Communicating Corporate Culture, Change and Innovative Spirits: Notes | Corporate & Other Laws for CA Intermediate PDF Download

 Page 1


17 
Communicating Corporate Culture, 
Change and Innovative Spirits 
Learning Objectives 
After reading this chapter, you will be able to understand 
? Corporate culture 
? Why change is important factor for survival & Growth 
? Building  an  innovation friendly organization 
The real source of wealth and capital in this new era is not material things. it is the human 
mind, the human spirit, the human imagination, and our faith in the future.  
Steve Forbes 
In the transformation of the caterpillar into the butterfly, the caterpillar constructs a cocoon and then 
undergoes an astounding transformational process, where the old "caterpillar" molecules actually 
chemically transform into "butterfly" molecules. They have to stop being caterpillars before they 
can possibly become butterflies.  But then they reassemble and become more than they were. 
They realize their inherent potential, something that all can do. Thus unrealised organizational and 
individual potential can be coached and supported by fostering open communication and a culture 
conducive to change and innovation. Improvement is about understanding and capturing ideas and 
possibilities, reformulating and restructuring those ideas into a usable form and then transforming 
them into actions and behaviours. Clearly, innovation is the key driver for wealth creation and 
economic competitiveness. Those who come up with innovative solutions can expect huge 
financial rewards and the satisfaction of realizing their vision. In a globalised economy, a city, 
region, or country wanting to succeed and prosper, must have such innovative and creative 
individuals to maintain a competitive edge. 
17.1 What is Corporate Culture? 
At its most basic, Corporate Culture is described as the personality of an organization, or 
simply as “how things are done around here.” It guides how employees think, act, and feel. 
Corporate culture is a broad term used to define the unique personality or character of an 
organization, and includes such elements as core values and beliefs, corporate ethics, and 
Page 2


17 
Communicating Corporate Culture, 
Change and Innovative Spirits 
Learning Objectives 
After reading this chapter, you will be able to understand 
? Corporate culture 
? Why change is important factor for survival & Growth 
? Building  an  innovation friendly organization 
The real source of wealth and capital in this new era is not material things. it is the human 
mind, the human spirit, the human imagination, and our faith in the future.  
Steve Forbes 
In the transformation of the caterpillar into the butterfly, the caterpillar constructs a cocoon and then 
undergoes an astounding transformational process, where the old "caterpillar" molecules actually 
chemically transform into "butterfly" molecules. They have to stop being caterpillars before they 
can possibly become butterflies.  But then they reassemble and become more than they were. 
They realize their inherent potential, something that all can do. Thus unrealised organizational and 
individual potential can be coached and supported by fostering open communication and a culture 
conducive to change and innovation. Improvement is about understanding and capturing ideas and 
possibilities, reformulating and restructuring those ideas into a usable form and then transforming 
them into actions and behaviours. Clearly, innovation is the key driver for wealth creation and 
economic competitiveness. Those who come up with innovative solutions can expect huge 
financial rewards and the satisfaction of realizing their vision. In a globalised economy, a city, 
region, or country wanting to succeed and prosper, must have such innovative and creative 
individuals to maintain a competitive edge. 
17.1 What is Corporate Culture? 
At its most basic, Corporate Culture is described as the personality of an organization, or 
simply as “how things are done around here.” It guides how employees think, act, and feel. 
Corporate culture is a broad term used to define the unique personality or character of an 
organization, and includes such elements as core values and beliefs, corporate ethics, and 
 Communicating Corporate Culture Change and Innovative Spirits  17.2 
 
