QUESTION
Name of Student:
Student lD:
To be
Iilled
by Lecturct
Guidelines:
Williams College
Strategic Change Management
Course:
Edexcei BTEC Level
LJnit:3
QcF
Level: 7
Credit value: 10
4
R: Refefied P: Pdss
Leadership.
Teacher: George Reginald Anokye
Date of Issue:
Date of submission: TBD
To be signed by Student
lnternallyVerified: Yes
2l Feedbdck: Pledse
put
comments dependlng upon
grcde,
Jot
exdmple if R-
oppropriote
whot cdn be imprcved dnd
if P
–
you
could
1
7 Diploma in
Strategic
Management and
lnternal Verifieri G.N Vedula
Date | 23/02/2012
I
declare that all the
work
produced
as a response to this
assignment is all my own work. I
understand the college
policy
on
plagiarism.
Student signature showing understanding
of
plagiarism
notice
give positive
Williams college
Strategic Change
Management
leedbock,
I
Circle os
|
Student Guidelines
1. You should write this assignment in report style. Essential
parts
are
.
Title
page
.
Table of contents
.lntroduction
Main body of the report clearly identifying the separate tasks
.
Conclusion and recommendation
.
Reference and bibliography
.
Appendices only if relevant and necessary
2. Complete
your
report in not less than 3000 words with a 10% level of
tolerance.
Show
your
word
count
at the front
page
of the report. Word
count excludes title
page,
table of contents,
reference
page,
appendices and charts or
graphs
included
in the
body.
3. Report should be word
processed
and
grammatically
correct. Pages
should be
numbered. Use Arial, font 12 and 1.5 line spacing.
Show titles and use bullet
points
for a better structure and
presentation.
4. List
of
references
citing
sources in Harvard referencing
style is a must. Reference
may include bibliography showing
your
wider study relevant
to this module.
5. You will
pass
the assignment only
if
you provide
the relevant information
required in the Iearning outcome:
6. Deadline of assignment submission
is TBD
7. You must
collect cover
page
from
your
tutor
and attach with
your
assignment
before submission. You must fill all the required fields
on cover
page
like Student
Name, Programme, Module Title, Date, Plagiarism
Statement and Signature.
Williams College
Strategic Change Management
AIM
OF
THE
UNIT
This unit
provides
students
with
the unde.standing and skills to
suppoft active
engagement in
the
process
ofstrategic change management.
) Background
to organisational strategic change
> Issues
relating to shategic change in an organisation
) Lead
stakeholders in developing a strategy for change
> Plarl
to implement models for ensLring on
going
change
At the successful
conclusion ofthe module students
will be
prepared
to write an
assignment
and case study analysis within organizational
settings. Students must
achieve
the following
leaming outcomes.
Learning
Outcomes
Knowledge and Understanding
! Understand the
background to organis-ational strategic
change
!
Understand issues relating
to strategic change in an organisation
! Be able
to
lead
stakeholders in developing a strategy
for change
>
Be able to plan to
jrnplement
Skills
models for ensuring
on
going
change
By the end ofthe module students
should have developed skills
in:
a) Communication
and
literacy:
through writing students
will develop effective
writing
skills
for
variety ofpurposes. They will develop
skills in the use of
appropriate words,
showing commas, fulI stops and clearer
understanding of
sentences.
b) Problem solving: through
the identification ofmodels;
formulating an
appropriate strategy to answbr
this
questionl
and evaluating
the appropriate toois
used in problem
solving.
c) Independent leaming and working:
through completing a
sustained self-
directed
piece
that necessitates
self-reliance,
planning,
flexibiliq,, managing
information, self’criticism, refl
ection and resilience.
3
Williams
College
Strategic
Change
Management
d) Information and communications teclDology: appropriate
sofhvare such as
Microsoft word for assignment submission and PowerPoint
for
presentations.
Assessment
In not less than
-?000
words students will $,rite a report by seiecting an organisation and
developing a model for change, incoryorating issues related to strategic change in that
organisation. Students need to show how they will lead stakeholders in developing a
strategy for change and how they
plan
to implement the chosen model for change.
Change Vanagernent: A case ofBriri5h Airuays
All organisations are being increasingly challenged by change. Consequently, they need
to understand the issues that drive the need for change in their own organisations. This
means that organisations need to have a
proactive
approach to strategic change
management. This axticle appeared in the
“Gua.diao”
newspaper recently. BA cabin crew
vote
this week
to end
18 months
ofstrife. The agreement includes a two-year
pay
deal
and the retum
oftravel
perks
for staffwho took
part
in walkouts
last
year
British Airways cabin crew will begin voting on a
peace
dealthis week that could
end the
ai.line’s worst indust.ial dispute. The Unite trade union is
preparing
to post
ballot
papers
to nearly10000 clew with a letter from its
general
secretary, Len Mccluskey,
recommending a vote in favour ofthe agreement. The
poll
on the latest attempt
to end the
industrial conflict will close on 22 June, 18 months after Unite opened its first-st ke
ballot on the dispute. So far the only indication ofsupport for the deal is approximate,
after hundreds ofcrew attending a meeting at Heathrow airport this month
backed a
proposal
to
put
the dealt a wider vote. The
peace
deal being voted on was thrashed
out
between Mccluskey and BA’s new chiefexecutive, Keith Williams, after two
prer’ious
agreements were rejected by Unite. Both sides issued conciliatory statements when
the
agreement was unveiled, with Unite’s leader
praising
the approach
ofhis
BA
counterpart
this month.
