Part B- Organizational Behavior

Module 6

Module-6 (7 Hours)
Culture: Meaning, Elements of Organisational Culture, Importance of Organisational Culture.
Organisational Change, Meaning, Resistance to change, Approaches to Organisational Culture,
Action Research Approach, Appreciative Inquiry Approach, Large Group Intervention Approach,
Parallel Learning Structure Approach, and Ethical issues of Organisational Behaviour.

ORGANIZATIONAL CULTURE

❑ 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 and in the behaviours of its members.
—Andrew Brown

❑ Set of values, beliefs, behaviors, customs and attitudes that helps the members of the
organization understand what it stands for, what it does things and what it considers important.

Organizational culture is also termed as corporate culture which includes:

• The process of conducting the business, the conduct of employees, customers, and other
stakeholders.
• The approach to decision-making and innovation of ideas.
• The power and authority allocated across the levels and the information flow through the
hierarchy.
• The commitment level of employees and the approach to attain the objective.
• It impacts organizations’ performance, process, and productivity and aims at improving
customer service, product quality, production methods, safety and security, marketing and
advertising strategies, and product innovation.
• It varies from organization to organization.

DEFINITIONS OF ORGANIZATIONAL CULTURE

• Organizational culture refers to the shared values, beliefs, attitudes, and behaviors that
characterize an organization. It represents the unique personality of an organization and
influences how employees interact with each other, make decisions, and approach their
work.

The set of the set of beliefs, values, and norms, together with symbols like dramatized events and
personalities that represents the unique character of an organization, and provides the context for
action in it and by it.
—Gareth Morgan

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A pattern of shared basic assumptions that the group learned as it solved its problems that has
worked well enough to be considered valid and is passed on to new members as the correct way to
perceive, think, and feel in relation to those problems.
—Edgar Schein

ELEMENTS OF ORGANISATIONAL CULTURE

1. Stories & Myths: What do your people talk about? What events or individuals have been
celebrated and why? What stories are told to new recruits in their first week and are these positive or
indications of a ‘Them and Us’ culture?

Stories and myths are an integral part of human culture and have been passed down from generation
to generation for thousands of years. These narratives often feature larger-than-life characters,
fantastical creatures, and grand adventures that serve to entertain and inspire.

Myths are typically traditional stories that explain the origins of the world or of a particular culture.
They often feature gods, goddesses, and other supernatural beings and are often used to convey
moral lessons and cultural values. Myths can also provide explanations for natural phenomena, such
as the changing of the seasons or the movements of the stars.

Overall, stories and myths serve an important role in human culture, helping us to understand our
place in the world and to connect with our shared history and traditions.

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2. Symbols: How does your organisation represent itself? Art, Colors, Shapes, Designs etc. What
message do these symbols send about your culture?

Symbols are objects, images, or other representations that stand for something else, often
representing complex ideas or concepts. They can be used in a variety of contexts, including art,
religion, politics, and everyday life. Symbols are often used to convey ideas or emotions that may be
difficult to express through words alone. For example, a heart symbol may be used to represent love
or affection, while a skull symbol may be used to represent death or danger.

3. Power Structure: Who is making the decisions? Is it one or two senior individuals, a leadership
team? How involved in decision-making is each employee? Where does accountability sit? Are
employees seeking more opportunities to make decisions or is there a sense of fear about making the
wrong decisions?

Power structure can refer to the distribution of power and authority among different levels of
management, as well as the way decisions are made and implemented within the organization.

4. Organisation Structure: What does your organizational chart look like? Who and how many
people sit at the top, is there a balance? Consider also the unwritten lines of power which stem from
long service and knowledge, not position. Who are your cultural influencers?

It defines how tasks are divided and how decisions are made and communicated within the
organization.

5. Control Systems: How is your organisation controlled? Who or what department has control
influence? Think about your financial controls, your processes, your customer’s journey, and
experience dealing with you. How do you measure performance and how do you reward and
recognize achievements? Is this consistent across all areas of your organisation?

Control systems refer to the processes and tools that are used to manage and regulate the operations
of an organization.

