TOPIC SEVEN
ORGANIZATIONAL CULTURE AND STRATEGIC MANAGGEMENT
Definition
Organizational culture is the collection of values, expectations, and practices that guide and inform the actions of all team members.
Components of organizational culture
1. Vision and Values
The backbone of an organization‘s culture is the organization‘s vision and purpose and how these things will help it survive and compete in the market. Values describe the employee behaviors and mindset required to achieve the company vision. Together, the vision and values serve as guidelines for how employees are expected to lead, behave, and communicate
2. Practices and People
Perhaps the most important component of organizational culture is the people—the ―culture carriers.‖ Customers, prospective hires, and other stakeholders will understand the company culture from their interactions with
and observations of employees.
3. Narrative
Every organization has a unique story that undeniably shapes its culture. When elements of the company‘s narrative are shared and retold over time, they become a significant part of the culture. Examples of narrative/storytelling activities that help shape organizational culture include: Celebrations that remind employees of important company milestones and successes Rituals and routines, such as annual meetings, that recognize newly promoted employees, or a program that brings a special guest to speak to employees at the same time each year
4. Environment/Place
The environment in which people do their work, collaborate, and make decisions is a critical component of organizational culture. For example, geographic regions tend to attract different kinds of companies and employees.
Roles of organizational culture
Creating the brand image of the organization. Organizational culture goes a long way in creating the brand image of the organization. The work culture gives an identity to the organization. In other words, an organization is known for its culture.
The organization culture helps build an emotional attachment to the enterprise. The culture cultivates a sense of belonging and commitment towards the corporation and develops a sense of unity in the workplace. Promotes employee performance, productivity and engagement. Businesses with an organizational culture tend to be more successful than less structured companies because they have systems in place that promote employee performance, productivity and engagement. Organizational change Organizational change refers to the actions in which a company or business alters a major component of its organization, such as its culture, the underlying
technologies or infrastructure it uses to operate, or its internal processes
Types of organizational change
1. Strategic transformational change
Updating the mission as the organization grows when companies first launch, the initial focus is often on lead generation and getting clients through the door. However, once the company has an established customer base, the focus could shift to upselling, for example. When the main mission changes, the company mission needs to evolve as well.
2. People-centric organizational change
Examples of people-centric change New hires Bringing on new team members requires on boarding and training, which can affect both the new hires and the established employees.
3. Structural change
Structural changes involve major shifts in the management hierarchy, team organization, and the responsibilities attributed to different departments, employees, or teams. These changes often overlap with people-centric changes as they directly affect most, if not all, employees.
Examples of structural change
Mergers and acquisitions
Mergers and acquisitions are the most common cause of structural change.
Eliminating role redundancies, redefining goals, clearly defining new roles and responsibilities, and training on technology are all important parts of managing change during mergers and acquisitions.
4. Remedial change
Remedial changes are reactionary. This type of change occurs when a problem is identified, and a solution needs to be implemented. As these changes are designed to address an issue; they call for immediate action. Reactionary change may not be ideal, but it‘s inevitable. The benefit of remedial change is that judging its success is quick and simple. Was the problem solved or not?
Examples of remedial change Dealing with a loss of talent When someone in a key position at the company decides to leave, you must
adapt quickly
