Organisational Culture of Business Organisations - Term Paper Example

Management Contents Contents 2 Introduction 3 Organisational Culture and Change Management 3 General Understanding 3 Case of Retail Industry 5 Resistance to Change Initiatives 7 General Understanding 7 Case of Retail Industry 9 Behavioural and Emotional Responses to Change Management 11 General Understanding 11 Case of Retail Industry 12 Conclusion 13 References 14 Introduction Organisations to survive in the dynamic external environment needs to incorporate due changes in its operational framework through the introduction of technological paradigms and also significant changes in the policy directions. The paper in this regard tends to understand the level of change management rendered in business organisations and its impact on the working patterns of the different employees in the concerns. To this end the paper focuses on the changes incorporated in the operational setting of retail organisations through the introduction of different technologies like Electronic-Point-Of-Sales systems along with use of RFID Bar Codes and similarly the expansion of retail markets through use of internet and intranet facilities. The above changes are dealt in with special focus on the impacts of the same on employees and intervention procedures enabled by the business managers. Organisational Culture and Change Management General Understanding Organisational culture is generally held to be a system of beliefs or values reflected by the employees, staffs and managers related to a concern that in turn contributes in distinctively separating it from other concerns in the related or other industries. Seven parameters are studies that contribute to the development of such distinct organisational cultures in different organisations. Firstly the culture sets of an organisation are dominated by the attribute of risk taking or the parameter of creativity and innovation ingrained in the employees. Secondly the behavioural attributes of the people pertaining to study of an event in a precise or detailed fashion also amounts to the development of organisational culture in the concern. Thirdly the cultural parameters of an organisation is also developed depending on the management styles of whether to study the processes to achieve a desired set of outcomes or to be focused on observing the outcome only. Fourthly again the organisational culture also depends on the degree to which the management body of the concern endeavours to understand the effects of the outcome gained on the people or the human resources of the specific concern. Fifthly the development of the organisational culture also earns relation to the degree of patronage rendered in the cultivation of effective teams. Sixthly organisational culture is also ruled by the degree of aggressiveness or passiveness involved in the pursuing of organisational conducts. Finally in the seventh case organisational culture also earns relation to the fact in whether the concern focuses on stability or whether it focuses on gaining significant growth (Roodt, Odendaal and Robbins, 2009, p.424). The introduction and management of organisational change in a specific cultural context is generally dealt into two essential types. The first type relates that change factor within organisations is a spontaneous or continuous process such that the managers needs to focus on planning beforehand to help enable the effective implementation of the process thereby adopted. However the first thought failed to hold good owing to the changing circumstances in the external organisational environment that in turn required the organisation to rightly welcome an emerging technological transition or transformation. New changes in the technological environment of the concern stand as an emergent process in contrast to the pre-planned environment. Adaptation to emerging technological changes helps the organisation to stand the test of times and render effective customer and market driven services. The emergent approach of change management in addition also endeavours to draw potential insights on the impact of such technological adaptation on the social, cultural and policy framework of the business concern (Sofroniou, 2004, p.116). Case of Retail Industry The study of organisational culture with special focus on retail organisations reflect that retail organisations generally thrive with a highly customer driven culture sets as distinguished from other product or manufacturing firms. Retail organisations integrally belong to the services industry for which the first or main focus of such concerns is to contribute to the effective value addition to the services rendered to the consumers in the form of merchandises sold or services rendered. Retail organisations to enhance their relationship to end consumers focus more on the parameter of development of experiences gained in by the consumers through the visits rendered rather than solely depending on augmenting profitability and market shares. Development of experiences with the potential customer profiles owing to their repeated visits contributes in the enhancement of the level of trust or loyalty involved. Enhancement of customer loyalty and trust helps the retail concern to thereby build an effective body of niche consumers that help the concern gain a sustained level of business around the year. Again the cultural parameters of the retail organisations to render effective and value-added services to the consumers need to first focus on the development of the internal people related to the employees and staffs involved. The management body of retail organisations continuously work to develop the