6. Rituals & Routines: What behaviours do you demonstrate and what behaviours do you see on a
daily basis? People’s actions are a strong indicator of what is considered acceptable behaviour. What
sort Rituals and routines refer to the repeated behaviors and actions that individuals or groups engage
in as part of their daily or periodic activities. They can be formal or informal, and can have both
practical and symbolic significance.

Rituals are typically more formal and have a deeper symbolic meaning than routines. They are often
associated with religious or cultural traditions and can involve ceremonial actions, such as lighting
candles or reciting prayers. Rituals can also be personal, such as a daily meditation practice or a
gratitude ritual.

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IMPORTANCE OF ORGANISATIONAL CULTURE

• Employee motivation and engagement: A positive organizational culture fosters employee

engagement and satisfaction. When employees feel a sense of belonging, alignment with the
organization's values, and a supportive work environment, they are more likely to be motivated,
committed, and productive. A strong culture can contribute to higher levels of job satisfaction,
which, in turn, can reduce turnover rates and increase employee retention.

• Recruitment and retention: A strong organizational culture can be an important factor in

attracting and retaining talented employees. A positive culture can make an organization more
attractive to job seekers, and can help to reduce turnover by creating a sense of loyalty and
commitment among employees. A strong and positive organizational culture can enhance the
organization's reputation and attractiveness to prospective employees. Organizations with a
reputation for a healthy and supportive culture are more likely to attract and retain top talent.

• Decision-Making: A culture that encourages open communication, knowledge sharing, and

learning fosters informed decision-making and Quick in responding to challenges or
opportunities

• Innovation and Creativity: A positive organizational culture provides an environment where

employees feel comfortable sharing ideas and taking risks. A culture that values
experimentation and learning can contribute to a more dynamic and innovative organization.

• Customer Satisfaction: A culture that values customer service and a customer-centric approach
can help to ensure that customers receive high-quality products and services and have positive
interactions with the organization.

• Ethical Standards and Compliance: A culture that values integrity, transparency, and ethical
behavior can help establish a strong ethical framework. This can lead to increased trust from
customers, stakeholders, and the wider community, as well as compliance with laws, regulations,
and industry standards.

STRONG VERSUS WEAK CULTURE

✓ A strong culture refers to an organizational culture characterized by clearly defined values,
beliefs, and norms that are widely shared and deep-rooted within the organization.
✓ A weak culture describes an organizational culture where values, beliefs, and norms are vague,
inconsistent, or poorly communicated.

• Strong culture is said to exist where staff respond to stimulus because of their alignment to
organizational values.

• If there is a high level of agreement and commitment among the members of an organization
on the importance of these values, their organization has a strong culture.

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• An organization in which members do not agree with the core values or are not committed to
the core values has a weak culture.

• Weak culture is where there is little alignment with organizational values, and control must be
exercised through extensive procedures and bureaucracy.

For example, Infosys as a company has a very strong organizational culture.

The benefits derived from developing strong cultures are as follows:
• To work towards company’s vision, mission, and objectives
• Employees are highly inspired and exude trust
• Increased solidity amongst various units and subunits of the organization
• Promoting reliability with proper control within the company
• Making organization more efficient by implementing sound execution concepts

TYPES OF ORGANIZATIONAL CULTURE

1. Normative Culture: In such a culture, the norms and procedures of the organization are
predefined and the rules and regulations are set as per the existing guidelines. The employees are
bound by norms and stick to the policies of the organization, and there is no attempt to break the
rules. For example, Accenture has normative organizational culture where standards and
procedures are already set. Example - University
2. Pragmatic Culture: Customer satisfaction is the main motto of the organization in realistic
environment and most of the companies follow this culture. In a pragmatic culture, customer is
treated as God. Customer satisfaction is the main motive of the employees in order to get more
business deals. Mostly, all service-based companies follow pragmatic culture.

3. Academy Culture: The organization which tries to follow this type of culture has a highly
skilled employee base. The role and authority are distributed according to the technical
qualification and education background and appropriate training programs are conducted as in an
academy. The management makes sincere efforts to upgrade the knowledge of the employees to
improve their professional competence. An example can be premiere management institutes
across India.

4. Baseball Team Culture: In complete contrast to the pragmatic culture, a baseball team culture
considers the employees as the most precious asset of the organization. These employees in due
course exhibit indifference to their organization and ad agencies. Examples - Event management
firms and financial institutions are followers of this culture.