rules of behaviour norms that are shared by people and groups in an organization and that 
control the way they interact with each other and with stakeholders outside the organization.  
These cultural statements become effective when executives are able to communicate the 
values of their firm, which provide patterns for how employees should behave. Firms with 
strong cultures achieve higher results because employees maintain focus both on what to do 
and how to do it. Organizational values are beliefs and ideas about what kinds of goals 
members of an organization should pursue and ideas about the appropriate principles of 
behaviour organizational members should use to achieve these goals. From organizational 
values develop organizational norms, guidelines or expectations that prescribe appropriate 
kinds of behaviour by employees in particular towards one another. 
Senior management may try to determine a Corporate Culture. They may wish to impose 
corporate values and standards of behaviour that specifically reflect the objectives of the 
organization. In addition, there will also be an internal culture within the workforce. Work-
groups within the organization have their own behavioural quirks and interactions which, to an 
extent, affect the whole system. 
Strong / Weak Cultures: A strong culture is said to exist where the staff’s response to change 
and innovation is high because of their alignment to organizational values- people do things 
because they believe it is the right thing to do.  Conversely, there is Weak Culture where there 
is little alignment with organizational values, and control must be exercised through extensive 
procedures and bureaucracy. 
17.2 Elements of Culture 
A number of elements that can be used to describe or influence Organizational Culture: 
• The Paradigm: What the organization is about; what it does; its mission; its values.  
• Control Systems: The processes in place to monitor what is going on.  
• Organizational Structures: Reporting lines, hierarchies, and the way that work flows 
through the business.  
• Power Structures: Who makes the decisions and how power is distributed across the 
organization.  
• Symbols: These include the logos and designs, but would extend to symbols of power, 
such as car parking spaces and executive washrooms!  
• Rituals and Routines: Management meetings, board reports and so on may become 
more habitual than necessary.  
• Stories and Myths: build up about people and events, and convey a message about what 
is valued within the organization.  
Communicating the corporate culture effectively is paramount. For example, at General Electric (GE), 
corporate values are so important to the company, that Jack Welch, the former legendary CEO of the 
Page 3


17 
Communicating Corporate Culture, 
Change and Innovative Spirits 
Learning Objectives 
After reading this chapter, you will be able to understand 
? Corporate culture 
? Why change is important factor for survival & Growth 
? Building  an  innovation friendly organization 
The real source of wealth and capital in this new era is not material things. it is the human 
mind, the human spirit, the human imagination, and our faith in the future.  
Steve Forbes 
In the transformation of the caterpillar into the butterfly, the caterpillar constructs a cocoon and then 
undergoes an astounding transformational process, where the old "caterpillar" molecules actually 
chemically transform into "butterfly" molecules. They have to stop being caterpillars before they 
can possibly become butterflies.  But then they reassemble and become more than they were. 
They realize their inherent potential, something that all can do. Thus unrealised organizational and 
individual potential can be coached and supported by fostering open communication and a culture 
conducive to change and innovation. Improvement is about understanding and capturing ideas and 
possibilities, reformulating and restructuring those ideas into a usable form and then transforming 
them into actions and behaviours. Clearly, innovation is the key driver for wealth creation and 
economic competitiveness. Those who come up with innovative solutions can expect huge 
financial rewards and the satisfaction of realizing their vision. In a globalised economy, a city, 
region, or country wanting to succeed and prosper, must have such innovative and creative 
individuals to maintain a competitive edge. 
17.1 What is Corporate Culture? 
At its most basic, Corporate Culture is described as the personality of an organization, or 
simply as “how things are done around here.” It guides how employees think, act, and feel. 
Corporate culture is a broad term used to define the unique personality or character of an 
organization, and includes such elements as core values and beliefs, corporate ethics, and 
 Communicating Corporate Culture Change and Innovative Spirits  17.2 
 
