New Perspective in Organisation Management - Essay Example

?New Perspective in Organisation Management Table of Contents Table of Contents 2 Outline and analysis of the theoretical focus- Critical analysis oftheories 3 Case Study- Critical Evaluation of theories, concepts and perspectives 9 Critical Reflection of ideas about management and organisation, or the world beyond, and their influence 14 Reference 17 Outline and analysis of the theoretical focus- Critical analysis of theories The main subject of this study is organizational culture and its resistance to change. It speaks of the different ways organizations adopt for working. In this respect the various theories and models pertaining to the study would be explained with special focus on the views, opinions and arguments presented by different authors. The concept of organizational culture has been increasingly realized in organizations. According to the words of Hofstede (1997), is referred to as the collective programming of the mind distinguishing the members of an organization from another. However, a distinction needs to be made with regards to national cultures and organizational cultures. The main components of organizational cultures are symbols, rituals, heroes, etc which are extremely visible. Employees learn about their organisational culture at their place of work itself (Black, 2003, p.16). Writers have disagreed to the ways in which organizational cultures can be changed. There are primarily two schools of thought based on the concepts of organizational culture. One of them is based on shared values while the other is based on working practices. According to Waterman and Peters, shared values form the basic component of organizational cultures. However, Hofstede has suggested that shared perceptions of the daily practices and not the shared values form the basic components or the core of organizational culture. Incorporating changes in the shared value is considered to be more difficult as compared to changes in working practices as people remain more deeply rooted with the values rather than the practices (Black, 2003, p.16). Business management consultants and organizational socialists have increasingly stressed upon the role of soft skills in organizations. This has been the case as organizational culture is the label for the shared mental software shared by the people in the organization. Organizational culture can be deviated from the conventional national culture for creating a competitive advantage of the firm. This is supposed to be especially true when organizational culture reinforces the company strategies. Studies conducted at IRIC has revealed that there is a significant correlation between the cultural strength i.e. the homogeneity of the culture and the orientation of results in the organization (Black, 2003, p.16). The best organizations are those which have their cultures as customer driven and also performance oriented. One of the organizations with strong organizational cultures is Disneyland. The strong culture of the organizations is depicted through all its activities like the actions of employees, running of parks and the consistency and positivity with which visitors were treated in the organization (Schermerhorn, 2009). Because this study focuses on the constructs of organizational culture it is important to make reference to the iceberg model which makes a strong depiction of the organizational culture. Literature has repeatedly focused on the terms organizational climate and organizational culture. Researchers have often made the two terms interchangeable. Martin (2002) has written a book on organizational culture providing a comprehensive review of the literature on organizational culture and interesting perspective on the various issues which are related with the subject (McLean, 2005, p.3). Looking at Schein’s iceberg model, this includes all the elements of the iceberg which are under the level of water and all that which are visible. This is demonstrated in the figure below. Figure 1: The iceberg model in organization culture (Source: Schermerhorn, 2009) On the other hand organizational climate refers to the patterns and practices of behaviours which are rooted in the meaning, assumptions and beliefs making up that culture. Martin emphasizes on the three perspectives of organizational culture emerging out of the literature of the relationship between organizational climate and culture. One of these three perspectives is integration, where there is existence of a single culture. The second perspective is differentiation which depicts presence of subcultures in the organization. Ambiguity is the third perspective which depicts the presence of culture at the individual level in the organization (McLean, 2005, p.3). Denison (1996) has put forth a comprehensive explanation of the terms climate and culture used in literature. While Martin has focussed on the concepts of organizational culture as being the beliefs, meanings, values and assumptions through the use of qualitative methods and climate as being the behaviours and practices manifesting the culture. However, Denison has put forth a similarity between the two along the central issues, lines of definition, substance and content and methods and epistemology. The concepts culture and climate are especially relevant in the conditions of incorporating organizational change and the resistances arising out of the same. The iceberg model acts as a useful tool for observing the resistance to such changes. There have been several debates on the subject of organizational culture. The start of the debate happens with the effort to structure the various organizational functions, its people and its behaviours. As illustrated by Stevens (1989), the perspectives of organizational culture has been challenging the systems perspectives and structural issues, for example, the way organizations