Culture Change for Barclays Bank Essay

Introduction

Culture is a way of saying or doing things. The transformation of goals, strategy, structure, management, resources, product, services, and procedures is called change. Organizational change is the transformation of various business segments to fit a business strategy (Armstrong-Stassen 1998). Organizational change can be partial, or complete.

Organizational culture is a patterned way of feeling, thinking and reacting to business transactions. Two factors affect the level of transformation in an organization. The factors include culture and politics.

Thus, organizational culture can be manipulated and managed (Olson & Tetrick 1988). Organizational culture influences the growth and stability of the firm. We will apply relevant theories to analyze the culture change in Barclays Bank.

Organizational culture

Organizational culture comprises the following;

1. Norms.
2. Beliefs:
3. Values.

The change in organizational culture is influenced by three factors namely,

1. Management.
2. Organizational change.
3. Expansion.

Factors affecting organizational change

Organizational culture can be resisted by the employees. Thus, the management must determine a suitable method of change (Nord & Jermier 1994). The factors, which affect organizational culture include;

1. The feelings, attitude and perception of the employees.
2. The inclusion of the employees in the decision to change.
3. Management.

Feelings attitude and perception of the employees

Employee’s perception of the change process can affect the organizational culture (Nadler 1987). Cohesion between management and the employees influences organizational culture. Employees are scared of losing their jobs and will resist any change in organizational culture.

The inclusion of employees in the decision to change

The communication gap between the management and the employees threatens the need for change. The transformation in organizational culture must be communicated to the employees (Nelson, Cooper & Jackson 1995). An employee who receives the information from a colleague may resist the change.

Change management

The management must implement a perfect plan. The framework for the process must be flexible and plain (Goodman & Truss 2004). When the plan is open and plain, employees will not doubt the reason for the change.

Culture theory and model

The change in organizational culture can be categorized in three stages

1. Traditional culture: The pattern of the organization is influenced by administrative regime. Traditional culture is characterized by beliefs and values.
2. Competitive culture: Organizational culture is motivated by different business trends (Goltz & Hietapelto 2002, p, 20). Competitive culture may not work for two organizations. The reason for the change must complement the organizational strategy.
3. Transformational culture: Transformational culture is influenced by organizational structure.

Kotter’s theory of change

Kotter proposed 8 steps for organizational change

1. Urgency.
2. Coalition.
3. Vision.
4. Communication.
5. Empower.
6. Create short-term plan.
7. Develop.
8. Adapt.

Schein’s culture model

Schein proposed three levels of culture model namely,

1. Artefacts.
2. Values.
3. Assumptions.

The outer layer is called Artefacts. Artefacts can be identified by the organization. Artefacts include punctuality or lateness, daily reports, communication and cleanliness of the organization (Oreg 2006). The inner layer is called values. Values cannot be directly observed. Values include the purpose, mission, vision and objectives of the organization.

Characteristics of organizational culture

1. Identity.
2. Group emphasis.
3. People focus.
4. Integration.
5. Control.
6. Risk control.
7. Reward pattern.
8. Conflict resolution.
9. Orientation.
10. System focus.

Topologies of culture

Handy (1993): Handy proposed power, task, role and person.

Pheysey (1993): Pheysey proposed power, role support and achievement.

Scholz (1987): Scholz proposed evolution-induced, internal-induced and external-induced dimensions. Hall (1995): Hall proposed assertiveness and responsiveness.

Deal & Kennedy (1982): Deal & Kennedy proposed work-hard, tough guy, bet and process.

Culture change for Barclays Bank

We can analyze the culture change initiated by Barclays Bank using different theories and models. The bank management must utilize models of culture change to manage the employees. The inclusion of the employees in the change decision will determine the success of the plan. The management must confront the employees as the agents of transfromation (Piderit 2000).

The feeling, perception and attitude of the employee should be observed prior to the change. The change must be announced before the time for implementation. The management must organize a meeting with the employees before the change. The management must adapt to business trends. Kotter’s steps to change proposed the need for urgency, speed and direction.

Employees are driven by the change mechanism (Martin, Jones & Callan 2005). The management must provide short-term wins to motivate the employees. Employees must be convinced about the change. The change must align with the objectives of the organization.

The management must form a coalition with the employees. The change must be measured with a short-term goal. Employees can access the benefit of the change through the short-term goals. Finally, employee’s attitude, employee’s inclusion and management will affect the culture change in Barclays Bank.

Implications of the research

1. The management determines the success of the strategy.
2. Employees are the agents of change.
3. Culture cannot be consciously manipulated.
4. Culture change must be transformational or manipulative.

References

Armstrong-Stassen, M 1998, ‘The effect of gender and organizational level on how survivors appraise and cope with organizational downsizing’, Journal of Applied Behavioral Science, vol. 34, no. 2, pp. 125-142.

Goltz, M & Hietapelto, A 2002, ‘Using the operant and strategic contingencies models of power to understand resistance to change’, Journal of Organizational Behavior Management, vol. 22. no. 3, pp. 3-22.

Goodman, J & Truss, C 2004, ‘The medium and the message: communicating effectively during a major change initiative’, Journal of Change Management, vol. 4. no. 3, pp. 217-228.

Martin, A, Jones, E, & Callan, J 2005, ‘The role of psychological climate in facilitating employee adjustment during organizational change’, European Journal of Work and Organizational Psychology, vol. 14. no. 3, 263-289.

Nadler, A 1987, ‘The effective management of organizational change’, in Handbook of Organizational Behavior, Englewood Cliffs, NJ.

Nelson, A, Cooper, L, & Jackson, R 1995, ‘Uncertainty amidst change: the impact of privatization on employee job satisfaction and well-being’, Journal of Occupational and Organizational Psychology, vol. 68, p. 57-71.

Nord, R, & Jermier, M. 1994, Overcoming resistance to resistance: insights from a study of the shadows, Public Administration Quarterly, Blackwell, Canada vol. 17. no. 3, pp 396.

Olson, A & Tetrick, E 1988, Organizational restructuring: the impact on role perceptions, work relationships, and satisfaction, Group & Organization Studies, Routledge, London, vol. 13. no. 3, pp. 374-388.

Oreg, S 2006, ‘Personality, context, and resistance to organizational change’, European Journal of Work and Organizational Psychology, vol. 15. no. 1, pp. 73-101.

Piderit, K 2000, ‘Rethinking resistance and recognizing ambivalence: a multidimensional view of attitudes toward an organizational change’, Academy of Management Review, vol. 25. no. 4, pp 783-794.