organizational transformation strategy Interventions
objectives
Upon completing this chapter, you will be able to :
1. Identify and define organizational transformation Overtime in relation to the change process
2.Understand the basic strategy-culture matrix and other approaches to changing the culture to fit the strategy
3.Recognize the importance
By this definition, IBM and AT&T would be assigned as having strong whereas relatively young companies or ones which have had a high turnover of executives and employees would be considered to have a weak culture. It should also be noted that once an organization develops a "strong" culture, there is a high resistance to changes which affect the culture. The organization can survive high turnover at lower ranks because new members can be strongly socialized into the organization.
It is important to recognize that cultural strength does not necessarily guarantee corporate effectiveness. Though many current writers argue that strength is desirable, the fact remains that the relationship between culture and effectiveness is not simple. The definition of the culture and the degree to which its solutions fit the problems posed by the environment seem to be the critical variables here. Not strength alone.
Managers often have a difficult time in recognizing the relationship between culture and the critical performance factors on which excellence depends. There are several key components of the organization-structure, systems, people, style-that influence the way key managerial tasks are performed. Culture is the product of these components. Strategic change is largely concerned with adjustments in these components to accommodate the perceived needs of a new strategy. So, managing the strategy-culture relationship requires sensitivity to the interaction between the changes necessary to implement strategy and the compatibility or "fit" between those changes and the organization's culture. General Electric, an organization undergoing cultural change is described in OD in Practice.