“There
is a change within the management psyche
at BA, driven by the chief
executive. Ifwe embrace that, we are confident that the future
will be
good,”
said
Mccluskey. Before the deal was struck, BApassengeN faced the threat ofsummer
strikes
alier crew voted in March for walkouts for the fouth time since the dispute
began.
The agreement includes a two-year pay
deal
and the
retum oftravel
perks
for thousands
of staffwho took
part in 22
days ofwalkouts
last yeat
lvhich cost BA f,150m. It also
gives
the ACAS conciliation service a role in arbitrating the cases of staffthat were
sacked or disciplined during the dispute. Both sides have resisled sounding triumphalist
amid hopes at senior levels that the dispute
is
coming to an end. Speaking afler
recommending the deal to crew at Heathrow this month, Mccluskey said:
“I
don’t think
Williams college
Strategic Change
Management
this is about winning or losing.
Ifthere is
any victory, it is a victory for colnmon sense.
“BA
said it was
pleased
to
have reached
a
point where
“we
can put this dispute
behind
us.” Its decision to cut staffing
levels
on
long-haul flights, which
triggered
the
dispute in
2009, has not been reversed.
BA is also creating a separate fleet ofcrew on different
pay
and conditions, which Unite
had initially opposed. Hopes for a resolution to the most high-profile industrial dispute
since the
2002
firc-fighters’
strike rose after a change at the top ofunite and BA.
Williarns replaced Willie
Walsh, who became chiefofBA’s parent, lntemational Airlines
.
Group, while Mccluskey
assumed control from thejoint
general
$cretades
Tony.
Woodley and Der Simpson. Source: Gua.dian
Newspaper
30s May
2011. The dispute
has
been
running for nearly two
years
and has attracted media attention worldwide. Flopes
are
high that an agreement can finally be reached and the
company will be
able
to
forge
better lvorking relationships
with
staff. A central
issue
to this dispute is change and how it
is rnanaged within BA. In order to demonstrate
your
understanding ofthese issues,
you
are required to write a repoftthat considers the following issues:
l. Analyse the recent history ofBritish Airways and explain why changes have or
are happening.
2. Develop
an
appropriate model for change. incorporating issues related
to the
changes that
have
or
are happening within BA
3. Make recorrmendations about developing a strategy for change and how BA can
plan
to implement the chosen model for change. In order to successfully complete
this assigment. You are required to cany out further research and keep up to date
vr’ith developments at British Airways.
Hand
in:
TDB
For
lre1p
on referencing
please
see: httD://ist.olos.ac.uUreferencinq/harvard/
Williams
College
Strategic Change
Management
:
Course Schedule
Week Date
Action Required
1
23/02/72 Chonge Modelt John P Kotter’s eight steps to successful changej
Kiibler Ross
five
stages transition
(grief)
cycle; Prosci’s
five
building
blocks ADKAR
(awareness,
desire,
knowledge, ability,
reinforcement)
model. Kurt Lewin’s
change management models
–
unfreeze transition and refreeze.
2
08/03/12 Teamb.rilding consensus and conflict,
game play,
contingency
theory, autocratic versus
participative
style,
proactive
and
reactive, creating synergy; human
process
interventions;
technostructural
interventions;
human
resources
management
interventionsi organisational and external
env;ronment
interventions
3 7s/03/72 Need
chdngea reasons for change e.g. changes in markets,
economic downturns, changes in
global
markets, customer
expectations,
competitive edge,
budget
pressures,
legislation,
for
size, demographics, mergers, acquisitions,
change
in mission,
restructuring operations, new technologies, major collaboraiions,
rightsizing,
new
programmes
such as Total
Quality
Managemeni
(TQM),
re-eneineerins
4 28/O3/t2 Factors driving the chorge: change drivers e.g. economics,
political
factors, environmental, financial
pressures,
new
markets, loss of markets, technological advances, transition
to a
new chief executive, funding cuts, need to be competitive.
human resources e.g. restructuring,
interviewing and hiring,
redundancies, trainingj
physical
resources
e.g. equipment,
vehicles, buildings; financial resources e.g.
