Introduction
“A pattern of shared basic assumptions that a group has learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems.”
- Edgar Schein on Organizational Culture
Effective leaders should
be knowledgeable of organizational culture or risk being manipulated by it themselves.
Understanding the culture of an organization is necessary for successful leaders
who must fully understand and communicate the values and norms to associates across
the organization. Leaders must understand and act with culture; however, they
must also be able to recognize when the culture of the organization is
dysfunctional so as to identify and integrate a more successful approach. An effective approach should combine both transactional and transformational elements
of leadership. This will provide for a decreased likelihood of lowered
production and/or morale and encourage the commitment of individuals thus
resulting in increased employee retention.
This chapter examines information that is applicable for developing my skill set for understanding and communicating organizational culture. This is vital to becoming an operations manager in my organization and will contribute to my promotion to SVP which requires my complete understanding of the system of values and norms that are contributing to its success or determinant of my institution. The can be complimented by an approach that includes both transactional and transformational elements of leadership. Integrating this approach will prepare me to be flexible and adaptable to the expectations of the organization which is critical for a manager in the opertions area.
This is especially true given the evolving cultural aspects of that segment of my organization. Future operations managers will be faced with a increasing number of aquitions and mergers. The process of combining two different cultures will require my knowledge of both in order to successfully assimilate the processes into a cohesive and productive unit. Therefore, I will need to understand how to lead and manage across different cultures.
This chapter examines information that is applicable for developing my skill set for understanding and communicating organizational culture. This is vital to becoming an operations manager in my organization and will contribute to my promotion to SVP which requires my complete understanding of the system of values and norms that are contributing to its success or determinant of my institution. The can be complimented by an approach that includes both transactional and transformational elements of leadership. Integrating this approach will prepare me to be flexible and adaptable to the expectations of the organization which is critical for a manager in the opertions area.
This is especially true given the evolving cultural aspects of that segment of my organization. Future operations managers will be faced with a increasing number of aquitions and mergers. The process of combining two different cultures will require my knowledge of both in order to successfully assimilate the processes into a cohesive and productive unit. Therefore, I will need to understand how to lead and manage across different cultures.
Content
"Organizational Culture in Bank Acquisitions and Mergers"
"Organizational Culture in Bank Acquisitions and Mergers"
Culture: The sum total of ways of living built up by a group of human beings and transferred from one generation to another.
Organization Culture: the collective programming of the mind which distinguishes the members of one
organization from another.
Organizational changes are introduced in the presence of two factors: 1) inadequacy of resources to meet growth and profit aspirations; 2) external conditions that provide opportunities for growth or pose threats for survival or consistent performance. One of the most challenging forms of change is that of restructuring. More specifically, mergers and acquisitions prompts the creation of a new organization.
During a merger, employees (particularly from the acquired firm) are exposed to a different culture or way of doing things. The level of similarity between the organizations will dictate the degree of cultural conflict; however, a high level of cultural conflict may cause uncertainty and stress. This might result in lowered productivity, lowered morale and increased turnover. The article examines two factors to avoid or lessen cultural conflict: 1) whether cultural differences should be considered before the merger or acquisition; 2) are there any interventions that concerned organizations need to make to facilitate cultural change/integration and, what is the right time to start these interventions? (p.231).
The case study involved the acquisition of a bank by a larger one. To address the issue of culture, the acquiring institution established a program to intermingle employees to encourage them to learn about each other’s culture. This brought cultural differences to the surface in an effort to minimize tension. Moreover, an organizational publication was created to facilitate communication of the importance of the new culture within the combined organization. Other methods used included one on one discussions and regular meetings with upper management from both institutions. “Usage of multiple methods ensures that integration of both-subjective as well as objective cultures takes place.” (p.240).
Personal Relevance: I currently work for one of the largest family-owned banks in the United States that operated under a more traditional management structure. Our longevity and success as an institution is characteristic of the values ingrained by our management. Operations managers within our Bank have traditionally been expected to fulfill an administrative role, carrying out the vision and policies of upper management. This aspect out our culture is slowly changing. This is particularly important for me to embrace given the increasing amount of acquisitions our Bank has undergone in recent years. By the end of 2013, the Bank will have acquired and integrated the operations of six financially distressed institutions. Cultural due diligence was a major concern for our organization. Our more traditional operating standard was a shock for many of the employees of the five West Coast banks that were acquired.
Mergers and acquisitions have been a particularly common occurrence since the great recession. It will continue to be prevalent in our industry and banks are confronted with increased competition and regulation. This article holds particular considerations that I can draw upon during an acquisition so that I may be a successful manager in my operational capacity. I will need to integrate these ideas and considerations to become a successful operations manager and SVP within the industry. I will leverage my ability to be a team player with the pride I have for my organization to be a positive agent for integrating and creating the vision for a unified organizational culture. This might decrease the likelihood of lowered performance and morale in my employees and support my growth as an effective operations manager in the industry.
Organization Culture: the collective programming of the mind which distinguishes the members of one
organization from another.
