Running head: CULTURE CHANGE AT IBM 1

Individual Work Week Eleven

Culture Change at IBM
Loraine J Jackson
Organizational Development and Change - 1 (5285)
Dr. Sandra Merriman
January 2, 2016

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2
Culture Change at IBM

How important are cultural principles when shaping behavior during organizational growth?
The principles that were ingrained in the culture since its formation in 1914 have made
the IBM Corporation one of the best managed companies in the world, with the values being
respect for the individual, the best customer service, and the pursuit of excellence (Cummings
& Worley, 2015, p. 561). These cultural values and principles are a basis for how management
feels that employees and others within IBM should behave in regard to customers as well as
providing the excellent products and service that IBM has been known for over a century of their
existence. Culture in an organization, from the smallest to the giants in the industry such as IBM
has a significant bearing on employee attitudes and behavior in addition to employee beliefs and
actions. An organization that has an organizational culture that is well-conceived and managed
well, and is conjunction with an effective business strategy is indicative of the success of that
particular organization. In shaping the organizational culture, it must first be diagnosed, which
involves determining whether or not the existing culture corresponds with the current business
strategy. The components of culture include artifacts, which are the visible symbols in reference
to the deeper level of culture; the norms and values, and the basic assumptions. Artifacts include
the behaviors, the language, clothing, and also includes the design features such as structures,
systems, processes, and the physical aspect of the company itself. This would be areas such as
office space, layout, dcor, and design (Cummings & Worley, 201, pg. 556). In addition, there
are norms and values. Norms and values determine the level of and rules of behavior for
employees within an organization, and how they act in a given situation. Norms are also assumed
by the observation of other employees and the manner they behave and interrelate with each
other and consumers. Values can be found deeper within an organization and tell employees
what is important in the organization and what exactly requires attention. The last component,

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are the deep assumptions of culture. According to Cummings, the deepest levels of cultural
awareness are the taken-for-granted assumptions about how organizational problems should be
solved (Cummings & Worley, 2015). These assumptions to all individuals within an
organization how to observe, think, and basically, feel about things that occur in an organization.
What is comes down to is that culture will indicate the level of problem solving as well as
teaching new patterns of behavior for those within and new individuals coming into the
company.
How can culture be used to facilitate merger and acquisition integration processes?
Employees can be exposed to various forms of culture when they are involved in any
type of acquisition or a merger. For example, employees will have exposure to the methods of
completing everyday tasks that one culture feels is fine as it is the method they have done
business over the years, but not normal for the other organization who may do things very
differently. Of course, there is a certain level of interaction and change that employees will
experience, and this is dependent on the type of merger and the type of organization. For
example, if one electronics firm merges with another, and the companies are very similar, there
will be a higher level of interaction and change. There may be elevated levels of interaction, and
the cultures could have great differences. Therefore, there may be cultural or emotional conflicts
occurring when individuals from each company make an attempt to continue on with business as
usual by trying to uphold and maintain the values, attitudes and beliefs, they have associated
with their own organization. In attempting to ease the process of a merger or acquisition,
cultural differences should first be considered and any interventions that are necessary for the
two organizations. These actions are necessary to simplify and better enable cultural integration
between the two companies. Culture is a huge aspect in the manner individuals involved in a

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merger or acquisition a company responds to new the structure of their work environment.
These facets can range from the familiarization and dedication to the new expectancies, to
opposition of expected attitudes and behaviors and even behavior that can leave work activities
undone and employees unproductive. Culture from each organization can be combined in order
to bring the best attitudes and beliefs to merging companies. In addition, cultural change must be
started by creating a concise vision of the new strategy and be implemented from the top down.
By having a clear vision, there will be a purpose and direction for cultural change; it serves as a
standard for defining an organizations current culture and also in determining whether projected
changes are consistent with the core values (Cummings & Worley, 2015, p. 559). Combining the
culture of two organizations can bring about some type of resistance, but when executed
successfully, it will bring together the best assets of each company involved in the merger.
How organizational culture impacts organizational effectiveness
An example of how culture impacts the effectiveness of an organization is that employees
adhere to a high level of organizational culture. Aspects of the perceived culture in an o
organization, such as, level of communication among members, the level of support in regard for
new innovations and technology, as well as the amount of support by upper level management all
have a positive influence on the manner employees behave and interact with each other as well
as how they treat consumers and suppliers. If employees emulate a manager that does not share
the same values and beliefs of others within the organization, or that does not share a good work
ethic, employees will not complete tasks and fail to be productive. It works as well in the
opposite manner; when employees see a manager who supports a companys mission, its goals,
and business strategy, the organizational culture of the company will aide in providing a clear
direction for employees to follow and strive towards. Ultimately, the culture supports desire

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business strategies and the overall mission of an organization, and the capacity of the culture is
dependent on just how intensely employees share the values and basic assumption of the
company.

Reference

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Cummings, T. G., & Worley, C. G. (2015). Organization development and change (10 ed.).
Mason Ohio: Cengage Learning. Retrieved January 2, 2016