Change_in_Organization

Change in Organization The past and recent flare-ups between the South Korean Chaebols (leading figures of conglomerates) and labor unions in Korea are a good case example why the organization must initiate a right culture change in order to maintain competitive and successful. Hofstede (1994) concluded that Power Distance is the extent that everyone in our society accepts the unequal distribution of power that determines the status of the people and structure of the organization. It’s my opinion that these Power Distance and Collectivism dimensions don’t always remain stead-fast but do change as people become better educated, become aware of the current economic situation, and involved in labor union movement. In the past, where the loyalty to the organization was a pre-requisite and where labor union was non-existent, employees were bound by this unwritten rule that has been passed on down from generation to generation; especially so in the countries that were heavily influenced by Confucianism such as Korea, China, and Japan. People will accept the Power Distance and support the collectivism as long as the organization remain loyal and caring for their needs, but will slowly start rejecting the Power Distance and become individual as the organization becomes disloyal or uncaring for their needs. The past and recent labor dispute between South Korean conglomerates and labor unions are perfect examples that support this argument. South Korean conglomerates have been very successful in maintaining a model organizational culture for many years with focuses on Power Distance and Collectivism; which demanded total devotion and loyalty of their employees. In return they gave the solemn promises to their employees that they’d be a part of the organization for life; which they could continue to do so until the businesses were affected by the globalization. However, in order to remain successful in global competition and to increase revenues, many organizations started to change their corporate culture - from a caring organization to non-caring for the people’s needs, and from an organization that one can count on to stay for life to an organization that can not be trusted any longer. This unorthodox corporate culture change, in a country that valued the Confucian model for generations, quickly resulted in the birth of labor movement that rejects the former organizational culture that has been followed and respected by all for many generations. As I stated in Unit-2 assignment, the culture affects everything and it can result in a positive or a negative change; which can significantly affects the organization and the people. Before a change is initiated, the organization must carefully weigh the outcome and choose the one that would benefit the organization, people, and society as a whole. The organization must carefully balance and set the Power Distance and the Individualism and Collectivism based on the organization’s needs and objectives. “Today’s leaders must understand what makes the people click and find a way to make the people click the way that benefits the organization. Leaders need to be adaptive as the business evolves into global business. “Adoptive leadership requires continuous efforts to make sense of the “noise” in our environments and be able to know when the organizations are operating in round contexts.” (Glover, Jones, & Failautusi, para 7) When making a change, decision making and strategies should not be relied on past performance; rather the leaders must continuously assimilate information from their environments then accommodate the organizations to the specific contexts. (Glover, Jones, & Failautusi, para 7) Changes or adaptation must be based on groups’ needs, based on external environment focusing on internal processes such as rules and protocol; focusing on internal integration. Assumptions must consist of creating common language; defining group boundaries and criteria for inclusions and exclusion; distributing power and status; developing norms of intimacy, friendship, and love; defining and allocating rewards and punishments; and explaining unexplainable ideology and religion. (Schein, 2004, p. 112) The most important of all is the way the leaders demonstrate and portray themselves to their people, for the leaders are the ones who can transmit, enforce, and re-enforce the culture. Leaders must always portray the role model for the followers. In order to promote and embed a good culture, leaders must always pay attention to their surroundings; positively and logically react to critical incidents; properly allocate resources; promptly and properly allocate rewards and status; fairly recruit, select, promote, and ex-communicate. (Schein, 2004, p. 246) In order for the organizations to successfully adapt or change the culture, the top management and other leaders not only understand the needs but also become positive role models for others to emulate or change; which translates to a Leadership. Culture adaptation or a change is a complex process that requires a great efforts and time, but a necessity in today’s multi-cultural organizations competing in global economy.” The past and current labor disputes resulted in violence and deaths, halted productivity, losses of revenues and income, and also resulted in Korean conglomerates to lose the winning edge in today’s global market. Culture change is only good when the proposed or implemented changes are accepted and can benefit both the organization and the people within. Not only the South Korean conglomerates, but all other organization on the globe must carefully weigh the good against evil before initiating a culture change. References 1. Hofstede, G. Management Science, The Institute of Management Sciences 1994 2. Glover, J., Jones, G., Failautusi, P. Adaptive Leadership: Are you Sailing a Square Ship, Hawaii Pacific University 2009 3. Schein, E. Organizational Culture and Leadership, Jossey-Bass Publishing 2004