make decisions or the reason why people behave in the way they do. The problem of finding definite definition of the term organizational culture is derived from the fact the concept of the term organization itself is ambiguous (Haque, n.d.). Moreover culture is one such thing which differs from place to place which has given rise to people giving their own definition for the term as per their own perspectives. However, the difficulty is greatly reduced with the use of the iceberg model. As per this model the formal organizations which are represented by the various visible artefacts like organizational charts, tools, and processes make up a very small proportion of the organization, while the major component of the same is composed of its cultural side which remains under water (as per the iceberg model) and is invisible (Haque, n.d.). The invisible component comprises of the values, customs, stereotypes heuristics, beliefs, taboos etc. According to the observation of Schein, it is desirable to make a distinction of the three basic levels of which culture demonstrates itself as being observable, artifacts, values or the fundamental lying assumptions. The emphasis was on the difficulty in changing the organizational culture. Schein has made a distinction between the ideational and the adaptations views of culture through the conceptualization of the three levels in organizational culture, namely the artefacts, the beliefs and values and the fundamental lying assumptions (Haque, n.d.). Kurt Lewin has presented the change theory using a three step model known as the unfreezing, change, refreeze model which requires that the initial and prior learning must be removed and replaced or rejected. Schein has proposed a model of change called the cognitive redefinition model (Ross, 2004, p.1). Figure 2: Lewin’s change model The power of Lewin’s theory not only lay in its ability to propose a formal theory but also build models of processes bringing attention to the correct variables that were required to be conceptualized and observed. It is the belief that the various forms of learning begin with a certain level of dissatisfaction and frustration generated with the disconfirming of the people’s hopes or expectations. Whether it is about adapting to a new environmental situation which thwarts the satisfaction of a particular need, or whether it is about a genuinely generative and creative learning of disequilibrium is considered to be a pre-determinant. The means through which a motivated learner tends to learn new things while dealing with his thought processes, values, feelings and attitudes is a process of cognitive restructuring. This has been labelled by many as breaking or reframing. It happens by the accumulation of new information along with the ones which a person already has. The primary aspect about refreezing is that the new behaviour which is incorporated must be congruent with the rest of the person’s behaviour and personality. This is because otherwise it would simply set off new disconfirmation leading to the unlearning of such things which person has learnt. The implications of the change programs are obvious and clear. For the refreezing of personal behaviour, it would be best to encourage scanning that would encourage the learner to pick up solutions that is best suitable for him. For the occurrence of relational refreezing, the effects of training the entire group holding the support of the original behaviour is most beneficial. In other words Lewin’s model opens a wide range of new concepts and insights into the change theories which make the change dynamics comprehensible, manageable and more understandable too. Since the fundamental concepts in the model are anchored in the empirical reality it is possible to build further based on this model. Intellectual knowledge in the change process is not considered to be the same as the skills or the knowhow that is required for bringing about the change (Schein, n.d.). Case Study- Critical Evaluation of theories, concepts and perspectives Introduction The understanding of the organizational behaviour for the managers is always an important tool for the managers to learn and work in their workplace. Proper understanding can help the managers to cope with several issues arising at workplace from time to time. Various changes externally namely cultural changes, technological changes, economical and social behavioural changes have great influence on the changes in the organization. Stox stores, UK based food retail chain with its unique managerial practices which is best described as hierarchical, authoritarian and paternalistic approach operates very successfully in the business. But company tried to move towards the HRM approach which need the company implement a new strategy in its management style for a better understanding of the organization. Due to highly centralised approach of the management huge corporate restructuring of Stox Stores needed to change the staff responsibilities and shed number of employees at all levels to meet the cultural changes in the market improve performance. These changes in the management arises several issues amongst the employees which can be controlled by the management through progressive shift from the previous state to the new through various processes. In this respect Lewin’s 3 stage model is an important implication by the organization for a smooth transition process. The core cultural changes and the resistance amongst an individual are mainly due to the changes in the management style which is explained through the Ice berg model which describes the changes at tangible level and also the underlying values of the individuals. Influence of external environment on organizational behaviour In the case the changes in the operation of Stox Stores is mainly due to the changes in the technological development of the external environment and