Organisational Culture and Organisational Change

This report explores the impact of organisational culture on organisational change and provides strategies to align culture with change. It discusses the use of the cultural web framework and agile ways of working to facilitate positive changes. It also highlights the importance of technology and the use of Lewin's change model in managing organisational changes. The report concludes with recommendations for the management of Drax (UK) Limited to measure alignment, train employees, and maintain a uniform standard of organisational culture.

Running head: ORGANISATIONAL CULTURE AND ORGANISATIONAL CHANGE
Organisational Culture and Organisational Change
Name of the Student:
Name of the University:
Author Note:

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ORGANISATIONAL CULTURE AND ORGANISATIONAL CHANGE
Executive summary:
Organisational culture is intangible by nature yet can directly impact the organisational
operations and the ultimate outcome of the operations namely, profits. The discussion below
explored this aspect of organisational culture in detail. Firstly, it has been pointed out that
management bodies may face resistances during leading organisational changes. However,
enforcing changes upon employees actually aggravates the resistances. The management of
companies can follow the strategic approach of cultural web to align organisational cultures with
the changes. Secondly, implementation of agile contributes to towards bringing about more
positive organisational changes. Thirdly, the management bodies can use technology to ensure
that middle level managers do not misuse power. Fourthly, the managers can use Lewin’s change
model to manage organisational changes and reduce resistance with the concerned organisations.
The discussion below led to presentation of three main recommendations before the management
of Drax (UK) Limited. They are, first the management should measure the rate of alignment of
subsidiaries with the organisational culture and secondly, the management should train the
employees to enhance their alignment with the organisational culture. Thirdly, the management
should maintain a uniform standard of organisational culture in all the subsidiaries.

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Table of Contents
Executive summary:........................................................................................................................1
Introduction:....................................................................................................................................2
Analysis:..........................................................................................................................................3
Organisational culture:.....................................................................................................................3
Cultural web:...............................................................................................................................3
Stories:.........................................................................................................................................4
Ritual and routines:......................................................................................................................5
Symbols:......................................................................................................................................5
Organisational structure:..............................................................................................................6
Control system:............................................................................................................................6
Power structures:.........................................................................................................................6
Cultural models and frameworks:................................................................................................7
Clan culture:...............................................................................................................................11
Adhocracy cultures:...................................................................................................................12
Market cultures:.........................................................................................................................12
Services (A) and technology (B) have very different cultures:.................................................13
Is leadership in Drax Services responsible for poor performances?..........................................13
Culture(C):.................................................................................................................................13
Agile ways of working:.................................................................................................................13

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Performance, Productivity, Quality:..........................................................................................13
Profit..........................................................................................................................................14
Leadership:................................................................................................................................14
Power and politics:........................................................................................................................14
Shareholders interested in profits:.............................................................................................14
Division have different leaders (conflict)?................................................................................15
Knowledge and expertise:..........................................................................................................15
Expertise in compliance and safety:..........................................................................................15
Technology expertise potentially changes power relations:......................................................15
Change management:.....................................................................................................................16
Lewin’s model:..........................................................................................................................16
Conclusion:....................................................................................................................................16
Recommendations:........................................................................................................................16
Measurement of organisational culture’s alignment with the organisational change:...............17
Training of employees of Drax Services:..................................................................................17
Establishing common organisational cultural in both subsidiaries:..........................................17
References:....................................................................................................................................18

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Introduction:
Traditional businesses operating in the developed and emerging markets are today
compelled to embrace modern methods of operations in order to sustain in the market. It has
become a necessity of the technology and the service providing companies to modernise their
operational methods right from manufacturing to marketing of goods. These changes in the
operational methods have profound impact on other internal environmental aspects of the
companies like organisational cultural models and leadership. The changing operational methods
require the present methods of operations in the company to undergo immense changes. This
requirement to embrace changes requires the staff members embrace changes as well. These
requirement to embrace changes create negative perceptions among the employees as they feel
insecure. Thus, it is clear that the management of the companies have to manage these changes
efficiently. The aim of the report would be to delve into methods which companies can adopt in
order to modernise the operations in order achieve competitive advantages. The company which
would be considered for the research would be the Drax The two divisions of Drax are Drax
Technology and Drax Services, both of which are based in Britain. The company is operation in
a traditional and outdated business platform aged more than 20 years and lost its leading position
due to competitor companies using more modern facilities. The management of company in
order to deal with the competitiveness which it is facing would analyse several which would
analysed in the analysis section. The research would close after recommendation of strategies
which the management of Drax to deal with the situation.

