This paper present the literature review related to the change in organizational culture and innovation. The paper describes the critical aspect of organizational change in culture. To evaluate the understanding of the cultural models different researches has been included and studied intensively. For better understanding the literature from the organizational behaviour, organizational culture and behaviour, human psychology, human resource, and Industry best practices, some business professionals who are expert in their field are also a part of this research. To widen the understanding of organizational culture and also how it may affect on innovation and creativity the research is conducted not focusing on any single company.
Organizational culture has been defined by many researchers in many different contexts in numerous course of time. Although it has been very difficult to find out a single definition of organizational culture but it has been obvious that the experts have agreed upon the fact, ‘culture’ is an important feature of any organization.
There are many models presented by numerous researchers about organizational cultural change. The management of organization should decide to select the cultural model but all the model has emphasized on few points which have been defined from different perspective and dimensions. Every model has highlighted that human capital should not be neglected and should be involved in making organizational decisions. Therefore, organization’s main focus should be on its human capital.
Companies have to nurture [creativity and motivation]—and have to do it by building a compassionate yet performance-driven corporate culture. In the knowledge economy, the traditional soft people side of our business has become the new hard side."
1.0. RELATED LITERATURE:
Literature and materials utilized in this research is being extracted from the internet, related books of Organizational behaviour, Organizational culture and behaviour, human psychology, human resource, and Industry best practices, some business professionals who are expert in their field are also a part of this research. To widen the understanding of organizational culture and also how it may affect on innovation and creativity the research is conducted not focusing on any single company.
The above mentioned quote is used to provide an idea of the extent of depth this research paper is willing to cover. According to the researchers the organizations that support innovative and creative ideas has a healthy culture which has the positive impact on the work performance of the employees, as well as organizational performance in terms of financial ratio and goodwill etc.
The concept of organizational culture has been the hot topic among the business management. In the recent era, the organizational culture is recognized as an integral and vital factor in terms of improving the work performance as well as the quality of performance. The effective and efficient use of all resources depends on the culture of the organizations.
In the year 1952 two researchers Kroebner and Kluckhon has highlighted approximately 160 definitions of culture learning and defining the intricacy and complications of this burning topic. Whereas in the year 2004, another researcher Westrum has agreed with them and mentioned that speaking about organisational culture is to discuss many problems at once.
Below the study discusses different definitions of organizational culture, which will highlight the diverse ideas of numerous experts on a single topic i.e. ‘Organisational Culture’.
3.0. ORGANISATIONAL CULTURE:
Organisational culture is in actual comprises of human behaviour rather say employee behaviour. According to the report,, Culture is all about how the humans (the employees) of that organization behave and act to reach their goal. Their actions and behaviour reflect the values of the organization, organizational visions, norms, symbols, beliefs, communication structure, language, hierarchy, perceptions, decision making process, and many more. These actions are the patterns that are taught to every new employee of the organization. Organizational culture has a direct impact on the employee satisfaction level as well as stakeholders and clients.
According to the two known researchers i.e. Zugaj and Cinguli to understand organizational culture one must narrow the research to understand the term ‘culture’. These two researchers has emphasized the reflection of culture is visible in the civilization or non civilization of an individual, behaviour of different social groups, the uniform characteristic within a certain time period as in times of riots or festivals, and the behaviour of the religious community regarding other religious divisions etc.
Organizational culture may have positive as well as negative impact on employees’ performance and job satisfaction. Culture is also a reflection of the organizational history. It may be manipulated or altered by the management, leadership or other numerous factors. Changing an organizational culture may be time consuming task but not impossible
4.0. THEORIES OF ORGANIZATIONAL CULTURE:
Organizational cultures differ extensively from one organization to the next, from services to products, from industry to industry. Commonalities are present among the organizations to some extent, some researchers have developed models to describe different indicators of organizational cultures.
