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1. Unit No : 9 ORGANIZATION CULTURE, DESIGN, STRUCTURE AND CHANGE 21VBCOC402 Organization Behaviour and HRM

2. Week 13 Organization Culture, Design, Structure and Change Quadrant 1 EContent 2. Watch the eLearning content on “L9: Organization Culture, Design, Structure and Change” 3.Read the eLM on “Unit 9: Organization Culture, Design, Structure and Change” Quadrant 2 ETutorial 1. Revise “L8: Group Dynamics” recording of the live Session 5. Attend the live session # 13 on “Organization Culture, Design, Structure and Change” Quadrant 3 eAssessment 4. Take the formative assessment for “L9: Organization Culture, Design, Structure and Change” 6. After the live session, repeat the formative assessment for “L9: Organization Culture, Design, Structure and Change” for self-assessment 7. Attempt to read information on for Practice on #8 on “Organization Culture, Design, Structure and Change” 9. Attempt Continuous Internal Assessment 2 Quadrant 4 Discussions 8. Participate in collaborative learning by discussing the corporate practices of Organization Culture, Design, Structure and Change #9

3. Learning Objectives In this Unit you will learn to: Concept of Organization Culture, Characteristics of Culture, Importance of promoting organization culture, Meaning of Change, Need for Change, Process of Change, types of change, Strategies to Overcome Resistance, Definition of OD, OD interventions.

4. What is Organizational Culture? Organizational culture is a system of shared assumptions, values, and beliefs, which govern how people behave in organizations. Organizational culture includes an organization’s expectations, experiences, philosophy, and values that hold it together and is expressed in its self-image, inner workings, interactions with the outside world, and future expectations.

5. Organizational Culture Organizational culture/corporate culture includes- The ways the organization conducts its business, treats its employees, customers, and the wider community, The extent to which freedom is allowed in decision making, developing new ideas, and personal expression, How power and information flow through its hierarchy, and How committed employees are towards collective objectives.

6. Organizational Culture Organizational culture affects the organization’s productivity and performance and provides guidelines on customer care and service, product quality and safety, attendance and punctuality, and concern for the environment.

7. Characteristics of Organizational Culture Innovation (Risk Orientation) Companies with cultures that place a high value on innovation encourage their employees to take risks and innovate in the performance of their jobs. Companies with cultures that place a low value on innovation expect their employees to do their jobs the same way they have been trained, without looking for ways to improve their performance.

8. Characteristics of Organizational Culture Attention to Detail (Precision Orientation) This characteristic of organizational culture dictates the degree to which employees are expected to be accurate in their work. A culture that places a high value on attention to detail expects its employees to perform their work with precision, and a culture that places a low value on this characteristic does not.

9. Characteristics of Organizational Culture Emphasis on Outcome (Achievement Orientation) Companies that focus on results but not on how the results are achieved emphasize this value of organizational culture. A company that instructs its sales force to do whatever it takes to get sales orders has a culture that places a high value on the emphasis on outcome characteristics.

10. Characteristics of Organizational Culture Emphasis on People (Fairness Orientation) Companies that place a high value on this characteristic of organizational culture place great importance on how their decisions will affect the people in their organizations. For these companies, it is important to treat their employees with respect and dignity.’

11. Characteristics of Organizational Culture Teamwork (Collaboration Orientation) Companies that organize work activities around teams instead of individuals place a high value on this characteristic of the organizational culture. People who work for these types of companies tend to have a positive relationship with their coworkers and managers.

12. Characteristics of Organizational Culture Aggressiveness (Competitive Orientation) This characteristic of organizational culture dictates whether group members are expected to be assertive or easy going when dealing with companies they compete with within the marketplace. Companies with an aggressive culture place a high value on competitiveness and outperform the competition at all costs.

13. Characteristics of Organizational Culture Stability (Rule Orientation) A company whose culture places a high value on stability is rule-oriented, predictable, and bureaucratic in nature. These types of companies typically provide consistent and predictable levels of output and operate best in non-changing market conditions. Above are the seven characteristics that are common in the context of organizational culture.

14. IMPORTANCE OF ORGANIZATIONAL CULTURE The culture decides the way employees interact at their workplace . A healthy culture encourages the employees to stay motivated and loyal towards the management. The culture of the workplace also goes a long way in promoting healthy competition at the workplace . Employees try their level best to perform better than their fellow workers and earn recognition and appreciation of the superiors. It is the culture of the workplace which actually motivates the employees to perform.