5. Club Culture: Organizations have highly skilled professionals and are very choosy about the
employees they induct with regard to their specialization, educational qualification, and areas of
inclination. The organization follows the process of promotions and appraisals on a regular note.
For example, military organizations and legal firms.

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6. Fortress Culture/Organization-centric Culture: In this, profit of the organization is more
important. If organization is not able to perform well, then it terminates employees of
organization.

7. Performance-based Culture/Tough Guy Culture: In such type culture, performance of an

individual is important. Employee is under continuous observation and on the basis of
performance, a person can be rewarded. Examples of this culture are loan disbursement firms
and premiere car companies. In a tough-guy culture, feedbacks are essential. The performance of
the employees is reviewed from time to time and their work is thoroughly monitored.

8. Process Culture: All the processes and procedures of the company are very much important as
they are already established. Reviews do not matter in such organizations. Employee should
work according to the already establish procedures. IBM follows a process culture.

LEVELS OF ORGANIZATIONAL CULTURE:

Organizational culture consists of three interrelated levels of which some are visible and some are
intuitive consisting of assumptions, values, and artefacts. The three levels of organization culture as
portrayed by Schein are as follows:

• Infrastructure
Artefacts • Furniture
• Dress code

• Organizational
Values philosophies
• Public statements

Assumptions • Expectations

Artefacts: The values, beliefs, and norms of an organization. Artifacts refer to the visible, tangible,
or audible manifestations of an organization's culture. These can include physical objects, symbols,
rituals, language, dress code, office layout, and other observable aspects of the work environment.
Architecture, furniture, and dress code, all denote organizational artefacts which are immediately
recognized by other culture people.

Values: Values represent the fundamental beliefs and principles that guide the behavior and
decision-making within an organization. These values may include integrity, teamwork, innovation,

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customer-centricity, or social responsibility. This is often expressed in official philosophies and
public statements of identity.

Assumptions: Shared assumptions are deeply rooted and unconscious perceptions that individuals
hold within an organization. They are often taken for granted and are rarely explicitly discussed.
Shared assumptions are deeply rooted and so well incorporated in the office dynamic that they are
hard to identify from within.

Artifacts provide observable cues, values represent the guiding principles, and assumptions influence
the behavior and mindset of individuals within the organization.

DIMENSIONS OF ORGANIZATIONAL CULTURE

The organizational culture as defined by Geert Hofstede, social psychologist and an authority on
global and organizational cultures consists of six dimensions:

1. Means- Versus Goal-oriented: These two aspects differ in ‘how’ and ‘what’, for example, a
means-oriented culture focuses on ‘how’ work gets done and avoids approaches which undertake
risks whereas, a goal-oriented culture aims at finding ‘what’ work gets done and involves risk
taking approaches. In such cases, outcome is also mandatory.
2. Internally Versus Externally Driven: Internally driven employees are those who think that
they know what is best for the customer, whereas externally driven employees focus on
customers’ requirements and wants. As Steve Jobs once said, ‘A lot of times, people don’t know
what they want until you show it to them.’
3. Easygoing Versus Strict Work Discipline: Work discipline refers to the structured method in
which the work is executed and if some control is exercised, then there is more of imposition on
employees to get it done in a methodical manner with focus on productivity and efficiency,
whereas in an easy-going culture, the approach to work is informal, slack, unpredictable, and
these factors steer fair amount of innovation.
In an easygoing culture, the internal structure is loose, there’s a lack of predictability, and there’s
also little control and discipline. On the other hand, a strict culture is quite the opposite, with
people being punctual, serious and conscious of costs.
4. Local Versus Professional: In an organizational culture, which is of local type, employees
identify with their managers and the members of the team where risk taking is low because of
social obligations, whereas in a company with a professional culture, employees identify with
their work and this has low level of predictability since work needs to be finished. In a local
culture, people identify with their boss and/or teammates. They understand that need to be like
everyone else. In a company with a professional culture, employees identify with their work and
don’t have to be like everyone else.
5. Open versus Closed System: In an open system, new employees are welcome with open arms
and people fit well in those open systems but in closed ones, A closed system is more exclusive,
where newcomers have to prove themselves. A closed system culture believes that newcomers
cannot influence the effectiveness of either the workforce or management.
6. Employee- Versus Work-centered: Organizational culture which is employee-centric keeps the
employees satisfied and happy even at the expense of productivity and profitability but in a work
centered environment, focus is on work performance and the leaders have extremely low level of
sympathy where employees’ personal problem is concerned.