rules of behaviour norms that are shared by people and groups in an organization and that 
control the way they interact with each other and with stakeholders outside the organization.  
These cultural statements become effective when executives are able to communicate the 
values of their firm, which provide patterns for how employees should behave. Firms with 
strong cultures achieve higher results because employees maintain focus both on what to do 
and how to do it. Organizational values are beliefs and ideas about what kinds of goals 
members of an organization should pursue and ideas about the appropriate principles of 
behaviour organizational members should use to achieve these goals. From organizational 
values develop organizational norms, guidelines or expectations that prescribe appropriate 
kinds of behaviour by employees in particular towards one another. 
Senior management may try to determine a Corporate Culture. They may wish to impose 
corporate values and standards of behaviour that specifically reflect the objectives of the 
organization. In addition, there will also be an internal culture within the workforce. Work-
groups within the organization have their own behavioural quirks and interactions which, to an 
extent, affect the whole system. 
Strong / Weak Cultures: A strong culture is said to exist where the staff’s response to change 
and innovation is high because of their alignment to organizational values- people do things 
because they believe it is the right thing to do.  Conversely, there is Weak Culture where there 
is little alignment with organizational values, and control must be exercised through extensive 
procedures and bureaucracy. 
17.2 Elements of Culture 
A number of elements that can be used to describe or influence Organizational Culture: 
• The Paradigm: What the organization is about; what it does; its mission; its values.  
• Control Systems: The processes in place to monitor what is going on.  
• Organizational Structures: Reporting lines, hierarchies, and the way that work flows 
through the business.  
• Power Structures: Who makes the decisions and how power is distributed across the 
organization.  
• Symbols: These include the logos and designs, but would extend to symbols of power, 
such as car parking spaces and executive washrooms!  
• Rituals and Routines: Management meetings, board reports and so on may become 
more habitual than necessary.  
• Stories and Myths: build up about people and events, and convey a message about what 
is valued within the organization.  
Communicating the corporate culture effectively is paramount. For example, at General Electric (GE), 
corporate values are so important to the company, that Jack Welch, the former legendary CEO of the 
17.3  Business Law, Ethics and Communication 
 
company, had them inscribed and distributed to all GE employees at every level of the company. 
17.3 Change 
Typically, the concept of organizational change is in regard to organization-wide change, as 
opposed to smaller changes such as adding a new person, modifying a program, etc. 
Examples of organization-wide change include a change in mission, restructuring operations, 
new technologies, mergers, major collaborations, new programs such as Total Quality 
Management, re-engineering, etc. - a fundamental and radical reorientation in the way the 
organization operates. 
Why is organization-wide change difficult to accomplish? 
Typically, there are strong resistances to change. People are afraid of the unknown. Many 
people think things are fine and don't understand the need for change. Many are inherently 
cynical about change. Many doubt there are effective means to accomplish major 
organizational change. Often, there are conflicting goals in the organization, e.g., to increase 
resources to accomplish the change yet concurrently cut costs to remain viable. Organization-
wide change often goes against the very values held dear by members in the organization, 
that is, the change may go against how members believe things should be done.  
17.4 Resistance to Change 
No matter whether a change is of major proportions or is objectively rather small, the change 
manager must anticipate that people in the organization are going to find reasons to resist 
changes. It is a basic tenet of human behaviour that any belief or value that has been 
previously successful in meeting needs will resist change.  
Reasons Why People Resent or Resist Change 
1. One major reason why people resist change is the potential for loss on a personal level. 
Objectively, there may be little threat, but people may act as if there is one. Some of the things 
people feel are at risk during change processes are: 
• Security  
• Friends and contacts 
• Money  
• Freedom 
• Pride and satisfaction 
• Responsibility 
• Authority  
• Good working conditions  
• Status 
2. While a feeling of threat is a primary reason why people resist change, there are other 
Page 4