knowledge and skill potencies of the internal people by enhancing the communication and training aspects such that they do not face problem in meeting the changing needs of the consumers in an effective fashion. Further the retail organisations operate or train its human resources to work in a detailed fashion. A detailed analysis of the mode of drawing more amounts of consumers to augment its sales and profitability needs to be carried out by both the management and employees in a spontaneous fashion to enable growth. Finally the management body of retail concerns should also work in rightly motivating the employees to perform at an above average level to render the best possible services to its consumers. Thus motivation through financial rewards and recognition is carried out in a frequent fashion in the retail organisations (Ogbonna and Wilkinson, 2003, p.1153-1156). . Change management in retail organisations to be effective focuses on the introduction and emancipation of the technology paradigm. Enhancement of the technology paradigm results in the retail organisations to enhance the mode of delivery of its services to customers located in diverse zones and localities. Development of the technology interface through the introduction of electronic commerce applications both through online and through cellular phones contribute to the growth of the consumer market for retail services and commodities of the retail concerns. Similarly the introduction of new technological developments like use of RFID Tags and scanners have not led the billing process to be made easier but in that has also contributed in rendering due effectiveness in the supply chain process of the concern. These changes in the retail paradigm through the development of intranet and internet facilities coupled with the use of Radio Frequency Identification (RFID) technology has rendered due value-addition in customer servicing functions by effectively being able to reach the right product at the right time thus gaining enhanced consumer satisfaction and loyalty contributing to business growth (Chadwick, Doherty and Hart, 2002, p.3-5; Chappell, et al, 2003, p. 4-6). Resistance to Change Initiatives General Understanding Changes introduced in an existing organisational framework tends to have varying degree of impacts on the functioning, emotional and perceptual or cognitive constructs of the people involved in the business organisation. Resistance is rendered to the changes rendered in the organizational context by the internal people for it tends to transcend them from a known to an unknown framework. Theoretically the act of resistance reflected in by the organisational people is held to be based on a conceptual framework governed by four significant elements related to the Cognitive or Affective parameter of the people concerned. Diagrammatically the process of resistance can be reflected as follows. Figure 1 The first part of the model relates to the degree of control the individual people has on the change process rendered in the concerns and the degree of impact rendered by the change process on the existing functioning or operation in the organisation. Thus where the level of control rendered or reflected by the people on the change rendered is high enough to delay its inception, modify the elements concerned or rather cease its operation the level of resistance reflected would be low. Again on the other hand where the level of impact rendered in by the change process introduced in the concern is quite high it amounts to higher amount of resistance than that reflected in at times of low or moderate impacts. Thus integrating the Cognitive and Perceptual elements it is understood that where the level of control on the change introduced is quite high and the impact rendered is significantly low it would amount to lesser resistance. On the contrary where the level of control is considerably low relating to the change introduced such that the level of change happens to render a higher amount of impact on the existing operations the level of resistance reflected turns out to be quite high. Behavioural attributes reflected by the individual employees thereby contributing to the rise of due resistance relate to the high amount of emotional changes or outburst rendered. Resistance is reflected either on the physical or psychological level in the form of withdrawal, anger, strike or oppression and feelings of lost identity in such changed situation (Bovey and Hede, 2001, p.372-374). Organisational managers need to devise significant strategies to reduce the impact of resistances to the change process and thereby help in the effective implementation of the elements of changes rendered in the concern. The first important strategy is to enhance the level of employee participation in the change process such that through the process of empowering individual employees to work out the elements of change in order to gain productivity in a department wise fashion. Secondly in the process of enhancing employee participation small targets and objectives must be set in by the team managers welcoming the people to devise and formulate actions to rightly meet such within a specified time period. Thirdly the people involved in the specific or focused groups can be motivated through the process of recognising their actions rendered to achieve the objectives underlined and also in gaining effective feedback related to the problems and shortcomings faced by them in the course of implementation of the changed initiatives (Laframboise, Nelson and Schmaltz, 2002, p.312-314). Case of Retail Industry In the case of services industry like retail the implementation of changes