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INTRODUCTION TO CHANGE

Change refers to any alteration or modification in the current state of affairs, whether in personal or
organizational life. In organizational contexts, change can be driven by various factors such as new
technology, market demands, external regulations, and competition. It can involve changes in
structure, culture, processes, policies, or strategies.

❑ Organizational change is the process by which organizations move from their present state to
some future desired state to increase their effectiveness.
❑ Change management is a systematic approach to dealing with change both from the perspective
of an organization and the individual.
❑ “The systematic approach to identify and implement required change within the business is
called as change Management”

Teams and organizations face rapid change like never before. Globalization has increased the
markets and opportunities for more growth and revenue. However, increasingly diverse markets
have a wide variety of needs and expectations that must be understood if they are to become strong
customers and collaborators. Thus, the ability to manage change, while continuing to meet the needs
of stakeholders, is a very important skill required by today's leaders and managers.

PROCESS OF CHANGE: LEWIN’S CHANGE MANAGEMENT MODEL:

This change management model was created in the 1950s by psychologist Kurt Lewin. Lewin
noted that the majority of people tend to prefer and operate within certain zones of safety. He
recognized three stages of change

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It is a model of change management developed by Kurt Lewin, a pioneer in the field of social
psychology. The model is based on the idea that successful change requires three distinct stages,
which are unfreezing, changing, and refreezing.

1. Unfreeze – Most people make an active effort to resist change. So initial effort is required in order
to ensure change amongst employees at workplace. The first stage involves preparing the
organization for change. This may involve creating a sense of urgency, communicating the need
for change, and helping employees understand why the current way of doing things is no longer
effective. It may also involve identifying and addressing resistance to change, both at the individual
and organizational level. Unfreezing requires breaking down the existing mindset and creating a
willingness to consider new ways of doing things.
> Recognize Need for Change
> Change Attitude
> Ensure Employees are ready for change
> Encourage people to initiate change
2. Change/Transition – The second stage involves implementing the desired change. This may
involve introducing new processes, technologies, structures, or ways of working. It may also
involve providing training, support, and feedback to employees to ensure a smooth transition.
During this stage, it is important to monitor progress and adjust the change plan as necessary.
> Collect data
> Develop new attitude
> Take action
> Initiate change
> Involve People
3. Refreeze – After change has been accepted and successfully implemented, the company becomes
stable again, and staff refreezes as they operate under the new guidelines. The third and final stage
involves stabilizing the changes and embedding them into the organization's culture and
practices. This may involve reinforcing the new behaviors and processes, providing ongoing
support and training, and aligning systems and policies with the new way of doing things.
Refreezing helps to ensure that the change becomes the new norm and is sustained over the long
term.
> Formulate polices
> Consolidating the change – Make the changes permanent.
> Reward the outcome

The "Unfreeze, Change, and Refreeze" model is a useful framework for guiding change management
initiatives. It emphasizes the importance of preparing the organization for change, implementing the
change effectively, and ensuring that the change is embedded into the organization's culture and
practices. The model also recognizes that change is a complex and dynamic process that requires
ongoing monitoring and adaptation. While this change management model remains widely used
today, it takes time to implement. Of course, since it is easy to use, most companies tend to prefer
this model to enact major changes.

