Tag: Production & Total Quality Management BMS Notes

The resistance towards change at an individual level can be due to various reasons:

• How satisfied they are with the existing state of affairs
• Whether they appreciate the overall end product of change and it’s outcome on them
• How much practical or realistic the change is
• What will be the possible cost change on the individual in terms of potential risks involved, pressure to develop new competencies and disruptions

The following factors explain why individuals may pose resistance towards change:

• Habits: We individuals are influenced by our habits in our ways of working and accept or reject a change depending upon the effect which a change may have on the existing habits of the individuals. For example, change in the office location might be subjected to resistance from the individuals as this might compel them to change their existing life routine and create a lot of difficulties in adjustment or coping with the schedule. The individuals might have to drive a longer way for reaching their office, or start early from home for reaching their office in time, etc.
• Lack of Acceptability or Tolerance for the Change: Some individuals endorse change and welcome a change initiative happily while few individuals fear the impact of change. Over a period of time change fatigue also builds up.
• Fear of a Negative Impact Economically or on the Income: During the process of organizational restructuring or introduction of organization-wide change as a strategic move on the part of the management, several inhibitions, and fear rule the thought process of the individuals. Fear of possible loss of a job as a result of change or a change in their income structure or may be a change in their work hours could be one amongst the possible reasons.
• Fear of the Unseen and Unknown Future: Individuals develop inertia towards the change due to the fear of unknown or uncertainties in the future. This can be tackled through effective communication with the participants of change and making people aware of the positives of change and the course of action which individuals are expected to follow to cope with the changing requirements successfully.
• Fear of Losing Something Really Valuable: Any form of threat to personal security or financial security or threat to the health of the individuals may lead to fear of losing something precious as a result of the implementation of change.
• Selective Processing of Information: It can be considered as a filtering process in which the individuals perceive or make judgments by gathering selective information which is greatly influenced by their personal background, attitude, personal biases or prejudices, etc. If an individual maintains a negative attitude towards any kind of change, then they are having a usual tendency of looking at the negativities associated with the change and involve all the positive aspects of it.
• A Rigid Belief that change cannot bring about any facilitating change in the organization and it only involves the pain and threats to the individuals.

1. Emotional Factors

There are many emotional factors which also generate resistance to change. As indicated earlier, people may not analyze the likely impact of change in an objective manner but they may be governed by their feelings, emotions, attitudes, etc. Thus, many factors will produce resistance to change like fear of unknown, ego defensiveness, group norms, and social displacement.

• Fear of Unknown

People fail to evaluate the impact of change because it is future-oriented. Therefore, some amount of uncertainty is always there. It is a tendency to discount future impact because of two reasons:

1. First, people may derive benefits or otherwise in future while they have to pay the cost at the present. Naturally, they will discount the future.
2. Second, future is uncertain and the impact may not be exactly in the same way as predicted. The unknown poses a constant threat to people.

Therefore, the fear of unknown makes people uncomfortable, as the impact of change is unknown.

• Ego Defensiveness

Sometimes people resist change because it is ego deflating. Ego defensive people always resist such a change. Everyone has some ego which one tries to maintain. Ego is the state of a person’s way of behaving, thinking, and feeling. Any attack on these, actual or perceived by the person, will be resisted. For example, a foreman is unlikely to accept a change suggested by a worker because he may feel that his ego has been hurt. If he is highly ego defensive, he may take it even adversely.

• Group Norms

People also resist change because the group to which they belong resists it. Though each person interprets change individually, often he expresses it through the group. He follows the group norms. The degree and extent of group pressure on individual to resist the change will depend on two factors.

1. First, how loyal an individual is towards the group. If he is loyal to the group, he will resist the change even though it may be beneficial to him:
2. Second, how the group perceives it as a separate class than change agent: higher is the difference between two, higher will be the degree of resistance and its impact on individuals.

For example, if managers and workers see them as distinct classes and perceive their interests-differently, there will be more resistance to change by workers and individual workers will resist it vehemently.

