1) TRANSACTIONAL CHANGE- 1ST ORDER CHANGE

2)TRANSFORMATIONAL CHANGE-2ND ORDER CHANGE

With respect to Organization there are 2 levels of change

The Transactional Factors Involved in First-Order Change

Management

Practices

Structure

Systems(Policies

& Procedur

esWork Unit

Climate

Motivation

Task Requirement

s & Individual

Skills/Abilities

Individual Needs

& ValuesIndividual & Organization

al Performance

Theory and Management of ODExternal

Environment

Leadership

Mission and

Strategy

Organization Culture

Individual & Organizational Performance

Culture creation

Culture is based on the strategies.CULTURE

Culture is defined as “ a common belief system, values, policies shared by an Organizations members

The Climate refers to the to current situation in the organization and linkage among the

Teams, employees ,and performances.It does not deal with the values and norms It is concerned with current atmosphere in

the Organization.

Features of Organizational Culture

Innovation and risk takingAttention to the DetailOutcome OrientationPeople OrientationTeam OrientationsAggressivenessStabilityRadical Change Customer orientation

Cultural concept

Dominant Culture-SBISub Culture- denoted by Units ,department, They are mini -

culture of the company.Core Value- Core values are primary or dominant values.

Those are accepted by the majority of the Organizational members.

eg-J.N.P.T. employee are not allowed to be competitive. Strong Culture- The organizational core value are intensely

held and widely spread. eg- Public sector OrganizationWeak Culture- The organizations core value is lightly held.eg- Indian railway is more concerned towards its customer. Mechanistic and organic culture-they follow

hierarchy ,status quo and resists innovationAuthoritarian and Participative

Process of change of culture

Environment analysis

Business Goals

Formulation of Strategy

Formulation of strategic values

Create a new cultural values

Implement new cultural value

Achieve Strategic values and strategies

How Employees Learn the culture

StoriesRitualsMaterial SymbolLanguage

Approaches to Organization culture

1) Ouchi frame work2) Peters and waterman approach

Ouchi framework1. Period of employment2. Evaluation3. Career Path 4.Desion Making (Japanese-Participative)5.Control (Japan- Informal & Us- Formal

Control)6.Responsibility7.Concern for People

Peters and waterman approach

Bias for ActionStay close to customerAutonomy and EntrepreneurshipProductivity through PeopleHand on ManagementStick to KnittingSimple form ,Lean staffSimultaneously Loose and Tight Organization

(MEMB SHARE COMMAN VALUE)

Maintaining The Organizational Culture

By selecting right personnel at entry levelPlacing the employee the on the appropriate

jobEncourage the employee to excel in their jobRewarding the employee on basis of

performance Adherence to the core values Reinforcing the stories Recognition and promotion