- Hofstede cultural theory
- Kotter’s 8 stages
- Hayes’s stage model
- Beer and Nohria’s Theory E and Theory O
- Pfeffer and Sutton’s Big Questions about Change
- Buchanan Boddy – 3 types of activity undertaken by change agents
- Briner et al – 6 activities of change agents
- Senior and Fleming – ‘hard’ and ‘soft’ changes
- O’Reilly, Chatman and Caldwell
- Edgar Schein.
- Charles Handy
- Cameron and Quinn
- Robert A Cooke
Among these dimension; the Hofstede dimension of cultural theory is the oldest and well known theory of cultural dimensions is defined in detail below;
4.1. HOFSTEDE CULTURAL THEORY:
Hofstede cultural dimensions theory presented by Geert Hofstede. This theory provides the framework for cross-cultural communication. The framework comprises of six factors that affect cultural norms and values. These six dimensions mentioned below provides a model that allows comparing two cultures.
- Power distance Index (P.D.I)
- Individualism versus Collectivism (IDV)
- Masculinity versus Femininity (MAS)
- Uncertainty Avoidance Index (U.A.I)
- Pragmatic versus Normative (PRA)
- Indulgence versus Restraint.
4.1.1, POWER DISTANCE INDEX:
According to , this dimension the power inequality that exists in the culture. People in different societies do exhibit a large degree of power distance by accepting hierarchal order in which everyone has a place that requires no further justification. Hofstede , measured the distributions of power through this scale. People do strive and struggle for the equal distribution of power by demanding justification for inequalities of power.
In the context of organizations, fair judgement by management, fair appreciation by management and fair distributions of power has a tremendous impact on the culture. Organization do have the hierarchy but under the hierarchal system there are some factors that cause dissatisfaction among employees and becomes the reason behind low motivation of the employees.
4.1.2, INDIVIDUALISM VERSUS COLLECTIVISM (IDV):
This dimension by measures the extent to which individuals are assimilating to the groups. In individualistic societies the more focus is on personal achievements, accomplishment, and their rights. According to people tend to stand up for their rights and are free to choose their own affiliations. Whereas in collectivist societies the things are totally opposite, individuals are more focused on collective achievements and accomplishments, by acting predominantly as part of cohesive groups or organizations. People are tend to give more priority to the vision of their group and organizations
In case of the organizational culture both, individualism and collectivism should be in equal ratio. Individualism in terms of growth of one’s career is the biggest motivation for the employee of the organization. Whereas collectivism is important in terms of achieving organizational goals and visions in terms of all employees working in a team to reach the goal.
4.1.3, MASCULINITY VERSUS FEMININTY:
According to Hofstede (2001) this dimension talks about the distribution of emotional roles between both genders. Masculine cultures focus on the values of competitiveness, assertiveness, materialism and power whereas the feminine cultures focus more on relationship and quality of life.
The other name given to this dimension is Quantity of Life versus Quality of Life. Critically this dimension is related with the previous dimension i.e. individualism versus collectivism. Culture on high individualism level tend to be more masculine whereas collectivism is related to feminine culture where relationships and the quality of living standard are considered more important than personal need and ambition.
In terms of organization, the findings suggest the equal amount of both, by providing enough space to the employee in career growth and personal growth as well as utilizing the employee growth in improvement of organizational performance.
4.1.4, UNCERTAINTY AVOIDANCE INDEX (UAI):
It refers to the tolerance level of the society and uncertainty, indecision, and ambiguity. It reflects the degree to which members of a society attempt to manage the anxiety by minimizing the uncertainty.
The cultures on high levels of uncertainty avoidance inclined to be emotional. Individuals act carefully in the management of the decision to minimize the occurrence of unplanned circumstances by careful step by step implementation of rules and regulations. Whereas societies with low uncertainty avoidance, accept and feel secure as well comfortable in unplanned and unstructured conditions and circumstances or changing environments. These societies try to have few rules to take risks for further improvement in the living standards. People in these cultures are more inclined and tolerant to changes. These societies are risk takers societies.
Applying this dimension on organizational culture, organization with low uncertainty avoidance are more inclined to work on new innovative ideas, to accept the new management style, to make an attempt in making changes from the high level of the hierarchy, as well as low level of hierarchy.