2. Social Displacement

Introduction of change often results in social displacement of people like breaking of informal groups and relationships. When the friendship with fellow-members is interrupted, there is a possibility for the employees to experience psychological let down. Therefore, they dislike new adjustment, breaking up of present social relationships, reduced social satisfaction, and feeling of outside interference in the form of change.

Many emotional problems relating to change are difficult to overcome because these are based on non-logical considerations rather than the rational considerations. People’s perception of the likely impact of change is affected considerably by their personal factors and group factors to which they belong rather than technical aspect of change. Thus, the degree of resistance to change will be determined by the effect of change on people’s need satisfaction and the way the change agent brings the change.

3. Obsolescence of Skills

Change may result in obsolescence of skills specially when altogether a new method of working is adopted. With the adoption of new method of working, old techniques become useless and consequently old skills become obsolete. Therefore, when people sense that new method of working poses a threat of replacing them or in some way affecting them adversely, they will resist it.

It is not necessary that with the adoption of new method, people with old skills will be replaced; there may be other consequences also like reduction in authority of the position which they have been holding, attaching less importance to the jobs they have been performing, and so on.

4. Economic Reasons

People resist change if they feel that it is likely to affect them unfavorably so far as their economic needs are concerned. The greater the amount of loss perceived, greater is the degree of resistance. People may perceive several types of economic losses because of change, major of them being as follows:

1. Fear of technological unemployment;
2. Fear of reduced work hours and consequently reduced monetary benefits;
3. Fear of demotion and consequently reduced pay;
4. Fear of speed-up and reduced incentive wages; etc.
5. Problem of Adjustment

Perhaps most important factor for resistance to change is the problem of adjustment. Each individual tries to maintain a sort of equilibrium, both at formal level as well as at informal level. When change comes, it requires people to make adjustment so as to cope with the new situation.

People seek status quo because once they establish equilibrium, they may not like that it is disturbed. Status quo gives them more satisfaction because the existing equilibrium has been arrived at by eliminating those forces which give people discomforts. When change is introduced, this equilibrium does not remain as satisfactory as it was before the change.

Sunk Costs

Organizations may also resist change because they have invested in fixed assets and other resources. These costs cannot be recovered unless the assets and resources are put to productive use. When change is incorporated, many of these resources become useless. This may be true for assets as well as for persons also. For example, earlier it has been seen that change may result in obsolescence of skills.

Resource Constraints

Many organizations resist change because of resource constraints. It is to be noted that all organizations have limited resources because resources are limited by their basic nature.

However, some organizations may feel resource constraints more than others. In such a case, the organizations may not like to incorporate change because it involves some additional cost at least in the beginning.

Organization Structure

Some forms of organization structure are more resistant to change, for example, bureaucratic structure. A bureaucratic structure where lines of communication are clearly spelled out, jobs are precisely defined, works against change. Since all these are prescribed rigidly, there is very little scope of making changes. Moreover, the flow of information from top to bottom level is stressed.

Therefore, there is every possibility that an information initiating or necessitating change may be screened out at the higher level itself because change does not suit the present organization structure. Unless the person at the top is highly dynamic, change will always be resisted.

Threat to Power and Influence

A change is likely to be incorporated successfully if it has the blessing and support of top management. When people, at the top level, consider change as a potential threat to their position and influence, they resist it.

A change is likely to produce a new power equilibrium with more emphasis on knowledge and new skills. This new equilibrium may reduce the amount of power and influence of people at the top which may not be liked by them. Therefore, they may resist any such change.

• Resistance Due to the Structural Rigidities or Limitations: Structural resistance is a characteristic feature of bureaucracies, which focus more on stability, control, set methodologies or routine.
• Ignoring all the interconnected factors which require change or lack of clarity in understanding the ground realities.
• Inertia from the Groups: Groups may resist change because just like individuals, groups equally follow set behavioural patterns, norms or culture and as a result of change the groups might have to change their existing ways of conduct or behaviour.
• Possible threats to Power, Resources or Expertise can also result in resistance towards an organization level change. Any kind of devolution of power or transfer of resources from some agency or group to some other agency or a group will definitely lead to a feeling of fear or inertia towards a change initiative.

