People, Policies, and Culture in Organizational Transformations

People are the fundamental component of an organization and the primary element in organizational transformations. Everything about the organization is associated with the people that develop goals, perform the processes of achieving goals, as well as providing the basis for the culture. The people related to an organization include more than just internal employees; the external people involved with an organization are often critical to the success of the organization.

Planned change initiatives seeking to effect improvements at an organization should include both internal and external stakeholders to ensure the full organization. Human Resource policies should be acknowledged as affecting change initiatives both as a result of change and as a catalyst for change. Also, the organizational culture must be considered in any transformation effort because of the power, both formal and informal, that the cultural aspects have within the organization. The Competing Values Framework (Cameron & Quinn, 2011) evaluates the organizational components. The Framework provides a meaningful explanation of the interaction of each topical area from an organizational perspective.

Competing Values Framework

The Competing Values Framework model is based on the research discussed in Cameron and Quinn (2011) as two primary dimensions of successful organizations. These dimensions focus on stability and control and internal integration versus external differentiation. The four quadrants of the matrix reflect the different types of organizational approaches to conducting business. The approaches are very different from one another and involve fundamentally opposing philosophies to conducting business. The opposing values of these approaches can be seen in the different values - control versus stability and internal versus external

(Cameron & Quinn, 2011). Four culture profiles illustrate the major organizational groupings. Each of the four styles produces successful organizations, given the right conditions.

Four Major Culture Profiles

The Competing Values Framework, as described by Cameron and Quinn (2011), consists of four major culture profiles: Clan (collaborative), Adhocracy (creative), Hierarchy (control), and Market (competition). Cameron and Quinn (2011) present the two by two matrixes as relationships that are not necessarily precise, but rather continuum-based cultural intersections. Each approach will produce a fruitful and efficient organization, but one approach is not inherently better than the others; the organization determines the most appropriate approach to achieving success. It is essential to understand the culture of an organization when considering change management. The culture of the organization will influence the types of changes, approaches to change, and outcome expectations.

Internal and External Stakeholders

All organizations consist of internal and external stakeholders (i.e., people involved with the organization). The internal stakeholders are typically easy to identify because they are involved and identified within organizational operations. Internal stakeholders range from the senior-most level of management (e.g., the Board of Directors) down to the new intern working on a summer project.

The external stakeholders are harder to identify because of the complexity of organizations and the critical nature of supply chains. External stakeholders may range from all the companies and the associated personnel that provide devices, components, or supplies to the subject organization, to all of the people that provide tangential sendees that are of value to the organization. The broad reference to tangential services is necessary because the limits of external stakeholders are as wide or narrow as the desired definition. For instance, a software vendor that provides critical software to perform accounting or project management services is an external stakeholder.

The Competing Values Framework views stakeholders are natural sources of significant interaction with the organization. For instance, the customer is a critical external stakeholder in each profile because the client is the user of the service or product from the organization. The grounding of the adhocracy culture in creative activities and the external user (customer) as the primary focus of the organization, results in effective products designed to capture the imagination; the customer must love the product for the adhocracy culture to achieve success.

 
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