The organizations with high uncertainty avoidance are more tend to follow the strict uniform rules and regulations. These organizations inclined to follow the systems without making little deviation, which may lead them to failure in competing in the modern market.
4.1.5, PRAGMATIC VERSUS NORMATIVE:
This dimension is also called CONFUCIAN DYNAMISM and Long term orientation versus short term orientation. This dimension points out the planning procedures of societies. Pragmatic or long term oriented societies foresee the impact of the decision they are about to make. This dimension describes time horizon. Whereas the normative and short term oriented societies one only has its focus on the current situation. Normative societies usually keep the planning to shorter time span as one to five years plan.
Applying this dimension in the context of organizational cultures, pragmatic organizations are more inclined to foresee the problem. For example organizations that have realized the shortage of skill full employee decided to train their employees to compete in the modern market.
4.1.6, INDULGENCE VERSUS RESTRANT:
The degree to which a member of any society makes an attempt to control and limit their personal desires and impulses is high whereas indulgent societies are inclined to free gratification i.e. free and uncontrolled desires mostly related to enjoying and having fun. Controlled societies have strict norms and values to restraint those desires.
In terms of organizational culture, organizations offering flexible timings, allowing job rotation, providing open communications represents the indulgent organizational culture of an organization.
4.2. DEAL AND KENNEDY MODEL OF CULTURE:
The model named ‘Kennedy and deal culture model’ has defined four unique bases of organizational types. Each organization has emphasized and highlighted on how fast the organization can receive feedbacks, the method of appreciation the employees of the organization receive and the extent to which organization is willing to take risk.
Those four types are mentioned below;
- Hard working, play hard culture
- Tough guy macho culture
- Process culture
- Bet the company culture
4.2.1, HARD WORKING, PLAY HARD CULTURE
The organizations that receive feedback quickly and give fast appreciation, low risk takers, are determined under this type. These organizations are more focused on high speed delivery leading to the high speed recreation. The work load in these organizations is high causing stress. These are more focused on quantity of work done.
4.2.2, TOUGH GUY MACHO CULTURE:
The organization under this label receives speedy feedback as well as appreciation. These organizations are inclined to take heavy risks. These organizations suffered from stress due to opting high risks that can result in a huge gain as well as loss. These organizations are more focused on today then tomorrow i.e. current time is more important to these organizations than the future. As the label states tough therefore; organization under this label faces new challenges on a daily basis.
4.2.3, PROCESS CULTURE
The organizations taking low risk or no risk and receiving a sluggish or no feedback and very slow appreciation are considered to be under this umbrella. These organizations suffer from low stress level, with comfortable and secure working environment. The employees face stress due to internal politics or the system complexity which are not understandable for the common layman. These organizations tend to have a slippery platform for its most of the employees.
For example; Bank industry, Insurance industry.
4.2.4, BET THE COMPANY CULTURE:
The companies under this dimension receive slow feedback and appreciation but ready to take high risks. The organizations do suffer stress because of taking high risks and procrastination. These companies tend to delay before understanding if the accomplishment has remunerated off. To take the long view, but then much work is put into making sure things happen as planned.
5.0. CULTURE CAN BE LEARNT:
The beliefs, values, attitudes, attributes, history, and norms, are achieved by the environment and surroundings. It is same in the case of organizational culture. Organizational culture is achieved by the environment, surroundings, and the members of the organizations. Culture of the organization has a direct impact of both environments i.e. internal and external environment.
Organizational culture is the combination of significant perspective and considerations shared by the members of organizational culture. Those significant considerations may include norms, values, beliefs, history, myths, stories, rituals, metaphors, and creative and innovative ideas.
6.0. A PROCESS FOR CHANGING ORGANIZATIONAL CULTURE:
Changing the organizational culture is not an easy task to achieve, not only because the culture is not recognizable but also because once the values, norms, patterns, systems are settled it’s difficult to bring alternation.