formulated in terms of new technology and processes set in also invites potential resistances from both the employees and the management involved. Firstly introduction of new technology related to RFID through the large scale integration of the different branch outlets with the headquarters of the retail concern enabled through broadband facilities leads to the movement from an earlier decentralised framework to a centralised situation. This transition from the decentralised operational mode to a more bureaucratic or centralised operational framework thereby reduces the power of the individual store managers leading to potential resistances. Secondly the integration new technology systems in the retail concerns to synchronise the activities of the different departments in the retail organisational framework like integrating the activities of the supply chain or distribution outlets to the store renders an environment of sue complexity. Need to work in such complex technological environments thereby require the people to get adequately trained. This fact also amounts to considerable resistance from the people concerned in that they reflect a sense of being uncomfortable working in such complex situations. Finally in the third case the people belonging to the certain specific departments owing to the emergence or creation of an integrated job atmosphere also tend to suffer from the fear of being retrenched. This fear of retrenchment gains strength in the retail industry owing to the policy changes rendered in by the higher management focusing on to reduce costs by lowering manpower and inventory holding cost (International Labour Office, 2006, p.51-52). The management intervention formulated to reduce the potential impacts of resistance to the change process implemented in the retail organisations involved a 360 degree approach such that different types of coaching and mentoring programs were devised for the employees and managers relating to different levels and departments. Employees and managers need to be effectively coached in by the change leaders as to the process of implementation of the change initiatives required thereby to help reduce the amount of complexity involved and faced. Again the change leaders need to devise short term objectives for the specific departments and to sustain communication along the implementation period to reflect on the positive outcomes gained. Relating the range of growth and profits earned in short courses of the change implementation process to the different people involved contributes in the development of the motivation and morale of the people in the concern to perform. Finally the change leaders can further excite the motivation of the people through the rendering of different incentive and financial rewards schemes to the employees in that higher amount of revenues are earned in the form of sales conducted and gaining on in market shares. Other than initiating the process of recognition of the employees for their performances and generating rewards the management must also work in the effective alignment of resources and infrastructures to help the people operate easily and comfortably in a changed environmental setting. For example the effective rendering of scanners and computers in adequate fashion both at the retail stores and the warehouses or distribution outlets with support of broadband or internet would thereby help in the effective implementation of the RFID Technology deployment in the retail concerns. Thus through the help of the above intervention process the management of the retail organisations can contribute in the reduction in the amount of resistance involved (Higgs and Rowland, 2001, p.57-61). Behavioural and Emotional Responses to Change Management General Understanding Generation of a theoretical understanding as to the different emotional and behavioural changes reflected by the employees and the managers to the implementation activities concerning change management in concerns it is firstly required to understand the concept of emotional intelligence. Concept of Emotional Intelligence relates to the potential of an individual to control the emotions of others, to rightly discriminate between the positive and negative emotional constructs that have gained emergence in the course of the change process and finally to streamline the information gained from understanding the emotional levels of the different individuals to help achieve the end results and objectives. The above fact thereby reflects an integration of elements related to the cognitive and emotional parameters contributing in the effective management of the emerging threats pertaining to the different emotions. It is observed that in the course of implementation of organisational changes generally two types of emotional constructs emerge: positive and negative. Positive emotional constructs reflected relate to the amount of creativity and innovation along with the degree of enthusiasm showed by the individual people in the change process being implemented. On the other hand negative emotional constructs relate to the different degrees of threat reflected in the form of negative behavioural attributes like anger, resentment, withdrawal from commitments rendered and other cases of strikes and lockouts. For transforming negative emotions reflected in by the employees into positive emotions to gain due organisational growth and productivity the organisational managers need to effectively intervene with the organisational people to share the changes rendered in the organisational mission, vision and values contributing to the implementation of the change policies. Similarly the cognitive and emotional