Organizational change refers to the actions in which a company or business alters a major component of its organization, such as its culture, the underlying technologies or infrastructure it uses to operate, or its internal processes. Organizational change management is the method of leveraging change to bring about a successful resolution, and it typically includes three major phases:

• Preparation
• Implementation
• Follow-through.

Change is the alteration of status quo or making things different than before. Change is the disturbance of equilibrium presently prevailing. It is any alternation that occurs in the overall work environment of an organisation.

Organisational change refers to the process of growth, decline and transformation within the organisation. Though one thinks that organisations are enduring structures in a changing society. However, the truth is that organisations are changing all the time. Organisational change takes different forms.

Organisations may change their strategy or purpose, introduce new products or services, change the way they produce and sell, change their technology, enter new markets, close down departments or plants, hire new employees, acquire other organisations become acquired by other organisations and what not.

Adaptive changes are small, incremental changes organizations adopt to address needs that evolve over time. Typically, these changes are minor modifications and adjustments that managers fine-tune and implement to execute upon business strategies. Throughout the process, leadership may add, subtract, or refine processes.

Transformational changes have a larger scale and scope than adaptive changes. They can often involve a simultaneous shift in mission and strategy, company or team structure, people and organizational performance, or business processes. Because of their scale, these changes often take a substantial amount of time and energy to enact. Though it’s not always the case, transformational changes are often pursued in response to external forces, such as the emergence of a disruptive new competitor or issues impacting a company’s supply chain.

To achieve this, managers must have a wide array of skills, such as:

• The ability to communicate clearly and effectively this includes actively listening to their team and colleagues
• A highly developed level of emotional intelligence
• Strong organizational skills
• An eye for detail
• Problem-solving and decision-making skills
• Delegating without micromanaging

Steps to Implementing Change

1. Management Support for Change

Employees develop a comfort level when they see management supporting the process. It is critical that management shows support for changes and demonstrates that support when communicating and interacting with staff.

2. Case for Change

No one wants to change for change’s sake, so it is important to create a case for change. A case for change can come from different sources.  It can be a result of data collected on defect rates, customer satisfaction surveys, employee satisfaction surveys, customer comment cards, business goals as a result of a strategic planning session, or budget pressures.

3. Employee Involvement

All change efforts should involve employees at some level. Organizational change, whether large or small, needs to be explained and communicated, specifically changes that affect how employees perform their jobs.

Whether it is changing a work process, improving customer satisfaction, or finding ways to reduce costs, employees have experiences that can benefit the change planning and implementation process.

4. Communicating the Change

Communicating change should be structured and systematic. Employees are at the mercy of management to inform them of changes. When there is poor communication and the rumor mill starts spreading rumors about change, it can create resistance to the change.

5. Implementation

Once a change is planned, it is important to have good communication about the roll-out and implementation of the change. A timeline should be made for the implementation and changes should be made in the order of its impact on the process and the employees who manage that process.

6. Follow-up

Whenever a change is made it is always good to follow-up after implementation and assess how the change is working and if the change delivered the results that were intended. Sometimes changes exceed target expectations but there are occasions that changes just don’t work as planned.

7. Removing Barriers

Sometimes employees encounter barriers when implementing changes. Barriers can be with other employees, other departments, inadequate training, lacking equipment, or supply needs. Sometimes management also needs to deal with resistant or difficult employees. It is management’s responsibility to ensure that employees can implement change without obstacles and resistance.

8. Celebrate

It is important to celebrate successes along the way as changes are made.  Celebrating the small changes and building momentum for bigger changes are what makes employees want to participate in the process.

Action research model is traditionally aimed both at helping specific organizations implement planned change and at developing more general knowledge that can be applied to other settings.

