Creating Culture Change
Completion requirements
Read this resource for tips on how to create culture change. Leaders must be prepared to lead people through cultural changes when necessary. An example of when this would be necessary is when companies merge or acquire another company. This text examines the process of cultural change related to the people involved, including teaching employees the new norms through training and changing the reward system.
Changing the Reward System
The criteria with which employees are rewarded and punished have a powerful role in determining the cultural values in existence. Switching from a commission-based incentive structure to a straight salary system may be instrumental in bringing about customer focus among sales employees. Moreover, by rewarding employees who embrace the company's new values and even promoting these employees, organizations can make sure that changes in culture have a lasting impact. If a company wants to develop a team-oriented culture where employees collaborate with each other, methods such as using individual-based incentives may backfire. Instead, distributing bonuses to intact teams might be more successful in bringing about culture change.