15. IMPORTANCE OF ORGANIZATIONAL CULTURE Every organization must have set guidelines for the employees to work accordingly.  The culture of an organization represents certain predefined policies which guide the employees and give them a sense of direction at the workplace . Every individual is clear about his roles and responsibilities in the organization and know how to accomplish the tasks ahead of the deadlines. No two organizations can have the same work culture. It is the culture of an organization which makes it distinct from others.  The work culture goes a long way in creating the brand image of the organization . The work culture gives an identity to the organization.

16. IMPORTANCE OF ORGANIZATIONAL CULTURE The organization culture brings all the employees on a common platform . The employees must be treated equally and no one should feel neglected or left out at the workplace. It is essential for the employees to adjust well in the organization culture for them to deliver their level best. The work culture promotes healthy relationship amongst the employees . No one treats work as a burden and moulds himself according to the culture.

17. IMPORTANCE OF ORGANIZATIONAL CULTURE The work culture unites the employees who are otherwise from different back grounds , families and have varied attitudes and mentalities. The culture gives the employees a sense of unity at the workplace. Certain organizations follow a culture where all the employees irrespective of their designations have to step into the office on time. Such a culture encourages the employees to be punctual which eventually benefits them in the long run. It is the culture of the organization which makes the individuals a successful professional. Every employee is clear with his roles and responsibilities and strives hard to accomplish the tasks within the desired time frame as per the set guidelines. Implementation of policies is never a problem in organizations where people follow a set culture. The new employees also try their level best to understand the work culture and make the organization a better place to work

18. IMPORTANCE OF ORGANIZATIONAL CULTURE It is the culture of the organization which extracts the best out of each team member . In a culture where management is very particular about the reporting system, the employees however busy they are would send their reports by end of the day. No one has to force anyone to work. The culture develops a habit in the individuals which makes them successful at the workplace.

19. What is Organisational Change? Organisational Change is when an organizational system is disturbed by some internal or external force, change frequently occurs. Change as a process, is simply a modification of the structure or process of a system. It may be good or bad, the concept is descriptive only.

20. Need for Change in Organizations Changes are needed because they bring hope for the betterment and growth of the organisation. Changes are natural, permanent and on-going processes that pressurise organisations, education systems and governments to initiate modification, replacement or alteration in the old methods over time. Changes in an organisation are required to empower the workforce so that it can explore new avenues and opportunities, upgrade skills and enhance creativity.

21. Need for Change in Organizations Changes in the strategies or systems are needed when the performance or overall result is unsatisfactory. If an organisation does not perform well, there will be no profits, delay in the payments of salaries and bills, collapse from the market position, etc. Therefore, an organisation needs to update its methods, if old methods are not giving satisfactory results. Changes in an organisation are required because of the changes in the internal and external environment. The internal factors could be from the employees, trade unions and management. The external factors could be from customers, government, competitors, society and economy.

22. Need for Change in Organizations Changes are needed when an organisation decides to do merger and acquisition. In merger and acquisition, the organisation has to change its existing organisational structure, hierarchy, policies, system, methods, etc., because in the process of merger and acquisition, two organisations combine into one. These changes can have a positive or negative impact on the employees of the organisation.

23. Need for Change in Organizations Changes in an organisation take place due to the advent of new technologies that help in making the organisation more advance, efficient and competitive. Changes within an organisation help employees to learn new things, target new customers for selling products, increase creativity, etc.

24. Process of Organisational Change Many change management models help in providing the processes that are needed for supporting the changes in the organisation. Kurt Lewin, a physicist and social psychologist, has identified three stages of organisational change. These are the main steps in process of organisational change. Unfreezing Changing Refreezing

25. Unfreezing It is the method of identifying the old behaviour that needed to be altered with the new one. This involves breaking down the existing status quo before the organisation can build up a new way of operating. It is the stage that involves bringing an awareness of the present state and the problems associated with the present conditions that are hampering the organisation in certain ways. The problems could be old processes, behaviour and thinking processes which need to be altered along with the change in the organisational structure and educating the employees on the changes required. Changes are necessary to keep up with the trends and for gaining a competitive edge in the economy. It is important to communicate with the workforce and make them aware of the changes that would benefit them in the long run.

