The Role of Organizational Culture - Example

Report on Cultural web Name Course Institution Date Introduction This is an academic report that deals with leading and managing change in organization. The report dwells on what is commonly referred to as cultural web. Cultural web is a representation that is used to demonstrate how culture comes about and how it affects the performance of the organization. The culture of the organization can be used to hinder or facilitate change (Myungweon& Wendy 2011, p. 63). The culture of the organization can make it impossible to administer change effectively. This somehow explains why organizational culture is closely related to change. In this report, leading and managing change seems to rely upon leadership. How such change programs can be executed effectively is by ensuring that the leader in charge is very competent. In this report, many aspects that affect organizational culture have been discussed widely. In addition, the challenges that hinder change in an organization have also been discussed. Organizations’ culture is very important to a point that Widdows merely focuses on changing the image of the organization as a strategy of turning around the organization (Graetz&Smith 2011, p. 58). The results are seen in relation to how the organization is turned around within just a short time. Power structures This is one of the elements that have been portrayed in the cultural transformation that Heinz Australia went through. From the top leadership, it is clear that the vision of the organization was communicated. The mantra ‘a great place to work’ seems to have driven the organization with such great force. It all started with the management. The CEO, Widdows was on the fore-front to demonstrate his willingness to follow the new organizational approach (Graetz & Smith 2011, p. 62). The senior management was expected to emulate the example portrayed by Widdows. This explains how the organization used the power vested in the CEO to change the manner in which things are done. Control systems The organization did put in place various strategies that ensured that employees are motivated. After the company began recording improved performance, there are several incentives that were put in place to ensure that employee morale is boosted. The organization ensured that there is gym membership that is paid for its employees (Graetz & Smith 2011, p. 62). At the same time, the medical check-up for the employees was also put in place. These are some of the issues that have been put in place to ensure that employee motivation is not compromised. The organization has embraced this based on the understanding of the significance of employee motivation to organizational performance. Rites & routine The routine of working seems to have changed since Widdows took over. The workforce seems to be enjoying trust from the management. This is evident through the manner in which they are treated. For instance, the workers are not monitored in all they do at their places. In addition, workers are sometimes allowed to have shorter weeks in order to ensure that they are free to undertake their personal affairs (Graetz & Smith 2011, p. 62). This is allowed during summer seasons. At the same time, employees are allowed to take an off on Fridays as long as they have completed their duties that day (Graetz & Smith 2011, p. 62). This allows employees to rest and have fun relax for a considerably long period during weekends. The flexibility in working and many other related practices that have been adopted indicate high levels of trust between the management and employees. Organizational structure This is yet another element of organizational change. The interaction between the various hierarchies of the organization is quite important. The CEO interacts well with the senior management in organization. The intention of the CEO is to treat the senior management well so that they may also replicate when dealing with their team members. This actually portrays a very interactive organizational structure. This is seen through the manner in which employees interact with the senior management. Employees are at ease interacting with their senior management. Rituals of the organization There are numerous practices that have been inculcated in this organization that are unique unto it. For instance, the work-life balance program that has been initiated is one of its kinds. It allows the employees to easily balance between work and other aspects of life. Such aspects include family and other related aspects that make the employees more comfortable at their place of work. This is very critical to organizations that have strategic plans that emphasize on long term growth. Employees are able to balance between their professional requirements and other family issues. This is a motivation that makes employees offer their very best in discharging their responsibilities. Forces for and against change Change is one of the issues that are resisted vigorously in organizations. People naturally dislike walking away from what is considered a norm. It is not any different when it comes to organizational change. Employees struggle to embrace change and this may cause a lot of resistance. Whenever change is discussed, there are always forces in favor and against such move. Most of these factors relate to the characteristics of the employees as well as the environment (Jan& Hazel 2013, p. 10). There are inherent characteristics of the employees that may either work in favor or against the change being implemented. For instance, there are some employees with strong beliefs and attitudes. Such can be an impediment to implementation of change. From the BBDO cultural web, it is possible to single out the issues that turnout to be hindrances to change. The cultural web on page 63 provides information about some of the factors that seemed to hinder change. One of the factors that have been exemplified on the cultural web is myths and stories (Graetz & Smith 2011, p. 63). When an organization has deep roots in myths and related stories, it may turn out to be the biggest challenge in trying to implement change. Such strong belief in myths makes it difficult to give room for new ideas. Myths work to block anything that seems to challenge their authenticity. What is expected to deal with such myths is new ideas but the fact that myths are in contrary to the new ideas implies that the organization will stagnate for a long time. Myths have been noted to be a hindrance to risk taking in organizations. After an organization has attained maturity in its business growth, contentment is almost inevitable (Ji-Young, Young-Hee & Jeanne 2011, p. 25). The organization tend to focus more on past performance than putting in place strategies that will enhance its growth. As a result, they are less willing to take investment risks. For that reason, they may stagnate for a very long period of time. This explains why myths and stories are a great hindrance to change. Inasmuch as myths and stories are partly pointed out to be a hindrance, they have a positive side. There are ways through which myths and stories can serve as boosters of change. When the myths of the company are positive, that is a great advantage. For instance, in this case study, the advertising firm had a strong and good image in the past. The company had built a brand as one of the best advertising agency in Melbourne (Graetz & Smith 2011, p. 64). The firm is known for hiring the best staff. Memories of such great moments can act as an inspiration to change. Many interested stakeholders would think of where the company was and where it is currently. As a result, such stories end up becoming strength to the organization. All these relate to elements of myths and stories Apart from myths, another obstacle to change is power structures. There comes a level in the organization’s growth where power structures inhibit fear instead of confidence. Employees tend to give too much respect to their seniors to a point where they are not free to make