Organizational changes are introduced in the presence of two factors: 1) inadequacy of resources to meet growth and profit aspirations; 2) external conditions that provide opportunities for growth or pose threats for survival or consistent performance. One of the most challenging forms of change is that of restructuring. More specifically, mergers and acquisitions prompts the creation of a new organization.
During a merger, employees (particularly from the acquired firm) are exposed to a different culture or way of doing things. The level of similarity between the organizations will dictate the degree of cultural conflict; however, a high level of cultural conflict may cause uncertainty and stress. This might result in lowered productivity, lowered morale and increased turnover. The article examines two factors to avoid or lessen cultural conflict: 1) whether cultural differences should be considered before the merger or acquisition; 2) are there any interventions that concerned organizations need to make to facilitate cultural change/integration and, what is the right time to start these interventions? (p.231).
The case study involved the acquisition of a bank by a larger one. To address the issue of culture, the acquiring institution established a program to intermingle employees to encourage them to learn about each other’s culture. This brought cultural differences to the surface in an effort to minimize tension. Moreover, an organizational publication was created to facilitate communication of the importance of the new culture within the combined organization. Other methods used included one on one discussions and regular meetings with upper management from both institutions. “Usage of multiple methods ensures that integration of both-subjective as well as objective cultures takes place.” (p.240).
Personal Relevance: I currently work for one of the largest family-owned banks in the United States that operated under a more traditional management structure. Our longevity and success as an institution is characteristic of the values ingrained by our management. Operations managers within our Bank have traditionally been expected to fulfill an administrative role, carrying out the vision and policies of upper management. This aspect out our culture is slowly changing. This is particularly important for me to embrace given the increasing amount of acquisitions our Bank has undergone in recent years. By the end of 2013, the Bank will have acquired and integrated the operations of six financially distressed institutions. Cultural due diligence was a major concern for our organization. Our more traditional operating standard was a shock for many of the employees of the five West Coast banks that were acquired.
Mergers and acquisitions have been a particularly common occurrence since the great recession. It will continue to be prevalent in our industry and banks are confronted with increased competition and regulation. This article holds particular considerations that I can draw upon during an acquisition so that I may be a successful manager in my operational capacity. I will need to integrate these ideas and considerations to become a successful operations manager and SVP within the industry. I will leverage my ability to be a team player with the pride I have for my organization to be a positive agent for integrating and creating the vision for a unified organizational culture. This might decrease the likelihood of lowered performance and morale in my employees and support my growth as an effective operations manager in the industry.
"Transformational Leadership and Organizational Culture"
Effective organizations need strategic and tactical thinking as well as culture building from its leaders. “In a highly innovative and satisfying organizational culture we are likely to see transformational leaders who build on assumptions such as: people are trustworthy and purposeful; everyone has a unique contribution to make; and complex problems are handled at the lowest level possible.” (p.113).
Transformational leader: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration
These leaders will exhibit a sense of vision and purpose: aligning others around the vision and empowering them to take responsibility for achieving it. They facilitate and teach followers to foster creative change. There is constant interplay between culture and leadership. “Cultural norms arise and change because of what leaders focus their attention on, how they react to crises, the behaviors they role model, and whom they attract to their organizations.” (p.115) Leaders have to be in tune with the culture in order to promote modifications when needed to achieve a new direction. Moreover, they must view the development of assumptions and values as an evolutionary process: evaluate and change if necessary. This must be supported first by an understanding and respect for the past.
A successful culture will integrate transformational qualities while holding true to successful elements of transactional leadership. A transformational culture will intertwine a sense of purpose and feeling of family thus resulting in work force that is more committed. Superiors act as mentors, coached and role models because they feel an obligation to help others socialize and assimilate into the culture. There exists a rich set of norms that will readily adapt to forces of external pressure for change. The article provides several “typology of organizational culture” (listed below) that based on “Organizational Description Questionnaire” (ODQ) scores and meant are meant to provide an assessment tool for determining an agency's culture.
Predominantly/Moderate Transformational Organization: very transformational. Individuals likely to be talking about purposes, vision, values, fulfillment. De-emphasize formal agreements/controls which can result in a lack of direction for employees. Structure will be loose, decentralized and flat. There is likely to be high expressiveness, creativity and flexibility.
High Contrast Organization: mixed transactional and transformational scores. Likely will produce more conflict between ways to achieve results but it will be constructive in nature.
Coasting Organizational Culture: Middle of the road: external controls balanced with self-control. The organization will coast by not maximizing its resources and opportunities. This will result in little change.
Predominately/Moderate Contractual Organizations: Highly transactional. Self-interest of individuals is paramount with an emphasis on controls, directions and procedures. The structure will be highly centralized with a clear top-down chain of command.
Pedestrian Organization: Moderately transactional. Little is achieved outside of formal agreements and little to no change is exhibited within the organization. General sense of structure and procedure with routine work.
Garbage Can Organizational Culture: Lacking either transactional or transformational qualities. Lack of general consensus and the organization is a “garbage can of fruitless activities.” It is lacking in purpose, vision, values as well as rules and regulations needed to control activities.
