Organizational Culture and Transformation

Armenakis, A., Brown, S., & Mehta, A. (2011). Organizational culture: Assessment and transformation. Journal of Change Management, 11(3), 305–328.

This paper explains the Organizational culture as a system of shared beliefs held by all members and created by the top leaders. Authors stated that organization’s culture can be described in terms of a cultural elements’ framework, comprising artefacts, espoused beliefs/values and underlying assumptions. Culture being an integral part of an organization, needs to be aligned with its environmental needs and if not, then change is required. The transformation consists of Change content and change process. For this, authors explained two models, one for creating Readiness for change, called the Readiness model and other for adoption of organisational change, called the Institutionalisation model. Readiness models suggest that organisations should first create readiness with the help of change agents through communicating the change message to the change recipients. This change message should influence the five beliefs of change recipients namely, Discrepancy, Efficacy, Appropriateness, Principal support and Valence. For that certain strategies are suggested in the model like, Persuasive Communication, Active Participation and Management of External Information. 

Lastly, Assessment is done that includes measurement of beliefs of change recipients to evaluate how ready they are to begin the implementation process. If recipients still resist change then more resources can be allocated to increase the efforts spend on one or more of the strategies. After creating readiness, next step is the institutionalization/implementation of change and for this, Institutionalization model is proposed. This model is used to plan and guide the Change Implementation. Seven strategies for change implementation are suggested in the model to reinforce the belief of change recipients. Strategies includes, Human Resource Management, Persuasive, Symbolism, Diffusion, Formalization, Active participation and Management of Internal and External Information. Then finally, the Assessment is done by evaluating the extent to which the change recipients have incorporated the values and behaviours associated with the transformation.  

The researchers analysed a case study of a family owned fertilizer company called PFC (Pursell Family Corporation) with the help of the Organizational Ethical Practices Audit (OEPA), open-ended questionnaire comprising major ethical practices that emerged from the analysis of the Baldrige award summaries. It was a company that successfully transformed its organizational culture in accordance with the Cristian principles. Changes embraced by the company explained in this paper are as follows; The mission statement included its obligations and responsibilities towards God and mentioned that the company will contribute at least 10% of its profits to charities, the selection, training and performance appraisal process was also altered in accordance with the Christian principles where candidates were assessed by the interviewer on the basis of their cultural fit and no formal performance appraisal was done by the company but whenever someone did something unacceptable or praiseworthy it was addressed immediately. Likewise, no reward was given to people for ethical behaviour because it was considered to be a part of life. Formal training for safety, finance and R&D was a part of the training programme and instead of formal ethical training, the devotionals were initiated by the company that anyone could attend, the company also acknowledged the rights of all the stakeholders and thus produced environment friendly fertilizer, followed technologically advanced procedures to ensure employee safety and contributed to charity on a regular basis. 

Therefore, it was concluded that the PFC was indeed an ethical company that transformed its culture successfully through the readiness and implementation model by changing and reinforcing the belief of the change recipients and this change process was analysed with the help of Organizational Ethical Practices Audit (OEPA).

Submitted By: Simrah Ahmed, OBD group