17 
Communicating Corporate Culture, 
Change and Innovative Spirits 
Learning Objectives 
After reading this chapter, you will be able to understand 
? Corporate culture 
? Why change is important factor for survival & Growth 
? Building  an  innovation friendly organization 
The real source of wealth and capital in this new era is not material things. it is the human 
mind, the human spirit, the human imagination, and our faith in the future.  
Steve Forbes 
In the transformation of the caterpillar into the butterfly, the caterpillar constructs a cocoon and then 
undergoes an astounding transformational process, where the old "caterpillar" molecules actually 
chemically transform into "butterfly" molecules. They have to stop being caterpillars before they 
can possibly become butterflies.  But then they reassemble and become more than they were. 
They realize their inherent potential, something that all can do. Thus unrealised organizational and 
individual potential can be coached and supported by fostering open communication and a culture 
conducive to change and innovation. Improvement is about understanding and capturing ideas and 
possibilities, reformulating and restructuring those ideas into a usable form and then transforming 
them into actions and behaviours. Clearly, innovation is the key driver for wealth creation and 
economic competitiveness. Those who come up with innovative solutions can expect huge 
financial rewards and the satisfaction of realizing their vision. In a globalised economy, a city, 
region, or country wanting to succeed and prosper, must have such innovative and creative 
individuals to maintain a competitive edge. 
17.1 What is Corporate Culture? 
At its most basic, Corporate Culture is described as the personality of an organization, or 
simply as “how things are done around here.” It guides how employees think, act, and feel. 
Corporate culture is a broad term used to define the unique personality or character of an 
organization, and includes such elements as core values and beliefs, corporate ethics, and 
 Communicating Corporate Culture Change and Innovative Spirits  17.2 
 
rules of behaviour norms that are shared by people and groups in an organization and that 
control the way they interact with each other and with stakeholders outside the organization.  
These cultural statements become effective when executives are able to communicate the 
values of their firm, which provide patterns for how employees should behave. Firms with 
strong cultures achieve higher results because employees maintain focus both on what to do 
and how to do it. Organizational values are beliefs and ideas about what kinds of goals 
members of an organization should pursue and ideas about the appropriate principles of 
behaviour organizational members should use to achieve these goals. From organizational 
values develop organizational norms, guidelines or expectations that prescribe appropriate 
kinds of behaviour by employees in particular towards one another. 
Senior management may try to determine a Corporate Culture. They may wish to impose 
corporate values and standards of behaviour that specifically reflect the objectives of the 
organization. In addition, there will also be an internal culture within the workforce. Work-
groups within the organization have their own behavioural quirks and interactions which, to an 
extent, affect the whole system. 
Strong / Weak Cultures: A strong culture is said to exist where the staff’s response to change 
and innovation is high because of their alignment to organizational values- people do things 
because they believe it is the right thing to do.  Conversely, there is Weak Culture where there 
is little alignment with organizational values, and control must be exercised through extensive 
procedures and bureaucracy. 
17.2 Elements of Culture 
A number of elements that can be used to describe or influence Organizational Culture: 
• The Paradigm: What the organization is about; what it does; its mission; its values.  
• Control Systems: The processes in place to monitor what is going on.  
• Organizational Structures: Reporting lines, hierarchies, and the way that work flows 
through the business.  
• Power Structures: Who makes the decisions and how power is distributed across the 
organization.  
• Symbols: These include the logos and designs, but would extend to symbols of power, 
such as car parking spaces and executive washrooms!  
• Rituals and Routines: Management meetings, board reports and so on may become 
more habitual than necessary.  
• Stories and Myths: build up about people and events, and convey a message about what 
is valued within the organization.  
Communicating the corporate culture effectively is paramount. For example, at General Electric (GE), 
corporate values are so important to the company, that Jack Welch, the former legendary CEO of the 
17.3  Business Law, Ethics and Communication 
 