It places heavy emphasis on data gathering and diagnosis prior to action planning and implementation, as well as careful evaluation of results after the action, is taken.

The Action Research Model involves eight steps for planned change management.

Action Research is a useful method for facilitating organizational change by collaborating and involving the client in the entire process of diagnostic, problem identification, experiential learning, and problem-solving process. The entire process of action research is action oriented with the objective of making the change happen successfully. The process equally involves experimentation with the various frameworks in practical situation and application of various theories in various contexts which require change.

In other words, the process of Action Research requires three distinctive stages which are consistent with the Lewin’s Model which describes the three stages of change.

1. Diagnosing the need for change (unfreezing)
2. Introduction of an intervention (moving)
3. evaluation and stabilization of change (refreezing)

The most commonly used model of action research which is used in the contemporary scenario is Warner Burke’s 7 Step Action Research Model. These 7 steps are Stage of Entry, Contracting, Data Collection, Providing Feedback, Strategic Planning, Planning & Designing Interventions and Evaluating the success of Interventions.

Advantages of Action Research Model

1. A Systematic Approach to Problem Resolution and Dealing with the Challenges of Business
   • Action Research Model improves an organization’s preparedness in proactively responding to the change by anticipating the change in advance and developing the internal mechanisms.
   • Action Research Model is highly methodical and adopts a step by step approach which helps the OD professionals in planning and implementing interventions directed towards improving the organization’s competitiveness and business situation.
   • The Model takes into account all the problems in a holistic manner, and it is equally ensured that the problems are addressed proactively with effective solutions.
2. Helps in Analysis of Issues and Developing the Interventions Accordingly

• Action Research focuses on converting the information into action.
• It is helpful in identification of the requirements of the client and the existing/potential challenges, development of a contract which involves definition of the key deliverables and the working relationship, data collection and identification of gaps/ root causes of the issues, analysis of the data for setting the priorities and the plan of action, deciding on the appropriate interventions and developing a plan for implementing the interventions for achieving the intended objectives.
• Implementation of successful change programs on a short-term as well as long-term basis.

3. Facilitates a Learning Culture

• The data collected in the entire process can be used in diverse areas such as the implementation of quality tools for continuous improvement, strategic planning, change management, decision making & problem solving, communication process and organizational restructuring, leadership development and implementation of process improvement initiatives.
• Fosters a deeper understanding related to the organizational functioning and the challenges; provides best alternatives or strategic solutions for handling a problem at hand or various organizational issues.

4. Key Involvement of Senior Leaders and Various Stakeholders

• In the entire process of Action Research, the Change Agents act as the champions of change who effectively take charge of the entire process as process experts, provide feedback and are involved in extensive communication with the key stakeholders across various levels. They involve the top management professionals as well as the stakeholders in the process, as without their consent and involvement the objectives of change implementation cannot be achieved.

5. Facilitates Collaboration

• The change agent collaborates with the client in the process of identification of problems and accords specific ranks to the problems, devises techniques or methods for identifying the real cause of the problems and develops effective plans offering realistic as well as practical solutions for addressing the problems.
• Helps in fostering mutual trust and interdependence which are very essential in the pursuit of organizational success.
• Helps in Rebuilding the Organizational Culture and involves the confidence as well as people in the entire process of organizational change, which otherwise wouldn’t have been possible if the authoritarian style of leadership would have been exercised.

6. Results in Performance Improvement in all areas

• The Action Research Model adopts a comprehensive approach to identifying the areas of improvement in all areas which may affect organizational functioning and success in the long run.
• The process leads to a long-term improvement in the performance from all perspectives by building a learning environment, facilitating knowledge and skill transfer in a better manner and following a structured/systematic approach for organizational improvement.
• Helps in achieving the strategic goals of the organization by facilitating an alignment between the strategic objectives and the goals of the action research intervention.
• The process of action research helps in leadership development by developing their facilitation skills, developing team building and team management skills, understanding the issues of the team members and working collaboratively for realizing the pre-defined objectives.
• Action Research views an organization from a wholistic perspective instead of paying importance to the individual subsystems of the organization in parts. This helps the leaders in visualizing a bigger picture and in implementing a roadmap of action or plans for improving organizational performance and overall productivity.