the sociological changes in the external world from time to time. The use of technology helped the competitors of the company to produce goods at lower cost and provide better services. New products were developed with much less time and thus increase the demand of the product in the market. This forced the company to implement new strategies and meet the demand of the customers. Consumer behaviour towards the product also needed the changes in the technological use for the company in the food retailing business for Stox Stores. Online presence of the company with home delivery attracts huge number of customers in the modern trend of the world (Bakan et. al, n.d. p.8). Another social factor which influences the organizational behaviour is the changing life style of the people. For more customer centric approach companies are changing their style of operation to meet the demand of the customers. Better service to the clients increases the demand of the products in the market and also increases customer loyalty towards the company. In food retailing the management of the customers in queues is the vital challenge for the organization. This needs proper management and staffing techniques with well trained staffs (Lamp, Hair & McDaniel, 2011, p. 105). Organizational culture and Organizational Development relationship can influence the way change is managed Knowing the system and understanding of the people associated with the processes and then implementing the necessary changes for the growth and better relationship of the firm is the main objective of Organizational development. Organization development practitioners improve the processes of the organization and its effectiveness with the help of their experiences in different disciplines of the organizations (Human Dimension, n.d.). On the other hand, organizational culture is about the personality of the company which influences the operational techniques of the company. The company’s behaviour, its values and assumptions of the different members of the organization have great impact of the practice of the organization in its business. Differentiation of the cultural aspects of the employees is one of the difficult task but every employee have their own belief and behaviour of their own which give rise to the conflict in an organization. Culture can be described as isolated systems of practices which are carried out within the organization (McNamara, 2000). To implement changes in the organization culture it is very important for the firm to understand its relationship with organizational development process. With different cultural background it’s very difficult for the employees to adopt with the changes in the organization and successfully contribute to the process of transformation. Sudden changes in the style of operation like employees with a practice to work in team if suddenly have to work under the hierarchical system as in the case of Stox Stores, the employees don’t feel comfortable with the practice of the organization with immense pressure and responsibility on individual position. New implementation of rules and policies from the new company norms are needed to be evaluated by the top management with the employees for an easy transformational changes in the cultural practice of the firm. Resistance to changes of the employees are the major challenges in the organizational culture changes as unfavourable situation will lead to dissatisfaction amongst the employees and they will not perform according to the desired need of the company (ODN Chicago, n.d.). Effective changes for Stox Store’s using Lewin’s 3 stage model and Ice berg model Stox Stores with its customer centric approach in their business wanted to be the leader in the food retail industry. But this rapid change cannot be accomplished with sudden changes in the practices of the organization. For smooth transition process the company also need to change various other aspects of the organization at the same time and motivate its employees through Business Empowering Staff Terms (BEST) techniques. For a more effective change the Stox Stores should have followed the Lewin’s 3 Stage Model to understand the employees of the organization and prepare them accordingly to implement the new strategies abiding the values of the company instead of drastic changes in the operational process of the company. Applying Kurt Lewin’s model Stox Stores should have first unfreeze the operation. People generally are more likely to work in their comfort zone and feel relatively safe with the known world. Even if the changes may bring benefit, people are resistance to unknown changes in their work. It’s very difficult for the firm to unfreeze the employees with their usual practices i.e. the frozen state to the new practice of the organization. This needs to push the new practice amongst the employees and then pull them to continue the method going. This may take long time for many employees to adopt these changes in their operation. After the unfrozen state that are ready for changes the transition phase comes which helps the employees to understand the several changes which occurred in the new organizational techniques and policies. Stox Stores should have implemented this unfrozen state slowly to unfreeze the existing practicing employees and move them smoothly towards the transition stage instead of drastically changing the practices of the organization with new responsibilities for the employees. The leadership role of the hierarchical head plays a vital role in the transition phase of the organization. The hierarchical structural changes of Stox Stores give more responsibilities for the individuals and the employees under the leader are needed to be trained for the organizational changes which occurred in the company. It is one of the important positions for the company to look after as without proper knowledge of the