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Analysis:
Organisational culture:
Cultural web:
Cultural web refers to an approach which management bodies of companies can take to
analyse and change the organisational cultures prevailing the concerned organisations. Alvesson
and Sveningsson (2015) mention that organisational culture have strong impact on the perception
which employees of the concerned organisations harbour towards organisational changes. The
management of the companies seeking to embracing organisational changes facing resistance
due to change resistant organisational culture need to approach the issue strategically. This is
because merely forcing the changes upon employees would only escalate the resistance
jeopardising productivity. This situation is applicable for Drax (UK) Limited since the prevailing
organisational culture one of the subsidiaries of the company namely, Drax Services is change
resistant. Merely enforcing the change on the employees would increase the resistance to
changes. Moreover, since Drax Services alone employed three quarters of the total employee
strength of the company, resistance of from have negative impact on the productivity of the
company as a whole. This means that the company would be required to approach the situation
strategically by using cultural web to align the organisational culture of Drax Services with the
change.

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Figure 1. Cultural web
(Source: Rissanen 2016)
The cultural web framework of Drax (UK) Limited would consist of the following six
elements as shown above (figure 2):
Stories:
Stories refer to past events which the employees of the organisation concerned talk about.
The stories may consist of both positive and negative events which employees of the companies
concerned hold important and refer to regularly. For example, the employees of Drax Services
may keep on telling stories about a certain training which took place two years back session from
which developed new skills and competencies. This means that the employees of the company

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hold training sessions important to enhance their skills and competencies. The management of
the company should in accordance to the stories, hold training sessions for the employees of
Drax Technology (Brough, Chataway and Biggs 2016). These training sessions would enhance
the skills and competencies of the employees of Drax Services which would boost the
relatedness which the employees of the latter would feel towards the management of the
company. These positive perceptions and relatedness among the employees of Drax Services
would increase their motivation to embrace changes. Thus, the employees would readily support
the changes which would make it easier for the management to implement changes in the
organisation as a whole.
Ritual and routines:
The rituals and routines refer to the regular behaviour as well as routines which the
employees of concerned companies follow on regular basis (Whelan 2016). For example, the
employees of Drax Services may be more habituated to executing the instructions and not
participating strategy making meetings. The management in order to implement the change may
establish the policy according which the employees of Drax Services would be required to attend
strategy making sessions on regular basis.
Symbols:
Symbols refer to the logos which the employees of the companies under consideration
hold important. The management of the organisational concerned should aim to implement
measures which enable the employees to relate to the logos, thus in turn enhancing the sense of
relatedness to the company. For example, the management of Drax (UK) Limited should make it
compulsory for the employees to exhibit their identity cards at all times while on duty. This

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would increase the relatedness of the employees to the company as a whole. This would
encourage them to participate in the change process.
Organisational structure:
The organisational structure refers to the documented organisational structure as well as
the unspoken structures of authority prevailing within concerned organisations. For example, as
far as Drax(UK) Limited is concerned, the company functions as under the leadership of the apex
management of the company as a whole. However, Drax Services has its own managers too
which lead the subsidiary. Thus, in order to align the subsidiary with the changes, the apex
management of Drax (UK) may directly bring the subsidiary under its control. This would create
a strong feeling of relatedness among the employees of the subsidiaries, which would
automatically align them to the organisational change.
Control system:
The control systems refer to the ways in which organisations are controlled. They include
the various functional departments like finance and marketing. For example, the management of
Drax (UK) in order to gain higher level of support from the departmental managers of Drax
Services should increase the say of the latter in the operations of the company as a whole. This
would enhance the sense relatedness among the employees of Drax Services with the company.
They would automatically support the changes to a greater extent (Rissanen 2016).
Power structures:
The power structures refer to the board of executives having maximum power in the
organisation. As far as Drax (UK) Limited is concerned, it can be pointed out that the apex
management of the company should post a top manager in the management of Drax Services.