Every organization goes through periods of transformation that can cause stress and uncertainty. To be successful, organizations must embrace many types of change. Businesses must develop improved production technologies, create new products desired in the marketplace, implement new administrative systems, and upgrade employees’ skills. Organizations that adapt successfully are both profitable and admired.

Managers must contend with all factors that affect their organizations. The following lists internal and external environmental factors that can encourage organizational changes:

• The external environment is affected by political, social, technological, and economic stimuli outside of the organization that cause changes.
• The internal environment is affected by the organization’s management policies and styles, systems, and procedures, as well as employee attitudes.

(A) External Pressures:

• Change in Technology and Equipment:

Advancements in technology is the major cause (i.e., external pressure) of change. Each technological alternative results in new forms of organization to meet and match the needs.

Market Situation:

Changes in market situation include rapidly changing goals, needs and desires of consumers, suppliers, unions etc. If an organization has to survive, it has to cope with changes in market situations.

• Social and Political Changes:

Organisational units literally have no control over social and political changes in the country. Relations between government and business or drive for social equality are some factors which may compel for organisational change.

(B) Internal Pressures (Pressures for Change from Within the Organisation):

• Changes in the Managerial Personnel:

One of the most frequent reasons for major changes in the organisation is the change of executives at the top. No two managers have the same style, skills or managerial philosophies.

• Deficiencies in the Existing Organization:

Many deficiencies are noticed in the organisations with the passage of time. A change is necessary to remove such deficiencies as lack of uniformity in the policies, obstacles in communication, any ambiguity etc.

• Other Factors:

Certain other factors such as listed below also demand a change in the organisation.

• Employee’s desire to share in decision-making
• Employee’s desire for higher wage rate
• Improvement in working conditions, etc.

External causes of change

These causes of change are linked to changes in the external environment facing all businesses or businesses in specific markets and/or locations. Examples include:

Social trends / attitudes: For example, the growing resistance by consumers to businesses using single-use plastic in products and packaging

Economic conditions: for example, the economic uncertainty created by Brexit or the growth of protectionism in developed economies

Laws / regulations: For example, changes to minimum pay requirements (National Living Wage), data protection (GDPR) and restrictions on advertising & selling.

Technological advances: A significant source of external change, particularly through the creation of new business models (e.g., streaming) to challenge existing, established business models.

Change Management is a systematic approach to dealing with the transition or transformation of an organization’s goals, processes or technologies. The purpose of change management is to implement strategies for effecting change, controlling change and helping people to adapt to change. Such strategies include having a structured procedure for requesting a change, as well as mechanisms for responding to requests and following them up.

To be effective, the change management process must take into consideration how an adjustment or replacement will impact processes, systems and employees within the organization. There must be a process for planning and testing change, a process for communicating change, a process for scheduling and implementing change, a process for documenting change and a process for evaluating its effects. Documentation is a critical component of change management, not only to maintain an audit trail should a rollback become necessary but also to ensure compliance with internal and external controls, including regulatory compliance.

Companies developing a change management program from the ground up often face daunting challenges. In addition to a thorough understanding of company culture, the change management process requires an accurate accounting of the systems, applications and employees to be affected by a change. Best practice frameworks can provide guiding principles and help managers align the scope of proposed changes with available digital and non-digital tools.

8 essential steps for an effective change management process

Your organization is constantly experiencing change. Whether caused by new technology implementations, process updates, compliance initiatives, reorganization, or customer service improvements, change is constant and necessary for growth and profitability. A consistent change management process will aid in minimizing the impact it has on your organization and staff.

1. Identify What Will Be Improved

Since most change occurs to improve a process, a product, or an outcome, it is critical to identify the focus and to clarify goals. This also involves identifying the resources and individuals that will facilitate the process and lead the endeavor. Most change systems acknowledge that knowing what to improve creates a solid foundation for clarity, ease, and successful implementation.

