Organisation cultures Change management MST 326 lecture 10

Organisation cultures Change management MST 326 lecture 10 8 March 2007 MATS 326/culture. ppt

Fons Trompenaars: “Riding the waves of culture understanding cultural diversity in business” • “International managers have it tough. They must operate on a number of different premises at any one time. • These premises arise from #their culture of origin #the culture in which they are working, and #the culture of the organisation which employs them” 8 March 2007 MATS 326/culture. ppt

The meaning of culture • A fish only discovers its need for water when it is no longer in it • Our own culture is like water to a fish #it sustains us #we live and breathe through it • What one culture may regard as essential, may not be so vital to other cultures #e. g. material wealth 8 March 2007 MATS 326/culture. ppt

Culture is the context in which things happen • “If you are going to do business with the French, you will first have to learn how to lunch extensively” [FT]. • Gross generalisation? : #Southern (catholic) Europe • people first, business second #Northern (protestant) Europe • business first, people second 8 March 2007 MATS 326/culture. ppt

Basic cultural differences • relationships with people • attitudes to time #a direct line to the future #a respect for past, present and future • attitudes to the environment #nature as a thing to be feared or emulated 8 March 2007 MATS 326/culture. ppt

Relationships with people • Universalism vs particularism #greater good or unique circumstances • Individualism vs collectivism #the individual vs the group • Neutral vs emotional #expression of feelings • Specific vs diffuse #direct approach or deep understanding • Achievement vs ascription #how status is accorded 8 March 2007 MATS 326/culture. ppt

Layers of culture • The outer layer #artefacts and products (explicit) #language, food, buildings, markets, fashion • The middle layer #norms - right or wrong behaviour #values - good or bad aspirations/desires • The inner layer #basic assumptions (implicit) #survival within the culture 8 March 2007 MATS 326/culture. ppt

Culture as a normal distribution • Not all people in a culture have identical sets of artefacts, norms, values and assumptions • . . but there is usually a pattern spread around some average value • BEWARE of stereotyping #individual personality mediates the culture 8 March 2007 MATS 326/culture. ppt

Hard work? hard work is essential to a prosperous society OR do not work harder than other members of the group because then we would all be expected to do more and would end up worse off. 8 March 2007 MATS 326/culture. ppt

Cultural phenomena • • • Authority Bureaucracy Creativity Good fellowship Verification Accountability #all experienced in different ways! 8 March 2007 MATS 326/culture. ppt

Performance • Pay for individual performance #NL, UK, USA • Recognition of benefits to colleagues #France, Germany, Asia 8 March 2007 MATS 326/culture. ppt

Globalisation • When in Rome. . . ? • Some products seem to transcend cultures • consider dining at Mc. Donalds #fast food for a fast buck in New York #a show of status in Moscow or Beijing 8 March 2007 MATS 326/culture. ppt

Verbal communication • Anglo-Saxon #when A stops, B starts • Latin #interruptions imply interest • Oriental #space to reflect on what the other said 8 March 2007 MATS 326/culture. ppt

Verbal communication • Anglo-Saxon #some rising and falling of tone • Latin #exaggerated changes in tone • Oriental #self-controlled monotone #lower flatter voice implies higher position 8 March 2007 MATS 326/culture. ppt

Non-verbal communication • • eye contact body language personal space touching 8 March 2007 MATS 326/culture. ppt

Corporate cultures • Family person/hierarchy #power-oriented culture • Eiffel tower task/hierarchy #role-oriented culture • Guided missile task/egalitarian #project-oriented • Incubator person/egalitarian #fulfilment-oriented 8 March 2007 MATS 326/culture. ppt

Sustainable Leadership Grid comparing Rhineland Anglo/US models Rhineland Anglo/US top team speaker decision maker, hero Decision making consensual manager-centred Ethical behaviour an explicit value ambivalent Financial markets challenge them follow them Innovation strong a challenge Knowledge management shared a challenge yes no grow their own import managers Organisational culture strong a challenge People priority strong lip-service high is a given difficult to deliver Retaining staff strong weak Skilled workforce strong challenged Social responsibility strong underdeveloped Environmental responsibility strong underdeveloped broad focus shareholders self-governing manager-centred Grid Elements CEO concept Long-term perspective Management development Quality Stakeholders Teams Uncertainty and change 8 March 2007 Union-management relations considered process MATS 326/culture. ppt co-operation fast adjustment conflict

Change management 8 March 2007 MATS 326/culture. ppt

Hierarchy of change intensity Reactive Adaptation Re-creation Anticipatory Tuning Re-orientation Incremental Discontinuous 8 March 2007 MATS 326/culture. ppt

Attention from senior management Intensity hierarchy Adaptation Re-creation Tuning Re-orientation Organisational complexity 8 March 2007 MATS 326/culture. ppt

Kotter’s eight stages • • establish a sense of urgency create a guiding coalition develop a vision and strategy communicate the change vision empower employees generate short term wins consolidate gains for more change anchor new approaches 8 March 2007 MATS 326/culture. ppt

Kotter’s eight errors • • too much complacency under-powered coalition under-estimating power of vision seriously under-communicating vision permitting obstacles to block change failing to generate short term wins declaring victory too soon not anchoring changes in the culture 8 March 2007 MATS 326/culture. ppt

Kotter’s five consequences arising from the eight errors • • • new strategies not implemented well gains do not achieve expected synergies long time-scales and high costs down-sizing does not control costs anticipated results not realised 8 March 2007 MATS 326/culture. ppt

How do you manage change? http: //cmckc. meridianksi. com/kc/cmc_portal/manage 2. asp In the words of Fred Nickols, "The honest answer is that you manage it pretty much the same way you'd manage anything else of a turbulent, messy, chaotic nature…" • The first thing you do is jump in. You can't do anything about it from the outside. • A clear sense of mission or purpose is essential. • Build a team. "Lone wolves" have their uses, but managing change isn't one of them. On the other hand, the right kind of lone wolf makes an excellent temporary team leader. • Maintain a flat organizational team structure and rely on minimal and informal reporting requirements. • Pick people with relevant skills and high energy levels. You'll need both. • Toss out the rule book. Change, by definition, calls for a configured response, not adherence to prefigured routines. • Shift to an action-feedback model. Plan and act in short intervals. Do your analysis on the fly. No lengthy up-front studies. Remember the hare and the tortoise. • Set flexible priorities. You must have the ability to drop what you're doing and tend to something more important. 8 March 2007 MATS 326/culture. ppt

http: //www. change-management. net/ 8 March 2007 MATS 326/culture. ppt

Some URLs for • • Change Management http: //www. janus. org/ http: //home. att. net/~nickols/change. htm http: //www. change-management. net/ http: //www. change-management. org/ • http: //home. snafu. de/h. nauheimer/index. htm • http: //www. managementfirst. com/articles_print/communications_print. htm • http: //www. managementfirst. com/articles/resistance. htm • http: //www. outsights. com/systems/columbo. htm 8 March 2007 MATS 326/culture. ppt