vice-president is deeply agitated. He
thinks that Prime Minister Narendra Modi has not acted in national
interest. It's not a crackdown against corruption, black money, benami
property or terror financing chain, but it is a move by a whimsical
Prime Minister who is bent on harassing ordinary citizens of his
country.

26.
The Congress vice-president is deeply agitated. He
thinks that Prime Minister Narendra Modi has not
acted in national interest

27.
Consequence of resistance
• Production stoppages
• Paying labour for no job done.
– But it seems that Modi did have an ace up his sleeve. It would be naïve to assume
that his decision was random, and that it had been reached at without giving proper
attention to detail. In his monthly radio programme Mann Ki Baat, Modi
had categorically forewarned the hoarders of black money to come clean and
declare their assets under the 'voluntary disclosure' scheme. “This is the last chance
for you,” he had warned in clear terms.
– Though his warning did yield some positive results, the initiative fell far short of the
finance ministry's expectations. A large section of those involved in corruption and
dealing with cash money chose to ignore the government’s scheme, in the fond
belief that the government would hesitate in taking a drastic measure, as it
could adversely affect the economy.

28.
Suggestion
• Education and communication
• Participation and involvement
• Facilitation and support
– Negotiation and agreement In 1969, when Gandhi had abolished the privy purse
and nationalised the banks, the move had found unparalleled social resonance
amongst the people; as it had challenged the status-quo and radically altered the
hierarchy of the elite.
– In Modi’s case, the decision to invalidate the Rs 500 and Rs 1000 currency notes is
perceived as an operation carried out in total secrecy to upstage the hoarders of
black money. The fact that Modi’s move was a closely guarded secret enhances the
credibility of the move. This is the precise reason why the Congress spokesperson's
attempt to find fault with Modi’s decision appeared to be in vain.

29.
Few examples of changes & responses Changes and
their effects in Indian organizations
• Political unrest by allies and opposition for diesel prices hike and regulation
on LPG cylinder distribution.
• FDI in single and multi-brand retail created country wide protest last year,
even its going now.
• Cancellation of Niyamgiri Bauxite mining project for the safeguard of local
tribal people.
• TATA Motors shifted their NANO factory to Sanand, Gujarat on the face of
resistance by local farmers from Singur, WB, in 2008.
• Bank employees went on strike for two days in the month of August ’12 to
protest higher management decisions.