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RESISTANCE TO CHANGE

People often resist change when the individuals feel that their freedom is threatened and give a
negative reaction to the same. Some of the major reasons for resisting change are as follows:
1. Lack of Proper Communication: News of a change spreads through the chain of command
which is sometimes highly skewed giving incorrect information to the next level employees,
and this can therefore cause resistance to change.
2. Self-ego: Employees having personal agenda act on their own self-interest, instead of the
organization’s interest and hence resist change.
3. Feeling Excluded: Employees who are decision-makers, when they hear of a sudden change,
are offended for not having been considered to take decisions and hence they resist to change.
4. Lack of Reliance/Trust: Lack of reliance or trust can make members of the organization violent
and create negativity amongst them, which can ultimately lead to resistance to change.
5. Mastering Skills/Training Needs: Having to work with a new technology can bring resistance
amongst employees unless organizations set up trainings for employees prior to working with
new technology.
6. Fear of the Unknown: Change is always accompanied by uncertainty and is evidenced by a
story from the past that when computerization/automation first came in India, the people from an
esteemed organization were reluctant to change to computerized processes, since they were very
comfortable in their own arena and were not willing to learn something new and implement it.
7. Fear of Loss: Change may lead to employees losing their jobs or reducing manpower when
machines can achieve intelligence like man and work with minimal errors. Computer systems
experts, for example, may feel threatened when they feel their expertise is eroded by the
installation of a more user-friendly information system.
8. Fear of Failure: Some employees fear changes because they fear that they will fail. In many
cases, a change has led to failure. In one large library that was undergoing a major automation
effort, employees had their doubts as to whether the vendor could really deliver the state-of-the-
art system that was promised. In this case, the implementation never became a reality—the
employees’ fears were well founded.
9. Change in Interpersonal Relationships: Employees may resist change that threatens to limit
interpersonal relationships amongst their peer, boss, or subordinates.
10. Personality Conflicts: A person acting as a change agent if he/she originates negative reactions
from the employees, then the employees might resist the change. A change agent who appears
insensitive to employee concerns and feelings may meet considerable resistance because
employees perceive that their needs are not being taken into account.
11. Politics: Organizational change may bring in change in the balance of power, and groups or
individuals who hold authority under the current scenario feel frightened by losing these political
benefits in times of change.
12. Cultural Assumptions and Values: Sometimes cultural assumptions and values can be
impediments to change, particularly if the assumptions forming the basis of change are unknown
to employees. For IBM introduction, the concept of business process management in its work
culture offered stiff resistance from the IBM employees during the initial years.

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MANAGING RESISTANCE TO CHANGE

Phase 1: Preparing for change

During the creation of the change management plan, the
resistance points are identified and tactics are derived to
confront resistance.

Phase 2: Managing change

Once the change management plan is drafted in phase 2, the
plan is executed by focusing on individuals through their own
change process and addressing the obstacles for making the
change successfully.

Phase 3: Implementing change

The deviation report is derived at this stage and is seen to what
percentages have the individuals aligned themselves to the new
workflows and processes. Evaluating the report allows the
management to identify gaps and react to resistance that may
still be occurring.
Managing Resistance to Change:

• Communicate: Transparent and timely communication helps employees understand the reasons
for change, its benefits, and the impact on their roles and responsibilities. Address concerns and
provide regular updates to build trust and reduce resistance.
• Involvement: Involve employees in the change process by seeking their input, feedback, and
suggestions. By including them in decision-making and planning, they feel valued and are more
likely to support and embrace the change.
• Facilitate and Support: Provide the necessary resources, training, and support to help
employees adapt to the change. Offer guidance, coaching, and mentoring to enable them to
develop the skills and knowledge required for the new way of working.
• Coercive Power: While coercion should generally be a last resort, in some situations, it may be
necessary to use positional power to enforce the change. However, this approach should be used
carefully and accompanied by other strategies to minimize resistance.
• Benefits and Rewards: Clearly communicate the benefits of the change and link them to
individual and team rewards and recognition. Incentives such as bonuses, promotions, or other
forms of acknowledgment can motivate employees to embrace the change and overcome
resistance.
• Handling Issues/Obstacles: Identify and address any issues or obstacles that may hinder the
change process. Actively listen to employee concerns, provide solutions, and adjust plans if
necessary. By demonstrating flexibility and responsiveness, you can alleviate resistance and
enhance acceptance.

Remember, managing resistance to change is an ongoing process that requires patience, empathy,
and continuous engagement with employees.

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APPROACHES TO ORGANISATIONAL CULTURE
There are several approaches to organizational culture that have been developed by researchers and
practitioners. Here are four approaches:

ACTION RESEARCH APPROACH

Action Research Approach: This approach views organizational culture as a process that can be
studied and changed through ongoing inquiry and action. The action research approach involves a
cycle of planning, action, observation, and reflection, and encourages participation and collaboration
among all stakeholders. The Action Research Approach is a method of studying and changing
organizational culture through an iterative process of inquiry and action. It involves a
continuous cycle of planning, action, observation, and reflection, with the goal of
understanding and improving organizational practices, processes, and culture.

