Factors of Organizational Culture Change

This article examines various factors that affect organizational culture. It considers the macro-environment, the micro-environment, and leadership as influential factors in organizational culture. A company's founder(s) and its leadership are the biggest influencers on culture in their responses to external events. Furthermore, the organization's development stage also affects the organizational culture's change mechanisms.

Results of the research of organizational culture change

Tolerance of risk and innovation

In 2006 almost half of the respondents were not sure how to evaluate the statement, that the company focused on the new ideas and innovation, and almost one-third of the respondents disagreed with that statement In 2008 even 62.3% of the surveyed respondents agreed that organization focuses on the new ideas and innovation, and only 5.7% disagreed with that statement Average assessment of the statement in points increased from 2.8 to 3.7 points out of 5.

In-depth interviews revealed that during 2007 most of these changes took place in the production section where new equipment and production planning and accounting system Navision were installed. However, the second step of the research showed that the system was not fully functioning yet (the employees had to keep double accounts of production), as well as the employees were not trained to work with the new system.

Changes in the use of resources are connected with the new ideas and innovation, more productive set of equipment and encouragement of staff to show initiative. In 2006 almost half of the respondents could not answer the question whether they were encouraged to perform their job assignments and use as small resources as possible, and more than a quarter of the respondents felt that they were not encouraged (mostly specialists). In 2008 nearly half of the respondents felt that they were encouraged to find solutions that save company resources - this was pointed out by the employees of the production, quality, logistics and technical services departments. At the same time, all middle and top level managers believe that they are encouraged to find ways and solutions to do their work using smaller resources.

However, changes did take place in the use of resources; failures in the company are not seen as one of the phases of the learning process and employees are not encouraged to make risky decisions.