"Organizational culture" is the phrase that most companies are also familiar. But the question: Which form of culture companies belong to, how to change and construct to adapt to the new requirements that many leaders still vague. The purpose of the research is to inves¬tigate the organizational culture, to identify and describe the reasons for changing of organizational culture and the way to implement. From these arguments, the assignment will provide an example about the successful change of culture of some Vietnamese companies. I conducted the report by carefully selecting the right theory used to analyze in addition to collecting information in books and articles.
Organizational Culture Page Excutive summary Andrew Brown (1995, 1998) stated the organizational culture in his book Organizational Culture is as follows: “Organizational culture refers to the pattern of beliefs, values and learned ways of coping with experience that have developed during the course of an organization’s history, and which tend to be manifested in its material arrangements nd in the behaviours of its members.” (Shili Sun, 2012, Organizational Culture and Its Themes, International Journal of Business and Management, Vol 3, No 12, School of Foreign Languages, Ludong University) Culture plays an important role in organization, because it impacts on all aspects on the whole and particularly strategy "Organizational culture" is the phrase that most companies are also familiar But the question: Which form of culture companies belong to, how to change and construct to adapt to the new requirements that many leaders still vague The purpose of the research is to investigate the organizational culture, to identify and describe the reasons for changing of organizational culture and the way to implement From these arguments, the assignment will provide an example about the successful change of culture of some Vietnamese companies I conducted the report by carefully selecting the right theory used to analyze in addition to collecting information in books and articles Introduction Organizational Culture Page Organizational culture is one of the most important factors of company’s success or failure Each company has an organizational culture, and depending on its strength, the organizational culture may have a prominent impact on the members of organization, their values and behavior The assignment analyzes and evaluates the importance and necessary of changing culture in organization This report discusses five issues: Identifying organizational culture Evaluating the importance of Organizational culture Indicating the reasons for changing culture of an organization Using Kotter’s eight-step plan to explain the implementation of change; Contact the case of Viet Nam What is organizational culture? Culture of an organization is a concerned issue, because it plays an important role in success of an organization Therefore, there are numerous of definitions about organizational culture of different scholars “Organizational culture is a system of shared meaning held by members that distinguishes the the organization from other organizations” (Stephen P Robbins, Timothy A Judge, 2011, Organizational behavior, Pearson Education, Inc.,) Andrew Brown (1995, 1998) stated the definition of organizational culture in his book Organizational Culture is as follows: “Organizational culture refers to the pattern of beliefs, values and learned ways of coping with experience that have developed during Organizational Culture Page the course of an organization’s history, and which tend to be manifested in its material arrangements nd in the behaviours of its members.” (Shili Sun, 2012, Organizational Culture and Its Themes, International Journal of Business and Management, Vol 3, No 12, School of Foreign Languages, Ludong University) Organizational culture refers to the complex set of ideologies, symbols, and core values that are shared throughout the firm and that influence how the firm conducts business (Hitt, M.A., Ireland, R.D., and Hoskisson, R.E (2012) Strategic Management: Concepts and Cases: Competitiveness and Globalization, Edition 8, or 10 South-Western) Based on these literatures, I suppose that organizational culture is a “soft” factor within an organization, so, managers need to study carefully and try to find the way to have the harmony combination between it and other “ hard” factors Generally, organization culture is the variety of important values, beliefs, and understandings that members share in common Moreover, culture could help managers to make decision and arrange activities of organization by providing better ways of thinking, feeling and reacting Therefore, I believe that a successful organization should have strong cultures Why Culture is important in The Organization? “If you don’t maintain Southwest’s culture, you don’t have anything special.” Colleen Barrett, former President Southwest Airlines According to the Michael Porter, successful companies are characterized by following conditions The first is the presence of high barriers to entry A second condition is nonsubstitutable products Third, a large market share enhances success by allowing your Organizational Culture Page firm to capitalize on economies of scale and efficiencies A fourth condition is low levels of bargaining power for buyers Fifth, suppliers have low levels of bargaining power The sixth and final condition is rivalry among competitors However, the most successful U.S firms such as