The key features of the Action Research Approach include:

• Collaboration and participation: The Action Research Approach emphasizes the

importance of involving all stakeholders in the process of cultural change. It encourages
collaboration, dialogue, and shared decision-making among all members of the
organization.
• Data collection and analysis: The Action Research Approach involves gathering and
analyzing data on organizational practices, processes, and culture. This data can include
quantitative and qualitative measures, as well as observations, interviews, and surveys.
• Action planning and implementation: The Action Research Approach involves developing
and implementing action plans based on the data and insights gathered through the research
process. These action plans may involve changes to organizational practices, processes, or
culture, and are designed to improve organizational effectiveness and performance.
• Reflection and evaluation: The Action Research Approach involves reflecting on the results
of the action plans and evaluating their effectiveness. This process may lead to further
iterations of the cycle, as new data and insights are gathered and incorporated into new action
plans.

Overall, the Action Research Approach offers a practical and collaborative approach to cultural
change, and can help organizations to develop a deeper understanding of their own culture and how
it can be improved. By involving all stakeholders in the process, and by gathering and analyzing data
on organizational practices, processes, and culture, the Action Research Approach can lead to more
effective and sustainable cultural change.

APPRECIATIVE INQUIRY APPROACH:

Appreciative Inquiry Approach: This approach views organizational culture as a positive and
dynamic force that can be harnessed to create positive change. The appreciative inquiry
approach focuses on identifying and amplifying the strengths and positive aspects of an
organization's culture, and using these as a foundation for future growth and development.
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The Appreciative Inquiry Approach is a method of studying and changing organizational culture by
focusing on the positive and inspiring aspects of the organization. It is based on the idea that by
focusing on the strengths, values, and successes of an organization, it is possible to create a culture
that is more positive, engaged, and effective.

The key features of the Appreciative Inquiry Approach include:

• Inquiry into positive aspects: The Appreciative Inquiry Approach involves exploring and
celebrating the positive aspects of an organization, including its strengths, values,
successes, and best practices. This inquiry is designed to create a more positive and
inspiring vision for the organization's future.
• Collaboration and participation: The Appreciative Inquiry Approach emphasizes the
importance of involving all stakeholders in the process of cultural change. It encourages
collaboration, dialogue, and shared decision-making among all members of the organization.
• Co-creation of a new future: The Appreciative Inquiry Approach involves co-creating a
new vision for the future of the organization, based on the positive aspects that have been
identified through the inquiry process. This vision is designed to inspire and motivate all
members of the organization.
• Continuous learning and improvement: The Appreciative Inquiry Approach involves
ongoing learning and improvement, based on the positive feedback and results that are
generated through the inquiry process. This learning is designed to help the organization to
continue to grow and evolve over time.

Overall, the Appreciative Inquiry Approach offers a positive and inspiring approach to cultural
change, and can help organizations to create a more engaged and effective culture. By focusing on
the strengths, values, and successes of the organization, and by involving all stakeholders in the
process of change, the Appreciative Inquiry Approach can lead to a more positive and empowering
vision for the future of the organization.

LARGE GROUP INTERVENTION APPROACH

Large Group Intervention Approach: This approach views organizational culture as a collective
phenomenon that can be transformed through large-scale interventions involving all members of
the organization. The large group intervention approach emphasizes the importance of dialogue,
collaboration, and shared decision-making in the process of cultural change.
The Large Group Intervention Approach is a method of studying and changing organizational
culture by involving a large number of stakeholders in a participatory and collaborative process. It
is based on the idea that by involving a large group of people in the process of cultural change, it is
possible to create a more inclusive and representative vision for the organization's future.

The key features of the Large Group Intervention Approach include:

• Large-scale participation: The Large Group Intervention Approach involves involving a

large number of stakeholders in the process of cultural change, including employees,
managers, customers, and other stakeholders. This participation is designed to create a more
inclusive and representative vision for the organization's future.