their own decisions. At such a point, they cannot think on their own. Employees pay too much attention to the leadership positions and authority and end up limiting their level of innovation (Myungweon & Wendy 2011, p. 55). Leaders keep on shifting their focus to other priorities like money creation. They fail to provide the leadership that is required in order for goals to be realized. Such misplaced priorities end up limiting the level of innovation and creativity of the organization. When leaders are more focused on power, their greatest fear is that change may destabilize their leadership. This is because the main aim of such changes could the leadership. Strength of the new culture The culture that has been introduced by Mr. Widdows is indeed very productive. The new culture has transformed the manner in which operations are undertaken. The organization has felt the new changes that have been implemented. It is clear that these new developments befit the organization. The goodness of these new policies has been manifested through improved financial performance. After the new approach to working in the organization was put in place, everything seemed to have changed completely. The company has managed to build an image of being ‘a great place to work’. The mutual respect amongst the staff is meant to act as the morale booster among the entire staff (Graetz & Smith 2011, p.71). These are actually some of the aspects that have geared this organization to a completely new bearing. The approach to achieving its strategic plans is never the same. From the transformation that has been seen at Heinz Australia, it is clear that there is a direct relationship between the culture of an organization and strategy development. The success of the strategy of the organization is strongly reliant on the culture of the organization. Such culture may support or be in contrary to the direction taken by the strategic plan. It is the culture of the organization that stimulates innovation and creativity (Mullins 2007, p. 46). After that, the innovation is used as the key pillar of driving the strategic plan of the organization. In this regard, one will realize that culture unlocks innovation in the organization. The organization culture is used to bring out the best that is in the employees. This is very important in relation to the strategic plans that a company might be laying down. A nice example is what has taken place in Heinz Australia. The changes that have been made in relation to the new approach to dealing with certain issues have had greater impact on the strategic plans of the organization (Pye 2005, p. 48). One of the things that have been done is building trust amongst employees. The new working policy allows flexibility on the side of the employees that this makes them feel greatly honored and valued. This has given them the dedication to work diligently towards strategic plans of the organization. In addition, there is a clear link between organization culture, transfer of knowledge and strategic planning. Transfer of knowledge between the individual employees and organization is actually stimulated by the organization culture. According to Fahey, the use of reward and punishment system as one way of reinforcing good behavior while discouraging bad ones determines the flow of knowledge between the organization and individual employees. Heinz Australia has adopted a reward system that makes it possible for employees to yield their best knowledge into the organization. The benefits that have been lined up for its employees indicate that actually the organization is rewarding its employees. The strength of this company’s culture is based on such discovery (Julie&Tiziana 2013, p. 819). When knowledge is flowing between the employees and the organization, it can be easily used to design achievable strategic goals. Heinz Australia has triumphed through understanding of how organizational culture influences strategic planning. For this reason, the organization is in position to excel even during difficult financial times. How to avoid sliding back When the organization has made huge progress like Heinz, if appropriate measures are not designed it may collapse on the way. The organization ought to have a long term orientation as a way of ensuring such trend is maintained. The organization ought to ensure that the culture that has been natured takes deeper roots. The culture must be able to sink very much in the organization (Julie &Tiziana 2013, p. 824). In order for that to be a reality, the organization must have committed employees. The employees that are retained must show the ability to be committed to the culture of the organization. At the same time, the leadership must also be checked. It’s under great leaders that employees are able to deliver their best in order to uphold to core values of the organization. Therefore, this is one thing that will have to be closely monitored. To achieve that, it is important to let the employees realize that they are the most valuable asset on the organization. They have to feel that their role is actually appreciated and they determine the success of the organization. Looking at the nature of transformation that Heinz underwent, one will realize the role of a leader in improving business performance. Leaders determine how far an organization can go. Widdow’s predecessor was unable to create an environment where employees are motivated to work harder. The morale of staff was at the lowest. The level of confidence was wanting (Graetz & Smith 2011, p.62). Instead of mutual understanding, fear ruled over the employees. With this kind of atmosphere it is almost impossible to spur growth. All these illustrations are simply meant to emphasize need to have an influential leader for Heinz to maintain the level of performance it has attained. The organization requires a pragmatic leader who is able to spearhead transformation whenever it is need (Mel, Gregory&Angelo 2012, p.900). This is what will ensure that what has been begun in this organization is maintained. The organization must ensure that the way used by the advertising firm is avoided. So far, the organization is considered a great place to work. While this begun, just like an ordinary mantra that any organization is able to use, it has turned to be true. This took the organization quite some time in order to attain this kind of performance and therefore must be well managed. Conclusion The case studies that have been used in this report have provided a lot of information that has been used to synthesize the wholes issue of organization change. This knowledge is very important in evaluating the various approaches to change in different organization. From what has been discussed, organization ought to be ready to adapt to the changes in business environment. Organization ought to understand that in such a digital era, business must be able to connect with the current relevant discoveries. This is one of the surest ways of ensuring that an organization remains relevant in this dynamic business environment. In such an environment, it is very hostile for those against embracing change. It is important for organizations to understand that change is part of each business entity. Currently, organizations ought to take advantage of easy access to information in order to make changes that will benefit them optimally. Widdow has demonstrated how a pragmatic leader is able to turn around the organization within a short time. This is achievable as long as the leader understands the adjustments that ought to be done at specific times. Therefore, the organization must embrace change as one of the aspects that can transform the performance of an organization if well used. References Chang, Z. & Nadine, E 2013, Organizational culture and instructional innovations in higher education: Perceptions and reactions of teachers and students. Educational Management Administration Leadership, Oct 2013. Danielle, A., Pamela, Y., & Tendayi, V 2013,. 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