company, had them inscribed and distributed to all GE employees at every level of the company. 
17.3 Change 
Typically, the concept of organizational change is in regard to organization-wide change, as 
opposed to smaller changes such as adding a new person, modifying a program, etc. 
Examples of organization-wide change include a change in mission, restructuring operations, 
new technologies, mergers, major collaborations, new programs such as Total Quality 
Management, re-engineering, etc. - a fundamental and radical reorientation in the way the 
organization operates. 
Why is organization-wide change difficult to accomplish? 
Typically, there are strong resistances to change. People are afraid of the unknown. Many 
people think things are fine and don't understand the need for change. Many are inherently 
cynical about change. Many doubt there are effective means to accomplish major 
organizational change. Often, there are conflicting goals in the organization, e.g., to increase 
resources to accomplish the change yet concurrently cut costs to remain viable. Organization-
wide change often goes against the very values held dear by members in the organization, 
that is, the change may go against how members believe things should be done.  
17.4 Resistance to Change 
No matter whether a change is of major proportions or is objectively rather small, the change 
manager must anticipate that people in the organization are going to find reasons to resist 
changes. It is a basic tenet of human behaviour that any belief or value that has been 
previously successful in meeting needs will resist change.  
Reasons Why People Resent or Resist Change 
1. One major reason why people resist change is the potential for loss on a personal level. 
Objectively, there may be little threat, but people may act as if there is one. Some of the things 
people feel are at risk during change processes are: 
• Security  
• Friends and contacts 
• Money  
• Freedom 
• Pride and satisfaction 
• Responsibility 
• Authority  
• Good working conditions  
• Status 
2. While a feeling of threat is a primary reason why people resist change, there are other 
 Communicating Corporate Culture Change and Innovative Spirits  17.4 
 
factors that can mobilize people into resisting any changes from a status quo. These include: 
• Change not needed - status quo is working fine 
• Proposed change does more harm than good 
• Lack of respect for person responsible for the change  
• 0bjectionable way of implementing the change 
• Negative attitude towards the organization before the change 
• no opportunity to have input into change 
• change perceived as implying personal criticism  
• Change simply adds more work and confusion. 
• Change requires more effort than to keep status quo  
• Bad timing of the change 
• A desire to challenge authority  
• Hearing about the change secondhand 
3. The uncertainty principle: This states that when people are faced with ambiguous or 
uncertain situations, where they feel they do not know what to expect, they will resist moving 
into those situations. In other words, if people don't know what is to come resistive. 
Reasons for Acceptance of Change: Resistance to change takes many forms. The more 
obvious forms consist of active resistance, where people will object, or refuse to cooperate 
with the change. Other, subtler forms of resistance, however, are more difficult to deal with.  
For example, at a staff meeting everyone agrees to utilize a new procedure, but several weeks 
later you discover that the procedure has not been implemented. 
It is helpful to have an understanding of why people resist change, because understanding this 
allows us to plan communication strategies to reduce resistance from the beginning. While it is 
likely to encounter people who resist change for the previously stated reasons, one will also are 
encounter people who accept or welcome change. By knowing why people might accept or 
welcome change one is in a better position to formulate a communication plan to 
foster acceptance. 
1. Personal Gain: People will be more likely to accept change when they see the possibility 
that they will gain in some of the following areas: 
• Increased Security  
• Money 
• More Authority  
• Status/Prestige 
• Better Working Conditions  
Page 5


17 
Communicating Corporate Culture, 
Change and Innovative Spirits 
Learning Objectives 
After reading this chapter, you will be able to understand 
? Corporate culture 
? Why change is important factor for survival & Growth 
? Building  an  innovation friendly organization 
The real source of wealth and capital in this new era is not material things. it is the human 
mind, the human spirit, the human imagination, and our faith in the future.  
Steve Forbes 
In the transformation of the caterpillar into the butterfly, the caterpillar constructs a cocoon and then 
undergoes an astounding transformational process, where the old "caterpillar" molecules actually 
chemically transform into "butterfly" molecules. They have to stop being caterpillars before they 
can possibly become butterflies.  But then they reassemble and become more than they were. 
They realize their inherent potential, something that all can do. Thus unrealised organizational and 
individual potential can be coached and supported by fostering open communication and a culture 
conducive to change and innovation. Improvement is about understanding and capturing ideas and 
possibilities, reformulating and restructuring those ideas into a usable form and then transforming 
them into actions and behaviours. Clearly, innovation is the key driver for wealth creation and 
economic competitiveness. Those who come up with innovative solutions can expect huge 
financial rewards and the satisfaction of realizing their vision. In a globalised economy, a city, 
region, or country wanting to succeed and prosper, must have such innovative and creative 
individuals to maintain a competitive edge. 
17.1 What is Corporate Culture? 
At its most basic, Corporate Culture is described as the personality of an organization, or 
simply as “how things are done around here.” It guides how employees think, act, and feel. 
Corporate culture is a broad term used to define the unique personality or character of an 
organization, and includes such elements as core values and beliefs, corporate ethics, and 
 Communicating Corporate Culture Change and Innovative Spirits  17.2 
 