2. Present a Solid Business Case to Stakeholders

There are several layers of stakeholders that include upper management who both direct and finance the endeavor, champions of the process, and those who are directly charged with instituting the new normal. All have different expectations and experiences and there must be a high level of “buy-in” from across the spectrum. The process of onboarding the different constituents varies with each change framework, but all provide plans that call for the time, patience, and communication.

3. Plan for the Change

This is the “roadmap” that identifies the beginning, the route to be taken, and the destination. You will also integrate resources to be leveraged, the scope or objective, and costs into the plan. A critical element of planning is providing a multi-step process rather than sudden, unplanned “sweeping” changes. This involves outlining the project with clear steps with measurable targets, incentives, measurements, and analysis. For example, a well-planed and controlled change management process for IT services will dramatically reduce the impact of IT infrastructure changes on the business. There is also a universal caution to practice patience throughout this process and avoid shortcuts.

4. Provide Resources and Use Data for Evaluation

As part of the planning process, resource identification and funding are crucial elements. These can include infrastructure, equipment, and software systems. Also consider the tools needed for re-education, retraining, and rethinking priorities and practices. Many models identify data gathering and analysis as an underutilized element. The clarity of clear reporting on progress allows for better communication, proper and timely distribution of incentives, and measuring successes and milestones.

5. Communication

This is the “golden thread” that runs through the entire practice of change management. Identifying, planning, onboarding, and executing a good change management plan is dependent on good communication. There are psychological and sociological realities inherent in group cultures. Those already involved have established skill sets, knowledge, and experiences. But they also have pecking orders, territory, and corporate customs that need to be addressed. Providing clear and open lines of communication throughout the process is a critical element in all change modalities. The methods advocate transparency and two-way communication structures that provide avenues to vent frustrations, applaud what is working, and seamlessly change what doesn’t work.

6. Monitor and Manage Resistance, Dependencies, and Budgeting Risks

Resistance is a very normal part of change management, but it can threaten the success of a project. Most resistance occurs due to a fear of the unknown. It also occurs because there is a fair amount of risk associated with change the risk of impacting dependencies, return on investment risks, and risks associated with allocating budget to something new. Anticipating and preparing for resistance by arming leadership with tools to manage it will aid in a smooth change lifecycle.

7. Celebrate Success

Recognizing milestone achievements is an essential part of any project. When managing a change through its lifecycle, it’s important to recognize the success of teams and individuals involved. This will help in the adoption of both your change management process as well as adoption of the change itself.

8. Review, Revise and Continuously Improve

As much as change is difficult and even painful, it is also an ongoing process. Even change management strategies are commonly adjusted throughout a project. Like communication, this should be woven through all steps to identify and remove roadblocks. And, like the need for resources and data, this process is only as good as the commitment to measurement and analysis.

The work culture represents the ideologies, principles, policies and beliefs of the organization. The individual’s style of working, his behaviour and ways of interaction also contribute to the culture of the organization.

There are several reasons which lead to a change in the organization culture. Change in management, poor financial conditions, revisions in goals and targets bring a change in the culture of the organization.

Accepting changes in the work culture is the toughest thing to do for an employee. Not all employees can happily adapt to organizational changes.

Employees need time to cope up with a new culture. Miracles can’t happen overnight and habits do not change all of a sudden. The employees must spend some time to understand and adjust to the new culture. One should work with an open mind and willingly accept things. Don’t always crib as it leads to no solution. The employees must try their level best to accept the changes with a smile and work accordingly. One should never be in a rush. The management must also give time to the employees for them to gel with the new culture. Don’t pressurize anyone to accept changes all of a sudden.

The employees must design new strategies, new plan of actions and policies to meet the new challenges. Try to find out the exact reasons for the change. The ideas which were successful earlier might now fall out of place. One should not be adamant. Sit with your team leader, discuss all possible options and try to implement something which would work best in the new culture and benefit you as well as your organization.