costs of training,
redundancy costs, relocation costs; new building, Refurbishment
of existing
buildings
5
72/04/72 Systems to involve stdkeholders: stakeholder analysis, systems
modelling, systems and sub-systems, input transformationoutput
modelling, multiple cause diagrams,’tropics’ factors,
configuration,
divergence and
convergence, functional and
divisional structures, cultural web, images
of organisations, team
development, ifi fluencing skills, awareness raising, commitment
development
6 19/14/72 Involving stakeholderc in the chdnge mdndgement strutegyi six
steps stakeholder circle
(identify
stakeholders,
prioritise
stakeholders,
map
their
profiles,
develop an engagement
strategy, optimise their support, monitor changes); methods of
lnvolvement e.g. dialogue
with
individuals and
groups,
meetings,
presentations, group
facilitation,
team building, coaching,
6
Williams college
Strategic ChanBe ManaBement
delegating,
developing and sharing a change
plan
7 26/04/12 Resistonce to chongq
types of resistance eg individual versus
collective,
passive
versus active, direct versus indirect,
behavioural versus verbal or atliludindl, minor versus major,
resistance
to the content of change, resistance to the
process
change.
8 03/0s/72 Stlotegtles: eg open communications,
education, involvement,
forums, listening to stakeholders, feedback,
addressing needs,
own€rship of the change, change
champions, communicate the
vision,
getting
the support of all key
power
players,
focus
on the
positives,
delivering training
programmes
9
70/0s/72
PIon to develop dppropriate models
10 17
/0s /72
for
chonEte: McKinsey’s 75
(strategy,
structure, systems, shared values,
skills, style, staff)
framework; Kurt
Lewin’s change management model-
unfreeze,
transition and refreezej
Burke Litwin’s causal
change model; action r esedr ch;
gap
analysis
Plon to implement d modelfor changei
oryanisalional
development, Business Process
Re-Engineering(BPR), learning
organisation, Kaizen, delayering
and
right
sizing, matrix
organisations, network organisations, adhocracy, virtual
organisation,
push
and
pull
strategies,
conflict handling,
transformational leadership, empowerment,
consultation,
contextual
planning,
contingency
planning,
adjustments,
flexibility
11 24/0s/72 Develop oppropriate meosures
to monitor
prcgfess:
goal
based evaluation,
process-based
evaluation, outcome-based
evaluation, regular reports, meetings,
quality
circles,
progress
reviews, milestones, deadlines
13
37/Os/L2 Submission of
assignment
ESSENTIAL TEXT
Blake I and Bush C
–
ProJect Manoging
Chonge:
Practicdl
Tools dnd Techniques
to
Mdke Change Hoppen
(Financial
Times/ Prentice
Hall, 2008) ISBN 0213720457
Cameron E and Green M
2009)
tsBN 0749453109
Calnall C
–
–
MakingSense
of Change Mansgement
Mondging Chdnge in Orgonizations,
5th Edition
(Flnanciallimes/
Prentice Hall, 2007) ISBN 0273704141
Diamond
M A and Allcorn, S
–
Ptivdte Selves in Public Otgonizotions:
The
Psychodynomics of Otgdnizationdl Diognosis ard
C/,onge
{Palgrave
7
Williams college
Strategic Change Management
lKogan
eg
Page,
Macmillan,
of
2009) tsBN 0230613098
Dunphy D,
Griffiths
A a nd Benn S
–
Orgonizationol
Chonge
Sustoddb/ity
(Routledge,
2007) ISBN 0415393302
Fullan M
–
Goncalves M
Leoding in a Culture of Chonge
-…
Uossey-Bass,
for
Corporate
2007) ISBN
07879a7662
Crdrge
Mdndgement: Concepts and Proctice
(Afterican
Society of
Mechanical Engineers, US, 2007) ISBN 0791802647
Grcen M
–
Chonge
MonogemenL Moslercloss
{Kogan
tsBN 0749445076
Helms-Mills
J,
Dye K and Mills A J
–
Page,
2OO7)
Urderstdnding Orgonizotional
Change
(Routledge,
2008) ISBN 041535577X
Herold D
M and Fedor
D B
Press, 2008) ISBN 0804758751
Kehoe D
–
–
Change the Woy You Leod
Chonge
Leoding ond Monoging
Chonge
(McGraw-Hill
tsBN 0070137889
Leban B
–
lstanford
Professional, 2008)
Monoging Otgonizotionol Chdnge, 2nd Edition
(JohnWiley
and Sons,
2007.) tsBN 0470897163
Lewis
5, Passmore P and Cantore S
(Kogan
Page,2007) ISBN
0749450711
NelsonS
–
lmplementing
for
Stewart Black, J
and
Gregersen H B
Results
–
Appreciotive
Inquiry
fot
University
Chdnge Mdndgement
1ALAEditions,
2009) ISBN 0838935796
–
/t Starlts with One: Changing
lndividuols
Chdnges Oryanizdtions
(Wharton
School Publishine, 2008) ISBN 0732319a45
Journals
Acodemy
of Monagement
Jounol
British Journal
of
Monogement
lA,cademy
{lohn
Colifornid Monogemert Reyiew
(LJniversity
Eu ro
peo
n Mo nd
ge
me nt J ou rn dl
lElseviet\
of Management)
Wiley
and Sons)
of California,
Berkeley)
Hdrvdtd Business Review
(Harvard
Business Publishing)
Joundl of Generol Manogement
Journdlof Mandgemert studtus
lBraybrooke
Wiley and Sons)
Md no
gem
iJohn
ent Todoy
(Haymarket
Buslness Media)
MIT Sloon Mdnaqemert Review
{Massachusetts
8
Press Ltd)
lnstitute of Technologv)
Williams
College
Strategic Change Management
Websites
www.businessballs.com
Change management articles
and links
www.changingminds.org
Useful articles on strategic change
by
leading theorists
www.managementhelp.org
Articles on strategic change
and further
links
www.themanager.org The
‘7s’
model of change
www.mindtools:com Lewin’s
change_managemenLmodel
i’r:
:r.