26. Changing It is the process of implementing the changes for moving to the new stage and involves the process of transition. The changes get implemented and the new process is being followed by the workforce. The people start accepting the new transition and learn to adapt to the new stage. The changes can be large or small and are dependent on the size of the company. The stage is followed by the realisation of uncertainty and insecurity among the people. It is not an easy phase and takes time to get prepared for this phase. It is a slow process and people learn to accept the new behaviour and the processes. Therefore, it is essential to communicate with employees about the change process and the benefits of implementing change. The process of change should be well planned and executed carefully.

27. Refreezing The last stage of the change model is refreezing. Refreezing is stabilising or fixing the changes made as a normal way of doing things. The people learn to accept and follow the changes made to organisational structure, systems and processes and the new objectives of the enterprise with the new norms. This is the most important step for the organisation that ensures that the impact of the change is not lost and the people do not find reasons for going back to their old methods for executing the changes. Efforts are needed for the people to understand the positive effects of the change so that the new processes get firmly integrated into the system and the culture of the organisation.

28. Types of Organisational Change Changes in an organisation create a considerable impact on the organisation, its operations and the people. There are different areas within the domain of an organisation where changes can be brought about for enhancing the working of the organisation.

29. Different types of Change Individual change Group level change Organizational level change Structural change Process-oriented change People-oriented change Strategic change

30. Types of Change Individual Level Change This change takes place on an individual level due to modification in the job assignment of the individual, transfer of the individual to a different location, or retirement of an individual that happens over some time. Some organisations think that changes at the individual level will normally not have any important implications on the working of the organisation. However, this opinion is incorrect because any important change at the individual level will impact the working of the organisation and other people working in the organisation. The management of the organisation wanting to implement changes at the individual level by transferring employees must understand that the change will influence the working of the system. For example, the promotion or transfer of an employee is an individual-level change.

31. Types of Change Group Level Change Organisational changes have an impact on working at the group level. Normally, the activities and tasks in an organisation are organised within groups. The tasks could be assigned to a team of people, units, or departments, or could be some form of informal working group. Any changes at the group level can impact the flow of work, and job design, influence various social groups, affect the communication systems, and other systems of the organisation. Before implementing any changes, the management should keep in mind the factors that can have repercussions on the different levels of the organisation. For example, the reorganisation of different departments or the establishment of temporary project teams on the basis of changing needs is group-level change.

32. Types of Change Organisational Level Change Changes at the organisational level N or restructuring have an impact on the procedures and workings of the system. These involve significant plans and programmes that affect both individuals and groups. These strategic decisions within the organisations are normally made by senior management and are rarely implemented by a single individual. The decisions are for a long duration of time and they need a considerable amount of planning and direction from the managers for implementing changes. This could be in terms of changing the organisational structure, revamping the financial systems, changing the responsibilities and duties of the people or changing the objectives of the organisation. These changes could be due to newer technologies, knowledge or changes in the global environment which eventually help in organisational development. For example, a merger or takeover is an organisational level change.

33. Types of Change Structural Change Organisational change makes it necessary to redesign the organisational system and structure of the company since these structural changes bring in changes in the authority and responsibilities of the people and the management. Due to influences from the external environment, the organisation needs to change its administrative procedures, systems of management, hierarchy, authority, goals and other structural characteristics in regard to the operations of the organisation.

34. Types of Change Process-oriented Change These changes relate to automation, technological innovations, and information processing in the industrial world. It is becoming very important for organisations to upgrade their technology and their processes to achieve optimum workflow for productivity. The process-oriented change could be new technological knowledge that is connected to replacing heavy equipment and machines. Process-oriented change is necessary to keep pace with competitors and to periodically replace existing machines and equipment with newer models. For example, when a supermarket that used to have a manual checkout pro- cess starts using laser-scanning checkouts, it is a process-oriented change

35. Types of Change People-oriented Change People-oriented changes are in terms of changes in employee skills, attitudes, behaviour, and knowledge which help in improving the performance of the employees. It requires the organisations to be consistent with the employee’s related policies and the mission of the organisation. These changes bring in a level of self-actualisation amongst the people and are directed towards group cohesion, communication, motivation, loyalty and performance within the groups. The changes can be brought by closer interaction with employees and by the process of training and other modification sessions. The focus of this training can help in problem-solving, employees learning new skills and the changing perception of the people in regards to their jobs and the organisation. For example, introducing training programmes directed at the attitude and behavioural changes in employees are people-oriented changes.