Southwest Airlines, Wal-Mar, Tyson Foods, Circuit City, and Plenum Publishing have not been the recipients of any of the so-called prerequisites for success So, what differentiates these extraordinarily successful firms from others? The answer lies on something less tangible, less blatant, but more powerful than the market factors listed earlier The most important competitive advantage of these companies is their organizational culture (Kim S Cameron, Robert E Quinn, 2006, Diagnosing and Changing Organizational Culture: based on the competing values framework, The Jossey-Bass Business & Management Series) A strong, unique culture to reduce collective uncertainties, create social order, create continuity, create a collective identity and commitment, and clarify a vision of the future Therefore, I belive that culture is a crucial factor in the long-term effectiveness of organizations, it is neccessary that the managers should study or manage organizational culture to measure key dimensions of culture, develop a strategy for changing it, and begin an implementation process Why organizational culture need to changed? “If you get the culture right, most of the other stuff will just take care of itself.” Tony Hsieh, Founder and CEO of Zappos.com Organizational Culture Page Changing organizational culture is a process of changing some or all of the elements that make up the organizational culture such as the concepts of values, ethical standards, business philosophy, management methods, policy which were members accepted Changing organizational culture is also the process of consolidation and development of organizational culture to achieve the goals Culture is changed to more in line with the development of organization The process of changing does not takes place simply, that require the efforts and contributions of all members of the business Organizational culture is formed, strengthened, maintained and developed through generations of members of organization over the years Every member implicitly acknowledged cultural values and very concerned to changing Because of these reasons, it is very difficult to make changes organizational culture So, why organization need to change culture? The reasons for that may be presented two main groups Firstly, factors indirectly influencing changing of organizational culture (macro- environment of an organization) include: Economic, Demographic, Political, Sociocultural, Global, Technological The change of these factors lead to the change of organizational culture, because culture exists around organization, which is an apart of landscape When landscape change, culture also need to adjust to match with situation and strategy The demographics– for example, the percentage of young people in the work force grows, therefore, culture require new approaches to knowledge transfer; New technologies are explosived – requiring new cultural attitudes to realize the benefits; Attitudes such as these are demonstrative of a culture in need of change; The economic Organizational Culture Page environment includes the organization’s market, its competition and its suppliers Markets are changing quickly today In many lines of business competition has become a global issue This create pressuare for organization to change the culture for developing competitive advantage; Socio-cultural Changes are known by feeling in a rapidly changing, multicultural environment, where they have to face with the impact of ambiguously known powers from all over the world; Political and legal developments have their own impacts on changes of organizational culture Organization is managed by government, therefore, its culture have to adjust to match with regulatuions and rules of government In my opinion, though external factors have indirect influence on change of culture, it is strong and urgent Thus, it is critical for managers to find out these factors A second group, factors directly influence changing of organizational culture (microenvironment of an organization) When an organization is faced by a changing marketplace or regulatory environment, a shift in strategy, the implementation of a new technology, or new processes, the established culture is changed without it will obstruct these changes For that reason, the success of major organizational change are almost always dependent on cultural change The change of organization’s objectives require new skills, processes and attitudes to meet the objectives A new management, a new team leader, a new boss brings a change in the organization culture according to his style of working, behaviour and ideologies Financial loss, bankruptcy, market fluctuations also result in change in culture of the organization Acquiring new customers might lead to a change in the culture because employees might adjust in their style of working to meet the Organizational Culture Page expectations of the new clients Besides, troubles were found in internal operation such as poor organization, low employee morale, and value discrepancies between organization and staffs, which also are causes of change To sum up, there are the massive reasons for the change of culture in the organization, but they are belong to two main groups: the change of external and internal environment They always change as a rule of nature, so organizational culture also shift to help organization not be removed from the game How to Change organizational culture? Figure Kotter’s Eight – stepp Plan for Implementing change (Source: Based on J.P.Kotter, Leading Change ( Boston, Harvard Business School Press, 1996) Organizational Culture Page John Kotter of the Harvard Business school built a model for implementing change ((Stephen P Robbins, Timothy A Judge, 2011, Organizational behavior, Pearson Education, Inc.,) I suppose that if change of organizational culture apply this model, it will be successful Create a sense of urgency By studying the transformation of external and internal environment, organization will define opportunities & threats, strengths & weaknesses for conducting business By doing that, Organization also realize that its culture have to change for the new landscape Put together a strong enough team to direct the process As the initiator of change, leaders who play an extremely important role in the process of changing corporate culture If want others to change, first of all themselves to change Leaders need to set an example in all acts, to make the other members to follow Create an appropriate vision Organization develop a vision that is the ideal picture of the business in the future Oriented vision is to build corporate culture Future organization may be different than it is Communicate that vision broadly It is necessary to construct statements about values and beliefs and organize small discussion groups in each department to convey the mission, vision and values of the organization into words and explain the impact of the statement on the work of each employee By doing this will help the staff have a common understanding of the cultural Organizational Culture Page environment that organization want to build and the actions as well as behaviors that they have to make to reflect the new cultural style Empower employees to act on the vision - Remove all barriers - Encourage ideas, bold action, not traditional, to take risks Produce sufficient short-term results to give their efforts credibility and to disempower the cynics Organization have to inform all employees about the process of cultural change of the organization in order to ensure their commitment and success of the process of cultural transformation Employees need to know what to expect from them is very important in changing organizational culture It is important to recognize and reward employees Enterprises may have to this to encourage employees to adjust their behavior to fit a new cultural environment Never Letting Up Use increased credibility to change systems, structures, and policies that don't fit the vision, also hire, promote, and develop employees who can implement the vision, and finally reinvigorate the process with new projects, themes, and change agents Incorporating Changes into the Culture Articulate the connections between the new behaviors and organizational success, and develop the means to ensure leadership development and succession It is crucial to note that cultural change is not easy nor too difficult It takes time, at least a year, or about 3-6 years and requires effort and vigilance A long-term support and Organizational Culture Page 10 patience is necessary Proponents of change have to be an example of the behavior that they want to see in others If they not convey a consistent message and keep the clear message, cultural change can only be considered as a "model in the glass" Cases of Viet Nam In Vietnam, many enterprises have been successful thanks to good business culture and most of them chose people as core in the process of building organizational culture Although born after many retail technology companies, but Mobile World is still able to make the turnover better than competitiors One of the advantages of this company is recognized as professor and "culture" "Mobile World identify human resources is a key factor to produce all the resources of the company Therefore, we focus on attracting talent, professional training and technology, adequate remuneration to build a powerful force for sustainable development of the company, "said Dinh Anh Huan, Director Business Mobile World said Truong Ngoc Phung, representing Company Mekong Capital Management, also share relevant experience: "Before the Mekong Capital change culture, sales of Mekong Capital often fail to achieve The reason is that all members are arguing for the sake themselves, almost always controversial meeting but did not solve anything And company decide to change the business culture, particularly change dialogue culture, people in company started more friendly, all problems are shared, we created special for each one leadership " Or twice a month, the company organize the competition in many areas, threads Organizational Culture Page 11 between departments, for the group interview employees who perform well on the job, then a book recounting successful people who how have successfuly adopted the change of culture of the company Organizational Culture Page 12 ...Excutive summary Andrew Brown (1995, 1998) stated the organizational culture in his book Organizational Culture is as follows: ? ?Organizational culture refers to the pattern of beliefs, values and... Organizational Culture Page Organizational culture is one of the most important factors of company’s success or failure Each company has an organizational culture, and depending on its strength, the organizational. .. Judge, 2011, Organizational behavior, Pearson Education, Inc.,) Andrew Brown (1995, 1998) stated the definition of organizational culture in his book Organizational Culture is as follows: “Organizational