www.12manage.com Articles on the
framework for change
9
Wlliams college
Strategic
Change Management
SOLUTION
PeopleFeedbackTeamworkOrgansiationOutcomeCommunicationCultureBusinessClimateManagementMEssagesKeyPositiveEffectivenessBusinessGoalsEffectiveCommunicationsPeopleEvaluationSuggestionGiveDemandCustomerStakeholdersOwnersVendorsBusinessClimateManagementMessagesKeyPositiveEffectivenessBusinessGoalsEffectiveCommunicationsPeopleFeedbackTeamworkOrgansiationOutcomeShareholdersSystemInformationDisseminationAccessibleCulturalSensitivityLocalLanguageStaffingRecruitmentSatisfactionSupplyOrganisationalBehaviourSociologyBusinessGoalsEffectiveCommunicationsPeopleFeedbackTeamsCommitteeMeetingAppraisalEvaluationProfitabilityObjectiveManagerialSucessfulStrategyPlanPeopleFeedbackTeamworkOrgansiationOutcomeCommunicationCultureBusinessClimateManagementMEssagesKeyPositiveEffectivenessBusinessGoalsEffectiveCommunicationsPeopleEvaluationSuggestionGiveDemandCustomerStakeholdersOwnersVendorsBusinessClimateManagementMessagesKeyPositiveEffectivenessBusinessGoalsEffectiveCommunicationsPeopleFeedbackTeamworkOrgansiationOutcomeShareholdersSystemInformationDisseminationAccessibleCulturalSensitivityLocalLanguageStaffingRecruitmentSatisfactionSupplyOrganisationalBehaviourSociologyBusinessGoalsEffectiveCommunicationsPeopleFeedbackTeamsCommitteeMeetingAppraisalEvaluationProfitabilityObjectiveManagerialSucessfulStrategyPlanPeopleFeedbackTeamworkOrgansiationOutcomeCommunicationCultureBusinessClimateManagementMEssagesKeyPositiveEffectivenessBusinessGoalsEffectiveCommunicationsPeopleEvaluationSuggestionGiveDemandCustomerStakeholdersOwnersVendorsBusinessClimateManagementMessagesKeyPositiveEffectivenessBusinessGoalsEffectiveCommunicationsPeopleFeedbackTeamworkOrgansiationOutcomeShareholdersSystemInformationDisseminationAccessibleCulturalSensitivityLocalLanguageStaffingRecruitmentSatisfactionSupplyOrganisationalBehaviourSociologyBusinessGoalsEffectiveCommunicationsPeopleFeedbackTeamsCommitteeMeetingAppraisalEvaluationProfitabilityObjectiveManagerialSucessfulStrategyPommunicationCultureBusinessClimateManagementMessagesKeyPositiveEffectivenessBusinessGoalsEffectiveCommunicationsPeopleEvaluationSuggestionGiveDemandCustomerStakeholdersOwnersVendorsBusinessClimateManagementMessagesKeyPositiveEffectivenessBusinessGoalsEffectiveCommunicationsPeopleFeedbackTeamworkOrgansiationOutcomeShareholdersSystemInformationDisseminationAccessibleCulturalSensitivityLocalLanguageStaffingRecruit
Developing Corporate Culture
20/04/2012
By Lorem Ipsum
Word Count (3349)
mentSatisfactionSupplyOrganisationalBehaviourSociologyBusinessGoalsEffectiveCommunicationsPeopleFeedbackTeamsCommitteeMeetingAppraisalEvaluationProfitabilityObjectiveManagerialSucleFeedbackTeamworkOrgansiationOutcomeCommunicationCultureBusinessClimateManagementMsitiveEffectivenessBusinessGoalsEffectiveCommunicationsPeopleEvaluationSuggestionGiveDemandCustomerStakeholdersOwnersVendorsBusinessClimateManagementMessagesKeyPositiveEffectivenessBusinessGoalsEffectiveCommunicationsPeopleFeedbackTeamworkOrgansiationOutcomeShareholdersSystemInformationDisseminationAccessibleCulturalSensitivityLocalLanguageStaffingRecruitmentSatisfactionSupplyOrganisationalBehaviourSociologyBusinessGoalsEffectiveCommunicationsPeopleFeedbackTeamsCommitteeMeetingAppraisalEvaluationProfitabilityObjectiveManagerialSucessfulStrategyPlanPeopleFeedbackTeamworkOrgansiationOutcomeCommunicationCultureBusinessClimateManagementMEssagesKeyPositiveEffectivenessBusinessGoalsEffectiveCommunicationsPeopleEvaluationSuggestionGiveDemandCustomerStakeholdersOwnersVendorsBusinessClimateManagementMessagesKeyPositiveEffectivenessBusinessGoalsEffectiveCommunicationsPeopleFeedbackTeamworkOrgansiationOutcomeShareholdersSystemInformationDisseminationAccessibleCulturalSensitivityLocalLanguageStaffingRecruitmentSatisfactionSupplyOrganisationalBehaviourSociologyBusinessGoalsEffectiveCommunicationsPeopleFeedbackTeamsCommitteeMeetingAppraisalEvaluationProfitabilityObjectiveManagerialSucessfulStrategyPlanPeopleFeedbackTeamworkOrgansiationOutcomeCommunicationCultureBusinessClimateManagementMEssagesKeyPositiveEffectivenessBusinessGoalsEffectiveCommunicationsPeopleEvaluationSuggestionGiveDemandCustomerStakeholdersOwnersVendorsBusinessClimateManagementMessagesKeyPositiveEffectivenessBusinessGoalsEffectiveCommunicationsPeopleFeedbackTeamworkOrgansiationOutcomeShareholdersSystemInformationDisseminationAccessibleCulturalSensitivityLocalLanguageStaffingRecruitmentSatisfactionSupplyOrganisationalBehaviourSociologyBusinessGoalsEffectiveCommunicationsPeopleFe
Table of Contents
Introduction 3
Task 1 3
How models of organisation culture can be used to achieve organisational objectives 3
The difference between organisational and national culture 4
Analysis of the corporate cultural profile in an organisation 5
The impact of an organisation’s corporate culture in achieving its objectives 5
Task 2 6
Evaluate the existing climate of an organisation 6
Recommend ways to improve corporate climate in an organisation 8
Propose a framework of organisational values that meet the specific strategic and operational needs of an organisation 8
Task 3 9
Identify internal and external stakeholders of an organisation 9
Evaluate the effectiveness of an organisation’s existing communication strategies 9
Develop new communication strategies for stakeholders of an organisation that address differences in belief, values, customs and language 10
Conclusion and recommendation 11
Reference and bibliography 13
Introduction
In order to develop a corporate culture it is important to understand it’s definition. Geert Hofstede (1980) defines it as “the collective programming of the mind that distinguishes the members of one organisation from others”. Some of the other definitions include “cognitive framework consisting of attitudes, values, behavioral norms, and expectations’’ (Greenberg and Baron, 1997) and “the collective thoughts, habits, attitudes, feelings, and patterns of behavior’’ (Clemente and Greenspan, 1999).
People that make up an organisation come from different backgrounds. Their choices, education, preferences and experiences make them who they are. Once inducted into an organisation, they are influenced by and in turn influence the company’s culture.
The culture of an organisation impacts the achievement of the organisation’s goals and objectives. Therefore, the business must also be very clear about it’s objectives. An organisation in business is obviously in it to make money and increase shareholder wealth. In addition there may be other objectives like creating a powerful brand, giving back to the community, be the employer of choice, be the market leader of the segment etc.
The effective communication of these goals within the organisation works towards developing a “buy-in”amongst the stakeholders, bringing efficiency and productivity up.
This report presents an analysis of the prevailing culture at the world famous, UK headquartered retailer Marks & Spencer. To provide an insight into the extent to which the culture at M&S was responsible for it’s performance. Thereafter come some recommendations and strategies to improve the culture and hence drive organisational performance.
Task 1
How models of organisation culture can be used to achieve organisational objectives
There are many proposed models of organisational culture. There has been a sharp rise in the last couple of decades in research and study of corporate culture and its impact on an organisation’s health and goals.
There are multiple models for examining an organisation’s culture. The classification by Sonnenfeld (1988) divides the culture of an organisation into four different types or groups, the fortress, the club, the academy and the baseball team.