36. Types of Change Strategic Change Changing competition level in the business makes it necessary for organisations to relook at their plans, systems, resources and strategies for achieving their objectives. It would also mean that the organisation needs to change its vision and the mission statement as per the demands of the external environment and competitors’ moves. A change in strategy would be to change their approach towards conducting their business, consumer satisfaction and other strategic changes within the operations of the company. They would need to look into their external partnerships, global activities and joint business ventures that are important for the growth and profitability of the organisation. For example, when a product-centric organisation shifts its focus to being a product-cum-service organisation, it is a strategic change. Or, if an organisation introduces a new product line, it is also a strategic change.

37. Strategies to Overcome Resistance According to  Kotter and Schlesinger (1979)  proposed six crucial techniques for overcoming the resistance to change. These are given below: Widespread Education and Improving Communication Facilitating Participation and involvement Support and Facilitation Agreement & Negotiation Co-optation & Manipulation Coercion-Both Explicit and Implicit

38. Strategies to Overcome Resistance Education and Effective Communication:  This is one of the commonest techniques for minimizing resistance to change by educating people and promoting awareness through effective communication regarding the benefits of a planned change. By explaining the need for change and the objectives of change, the management can gain the much-needed support from the team members and facilitate its smoother implementation. With the help of two-way communication, the employee’s queries and oppositions related to various aspects of change can be quickly addressed and thereby, minimize the objections or hassles which may come across in the path of implementation of change

39. Strategies to Overcome Resistance Facilitating Participation and Involvement:  This technique gives a lot of importance to involving the resistors in the change process by setting up a collaborative environment and implementing the change in consultation with the staff. It is a constructive strategy and can be beneficial in minimizing the resistance to change by involving the employees and seeking their participation in the entire process.

40. Strategies to Overcome Resistance Support and Facilitation:  Employees fear or resist change due to a number of reasons as a result of which they pose a resistance or oppose any kind of transformation in the existing ways of work or methods. The employees look for complete emotional support and facilitation for being able to cope up with the challenges resulting from the change and should be allowed to express their fear, resentment or anger in connection with the change and the challenges of change.

41. Strategies to Overcome Resistance Agreement & Negotiation:  This technique involves negotiating or bargaining with the resistors on various aspects related to the change and making trade offs so that the concerns of the resistors and the management are both being given due consideration and importance.

42. Strategies to Overcome Resistance Co-optation & Manipulation:  This technique involves getting the support, persuading or influencing the employees in favour of the change. Manipulation involves covert attempts from the managers by withholding painful information, twisting or distortion of the information for making it more appealing for the staff members or spreading false rumours across the organization in order to compel the employees to accept the change manipulatively. Alternately, the managers can depend on staff polling strategy and make an attempt towards persuading the resistors to join the rest of the group. The management may even co-opt an individual and assign certain important responsibilities in connection with the implementation of change.

43. Strategies to Overcome Resistance Coercion:  Implicit and Explicit: Coercion involves exercising force or threat for making the change accepted and followed by the employees. This strategy emphasizes more on the use of fear by way of direct or indirect threats and involves harassment, bullying or compels the employees to act in accordance with the expected ways or else resign. This strategy is illegal, ineffective and in the long-run, will result in mass resentment, dissatisfaction, high rate of absenteeism, low productivity and ultimately high employee turnover.

44. What is OD Interventions? OD interventions  are the building blocks which are the planned activities designed to improve the organisation’s functioning through the participation of the organisational members. OD interventions include team development, laboratory training, managerial grid training, brainstorming and intergroup team building. The intervention should take place at all three levels, namely, individual, group and organisation.

45. OD Interventions Examples Microsoft relied on OD interventions aimed at behavioural changes and operational changes. Cisco  initiated change through substantial structural interventions, statistical evaluation interventions and process interventions. It also focuses on CSR initiatives. Dell focused on six sigma as an OD intervention for zero defects. Hyundai and Toyota  focus on cultural interventions and quality management systems.