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 • Dialogue and collaboration: The Large Group Intervention Approach emphasizes the
importance of dialogue and collaboration among all stakeholders. It encourages the sharing
of ideas and perspectives, and the co-creation of a shared vision for the organization's
future.
• Rapid results and action planning: The Large Group Intervention Approach involves
generating rapid results and action plans based on the input and feedback of the large
group of stakeholders. These action plans are designed to be actionable and measurable,
and are intended to create quick wins and momentum for cultural change.
• Continuous learning and improvement: The Large Group Intervention Approach involves
ongoing learning and improvement, based on the feedback and results generated through
the intervention process. This learning is designed to help the organization to continue to
grow and evolve over time.

Overall, the Large Group Intervention Approach offers a participatory and collaborative approach to
cultural change, and can help organizations to create a more inclusive and representative culture. By
involving a large group of stakeholders in the process of change, and by generating rapid results and
action plans, the Large Group Intervention Approach can create quick wins and momentum for
cultural change, and can help the organization to continue to evolve over time.

PARALLEL LEARNING STRUCTURE APPROACH

Parallel Learning Structure Approach: This approach views organizational culture as a system of
shared learning and knowledge creation that can be fostered through the development of parallel
learning structures. The parallel learning structure approach involves the creation of cross-
functional teams and networks that work together to share knowledge and ideas, and to develop
new practices and processes that support the organization's goals and mission.

The Parallel Learning Structure Approach is a method of studying and changing organizational
culture by creating a parallel structure that is designed to support cultural change. It is based on the
idea that traditional hierarchical structures can often inhibit cultural change, and that creating a
parallel structure that is designed to support change can help to create a more flexible and adaptive
culture.

The key features of the Parallel Learning Structure Approach include:

• Parallel structure: The Parallel Learning Structure Approach involves creating a parallel
structure within the organization that is designed to support cultural change. This structure
is often based on a cross-functional team or project, and is designed to be more flexible
and adaptive than traditional hierarchical structures.
• Learning and experimentation: The Parallel Learning Structure Approach emphasizes the
importance of learning and experimentation in the process of cultural change. It
encourages the team or project to experiment with new ideas and approaches, and to learn
from both successes and failures.
• Collaborative decision-making: The Parallel Learning Structure Approach involves
collaborative decision-making among the members of the team or project. It emphasizes

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 the importance of involving all stakeholders in the process of change, and of creating a
shared vision and purpose for the team or project.
• Integration with the larger organization: The Parallel Learning Structure Approach
involves integrating the team or project with the larger organization, in order to ensure
that the cultural change is sustainable over time. This integration may involve sharing of
best practices and successes, as well as involving other parts of the organization in the
learning and experimentation process.

Overall, the Parallel Learning Structure Approach offers a flexible and adaptive approach to cultural
change, and can help organizations to create a more collaborative and experimental culture. By
creating a parallel structure that is designed to support change, and by emphasizing learning,
collaboration, and integration with the larger organization, the Parallel Learning Structure Approach
can help organizations to evolve and adapt to changing circumstances over time.

ETHICAL ISSUES OF ORGANISATIONAL BEHAVIOUR

Ethics are moral principles (about what is good, and right). Ethics and ethical reflection need to be
integrated through all OB.
Ethical issues in organizational behavior arise when individuals or groups in an organization engage
in behaviors that violate ethical principles or standards, either intentionally or unintentionally. Some
common ethical issues in organizational behavior include:

1. Discrimination and harassment: These include behaviors that discriminate against

employees or create a hostile work environment based on characteristics such as race, gender,
age, sexual orientation, or religion. Discrimination and harassment are serious ethical issues in
organizational behavior that can create a hostile work environment and negatively impact
employee well-being and performance.
➢ Discrimination is treating someone differently based on a protected characteristic such as
race, gender, age, sexual orientation, or religion.
➢ Harassment is unwanted or offensive behavior that creates a hostile work environment,
such as unwanted sexual advances, insults, or offensive jokes.