In the baseball team, the focus is on the individual. The employee is the star of the organisation with honed skills. They are naturally well paid, but may not be very loyal. The fortress is a bit of a troubled area, where most employees are concerned with keeping their jobs. There are rapid changes within the organisation and the key is to grab opportunities that arise as a result of this upheaval. The academy on the other hand, spends efforts and energies on the employee, exposing them to a variety of roles, positions and opportunities. The club’s interest is in making sure the employee fits in.
These models of organisation culture may be employed to study the prevailing climate in the organisation and then steer it towards achieving organisational objectives. It is important to examine what kind of climate prevails within a business and if it is conducive to the attainment of business goals. The analysis of company culture helps in identifying leakages in productivity due to a negative atmosphere. In addition, an understanding of the internal environment helps in the management of staff. This includes the hiring as well as external and internal placement of employees, promotions, reward and other actions.
The difference between organisational and national culture
National culture is the sum total of the values and beliefs of its people. It can be influenced by history, religion, geographic location and experience. According to Geert Hofstede, there are four dimensions of national culture (Geert Hofstede, 2005):
Power Distance (PDI)
Individualism versus Collectivism (IDV)
Masculinity versus Femininity (MAS)
Uncertainty Avoidance (UAI)
Later on, two other dimensions were added based on research by Michael Bond and Michael Minkov. These were, Long-Term Orientation (LTO) by Michael Bond and Indulgence versus Restraint by Michael Minkov.
Organisational culture on the other hand is the environment that exists within. This culture is a product of numerous factors that exist within an organisation, for example the communication methods, business goals, ownership pattern, history, background of employees, economic climate, country of origin etc.
Analysis of the corporate cultural profile in an organisation
To examine the corporate cultural profile of an organisation, we must employ a framework. The corporate cultural profile of Marks and Spencer can be analyzed within the four types of cultures, the baseball team, the academy, the club and the fortress as categorised by Sonnenfeld (1988)
The employees at Marks and Spencer are highly paid. Compared to the competitors their remuneration is certainly higher. The prevailing culture in this scenario is that of autocracy and “family like”. They seek individuals to recruit who they think will “fit into” the convivial, family like atmosphere.
There aren’t many changes made in the way Marks and Spencer does business. They are resistant to change and indeed renounce it. They are of the opinion that they “know” what the customer wants. There is also not much emphasis placed on seeking stakeholder feedback and acting upon it.
From the above it emerges that Marks and Spencer has a culture of the club. A kind of exclusive clique of individuals that are very convivial together and all “fit in”. Previously the customers were also happy with this culture as they themselves came from the same milieu.
The corporate culture at Marks and Spencer is also very strong. Which of course propelled them to succeed initially, but is detrimental in the current scenario of changing environment.
The lack of flexibility makes it very difficult for customers to get the organisation to listen. The autocratic approach discourages employees from making suggestions and raising flags when needed. This results in loss of business and a bad name for the organisation.
The impact of an organisation’s corporate culture in achieving its objectives
The culture of an organisation plays a major role in attaining its goals and objectives. People make up an organisation. Their performance determines the success and failure of any endeavor. Their attitudes, interaction and values determine their performance. The internal environment of the company influences the productivity levels of its employees in the following ways:
A hostile or negative environment leads to high employee turnover. This is a cost to the business both in terms of hiring and training costs. A high employee turnover detracts from the main objective of creating wealth. It also takes away from the business objective of making the organisation an attractive place to work.
A culture that is autocratic, bossy and unyielding hinders idea generation. Customer facing staff, for example is the best source of ideas for improving customer satisfaction. They are the front line staff that deals with all kind of customers and their needs. These employees must feel confident enough to offer their opinion on what can improve the customer experience or what takes away from it.
An open environment also encourages innovation.
Good communication with the organisation is of great importance as well. A culture of secrecy and non sharing of information breeds mistrust and a negative work environment. This directly impacts the morale of the people and brings productivity down.
Vague communication of the goals and objectives of the organisation do not allow the employees to see the bigger picture. The idea that one’s work actually has a tangible impact is a powerful one. If the employee is conveyed this simple piece of information, it makes a huge difference to her morale and initiative to work.
Task 2
Evaluate the existing climate of an organisation
From the scenario describing the corporate culture it emerges that the atmosphere at Marks and Spencer was autocratic and unyielding to change. For the longest time it remained dominated by the family at the top management level as well. Moreover, the recruitment of staff was also driven by the need for the new joiners to “fit into” the family like atmosphere of the retailer. They were also better paid than at other organisations. This covered Marks and Spencer under a kind of blanket of security where the changes in the outside world were kept out.
This describes the parochial approach of the organisation. They were trying to fit the market and the customers to their way of doing things rather than taking an outside in approach of making the customer needs, wants and satisfaction as the guiding principal.
Having said that, this family like atmosphere and the efficient way of conducting the business also paved the way to their early success. The convivial atmosphere at the shops was indeed an attractive feature, as the customers themselves were from a similar context.
