MCOB Notes Unit 4

Organization Culture
Organization Change
Group Dynamics
Theories of group formation
Types of Team
Organization control
Innovation in the Workplace Definition

Many people think that innovation in general is some kind of a massive breakthrough in a
certain area of expertise. The fact is – innovation can mean a very small change in how you do
something, but it can have a great impact.

Innovation in the workplace refers to the process of introducing new ideas, services,
products, business processes, or methodologies in a work environment. Innovative
solutions can improve existing products or services, solve problems, and improve ROI or
productivity of a certain business process .
Workplace Innovation Benefits

To many professionals, it is obvious that innovation in the workplace can benefit businesses.
However, there are more ways than one in which this is done.

Catering to your customers’ needs

Your customers are your priority, and they can get better service with an innovative approach
to their problems. If your employees get together to work on a project centered around
catering to your customers’ needs, you can expect increased customer satisfaction and
product adoption.

Increased productivity and reduced costs

Innovation in the workplace does not always have to center around implementing novelties in
products and services. Sometimes, it refers to optimizing work processes to be cheaper,
faster, or more effective.

Remaining competitive

Of course, workplace innovation’s ultimate benefit is helping businesses offer competitive

products and services and increasing revenue in the long run. It is only logical: when
employees innovate, they are helping their businesses stay ahead of competition or to
level the playing field.
What is Organizational Climate?

Many people associate the word ''climate'' with weather conditions and the natural landscape
that results, but the term is also applicable to the business environment. The latter concept is
called organizational climate. The definition of organizational climate is the degree to which an
organization supports its employees in demonstrating their individuality and creativity in their
jobs. Some may define organizational climate simply as an organization's mood, which can
develop gradually over time and change regularly based on how attentive an organization is to
its organizational climate.

Organizational climate is affected by a number of factors. Incentives, such as annual bonuses,

special events, and gifts may have a positive impact on the organizational climate. Another
marker of a healthy organizational climate is if employees feel trusted, valued, heard, and
involved. Organizational climate is also improved when organizations support employee growth
through professional development and career advancement.

Organizational Culture vs. Climate

Some people confuse organizational climate with organizational culture, but they have become
distinctly different concerns for organizations. What is the difference between organizational
climate versus culture? While organizational climate is about individual satisfaction and
contentment is shaped by the values and ways of thinking that are shared organization-wide.
Another key difference is that the factors related to organizational climate can be measured
while those related to organizational culture are difficult to evaluate in a clear-cut quantitative
way.

The following chart offers a summary of the primary differences between organizational climate
and organizational climate.

Organizational Climate Organizational Culture

Focused on individual satisfaction, Focused on the values and beliefs that are
contentment, and growth shared organization-wide

May be influenced by a variety of internal and

Is influenced by what an organization offers for
external factors, including the nature of the
incentives, professional development
business, customer relationships,
opportunities, and other support
management styles, and company goals

May play into the development of

organizational culture (e.g., a personal growth- May be shaped by initiatives geared to
oriented organizational climate results in an improve organizational climate
organization that is perceived as nurturing)

Measurable Not measurable

Measurement of the Climate of an Organization

How is the climate of an organization measured? Measurement strategies are typically initiated
by the upper management of an organization and carried out by its human resources or
communications departments. Surveys are a typical measurement strategy to use among a
workforce and feature questions gauging what employees think and how they feel. Survey
questions related to organizational climate may include the following.

• To what degree do you feel informed about company goals?

• To what degree do you feel you make meaningful contributions toward company goals?
• How satisfied are you with the organization's tuition reimbursement policies?
• How satisfied are you with the organization's continuing education classes?
• When was the last time you received constructive feedback from your supervisor?
• When was the last time you complimented a co-worker on their work?
• In your opinion, what are the organization's greatest strengths?
• In your opinion, what are the organization's biggest challenges?

What Is Organizational Development?

Organizational development is a planned, in the values or operations of employees to create

overall growth in a company or organization. It differs from everyday operations and workflow
improvements in that it follows a specific protocol that management communicates clearly to all
employees.

Organizational change and development can be a long, sometimes overwhelming process, but
companies usually begin with several goals in mind:

• Ongoing improvement. Changing company culture to view new strategies as a positive

growth opportunity allows for ongoing improvement and encourages employees to
become more open to change and new ideas. New strategies are introduced
systematically through planning, implementation, evaluation, improvement, and
monitoring.
• Better or increased communication. Organizational development that leads to
increased feedback and interaction in the organization aligns employees with the
company’s vision. Employees feel that they have more ownership in the company’s
mission and may be more motivated as a result.
• Employee development. In today’s business world, employees must constantly adapt to
changing products, platforms, and environments. Employee development comprises
training and work process improvements that help everyone keep up with shifting
demands.
• Product and service improvement. Organizational development leads to innovation,
which can help improve products and services. This innovation often comes as the result
of intensive market research and analysis.
• Increased profit. Organizational development helps increase profits by optimizing
communication, employee processes, and products or services. Each serves to increase a
company’s bottom line.

While change can be difficult, most companies find that the benefits of organizational
development far outweigh the costs.
The Process of Organizational Development

The organizational development process is a systematic, research-based series of steps.

Common implementation steps include the following:

• Identifying an area of improvement. Organizational change begins with identifying a

need that aligns with business goals. Companies often know that need right away, but
they may consider a data-driven approach to identify problems through formal surveys
and feedback. This approach allows for a more thorough understanding of the area for
improvement. Companies should ask themselves what they want to change, and why
that change is necessary.
• Investigating the problem. Once the area for improvement is identified, companies
conduct an investigation to learn why the problem exists, what the barriers to
improvement are, and what solutions have previously been attempted. This step can also
include surveys or focus groups and individual consultations.
• Creating an action plan. The company then creates a plan with allocated resources and
clearly defined employee roles. This plan will include specific support for individuals
 involved and identify a measurable goal. During this step, companies should think about
how they’ll communicate changes to staff and manage feedback.
• Creating motivation and a vision. Once the company has clearly defined and
communicated a plan, its leaders must motivate their employees to share in a vision.
This step involves leaders acting as enthusiastic role models while helping employees
understand the plan’s big-picture goals and desired impact.
• Implementing. While stability is necessary during implementation, supporting
employees during the transition with mentoring, training, and coaching is equally
important. When thinking about such support, management should consider what new
skills employees will need and what delivery methods will be most effective. Ongoing
feedback and communication can help make the change process easier.
• Evaluating initial results. Once the company has implemented a plan, its leaders may
create space for shared reflection, asking themselves and their employees if the change
effectively met the business goals. They’ll also evaluate the change management process
and consider what could be done differently. This step can’t be overlooked; if the
company doesn’t evaluate the changes, it won’t know whether interventions have been
effective.
• Adapting or continuing. Depending on the evaluation of the initial results, the company
may choose to adapt its plan. If the results show success, it may continue with the
current plan to keep improving.

Organizational Development Models

Once an organization has identified an area of improvement and desired outcomes,
the how comes next. Organizational development models help with change logistics
by providing a clear framework. These models serve two purposes: to help lay out a
plan of action and to clarify communication for employees.

Researchers and experts in the field of organizational change and development have
created several different organizational development models.

Lewin’s Three-Step Model

comprises three steps.

1. Unfreeze

In the first step, companies work to loosen current norms and procedures to prepare
for change.

2. Change (or Transition)

In the second step, companies introduce a new strategy and implement it. During
this step, management support and communication are critical to keep employees
motivated and focused.
3. Freeze (or Refreeze)

The third step solidifies the “new normal” and encourages reflection on how to
sustain the change.