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This would enable the management to exercise more direct control over the latter and take
necessary steps to minimise resistance to change.
Cultural models and frameworks:
Organisation culture refers to the values and behavioural attributes which are unique to
particular organisations. Mohelska and Sokolova (2015) define the term organisational culture
as,’ an elusive phenomenon characterising the quality of the social climate within the
organisation and determining the dominant work positions of all workers.’ Zhu (2015)
defines the organisational culture as the workplace environment established in organisations by
interaction of human resources of the respective organisations. The author then goes on to point
out that organisational cultural attributes of business organisations consist of shared
philosophies, opinions and ideologies of staff members, their expectations and similarly
assumptions under given situations. The employees working within organisations also harbour
similar philosophies, attitude and norms about certain things. Asiedu (2015) then go on to point
out that two types of organisational cultures namely strong and weak. Strong organisational
culture refers to organisational culture in which employees have fair idea about the
organisational policies and participate in the operations of the organisation. Strong organisational
cultures enable management to create strong bonding in between departments. Pučėtaitė et al.
(2016) point out that on the contradictory, weak organisational culture is characterised by an
environment where employees withdraw from communicating accurate information due to lack
of trust in the senior management bodies of the concerned companies. Asiedu (2015 p.292) can
be reiterated here to point weak organisational culture can be the outcomes of lack of clarity in
the core values of the companies concerned among the employees. Weak organisational culture
leads to lack of trust between the management and the employees which leads to communication

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gap between the significant bodies of internal stakeholders. Both the stakeholder groups hold
back of crucial information which ultimately leads to fear and insecurity among both the groups
especially among the employees. Glisson (2015) points out resistant organisational culture
generally resists organisational change. Proficient organisational culture on the contrary is
responsive to organisational changes in order to benefit the clients/customers and the
organisations concerned. Proficient organisational culture supports innovation which in turn
encourages more efficient operations in the organisations concerned. Ahlvik, Smale and
Sumelius (2016) add to the discussion on organisational culture by pointing out an important
factors affecting it, the complex relationship between the headquarters and subsidiaries. They
further point out that the headquarters as the ‘principals’ which allocate certain decision making
power to the subsidiaries which are the ‘agents’ to the former. They relationship between the
headquarters and subsidiaries is known as agency relationship. The difference in organisational
culture may not only occur between the principle and the respective agents but also between two
subsidiaries or agents working under a common principle.
The case study of Drax (UK) Limited and its two subsidiaries namely, Drax Services and
Drax Technology perfectly stands on the concepts of organisational culture discussed above. The
case study mentions that the management of Drax (UK) Limited aims to introduce modern and
innovative technology like machine learning (ML) and internet of things or IoT. The case study
also mentions that Drax (UK) Limited entered into partnership with the Department of Computer
Science Technology (CST), the University of Bedfordshire. This means that the company is
adopting open innovation which shows its strong and proficient organisational culture (Popa,
Soto-Acosta and Martinez-Conesa 2017). The same fact is also applicable for its subsidiary Drax
Technology but not for Drax Services. This is evident from the fact that Drax Technology

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experiences a strong organisational culture characterised by employees supporting the change
which the company is looking forward to embrace. Thus, it can also be remarked that the
organisational culture of Drax is more change proficient (Glisson 2015). However, it has also
been pointed out that level of change proficient attribute of Drax Technology has evaluated and
measured by the headquarters. This gives rise the first issue namely, lack of measurement and
evaluation of the level of change proficient organisational culture in Drax Technology. The
contrary is applicable for Drax Services. The organisational culture of Drax Services is weak
which means that it is less aligned with the change which the headquarters is aiming to embrace.
The change which the headquarters is seeking to embrace would be incorporation of modern
technology like IoT and ML which would enable the company to gain real time data from the
fire alarms installed in the premises of its clients to enable the latter to take more prompt steps to
prevent or at least risks of fire (Clegg et al. 2017). The change would require Drax Services to
undergo radical changes since it is the subsidiary of Drax (UK) Limited dealing with alarm
management. The necessity to align Drax Services with the change can be pointed that it alone
employed three fourth of the staff members employed by the company and accounted for half of
its profit generated. Thus, it is clear from the analysis that it is necessary to change the weak
and change resistant organisational culture of Drax Services to a strong and change
proficient organisational culture in order to attribute success to the change initiative of the
company altogether. This brings into light the second issue which is lack of strong and
change proficient organisational culture of Drax Services.