46. OD Interventions Examples Wipro adopted for internal organizational restructuring to meet customer specific needs. ONGC relies on succession planning, employee participation, training, organizational remodelling and climate surveys as OD interventions. Infosys has a broad base of OD interventions like Leadership development programme, personal development initiatives, cross functional assignments, 360-degree feedback , psychometric testing (MBTI) for individual personality assessment

47. Types of OD Interventions The OD interventions are also lengthy and complex. Cummings and Worley (2009) contend that it is impossible to know the precise number of different types of interventions. But broadly speaking, there are four types of OD interventions: Human Resource Management Interventions Strategic change interventions Human process interventions Techno-structural interventions

48. Human Resource Management Interventions Even though an HR department and organizational development are not the same things, they do coordinate. Within a business, difficulties with “talent development,” performance management, child care, and even diversity may be identified that demand the HR department to create an intervention strategy. Today, diversity is a prominent cultural and business issue. Gender, sexual preference, age, race, disability, and even culture are factors that enter the business world and affect an organization’s capabilities to implement its objectives.

49. Human Resource Management Interventions Employee wellness is another area of intervention. For employees and other organization members, this involves boosting active lifestyles and stress management, among other health-related issues. There are three ways to look at all of these interventions. They can bring about transformational change, which implies the organization is “rewired” completely. They can also take the form of ongoing change, whereby policies and culture are used to progressively reform and adapt the company.  Trans organizational change is the final lens through which adjustments take place through networking, mergers, and acquisitions.

50. Strategic change interventions Through mergers, restructurings, and transformational changes, strategic change interventions combine two or more organizations.

51. Human process interventions These interventions focus on the dynamics of group performance and interpersonal relationships. They can be implemented to modify how an individual, such as a manager, communicates with staff members or even how staff members communicate with one another. They can be used to eliminate unproductive habits, develop productive actions, and boost general self-esteem. Group interventions analyse how groups are created and how they function to achieve their desired goals. The use of team-building strategies to change group dynamics or a diagnosis and management of intergroup communication are examples of OD interventions.  Large groups, such as one consisting of management, employees, and stakeholders, could also be the focus of these interventions.

52. Human process interventions In some cases, it may be necessary to consult a third party. This may be due to the development of an “observer bias.” That simply refers to the willingness of the majority of individuals to perceive what they expect to experience. Consultants offer both a new perspective and a new methodology to the situation.  Conflict resolution is another argument for hiring a consultant. Conflict frequently promotes conversation and results in solutions. Thus, it is often a good thing.  However, it can also lead to shutdowns where no progress is achieved. The topic can be justified by consultants who have no personal interest in the discussion

53. Techno-structural interventions These interventions were developed in response to the organization systems’ successful implementation of innovations. To do that, it is necessary to assess which technologies should be used as well as to ensure that staff members are qualified to use them.  The interventions also deal with issues with organizational structure. Particularly if the organizational structure and function are effective because it allows the organization to adapt to change. For example, the central authority model is one that certain design organizations use

54. Techno-structural interventions This assumes that all administrative decisions are made autonomously by a single individual or small group. Employees are subject to strict control and have little to no input. Decentralized management is a different mindset that gives everyone, including employees, a say in decision-making. Employees engage with clients and consumers and are interested in the success of the business. Incentives for innovation and improvement are also included in this strategy.

55. Techno-structural interventions This intervention analyses quality management and explores whether organizations change quickly to meet demands or if changes are continuous as part of the corporate culture. To improve the quality of life for employees, it also aims to boost productivity while making the job more exciting and challenging. Several OD interventions target specific organizational resources at various levels. This will depend largely on the issues being addressed, the number of employees forced to engage in the change, and the chosen solution.  However, for an OD intervention strategy to be successful, cooperative management and employees at different levels of the hierarchy should work together.

56. Week 14 Recent Trends In OB and HRM Quadrant 1 EContent 2. Watch the eLearning content on “L10: Recent Trends In OB and HRM” 3.Read the eLM on “Unit 10: Recent Trends In OB and HRM” Quadrant 2 ETutorial 1. Revise “L9: Organization Culture, Design, Structure and Change” recording of the live Session 5. Attend the live session #15 on “Recent Trends In OB and HRM” Quadrant 3 eAssessment 4. Take the formative assessment for “L10: Recent Trends In OB and HRM” 6. After the live session, repeat the formative assessment for “Recent Trends In OB and HRM” for self-assessment 7. Attempt to read information on for Practice on #8 on “Recent Trends In OB and HRM” 9. Attempt Continuous Internal Assessment 2 Quadrant 4 Discussions 8. Participate in collaborative learning by discussing the corporate practices of Recent Trends In OB and HRM # 10