However once the management determines the need of cultural change, and than the objectives have to be set down and also the process of the implementation of certain change has to well defined by the management. The process has to be implemented stepwise, because sudden implication of the change can cause distress in the employees.
The result of a systemic process to shift the organizational culture from the current position to the future desired position. The systemic process based on different models presented by different authors. These models described how to link the organizational cultural change with the basic norms of the organization.
These steps commence change in individual/ member of the organization. The processes of the organizations, language, symbolic attributions, values, and the norms of the organizations that by itself warrants that the cultural change will occur, by blending these features management can create a huge agreement of drive towards the basic cultural deviation in the organizations.
Here the Kotter’s model of change in organizational culture can be help full. For the illustration of better understanding of the steps, an example of an anonymous organization is being presented with the current cultural image as well as future cultural image required and desired by the management.
Those steps are mentioned below;
- Clarification of the meaning
- Identification of the stories
- Determination of strategic initiatives
- Identification of the small wins/ achievements
- Determination of the Craft metrics, measures, and milestones
- Designing mode of Communication and symbolic aid
- Leadership development
The management should develop the solid outline to represents what the current cultural image of the organization is and what the management is planning to change.
6.1. CLARIFICATION OF THE MEANING:
Organization are tended to change but also have to take into consideration that how will that change will affect to the internal and external environment. In the process of change in the organizational culture, the first step to begin with is to clarify the meaning of the cultural change. By providing meaning management must focus on the current culture of a particular organization, to seek out the weaknesses, flaws and mistakes as well as to identify the strength of the current culture. By this, the management may understand to abandon which attributes and which attributes should require more focus and attention.
The objective behind this step is to clarify for the organization the things that would not change as well as the things that will. The researcher has pointed out that, in any attempt of change, the importance of developing on communal character cannot be neglected as it is on the centre capability, the sole mission, and the special organizational distinctiveness that has been built over certain time span.
6.2. IDENTIFICATION OF THE STORIES:
Organizational culture can be easily communicated by utilizing stories just like the national culture. Therefore, the second step in the process to bring organizational change is to identify few or more than few positive happenings or occurrences to demonstrate the basic and main values that will distinguish and portray the organizational culture in coming future. But the stories should be real and not fabricated. Because fabricated stories may increase employees’ motivation and can have a positive impact on the process of change but as soon as employees realises a story is fake the whole attempt to bring the change will be wasted and will more complicate the situation. Whereas the real happenings, events will not only communicate the corporate values to the employees but also narrated publicly in order to grab the attention of customers/ consumers / clients about what the new culture will be like and how it will influence the quality of corporate performance. These stories will not only provide clarification to the cultural change but also assure the employees and the members of an organization about the secure the future, as creating change may cause anxiety among the members, employees, and stakeholders of the organization. But by the stories all may get a clear mental image about how the things will be operating in future. By this they are allowed to evaluate and measure things on their personal level and may raise and ask questions to the management about the effects and impacts.
6.3. DETERMINATION OF STRATEGIC INNITIATIVES:
Strategies play a vital role in any organization, process, and project to reach and achieve goals and objectives. By strategic initiatives it is meant by determining how to start, when to stop and how to enhance. The strategic initiatives are the activities invented and intended to make a remarkable change that will eventually result in organizational change. It is like planning and implementation of the plan to bring on the change. To decide the commencement of new activities as well as the end of other activities, what can be delayed and what should be done right at the moment. Most of the organizations/ companies fail to stop the activities at right time effectively. Therefore it is to decide how to stop a certain activity after achieving the desired result. Another strategic initiative which is important in the organizational change is resource allocation. Most of the times having resources is not critical topic. Identification of the resources is easy but the problem is of the utilizing the resources in most effective and efficient way. Allocating the resources to the particular teams and members who are involved in the commencement of the process is the other crucial topic. Another strategic initiative that should be created and developed by the management is to understand what processes and systems will be involved and applied during the process of corporate cultural change. Sometimes system has to shape or reshape in a process to support the initiatives of cultural change. The management has to foresee and understand the ways and methods which can be availed and utilized to leverage the core competencies of the organization. As well as enhancing those competencies to the level where those competencies support the cultural change and grow stronger than ever to maintain market share and acquire completive advantage.