Personal Relevance: My self-assessments accurately identified my tendency to support those in charge too uncritically. I think this is particularly truthful in relation to an established culture that has been communicated within my organization. The traditional nature of my organization can be most accurately characterized by the article identifies as ‘Predominately/Moderate Contractual Organizations’. The interesting thing is that I am in the midst of a fundamental change in the culture of my organization: one that is more transformational in nature. There is a natural struggle by those resistant to this change but I myself must be a positive driver of the new initiative.
My direct managers are long-time employees of the Bank. They are resistant to the new initiatives in favor of the more administrative roles of their positions. By nature (and confirmed by my self-assessments) I often support the standards of those in charge too uncritically. This article provides me with a road map to identifying the elements of a successful organization. It helps me to identify the current state of my organization’s culture and what steps I can implement in my own leadership style (i.e. transformation elements) to support the objectives of upper-management. My direct managers seem unable or unwilling to provide such a guide so this article is useful in developing my own method in support of transformational elements that are crucial for successful leaders. I will apply this examination in my daily interactions with my subordinates. This will support my development as an effective leader by helping me reduce the aforementioned weakness. Thus, I will be more prepared to be a SVP, operations manager in the industry.
Transformational leader: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration
These leaders will exhibit a sense of vision and purpose: aligning others around the vision and empowering them to take responsibility for achieving it. They facilitate and teach followers to foster creative change. There is constant interplay between culture and leadership. “Cultural norms arise and change because of what leaders focus their attention on, how they react to crises, the behaviors they role model, and whom they attract to their organizations.” (p.115) Leaders have to be in tune with the culture in order to promote modifications when needed to achieve a new direction. Moreover, they must view the development of assumptions and values as an evolutionary process: evaluate and change if necessary. This must be supported first by an understanding and respect for the past.
A successful culture will integrate transformational qualities while holding true to successful elements of transactional leadership. A transformational culture will intertwine a sense of purpose and feeling of family thus resulting in work force that is more committed. Superiors act as mentors, coached and role models because they feel an obligation to help others socialize and assimilate into the culture. There exists a rich set of norms that will readily adapt to forces of external pressure for change. The article provides several “typology of organizational culture” (listed below) that based on “Organizational Description Questionnaire” (ODQ) scores and meant are meant to provide an assessment tool for determining an agency's culture.
Predominantly/Moderate Transformational Organization: very transformational. Individuals likely to be talking about purposes, vision, values, fulfillment. De-emphasize formal agreements/controls which can result in a lack of direction for employees. Structure will be loose, decentralized and flat. There is likely to be high expressiveness, creativity and flexibility.
High Contrast Organization: mixed transactional and transformational scores. Likely will produce more conflict between ways to achieve results but it will be constructive in nature.
Coasting Organizational Culture: Middle of the road: external controls balanced with self-control. The organization will coast by not maximizing its resources and opportunities. This will result in little change.
Predominately/Moderate Contractual Organizations: Highly transactional. Self-interest of individuals is paramount with an emphasis on controls, directions and procedures. The structure will be highly centralized with a clear top-down chain of command.
Pedestrian Organization: Moderately transactional. Little is achieved outside of formal agreements and little to no change is exhibited within the organization. General sense of structure and procedure with routine work.
Garbage Can Organizational Culture: Lacking either transactional or transformational qualities. Lack of general consensus and the organization is a “garbage can of fruitless activities.” It is lacking in purpose, vision, values as well as rules and regulations needed to control activities.
Personal Relevance: My self-assessments accurately identified my tendency to support those in charge too uncritically. I think this is particularly truthful in relation to an established culture that has been communicated within my organization. The traditional nature of my organization can be most accurately characterized by the article identifies as ‘Predominately/Moderate Contractual Organizations’. The interesting thing is that I am in the midst of a fundamental change in the culture of my organization: one that is more transformational in nature. There is a natural struggle by those resistant to this change but I myself must be a positive driver of the new initiative.
My direct managers are long-time employees of the Bank. They are resistant to the new initiatives in favor of the more administrative roles of their positions. By nature (and confirmed by my self-assessments) I often support the standards of those in charge too uncritically. This article provides me with a road map to identifying the elements of a successful organization. It helps me to identify the current state of my organization’s culture and what steps I can implement in my own leadership style (i.e. transformation elements) to support the objectives of upper-management. My direct managers seem unable or unwilling to provide such a guide so this article is useful in developing my own method in support of transformational elements that are crucial for successful leaders. I will apply this examination in my daily interactions with my subordinates. This will support my development as an effective leader by helping me reduce the aforementioned weakness. Thus, I will be more prepared to be a SVP, operations manager in the industry.
Exercises and Practice Routines
The above activity provided a a guide for helping participants evaluate organizational culture. It supported the ideas of the concept by highlighting the importance of understanding, supporting, and being flexible of cultural fabric of the organization. This is an interesting exercise because we do not frequently visit the topic of OC. My associates found it to be enlightening and were engaged when talking about the values that comprised our organization's culture. The worksheet provided a good structure to begin this discussion. Overall, the activity can encourage increased buy-in as they are more attune to the requirements of the institution.