They failed, though, to manage for change. The market and the customer profile changed around them. The family like atmosphere and culture was totally focused on itself rather than the market and the customers. The competitors, meanwhile were reacting to the fast changing milieu and adapting to gain from these shifting needs. The family, that was Marks and Spencer, was hierarchical and slow to respond to the environmental changes.
As the chain of command was well defined and all decision making was centralised, the response time and the the transaction, local level was long. Long response times on matters that need quick resolution is detrimental to business. All decisions flowed from the top and the local issues and problems were allowed to fester as the ground staff, facing the customer could do little on their own.
This kind of autocratic and czarlike manner of conducting business thwarted initiative and quick decision making by the front line staff. This is key to the context that Marks & Spencer was operating in. Big turnaround times cost the business dearly. This resulted in lower sales and dissatisfied customers.
Marks and Spencer believed in fitting the customer to its way of doing things rather than adapting and changing itself according to the needs of the customer.
Marks and Spencer was also foraying in to newer geographical locations. This homogeneity of culture within the organisation does not fit in with the various national cultures. If the organisation is unwilling to adapt itself to the changing scenario, it will perish.
Recommend ways to improve corporate climate in an organisation
As the corporate climate affects the performance of the employees as well as the business itself, it must be the on going effort of the Human Resource Division and indeed the entire organisation, to foster and maintain a positive environment.
In the case of Marks and Spencer, The corporate culture could be improved by taking the following steps:
Communicating the goals and objectives of the company clearly to all stakeholders.
Measure and understand employee satisfaction
Putting customer rather than the company culture first. Understand what the customer wants.
Take regular customer feedback and also bring about changes to demonstrate that it takes its customer’s concerns seriously.
Gearing the organisation to adapt to change by hiring the right people to do the job rather than to “fit” the culture of the company.
Appropriate training and investment in human capital to empower the staff to take the right decision – for the customer as well as the organisation.
Propose a framework of organisational values that meet the specific strategic and operational needs of an organisation
Values are the guiding principals of an organisation. These values determine the culture of the business. These values also drive or deter the efforts of meeting the orgasniational goals and objectives. The world’s most admired employer, General Electric focuses on integrity above all. These values determine how the employees interact with each other and how they do their jobs.
The following framework of values are proposed to meet the specific strategic and operational needs of an organisation:
Integrity: Incorruptible and honest approach to work. Intact personal integrity ensures honest dealings with vendors, customers and all stakeholders.
Teamwork: Working and interacting in a team. Co-operating and supporting colleagues and working in tandem to meet deadlines. Not resorting to blaming and accusing, but arriving at agreements within a well defined framework and code of conduct. All conflict situations to be dealt with with fairness and probity.
Customer Focus: The reason the organisation exists is its customers. Focus on the customer and her needs. Customers are to be heard and kept in touch with. Listening to them and always striving to delight.
Quality: Quality in our work, quality in our conduct and quality in communication. Working with a quality focus
Respect for time: Respect for the customer’s time, for the colleagues time and also for my own time. This value will ensure the timely meeting of deadlines.
Reward and Recognition: To ensure that performance is justly rewarded and that innovation doesn’t go unrecognised.
Communication: Honest, open and timely communication to the customer, colleagues and other stakeholders.
Task 3
Identify internal and external stakeholders of an organisation
Stakeholders of an organisation are people or entities that are linked to the business and are influenced or affected by the choices that the organisation makes.
These stakeholders may be classified into internal and external stakeholders. Internal stakeholders are the employees, managers and owners of the company. The external stakeholders are not actually employed by the organisation but whose lives still might be affected by the decisions made by the organisation. These include of course the customers – the lifeblood of any business, lenders, vendors, creditors, local authorities etc.
In the case of Marks and Spencer, the staff at the shops and top management would constitute internal stakeholder and the customers, suppliers, banks, credit card companies would be the external stakeholders.
Evaluate the effectiveness of an organisation’s existing communication strategies
For any strategy to succeed, it is important to measure the effectiveness of the said strategy. This measurement unveils the gap between where the organisation is and where it wants to be. Then, appropriate steps may be taken to bridge this gap.
In the given scenario, at Marks and Spencer, the communication strategy appears to be a top down approach. The top management pretty much decides and defines the messages to be communicated, without the involvement of and feedback from the front line staff.
This approach is not very effective in a shifting business environment. According to Marks and Spencer, they are present in multiple markets and countries with different modes of entry and operation. This throws up communication challenges quite different from the home market, which is in fact also changing rapidly.
A communication strategy that does not take into account these cultural differences will fail to support the attainment of organisational objectives. The local market has different needs, which are to be fulfilled with offerings that match. These differences may stem from different languages, beliefs, rituals, background and also culture and geographic locations.
The present culture of hierarchical and autocratic dissemination of decisions and information will fail to capture the local nuances.