6.4. IDENTIFICATION OF SMALL WINS AND ACHEIVEMENTS:
The pragmatism approach in changing organizational culture is to set smaller milestones about what can be changed easily, change it, and announce it. Then move further to find out the second easy thing to do the same procedure again. The basic reason is to not mess up the things at huge scale as well as playing safe. Small wins/ achievements represent the quick action by taking baby steps on the right path of bringing organizational cultural change.
It is human nature that when individual perceives a smaller change providing benefits, a sense of improvement, advancement, and progress is developed which eventually supports to move further towards the larger change. The company/ organizations fail when they decide not to announce those small wins effectively which results in the biggest blunder, in the process of cultural change. Therefore, it is necessary to bring these small wins into the light.
6.5. DETERMINATION OF CRAFT METRICS, MEASURES AND MILESTONES:
The proper way of measuring the progress should be determined and designed properly. There should be key indicators that can be determined by the management just to measure the levels of progress and advancement. Most of the time lack of the proper measuring tools/ systems causes great distress among all. Therefore, it is important for the management to first determine how the things will be measured, what indicators will be used to measure the success in cultural change. The management/ officials should also design a data gathering system as well as a framework i.e. a plan of how and what things to measure as well as time frame should be set down. But this does not mean that the system should be over burdened by the multiple measuring scales.
The key to effective metrics, measures, and milestone is to identify few indicators that can be utilized effectively to connect them with the decision. Those metrics can be use for resource allocations as well as levels and markers of change. To reassure that every act has been done carefully to be a part of the corporate cultural change process.
6.6. DESIGNING MODE OF COMMUNICATION AND SYMBOLIC AID:
Communication is an important tool to overcome the conflicts and create assurance and loyalty. Talking about why the change is significant for the organization and how the change will influence the employees’ life in general as well as corporate life.
Another thing that has been used by the organizations and result in ultimate failure is to criticize the past cultural features. As the employees, members, and the stakeholders also belong to the past as well as the future, therefore, criticizing the past cultural attributes may give a negative impact of criticism on personal performance.
6.7. LEADERSHIP DEVELOPMENT
Researchers/ experts identify leadership as an integral, vital and critical requirement of any organization/ company. In a case of bringing organizational cultural change, the effective leadership is critically required as to change creating anxiety and stress among the members, employees, and the stakeholders, therefore, it is the job of an effective leader to come over these small obstacles.
7.0. INNOVATION AND CULTURE:
Organizations usually introduce a clear set of rules and complete guideline to promote innovation in the organizations. These set of rules also carries the appreciation and reward an employee will receive for being innovative. Promoting innovative approach in organization means allowing employees and subordinates;
- in terms of dealing with customers,
- in context of developing tolerance level in teamwork,
- in terms of working efficiently in team as well as
- In efficient the resources utilization.
Innovation is not limited to creating something new; innovation is implementable in the management approach, communication style and many more. Innovation is a vital part of life which do not let individual as well as any organization to remain stagnant or passive for a longer time span.. There are companies / organizations where suppression of the innovative capabilities of employees by providing a strict rule of conduct in terms of performing required job duties is a common practice. The organizations do have the low rate of employee retention as well as low motivation level among employees. The reason is simple; human is afraid of change that also inclined to change.
It is right that innovation needs the ability to accept the changes. The organizational culture, turning into innovative culture needs to be adaptable to change. And this adaptation should not only be done by the employees but also accepted by the higher management. The examples of CEO bringing innovation in decision making style of the organizations, making employees a stakeholder of the organizations have brought the tremendous turnaround in those organizations
Another remarkable attribute is that success of the organizational culture is behind the strong leadership. Leadership plays a vital role in influencing employees to adapt or to ignore change and innovation. The basic part is of leadership because if leader/ CEO/ owner is not willing to bring innovation in the company then there would not be any change. The change is not possible by linking leadership, organizational culture and innovation.
