Organization

Organization culture
culture and
and issues
issues
involved
involved in
in change
change management
management

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What is Culture?

 Personality of the organization.

 Comprised of the assumptions, values, norms and
tangible signs of organization members and their
behaviors.
 Difficult to express distinctly, but everyone knows it
when they sense it
 Particularly important when attempting to manage
organization-wide change

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Importance:

Organizational change failure is credited to lack of

understanding about the strong role of culture and the role
it plays in organizations.

That's one of the reasons that many strategic planners now

place as much emphasis on identifying strategic values as
they do mission and vision.

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Types of Culture : -

There are different types of culture just like

there are different types of personality

 Academy Culture (highly skilled and tend to stay in the

organization) Eg :universities, hospitals, large corporations, etc
 Baseball Team Culture (Employees are "free agents" who
have highly prized skills,high demands)Eg : Investment
banking, advertising, etc.

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Types of culture
 Club Culture (Requirement for employees in this culture
is to fit into the group)Eg : Military, some law firms, etc
 Fortress Culture (Employees don't know if they'll be laid
off or not. These organizations often undergo massive
reorganization) Eg : savings and loans, large car
companies, etc.

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Lewin’s Three-Step Change Model

Unfreezing Moving Refreezing

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Implementing Change
Unfreezing: getting ready for change
Moving: making the change
Refreezing: stabilizing the change

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Unfreezing
Arouse dissatisfaction with the current state
Activate and strengthen top management support
Use participation in decision making
Build in rewards

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Moving
Establish goals
Institute smaller, acceptable changes that reinforce
and support change
Develop management structures for change
Maintain open, two-way communication

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Refreezing
Build success experiences
Reward desired behaviour
Develop structures to institutionalize the change
Make change work

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Overcoming Resistance to Change
Education and communication
Participation and involvement
Facilitation and support
Negotiation and agreement

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Case Study:-

ICICI Bank merger with Bank of Madura (December 2000)

What does it reveal ?

It reveals the importance of change management for the

Bank of Madura and how effective management of change
could bring out best results from the employees in the
Bank of Madura.

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ICICI Bank Ltd
 ICICI was established by the
Government of India in 1955
 3 times the size of BoM
 Staff strength was only 1,400
 departments into individual
profit centers
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Bank of Madura (BoM)
 Established in 1943 at
Madurai, Tamil Nadu. By
2000, it was number one bank
in Tamil Nadu
 One third the size of ICICI
 Staff strength was 2,500
 management concentrated on
the overall profitability of the
Bank
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Immediate Impact

There were large differences in profiles,

grades,designations and salaries of personnel
there was uneasiness among the staff of BoM as they felt
that ICICI would push up the productivity per employee,
to match the levels of ICICI
BoM employees feared that their positions would come in
for a closer scrutiny.
They were not sure whether the rural branches would
continue or not as ICICI's business was largely urban-
oriented.

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Employee behavioral pattern study

PERIOD  EMPLOYEE BEHAVIOR

Day 1 Denial, fear, no improvement

After a month Sadness, slight improvement

After a Year Acceptance, significant

improvement
After 2 Years Relief, liking, enjoyment,
business development activities
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Steps taken to Decrease resistance of
change by ICICI
Established clear communication channels throughout
Training programmes were conducted which emphasized
on knowledge, skill, attitude and technology to upgrade
skills of the employees
direct dialogue with the employee unions of the BoM to
maintain good employee relations

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By June 2001, the process of integration
between ICICI and BoM was started
ICICI transferred around 450 BoM employees to ICICI
Bank, while 300 ICICI employees were shifted to BoM
branches.
Promotion schemes for BoM employees were initiated
and around 800 BoM officers were found to be eligible for
the promotions.
End of the year, ICICI seemed to have successfully
handled the HR aspects of the BoM merger.

“The win-win situation created”

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We do put people under stress by raising the bar
constantly. That is the only way to ensure that performers
lead the change process.“ K. V. Kamath, MD & CEO,
ICICI

Noticing Small Changes EarlyHelps You Adapt To The

Bigger Changes That Are To Come
Change Happens, Anticipate Change, Monitor Change,
Adapt To Change Quickly.
Enjoy Change!Be Ready To Change Quickly And Enjoy
It Again
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