constructs of the individual employees can also be further developed through the process of incorporation of proper training programs and effective feedback mechanisms. Finally the organisational managers can also take resort to the use of social networking tools so as to develop the level of interaction at the intrapersonal and interpersonal level pertaining to employees working in different departments (Jordan, n.d. p.459-464). Case of Retail Industry The rise in significant level of competition in the performance pattern in the retail industry owing to the introduction of technological changes like Electronic Point-of-Sales systems that operates based on RFID Technology enabled bar codes and again the development of purchase and sales activity based on online or cellular technology has contributed in enhancing the amount of pressure related to sales, productivity and market growth. This rise in the amount of pressure in the internal framework of the retail industries has led to the emergence of different types of negative emotional constructs in the minds of the people. The people or employees in the different retail outlets and the distribution segments of the retail firms tend to refrain from meeting organisational objectives by frequently absenting from their daily duties. Similarly the people also tend to render faulty or erroneous decisions through which they tend to disturb the normal operational environment of the concern. Other negative behaviours reflected include refraining from rendering effective customer care functions that in turn impact the goodwill of the firm or focus on creating conflicts with other people both at the intra and inter-personal level to cause potential disruption. Herein the organisational manager can effectively intervene to implement strategies like job rotations wherein the individual employee is made to work in different job roles pertaining to different departments. This strategy contributes in enhancing the interest of the person to work more proactively and also tends to reduce internal conflicts with other people in a specific departmental setting. Again the organisational managers can also work to reduce the stress involved with the employees through enhancing the communication paradigm in the form of training activities and also through the generation of different creative programs (Broadbridge, 2002, p.175-176). Conclusion Organisational culture of business organisations are essentially composed of different value sets of the people involved and other rules and policy framework pertaining to organisational mission and vision objectives. A change rendered in the process and operational framework of the retail organisations through introduction of new technology sets tends to enhance the level of competency of the business concerns to work to gain larger amount of profits and market share. However increasing stress rendered through the rendering of such technological or process changes happens to put considerable pressure on the working style and situation of the employees present thereby instigating them to render conflicting attitudes and erroneous working styles. An effective management intervention is thereby required in here to help in the effective welcoming of the change situation by the people to thereby contribute in gaining holistic growth and profitability. References Bovey, W. H., and Hede, A., 2001. Resistance to Organisational Change: The Role of Cognitive and Affective Process. Leadership and Organisational Development Journal, 22 (8), pp.372-382 [Pdf]. Available at: http://www.bovey.com.au/files/rcap.pdf [Accessed November 26, 2012]. Broadbridge, A., 2002. Retail managers: their work stressors and coping strategies. Journal of Retailing and Consumer Services, 9, pp.173–183 [Pdf]. Available at: http://ejournal.narotama.ac.id/files/work%20stressor%20retail.pdf [Accessed November 26, 2012]. Chappell, G., et al., 2003. Auto-ID on Delivery: The Value of Auto-ID Technology in the Retail Supply Chain. Auto Id-Centre [Pdf]. Available at: http://www.autoidlabs.org/uploads/media/ACN-AUTOID-BC-004.pdf [Accessed November 26, 2012]. Ellis-Chadwick, Fiona; Doherty, Neil and Hart, Cathy (2002). Signs of change? A longitudinal study of Internet adoption in the UK retail sector. Journal of Retailing and Consumer Services, 9(2), pp. 71–80 [Pdf]. Available at: http://oro.open.ac.uk/27757/2/Signs_of_Change.pdf [Accessed November 26, 2012]. Higgs, M., and Rowland, D., 2001. Developing change leaders: Assessing the impact of a development programme. Journal of Change Management, 2(1), pp.47-64 [Pdf]. Available at: http://www.transcendconsultancy.com/pdf/CMJ02.pdf [Accessed November 26, 2012]. International Labour Office, 2006. Social and labour implications of the increased use of advanced retail technologies: report for discussion at the Tripartite Meeting on the Social and Labour Implications of the Increased Use of Advanced Retail Technologies, Geneva, 2006. International Labour Organization. Jordan, P., No date. Dealing With Organisational Change: Can Emotional Intelligence Enhance Organisational Learning? International Journal of Organisational Behaviour, 8 (1), pp.456-471 [Pdf]. Available at: http://www.chan6es.com/uploads/5/0/4/8/5048463/dealing_with_organisational_change.pdf [Accessed November 26, 2012]. Laframboise, D., Nelson, R.L., and Schmaltz, J., 2002. Managing resistance to change in workplace accommodation projects. Journal of Facilities Management, 1(4), pp.306-321 [Pdf]. Available at: http://www.occupier.org/uploads/articles/article14.pdf [Accessed November 26, 2012]. Ogbonna, E., and Willinson, B., 2003. 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