Generalized Theories and Concepts to be used in the Case Study
Some of the key topics learned in this week’s lecture with reference to the case study of Pace (manufacturer of set-top boxes) are briefly defined and explained as follows:
Culture: Hofstede, G. H. (1991) defines culture as the “collective programming of mind” that provides a base for the distinction between different cultures and ethnic groups.
The role of Culture in Organizations: It helps employees to be aware of organizational goals and objectives and make their efforts aligned to those objectives. It directs employees to develop certain cultural values such as hard work, flexibility, loyalty, commitment, and excellence in quality and service in the best interest of organization (Lewis, 2011).
Possible Outcomes of Changing Organizational Culture: Peters & Austin (1985) is of the idea that changing organizational culture can results in lower employee turnover; increase their productivity; provide better solutions towards conflict management; establish the good relationship among staff members working on different levels; allows for an atmosphere of shared responsibilities; etc. This is also suported by the study of Lewis (2011).
Testing and Application
Answer to question 1
Before assessing the nature of the values set out by Pace, it is important to provide brief understanding to key types of organizational values. Espoused values, as the name implies, are the moral standards for any business that guide its policies in present and future. These are adopted values. On the other hand, values in use are the organizational values that are developed after defining the key objectives. Personnel are stimulated to contribute in a predefined direction, and all their efforts are focused on that mission. The values created in this way are called values in use (Busch & Murdock, 2014).
Now the question that arises is whether the five values developed in the staff of Pace belong to the category of espoused or ‘in-use’. For this purpose, first, the writer will have to have a look at the organizational culture at the company before the changes were made. As a matter of fact, the company was suffering critical financial loss before the new HR Director took his charge. He identified many drawbacks with existing cultural setup and made every effort to bring positive change. For this purpose, he incentivized the adoption of positive job behavior and attitude. Based on these findings, it can easily be established that the underlying five values belong to the category of espoused values, as members in the personnel adopted these values as a result of change. However, it is also true that organization was plagued by a gap of communication before the new setup came in place. There may be the existence of these five values, but the organization was not able to capitalize on them due to the poor mechanism of communication and coordination. Therefore, there is equal chance of their being values in use.
Furthermore, it is also evident that espoused values refer to ‘insisting on excellence’ while the value in use is more directed towards artifacts (Sims, 2002). Underlying change in the organizational culture was the proper display of artifact blended with zeal to improve the quality of services. It also ensures that the glimpse of both these types of values can be observed in five underlying values. However, the author could not identify any other than standard values relating to the culture at Pace.
Answer to question 2
Having gone through the case study, it is crystal clear that it has undergone a change from an atmosphere of non-collaboration and gap of communication to the proper mechanism of communication and streamlined business activities based on collaboration among high and low ranked staff members. It rules out the possibility of ‘apparent change. As for the choice between revolutionary and incremental change, the underlying change is more inclined towards revolution. New job behaviors are introduced by new HR director. Furthermore, new Pace values including integrity, passion, accountability, appreciation, and innovation and new Pace behaviors were introduced that were certainly missing in the old setup of business. Furthermore, the remark i.e. four out of total eight layers of the organization were removed itself is indicative of a revolutionary change in the organization.
Answer to question 3
Yes, the writer agrees to the underlying perception of the leaders about the impact of cultural change on the change in the organizational performance. A better idea of this consideration can be gathered from the fact that the company was in huge financial loss before the change was implemented and its sales and profitability were suffering a persistent downfall. Then, new HR director realized the need for organizational change and implemented that same. In this way, he introduced new cultural values. New system promised the highest level of communication and collaboration. New organizational values and behaviors due to certain incentives associated with them boosted the quality of services that resulted inincreased level of customer satisfaction. Hence, the company made a strong comeback from the verge of a disaster that certainly is indicative of a radical improvement in performance.
However, from a different critical angle, the developed scenario can also be viewed as merely a change in leadership, as basic assumptions and business philosophies are same as before. From this perspective, it looks as though no changes were made with culture made, and the underlying amendments are confined to the set of policies (instead of culture). However, new behaviors, characteristics, and job attitude developed among employees do not support this perception.
Reflection
The study of the underlying case serves as a great booster to practical thinking and analytical skills of the writer relating to organizational culture. It is established that communication gap and certain drawbacks in organizational culture can put question marks on the organizational productivity, profitability, and competitive strength. In such situation, a well directed approach and change in culture can help optimize all business activities. Furthermore, the role of incentive is also vital in shaping the desired job behaviors, and values among employees or reshaping different dimensions of culture (Hofstede, 1991).
In order to improve the rate of customer satisfaction, it is important for personnel and workforce to follow a proper set of espoused organizational values (Hofstede, 1991). And, to make them follow these values in an organized and passionate way, and it is also important to incentivize them. The example of Pace in the underlying case study to show how it achieved experienced radical improvement in performance through revolutionary change has broadened the vision of the writer. These lessons will also help him in his practical life as in future he is appointed to play a managerial post in any organization. He will always consider the change in the organizational culture as a possible option whenever devising the ways to improve the level of his organizational profitability keeping in view the current status of different dimensions of culture and their status in the background of changing trends, as also emphasized by Hofstede (1991).
List of References
Amado, G., Ambrose, A., & Amato, R. (2001). The transitional approach to change. London: Karnac Books. Available from https://books.google.com.pk/books?id=ke_8vEuXvOsC&printsec=frontcover&dq=The+transitional+approach+to+change&hl=en&sa=X&redir_esc=y#v=onepage&q=The%20transitional%20approach%20to%20change&f=false [Accessed 12 April 2016]
Busch, T., & Murdock, A. (2014). Value-based leadership in public professions. Hampshire: Palgrave Macmillan. Available from https://books.google.ae/books?id=U0UdBQAAQBAJ&pg=PR4&lpg=PR4&dq=Busch,+T.,+%26+Murdock,+A.+(2014).+Value-based+leadership+in+public+professions&source=bl&ots=RZ1TB1rSdW&sig=73BCs18omdhIWalRRycAHB8gwY8&hl=en&sa=X&ved=0ahUKEwiX5dCctYvMAhXEXhoKHQFsAh0Q6AEIIDAB#v=onepage&q=Busch%2C%20T.%2C%20%26%20Murdock%2C%20A.%20(2014).%20Value-based%20leadership%20in%20public%20professions&f=false [Accessed 12 April 2016]
Hofstede, G. H. (1991). Cultures and organizations: Software of the mind. Available from http://www.novsu.ru/file/1092483 [Accessed 12 April 2016]
Peters, T. J., & Austin, N. (1985). A passion for excellence: The leadership difference. New York: Random House.
Myers, P., Hulks, S., & Wiggins, L. (2012). Organizational change: Perspectives on theory and practice. Oxford: Oxford University Press. Available from https://books.google.com.pk/books?id=h3_tYAye7JoC&printsec=frontcover&dq=Organizational+change:+Perspectives+on+theory+and+practice&hl=en&sa=X&redir_esc=y#v=onepage&q=Organizational%20change%3A%20Perspectives%20on%20theory%20and%20practice&f=false [Accessed 12 April 2016]
Sims, R. R. (2002). Managing organizational behavior. Westport, CT: Quorum Books. Available from https://books.google.ae/books?id=NUhNEWv_aokC&pg=PP7&source=gbs_selected_pages&cad=2#v=onepage&q&f=false [Accessed 12 April 2016]