In order for the communication strategy to be effective, the messages must appeal to the target audience. The strategy must engage the audience and develop a give and take process, that captures feedback and improves the message with the necessary changes. This seems to be absent from the current scenario.
Develop new communication strategies for stakeholders of an organisation that address differences in belief, values, customs and language
Diversity in customs, values, beliefs and language pose a huge challenge to multinational organisations in developing their communication strategies. The heterogeneity of the target audience makes the exercise interesting and challenging. According to Marks and Spencer (n.d) they operate over 300 stores in 43 locations spread across Asian, European and Middle Eastern countries. This diversity of culture, languages, beliefs and values makes the communication agenda very crucial to the success of the business.
Marks and Spencer operate in a very competitive environment. They must first determine the target audience and objective of developing this strategy. The objectives can include the following:
◦ Brand image of the organisation – If they were a person, how old would they be, where would they live and what would they wear.
The strategy must address the communication needs of the internal stakeholders ie the owners, managers and employees as well as the external stakeholders ie the suppliers, banks, customers etc.
In order to make the communication palatable to the diverse group of people, it will be important to hire domain experts in the local customs, language and culture. The key messages must be available in the local language(s).
They can employ a wide array of tools to gain information and disseminate key messages to the stakeholders. It is vital that the messages be simple, clear and available in the local language(s). Some helpful tool can be telephonic surveys, simple observation of the target, regular meetings with stakeholders and also mystery shoppers.
Customers : Marks and Spencer should make it simple for customers to contact them with feedback and service related issues. The company must be mindful of the language and culture barriers. To communicate to the customers, they must use every available channel, ie print, television, radio and the internet. The market is changing fast, and the organisation must be seen to change with it.
Employees: Focus on communicating all strategic changes to the employees. They make up the organisation and need to be aware of the message that the company wants to give out. Also, the reverse flow of information is also vital. The employee must be aware of the channel and method of giving feedback received in the course of business as well as feel free to suggest ideas and raise red flags.
Others: Marks and Spencer must focus on disseminating and collecting information in different languages and to accommodate for cultural differences.
Above all, the strategy must be flexible and proactive. Not just wait for a crisis before taking action, but in fact be prepared to make necessary changes based on intelligence received from the ground.
This can only be achieved with a buy in from the stakeholders. They must see themselves as being part of the larger picture and in fact in a position to influence it.
Conclusion and recommendation
In conclusion, it is quite evident that the prevailing culture of an organisation may make or break the business. It is important to foster an internal environment that makes it easy for employees to work and interact with each other. It is equally important to be mindful of external factors that might impact the business and be prepared with strategies to counter that and to have a team that can react quickly and swiftly to any challenge.
The communication strategies of an organisation play a very vital role in the success of the business. There are numerous stakeholders in an organisation, both internal and external. Effective and timely communication of goals, expectations, achievements, tasks, changes and other important messages, keeping in mind the diversity in language, belief, values and customs is of paramount importance.
The following recommendations are put forward:
1. Well defined organisational goals are important. What is equally important is the unambiguous communication of these goals to the stakeholders. Marks and Spencer must identify what is it that they are in business for. Then, disseminate that information to the stakeholders. This will provide a glimpse of the big picture to the people and entities whose contribution is required and indeed vital to complete that big picture.
2. Hierarchical, parochial and centralised structures and decision making processes will hinder goal attainment. Marks and Spencer need to get leaner and meaner. They need to adapt to the changing milieu in order to remain profitable or in fact in order to survive.
3. Organisational culture must be positive, encourage free flow of information and must empower employees to do right by the company as well as the customer.
4. Instead of giving the customer what they think is right, Marks and Spencer must understand what is it that the customer wants and then work out the most cost effective method of getting it to them. This value must also be understood and practiced by all the employees.
Reference and bibliography
Hofstede, G., 2005, Cultures and Organizations: Software of the Mind. 2nd Edition, McGraw-Hill USA
Greenberg, J., & Baron, R.A.,1997, Behavior in organizations, 6th edition. Englewood Cliffs, NJ: Prentice-Hall.
Clemente, M.N. and Greenspan, D.S. 1999, Culture clashes, Executive Excellence, Vol. 16 No. 10, p. 12.
Sadri, G. and Lees, B.,2010, Developing Corporate Culture as a Competitive Advantage, Journal of Management Development
Air War College, Office of Planning and Analysis, 2002, Management Benchmark Study, Section 4. Key Attributes for Mobilization and Flexibility, viewed on 19th April 2012 at http://www.au.af.mil/au/awc/awcgate/doe/benchmark/ch11.pdf
Marks and Spencer, n.d., About us, viewed on 19th April 2012 at http://corporate.marksandspencer.com/aboutus/where/uk_stores
Sonnenfeld, J., 1988, The Hero’s Farewell, Oxford University Press, New York, NY
General Electric, n.d., Working Environment, viewed on 20th April 2012 at http://www.ge.com/company/culture/working_environment.html
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