8.0. EXAMPLE EXTRACTED FROM INDUSTRIES:
Following are the few examples of few organizations that have been successful, in applying innovative organizational culture.
8.1, COMPANY ‘A’:
Following example is about the Company ‘A’. It is a well known multinational company which provides consumers’ goods in reference of organizational culture innovativeness is being quoted here. The organization was able to create innovative organizational culture which shows that the company sets an example low uncertainty avoidance and highly pragmatic as they are more inclined to bring innovative change to the organization as said by.The organization has offered flexible timings to its employees and promotes its employees to bring innovative ideas. The organization’s strong leadership is reflected by the emphasis on the promotion of the employees by providing training and development sessions as without these elements, the employees cannot work effectively (Walter, 2010). Thus, the leader at Company “A” has brought innovation and change that has enhanced the organizational culture and innovation.
The organization “A” has identified the fast revolutionizing market and identified the significance of the innovation that enables the organization to grow as well as employees’ personal growth. Upon realization of this fact, the company “A” has established a Research and the Development department playing an integral part in the conveying innovative ideas for product development. Organization has treated the research and development department as an investment supporting business strategy. Thus, it could be said that the company is strong in innovation and leadership that has resulted in creation of strong organizational culture.
8.2, COMPANY ‘B’:
An organization Company ‘B’ of India is being added in the discussion because of the innovativeness in leadership style. In the year 2007 by the company CEO Mr. X.Y.Z. took over the company in crucial times when the organization “B” has been failing to compete in the market in comparison of local and foreign competitors.. This poor position was faced by the company “B” because of poor leadership and innovative culture (Northouse, 2010).
The CEO starts engaging the employees into the open discussion to get honest opinions about the company failing to perform efficiently and effectively. CEO was successful in evaluating the performance of the company by involving employees in open discussion, to identify where organization lacks, the point where the organization stands at that period of time and where they are willing to approach in market . This is an important step to bring or implement change. Here, the CEO has played the leadership role to bring positive change in the organization which is not possible without the involvement of employees (Kouzes and Posner, 2010). Thus, the company “B” by changing the leadership style and bring innovative change in the decision making process, CEO was successful in winning hearts of employees and motivating them to perform on a high level. The CEO was succeeded in recognizing the Need For Change and has been remarkably accomplished in bringing innovation in the organizational culture.
CEO switched powers from him to employees, which has been an innovative leadership style resulted in tremendous success. This shows that the company “B” has set an example of low power distance of Hofsede’s cultural dimension that has encouraged employees to participate positive in the organization. Moreover, the shift of power has also led employees to develop sense of belongingness which is important to motivate employees at work place. In addition, the act of transferring the responsibilities of decision making and change to the employees was highly appreciated by the employees increasing employee motivation. Thus, by bringing innovative change in leadership style as well as decision making process, the CEO achieved huge success in improving the company’s performance resulting in improving the position of the company. CEO won the trust of the employees (Nutt and Wilson, 2010).
8.3 BANK ‘C’:
It is another example of the innovative change of Decentralization that occurred in the bank of Sweden named X. Y. Z. In the year when bank was going through a crucial time and facing continuous decrease in terms of profitability, losing customers and receiving negative remarks. It was a time when J. W took the bank’s charge as a CEO. As soon as he took the charged he first closed the department of central marketing and disposed of all the long term strategies, annual plans and budgets. The main focus of J. W was on the current situation, to tackle the challenges of that time. This also reflects that the company has made a shift from high power distance to low power distance as suggested by Hofsede’s that low power distance increases employee commitment and engagement in an organization that results in organizational success (Harrison, 1999).
The CEO also included the employees in decision making process, just like the former example of company ‘B’. CEO shifted the powers and responsibilities to the branch managers of the bank. Another innovative idea implemented by CEO was the launch of share schemes by which the employees became the owners and the stakeholder of the bank. Thus, for company “C” change in leadership style and organization culture has made the company to be successful.