situation will lead to hazard in critical situation. After the implementation of the necessary changes the company need to refreeze its operation with the new stable exercises of the company. This refreezing activity is facilitated by Stox Stores managers by the reward system for the employee to help the people to adopt the changes with more will to work in the new system. The Lewin’s 3 stage model will help Stox Stores for a smooth transition process but it gave rise to several other underlying issues amongst the employees for the core cultural changes in the organization. Iceberg model describes these issues as the core cultural underlying value of the employees. The sudden changes in the responsibility of the employees from working in team to work individually with greater responsibilities in the stores is not suitable for many employees as they are not well trained for the practices. These sudden changes in the organization structure with hierarchical culture lead to failure for many in the organization. Innovation and risk taking capability is one of the major quality the employees to cope with the changes in the cultural activities of the firm. With new responsibilities the people need to innovate new ways of working practice and adopt with the changes in the practice and understand the ethics and integrity of the organization. At the same time the employees are needed to be socially responsible with their work practices. Customer service being the core value of the organization the employees should be trained to ensure quality services to the customers. The performance levels of the employees are needed to be evaluated by management for effective implementation process of the new practices of Stox Stores. Critical Reflection of ideas about management and organisation, or the world beyond, and their influence The module has made me more aware about the organizations and its management. Most importantly it has made me develop a clear understanding and concept of the culture of organizations and how it is developed and depicted through the behaviour, values, beliefs and traditions of people belonging to the same. Besides developing my comprehension of the subject, the other important learning that has been gained is the various perceptions about organizational cultures and the resistances faced in bringing about change in that culture. This has been particularly effective in making a learning of the iceberg model. The subject of change management has been made clear using the model presented by Kurt Lewin. The course models have helped me understand the perceptions about organizations and management more implicit and clear. My expertise has particularly developed in the fields of change management and strategies, the reasons why change occurs, the reasons for generation of resistance to such changes and the ways of handling and managing that resistance. I have developed greater faith in the applicability of the models at the workplace and their implications. The subject knowledge that I gain through the course would help me to apply them at the workplace in future. Besides gaining in-depth knowledge of the subject my perceptions and views have changed. My attitude at the workplace has undergone change. Today I look at change as a positive step towards betterment of the organization and the employees as well. So far, I had been resistant to any kind of change that my organization tried to implement irrespective of whether the change was for a positive or a negative purpose. However, today I have a better understanding of the pros and cons of the change processes and its implications in the organization too. My overall personality has undergone change through the module. I have evolved as a better and more efficient human resource professional at the workplace. My abilities of managing people at the place of work have improved. I am a better and a faster learner. My personality as a team player and a team leader has improved and I can confidently handle a team of 8 to 10 people in my organization. I have been able to manage work activities within tight schedules which have made me more punctual and enhanced my time management skills. The module has changed my ways in which I used to look at businesses and their managements. As an academic worker also my knowledge and way of working has changed. I the academic field I am able to apply the theories and concepts in the practical field. I can handle my academic projects faster and better using the concepts In have learnt in the modules so far. Firstly I can work efficiently in a multicultural environment which comprises of people belonging to different cultures and backgrounds. Moreover I can also handle resistances to the changes that might arise. I am in a better position to deal with grievance and resistances arising out of change processes in organizations. This would help me become a better manager and team leader. I would successfully lead a team or head a department in an organization. Reference Bakan ET. Al, (No date), The Effect of Technology on Organizational Behaviour and the Nature of Work. [Pdf]. Available at: http://www.iamot.org/conference/index.php/ocs/4/paper/viewFile/644/141 . [Accessed on: 9th August 2011]. Black, R. (2003). Organisational Culture: Creating the Influence Needed for Strategic Success. Universal-Publishers. Haque, M. J. (No Date). Debating organisational culture and change. [Online]. Available at: http://www.thefinancialexpress-bd.com/search_index.php?news_id=19340&page=detail_news. [Accessed on August 09, 2011]. Human Dimension, (No date), Organizational Development (OD) Consulting. [Online]. Available at: http://www.humandimension.org/ODconsulting.html#method. [Accessed on: 9th August 2011]. Lamp, C., Hair, J., McDaniel, C., (2011), Essentials of Marketing. Cengage Learning. McLean, L. D. (2005). 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