Blog 1: Is the Cultural change in organizations a part of the life cycle for companies, and do we need to fight it ?

Organization culture is the way stakeholders face challenges and problems, deal with each other and with their goals according to Mullins and Christy (2016, 537), it’s like the Snapchat filter that the stockholders see all the elements in their work environment, from customer and company goals to ethics and behaviors between each other, and it varies from organization to another. But the question here is not if organizations have different cultures or how to change the culture in a specific organization like Aetna’s need of cultural change and William’s role according to Carole Still (2019), the question is how to fight culture changes in a specific organization ? which may be odd, but cutlers obviously can be good or bad so it does not always need to change, for example: Google’s innovative Culture is a good example for a successful culture (Steiber al et., 2013). but do managers and leaders need to fight the culture change, and when?

According to Mullins and Christy (2016, 542) there is seven factors that influences cultural change and it’s development in organizations and cooperates, from history, technology, strategies and management to location, environment and size of a company.

Companies grows and dies or reborn, they call it a life cycle, and there are many studies and theories about this subject like (Miller and Friesen 1980, 1984; Quinn and Cameron 1983) on companies life cycles. So we can say that every company is changing in it size, which means there is always a factor that influence culture change in organizations.

company-life-cycle
(Myrtroen, 2015)

 

Based on Mullins and Christy (2016, 542) analysis of the organization’s size and how it influence change in culture, when a company grows or declines changes happens in it’s organizational skeleton, departments changes and tasks spreads differently, and this change in tasks and departments results in cultural change, and if growth or decline happens rapidly, the culture change will be at the same speed, which may cause problems, challenges, interdepartmental rivalries, difficulties and a gap in communication.

If a small company is successful it will grow (Miller and Friesen 1980, 1984; Quinn and Cameron 1983), and this growth will push changes in the company culture, but the issue here is that culture may be one of the succeeding factors of that small company, and if the culture changes, the company may lose it advantage in the market. So as leaders and managers in a growing company do we have to fight that change in culture ?

The special factor of success in small companies may be the culture of the stakeholders as they treat the company as their family, employees will be loyal, managers will be compassionate and in direct touch with their employees. At least that was the case in our family business, a contracting company specialized in infrastructure  Al-Omaria Contracting Co. which my father started from the scratch with round 20 employees, my father as the manager/owner knew each employee in a personal way, he would hand them rewards if they were productive in a friendly and non-organizational way, give them very long and extended paid leaves if they had family crises more than the labor laws and restrictions allows, in return they were loyal and they considered the company as a family and the owner as a big brother they can relay on and work happily with.

In that field and market customers ( Jordanian authorities and ministries) have very restrict and obvious guidelines on how they want their projects and services be applied (mol.gov.jo, 2019), so the margin of innovation was small, and no big capital needed to enter this highly competitive market, so productivity and efficiency was the key pillar to success and grow in that market for small companies. To maintain that culture of loyalty and family attitude in the company while it’s growing and various projects are in distended areas actions had to be done. So project Managers were chosen carefully to run each project separately and my father made specific guidelines in how to treat employees, and in order to replace his role completely he gave each manager a percentage from the profits each from the project He-She is managing to grow the sense of ownership in these managers, and to transfer them from managers to leaders and maintain his key pillar and advantage which is high productivity and efficiency in a different segment in the same market, which allowed him to compete with sharks in a higher level of the market in a shorter time as a midsize company with around 400 employees in a ten years span (al-omaria, 2019).

Big firms will choose seniors (and sometimes employees) and give them stocks and shares, to grow a sense of loyalty in it’s departments and to maintain a good involved culture between it stakeholders (Oyer, Paul, Scott, 2004), and this is how to manage a good culture in order not to despair in three deferent stages in companies, from small through medium to big.

Finally, we as leaders manage our systems in order to maintain a good culture in the company through it’s life span instead of fighting changes against the flow.

 

 

References

Mullins, L., 2016. Management & Organisational Behaviour. 11th ed. Edinburgh Gate: Pearson.

Coventry University London – Moodle. 2019. Coventry University London – Moodle: Log in to the site. [ONLINE] Available at: https://culcmoodle.coventry.ac.uk/mod/folder/view.php?id=299811. [Accessed 05 January 2019].

M. hossain. 2018. Corporate Life Cycle and Cost of Equity Capital. [ONLINE] Available at: https://webcache.googleusercontent.com/search?q=cache:aGz29FQga4kJ:https://www.uts.edu.au/sites/default/files/JCAE_MHossain_CorporateLifeCycleAndCostOfEquityCapital.pdf+&cd=1&hl=en&ct=clnk&gl=jo&client=safari. [Accessed 5 January 2019].

Company Life Cycle | Economic Consultants. 2019. Company Life Cycle | Economic Consultants. [ONLINE] Available at: http://economic-consultants.com/10212/the-ec-december-2015-newsletter/company-life-cycle-2/. [Accessed 05 January 2019].

الصفحة الرئيسية – وزارة العمل . 2019. الصفحة الرئيسية – وزارة العمل . [ONLINE] Available at: http://www.mol.gov.jo. [Accessed 05 January 2019].

About Company – Al Omaria Construction. 2019. About Company – Al Omaria Construction. [ONLINE] Available at: http://al-omaria.com/about-company/. [Accessed 05 January 2019].

Oyer, Paul,  Scott. 2004. Why Do Some Firms Give Stock Options to All Employees?: An Empirical Examination of Alternative Theories. [ONLINE] Available at: https://search.proquest.com/central/docview/1688029090/59B196423A3B4DC9PQ/4?accountid=10286. [Accessed 5 January 2019].

3 thoughts on “Blog 1: Is the Cultural change in organizations a part of the life cycle for companies, and do we need to fight it ?”

  1. Your Blog is really interesting. U have explained the Organisational Culture very well.
    I just had one question :
    You said in your market for contracting company the key pillar was the culture, how did your company manager knew that ?

    Like

  2. Thank you mate,
    You can always determine if Culture is the pillar key to your organizational success, by applying macro PESTEL analysis, Portar five forces.SOWT and TOWS. and in my opinion if your business is small focus on the five forces, SOWT and TOWS because Macro analysis will likely affect your business and your rivals the same because of the small size of the companies.

    Like

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