An employee must change his behaviour and thought process as per the culture. It is essential to be flexible. Being adaptable at the workplace always pays in the long run. Remember everything happens for the best. One should always try to look at the positive aspects of life rather than cribbing on things which are beyond anyone’s control.

A common set up where individuals from different back grounds, educational qualifications, interests and perception come together and use their skills to earn revenue is called an organization. The successful functioning of an organization depends on the effort put by each employee. Each individual has to contribute his level best to accomplish the tasks within the desired time frame.

Every organization has a unique style of working which is often called its culture. The beliefs, policies, principles, ideologies of an organization form its culture.

The culture of the organization is nothing but the outcome of the interaction among the employees working for quite some time. The behaviour of the individual with his fellow workers as well as external parties forms the culture. The management style of dealing with the employees in its own way also contributes to the culture of the organization.

Employees working for a considerable amount of time in any particular organization tend to make certain rules and follow some policies as per their convenience and mutual understanding. Such policies and procedures practised by the employees for a long time to make the workplace a happier place form the culture. The culture often gives the employees a sense of direction at the workplace. Organization culture however can never be constant. It changes with time.

A change in the management changed the entire style of working.

Reasons for changes in work culture

• A new management, a new team leader, a new boss brings a change in the organization culture. A new employee but obvious would have new ideas, concepts and try his level best to implement them. He would want the employees to work according to him. His style of working, behaviour and ideologies would definitely bring a change in the work culture.
• Financial loss, bankruptcy, market fluctuations also lead to change in the work culture of the organization. When an organization runs into losses, it fails to give rewards and appraisals to the employees as it used to give earlier.
• Acquiring new clients might cause a change in the work culture. The employees might have to bring about a change in their style of working to meet the expectations of the new clients.
• The employees on their own might realize that they need to bring a change in their attitude, perception and style of working to achieve the targets at a much faster rate. Such self-realization also changes the work culture.

There are several factors which affect the organization culture:

• The first and the foremost factor affecting culture is the individual working with the organization. The employees in their own way contribute to the culture of the workplace. The attitudes, mentalities, interests, perception and even the thought process of the employees affect the organization culture.
• Example: Organizations which hire individuals from army or defence background tend to follow a strict culture where all the employees abide by the set guidelines and policies. The employees are hardly late to work. It is the mindset of the employees which forms the culture of the place. Organizations with majority of youngsters encourage healthy competition at the workplace and employees are always on the toes to perform better than the fellow workers.
• The sex of the employee also affects the organization culture. Organizations where male employees dominate the female counterparts follow a culture where late sitting is a normal feature. The male employees are more aggressive than the females who instead would be caring and softhearted.
• The nature of the business also affects the culture of the organization. Stock broking industries, financial services, banking industry are all dependent on external factors like demand and supply, market cap, earning per share and so on. When the market crashes, these industries have no other option than to terminate the employees and eventually affect the culture of the place. Market fluctuations lead to unrest, tensions and severely demotivate the individuals. The management also feels helpless when circumstances can be controlled by none. Individuals are unsure about their career as well as growth in such organizations.
• The culture of the organization is also affected by its goals and objectives. The strategies and procedures designed to achieve the targets of the organization also contribute to its culture.
• Individuals working with government organizations adhere to the set guidelines but do not follow a procedure of feedback thus forming its culture. Fast paced industries like advertising, event management companies expect the employees to be attentive, aggressive and hyper active.
• The clients and the external parties to some extent also affect the work culture of the place. Organizations catering to UK and US Clients have no other option but to work in shifts to match their timings, thus forming the culture.
• The management and its style of handling the employees also affect the culture of the workplace. There are certain organizations where the management allows the employees to take their own decisions and let them participate in strategy making. In such a culture, employees get attached to their management and look forward to a long-term association with the organization. The management must respect the employees to avoid a culture where the employees just work for money and nothing else. They treat the organization as a mere source of earning money and look for a change in a short span of time.