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Drax (UK) Limited
embracing change
towards modern
technology like IoT
and ML
Drax Technology
Organisational culture-strong
Change proficient
More aligned with
Drax (UK) Limited
Lack of measurement of change
alignment of organisational
culture in subsidiaries (Issue 1)
Drax Services
Weak organisational culture
Change resistant
Less aligned with Drax (UK) Limited (Issue 3)
Weak and change
resistant
organisational culture
of Drax Services
(Issue 2)
Failure of Drax (UK)
Limited to establish
similar positive
organisational culture
in both subsidiaries

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ORGANISATIONAL CULTURE AND ORGANISATIONAL CHANGE
Figure 2. Flow chart comparing the organisational cultures of Drax Technology and Drax
Services along with issues
(Source: Author)
The organisational culture of Drax (UK) Limited can be analysed on the grounds of
agency relationship concept. As far as Drax Technology is concerned, it can be pointed out that
the company is well aligned with the organisational culture of Drax (UK) Limited. Drax (UK)
Limited is the principal and Drax Technology is the agent as per the agency relationship concept.
However, Drax Services is less aligned and change resistant to Drax (UK) Limited. In other
words, it can be pointed out that there exists difference between organisational cultures
prevailing in two different subsidiaries. Thus it can be pointed out that the management of
Drax (UK) Limited failed to establish and maintain similar strong organisational cultures
in both the subsidiaries which is the third issue uncovered from the analysis of the case
study (Ahlvik, Smale and Sumelius 2016).
The following are the main organisational culture types which the management of Drax
(UK) Limited would take into account while bringing about changes in the organisational culture
of its subsidiary namely, Drax Services:
Clan culture:
The clan cultural model is a organisational cultural model which is characterised by more
employee centric modes of operations. The employees working in this environment have several
common attribute which contribute towards development of a more friendly organisational
cultures. The departmental heads are perceived as mentors and enjoy loyalty of the subordinates
(Glisson 2015). The departmental heads are show concerned about customers and employees. As

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far as Drax (UK) is concerned, it can be pointed out that the company shares this category of
relationship with the Drax Technology only. This claim can be supported by the fact that Drax
Technology was more aligned to the change which showed the strong clan culture existed
between the two.
Adhocracy cultures:
Adhocracy culture is the organisational culture which is based on creativity and
innovation. The management encourage the employees to take risks in order to achieve higher
levels of innovation. The employers and the employees following adhocracy type of
organisational culture emphasise on maintaining long term relationship to achieve long term
business goals. As far as the mentioned case study is concerned, it can be pointed out that DRax
(UK) Limited enjoys this pattern of organisational culture with Drax Technology alone (Popa,
Soto-Acosta and Martinez-Conesa 2017).
Market cultures:
The market culture is the organisational culture characterised by goal oriented
relationship between management bodies and employees they command. The departmental heads
compete with each other to achieve targets. The organisational culture of organisations following
market cultures are extremely competitive. The organisational culture of Drax Services can be
categorised as market culture. This is because the subsidiary is responsible for half of the
business generation of Drax (UK). However, the change resistant nature of the organisational
culture of Drax Services shows that the employees are resistant to change initiatives of the apex
management. This resistance can also be interpreted as the outcome of the extreme pressure
which the management put on the employees of Drax Services to achieve the targets (Ahlvik,
Smale and Sumelius 2016).

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Services (A) and technology (B) have very different cultures:
Drax Services and Drax Technology have different organisational cultures which is very
clear from the above discussion. The organisational culture of Drax Services is change resistant
and weak. The organisational culture of Drax Technology is change proficient and strong
(Mohelska and Sokolova 2015).
Is leadership in Drax Services responsible for poor performances?
The leadership of Drax Services was largely responsible for the poor performance. The
management of the subsidiary company did not establish a strong and employee centric
organisational culture. The outcome of the weak organisational culture lack of motivation among
the employees of the subsidiary which resulted in the poor performance achieved by the latter
(Rissanen 2016).
Culture(C):
The organisational culture practiced in Drax (UK) Limited as discussed above was strong
and change proficient. As far as the three organisational culture models described above, it can
be pointed out that the management of the company followed the clan cultural model.
Agile ways of working:
Performance, Productivity, Quality:
The management of Drax (UK) Limited should implement Agile to enhance
performance, productivity and quality. Patwardhan et al. (2016) define agile methodology as the
process of operation which involve cross functional collaboration among departments to align
the operations of the companies with the expectations of the clients. The agile methodology
enable business organisations to achieve continuous improvement in their operations. Thus, it is