8.4 COMPANY ‘D’:
Company ‘D’ is the organization that has been able to identify the gap in the market and utilized it by creative and innovative thinking. The organization successfully identifies the gap between the market demands as well as customers’ buying behaviour. The organization has issued subscription to its consumers that have enabled them to stream unlimited music on the computers and phones. The time it was launched the trend of using pirated CDs and DVDs was at the highest level, and the customers were hesitant and unwilling to pay for downloading music. The organization offered a new service by offering individuals to enjoy high quantities of music at affordable and revolutionary prices. Thus, the company “D” has set an example of innovativeness and creativity that has made the company to achieve success quickly as the products created by the company was identified as demanding product of current and future time (Bouyssou, Dubois, Prade, and Pirlot, 2013).
9.0. A RECOMMENDATION FOR CULTURAL-ENHANCING STRATEGIES AND ACTIONS:
The following are few recommendations proposed to the organizations to enhance their organizational culture and actions:
- The management of organization should decide to select the cultural model but all the model has emphasized on few points which have been defined from different perspective and dimensions.
- Leader and the administration should develop employee skills by motivating and building confidence in the employees. An organization where employees are given first priority and is always taken into consideration by the leaders is the successful organizations where changing culture is not as difficult as comparing to others. For example; in Company “B” and “C”, leader has involved the employees into the decision making process and bring innovative ideas for resource allocation. Thus, it is important to involve employees in decision making process (Western 2007). The later step will be to design the systemic process for the implementation. During all the process of the change in organizational culture, officials and management should keep the employees in contact i.e. open communication.
- The leaders should encourage employees to contribute their ideas to the organization and its process openly (Knight, 2010). This will help to bring best change in the organization as the feedback and ideas provided and supported by the employees will enhance productivity of the organizations as two or more heads are better than one (Guadamillas-Gómez, Donate-Manzanares, Škerlavaj 2010). Moreover, on the other side, encouraging employees to participate in the organization will help to build trust of the employees in the organization (Marianne and Derek, 2010).
Human capital is the most important asset of any successful organizations. Therefore bringing the changes in organizational culture, human capital must be well prepared for the change. The administration should take the human capital in confidence and show them why the change is necessary for the organization. Human capital i.e. employees of the organization should be informed about every single step taken by the management to bring change in organizational culture. In addition, they must be included in the decision making process as it enables them to feel themselves as an important part of the organization. Moreover, their involvement in decision making process also brings in new and creative or innovative ideas that could change the future of the company. This is important because innovation and creativity does not necessarily comes from leader, but employees’ ideas and strategic plans of leaders can together can result in organization’s success. The analysis of the four cases discussed above concludes the following:
- The company “A” has become successful after bringing in innovation and change in the organization that has enhanced the organization’s culture and innovation. Moreover, the company has also switched its organization culture to low power distance, low uncertainty avoidance and highly pragmatic that has made them to become more inclined to bring innovative change at their organization.
- The company “B” was an uncessful company until “XYZ” company has taken over the company’s management. This change in management has resulted in change in leadership where the leader recognized that is not possible without the involvement of employees i.e., the company previously has high power distance and centralized chain of command (Onkvisit and Shaw 2008). Thus, the company “B” by changing the leadership style, reducing power distance and bringing innovative change in the decision making process has created a way to organizational success.
- The company “D” has set themselves as an exemplary company by bringing in change in the level of authority i.e., the company has become decentralized that also reflects that it has made a shift from high power distance to low power distance that has increased employee commitment and engagement. in an organization that results in organizational success.
- Finally, company “D” has set itself as an example of innovativeness and creativity i.e., introducing products that are according to market requirement and consumer needs.Thus, one thing common between Company “A”, “B” and “C” is the shift in power distance i.e., from high power distance to low power distance that has increased the employee’s trust in the organization. However, company “D” including company “A”, “B” and “C” have demonstrated innovation and cultural change along with more emphasis on human capital that has contributed them in becoming successful organizations.