2. Conflict of interest: This arises when an individual's personal interests’ conflict with the
interests of the organization, or when there is a perceived bias or favoritism. Conflict of
interest is an ethical issue that arises when an individual's personal interests or obligations
interfere with their ability to act in the best interests of the organization. This can occur when an
employee has a personal relationship, financial interest, or other competing interest that may bias
their decision-making or actions within the organization.
➢ Conflict of interest can lead to unethical behavior such as favoritism, nepotism, or insider
trading. It can also damage the reputation of the organization, erode trust among
employees and stakeholders, and lead to legal and financial consequences.

3. Unethical leadership: This occurs when leaders engage in behaviors that violate ethical
principles, such as lying, stealing, or engaging in fraud. Unethical leadership is an ethical
issue in organizational behavior that occurs when leaders act in ways that violate moral and
ethical standards. This can include engaging in corrupt practices, misusing resources, making
decisions based on personal gain rather than the well-being of the organization and its
stakeholders, and fostering a toxic work environment.
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 ➢ Unethical leadership can have serious consequences for the organization, including damage
to reputation, loss of trust among employees and stakeholders, and decreased performance
and productivity. It can also lead to legal and financial consequences, as well as harm to the
well-being of individuals within the organization.

4. Misuse of resources: This includes behaviors such as stealing or misusing company resources
for personal gain. Misuse of resources is an ethical issue in organizational behavior that occurs
when employees or leaders use organizational resources for personal gain or benefit. This can
include using company funds for personal expenses, using company equipment for personal
use, or using company time for personal activities.
➢ Misuse of resources can have serious consequences for the organization, including loss of
resources, decreased productivity, and damage to the organization's reputation. It can also
lead to legal and financial consequences, as well as harm to the well-being of individuals
within the organization.

5. Whistleblowing: This occurs when an employee reports unethical behavior within the
organization to an outside authority. Whistleblowing is an ethical issue in organizational
behavior that occurs when an employee reports illegal or unethical behavior within their
organization to an external authority, such as a government agency or the media. This can
include reporting fraud, discrimination, harassment, safety violations, or other illegal or unethical
activities.
➢ Whistleblowing can expose illegal or unethical activities, hold individuals accountable for
their actions, and promote ethical behavior within the organization.
➢ Whistleblowers may face revenge, including harassment, termination, or legal action,
and may suffer personal and professional consequences as a result of their actions.

6. Bribery and corruption: This involve offering or accepting bribes or engaging in other
corrupt practices to gain an advantage. Bribery and corruption are ethical issues in
organizational behavior that occur when individuals within an organization offer, solicit, or
accept bribes or engage in corrupt activities to gain an unfair advantage or personal gain.
➢ Bribery involves the exchange of money, gifts, or other benefits in exchange for influence or
favors, while corruption involves abuse of power for personal gain or to benefit an
organization.

7. Privacy and confidentiality: It include behaviors that violate an individual's right to privacy,
such as sharing personal information without consent or monitoring employees without
their knowledge. Privacy and confidentiality are ethical issues in organizational behavior that
involve the protection of personal information and sensitive data.
➢ Privacy refers to the right of individuals to control access to their personal information,
including their identity, financial information, and personal communications.
➢ Confidentiality involves the obligation of individuals and organizations to keep certain
information private and not to disclose it to unauthorized individuals or entities.

Organizations have a responsibility to promote ethical behavior and to create a culture that
encourages employees to behave ethically. This can be achieved through ethical training,
establishing a code of conduct, and creating policies and procedures that reinforce ethical behavior.
Additionally, organizations should take swift action to address and correct unethical behavior when
it occurs.

MONICA M, MBA, AIT 16

REVIEW QUESTIONS:

1. Define Organizational Culture

2. Explain the reasons for Resistance to Change
3. Explain Strong and Weak Culture
4. Describe the Kurt-Lewin’s Change Management Model
5. Explain the different types, levels and dimensions of organizational culture.
6. Define Organizational Culture. Discuss Strong versus Weak Culture
7. What are the ethical issues of Organizational Behaviour? briefly explain
8. Define Change Management
9. Explain the different approaches to Organizational Culture
10. Describe the Elements of Organisational Culture
11. Importance of Organisational Culture
12. Illustrate the Model of Team Effectiveness
13. Write about the Tuckman’s stages of Team development.
14. What are Contingencies of Power
15. What are the reasons for Resistance to Change and how to overcome it.
16. Explain the importance of Organizational Culture

MONICA M, MBA, AIT 17