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evident from the discussion that agile applications in Drax would enable the management of
Drax (UK) Limited to establish a strong organisational culture in both its subsidiaries. This
would in turn enhance the performances of the latter and the company as a whole. It can also be
pointed out that cross functional integration among the two subsidiaries would enable the
company to carry out more innovation in its product quality, thereby improving the latter.
Profit
It is clear from the discussion that application of Agile methodology and cross inter-
subsidiary integration would pave ways for higher profits in both subsidiaries. This would boost
the profit generation of the company as a whole.
Leadership:
The management of Drax (UK) Limited should implement participative leadership in
both the subsidiaries. This would enable the lower level employees take part in the decision
making process. This would result in the employees having clear idea about the goals which have
to be achieved as well as the strategies which would be used to achieve the goals. This would
encourage the employees collaborate at a higher level among themselves and even with
employees of other departments (agile). This increased collaboration among employees would
automatically lead to formation a strong organisational culture (Rissanen 2016).
Power and politics:
Shareholders interested in profits:
The shareholders interested in the profits of Drax (UK) Limited and its two subsidiaries
consist of both individual investors and institutional investors. The company should aim to
higher rates of return on investments to both these groups of investors.

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Division have different leaders (conflict)?
The differences in the organisational cultures prevailing in the two subsidiaries of Drax
(UK) Limited shows that there existed strong differences in the opinion of the different leaders
which resulted in conflict. The management of the company should adopt Agile to enhance the
organisational culture prevailing in the company.
Knowledge and expertise:
The management of Drax (UK) Limited should obtain knowledge and expertise to
improve the organisational culture prevailing both the subsidiaries. This enhance the productivity
of the firm.
Expertise in compliance and safety:
Drax (UK) Limited should enhance the compliance and safety standards of both the
subsidiaries. The company should train the employees and restructure their job responsibilities
which would enable them collaborate with each other. The training would improve the
knowledge of the employees which would enable them to comply with the organisational
policies.
Technology expertise potentially changes power relations:
The management of Drax (UK) Limited should use technological expertise to change
power relations among employees. The company should establish a strong communication
channel which would enable the apex managers to exercise strong supervisory control on the
middle level managers. This would force the middle level managers to abstain from using unfair
and unethical means to achieve their targets (Pierce, Snow and McAfee 2015). Thus, it can be
established that technological expertise can be used to change power relations within the
company to enhance organisational culture.

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Change management:
Lewin’s model:
The management of Drax (UK) Limited should implement the Lewin’s change
management model. The first step of the model is unfreeze. This means that the management of
Drax (UK) Limited should force the employees to operate in the changed ways. The
management should train and mentor the employees to operate according to the change. The next
step of the model is change. The management should incorporate the changes in the
organisational culture. The third step of the model is unfreeze which means that the employees
start adapting to the changes (Stanko and Beckman 2015).
Conclusion:
It can be concluded from the discussion that organisational culture has great impacts on
the productivity of business organisations. The first finding from the discussion is that
organisational culture has direct impact on the performances of the companies. Employees
working under weak organisational culture tend to resist changes which the management bodies
seek to introduce. However, enforcing changes upon employees by force only aggravates the
situation. The second finding from the analysis that management bodies should introduce
changes strategically using the cultural web framework. The third finding from the analysis is
that the companies should use agile method and lewin’s model to manage organisational changes
more efficiently.
Recommendations:
The following are the recommendations which can be placed before the management of
Drax (UK) Limited in the light of the above discussion:

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Measurement of organisational culture’s alignment with the organisational change:
The management of Drax (UK) should measure the rate of alignment of the
organisational culture of its subsidiaries with its change management strategies. The discussion
reveals clearly that the organisational culture of Drax Technology was aligned with the
organisational culture and change management strategy of the principal company namely, Drax
(UK) Limited. However, the management of the company did not measure the rate of alignment
and as a result was not able to take any step to enhance the rate of alignment. Thus, it can be
recommended that the apex management should measure and evaluate the rate of alignment of
Drax Technology and take steps to enhance the level of alignment.
Training of employees of Drax Services:
The management of Drax (UK) Limited should train the employees to encourage them to
participate in the change process. The provisions of training would enhance the feeling of
relatedness among the employees would encourage them to collaborate with the managers in
achieving the target. This collaboration between the management and the employees would
enhance the organisational culture of the company as a whole.
Establishing common organisational cultural in both subsidiaries:
The management of Drax(UK) Limited should aim to establish common standards of
organisational culture in both its employees. The management should establish common
organisational policies which would be enforceable on employees of both the subsidiaries. This
would develop a feeling of equability among employees of both the subsidiaries. This would
motivate them to participate in the change strategies of the company. It would enable the
management to reduce resistance to the changes it aims to bring about with the modes of
operations of the company.

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