rules of behaviour norms that are shared by people and groups in an organization and that 
control the way they interact with each other and with stakeholders outside the organization.  
These cultural statements become effective when executives are able to communicate the 
values of their firm, which provide patterns for how employees should behave. Firms with 
strong cultures achieve higher results because employees maintain focus both on what to do 
and how to do it. Organizational values are beliefs and ideas about what kinds of goals 
members of an organization should pursue and ideas about the appropriate principles of 
behaviour organizational members should use to achieve these goals. From organizational 
values develop organizational norms, guidelines or expectations that prescribe appropriate 
kinds of behaviour by employees in particular towards one another. 
Senior management may try to determine a Corporate Culture. They may wish to impose 
corporate values and standards of behaviour that specifically reflect the objectives of the 
organization. In addition, there will also be an internal culture within the workforce. Work-
groups within the organization have their own behavioural quirks and interactions which, to an 
extent, affect the whole system. 
Strong / Weak Cultures: A strong culture is said to exist where the staff’s response to change 
and innovation is high because of their alignment to organizational values- people do things 
because they believe it is the right thing to do.  Conversely, there is Weak Culture where there 
is little alignment with organizational values, and control must be exercised through extensive 
procedures and bureaucracy. 
17.2 Elements of Culture 
A number of elements that can be used to describe or influence Organizational Culture: 
• The Paradigm: What the organization is about; what it does; its mission; its values.  
• Control Systems: The processes in place to monitor what is going on.  
• Organizational Structures: Reporting lines, hierarchies, and the way that work flows 
through the business.  
• Power Structures: Who makes the decisions and how power is distributed across the 
organization.  
• Symbols: These include the logos and designs, but would extend to symbols of power, 
such as car parking spaces and executive washrooms!  
• Rituals and Routines: Management meetings, board reports and so on may become 
more habitual than necessary.  
• Stories and Myths: build up about people and events, and convey a message about what 
is valued within the organization.  
Communicating the corporate culture effectively is paramount. For example, at General Electric (GE), 
corporate values are so important to the company, that Jack Welch, the former legendary CEO of the 
17.3  Business Law, Ethics and Communication 
 
company, had them inscribed and distributed to all GE employees at every level of the company. 
17.3 Change 
Typically, the concept of organizational change is in regard to organization-wide change, as 
opposed to smaller changes such as adding a new person, modifying a program, etc. 
Examples of organization-wide change include a change in mission, restructuring operations, 
new technologies, mergers, major collaborations, new programs such as Total Quality 
Management, re-engineering, etc. - a fundamental and radical reorientation in the way the 
organization operates. 
Why is organization-wide change difficult to accomplish? 
Typically, there are strong resistances to change. People are afraid of the unknown. Many 
people think things are fine and don't understand the need for change. Many are inherently 
cynical about change. Many doubt there are effective means to accomplish major 
organizational change. Often, there are conflicting goals in the organization, e.g., to increase 
resources to accomplish the change yet concurrently cut costs to remain viable. Organization-
wide change often goes against the very values held dear by members in the organization, 
that is, the change may go against how members believe things should be done.  
17.4 Resistance to Change 
No matter whether a change is of major proportions or is objectively rather small, the change 
manager must anticipate that people in the organization are going to find reasons to resist 
changes. It is a basic tenet of human behaviour that any belief or value that has been 
previously successful in meeting needs will resist change.  
Reasons Why People Resent or Resist Change 
1. One major reason why people resist change is the potential for loss on a personal level. 
Objectively, there may be little threat, but people may act as if there is one. Some of the things 
people feel are at risk during change processes are: 
• Security  
• Friends and contacts 
• Money  
• Freedom 
• Pride and satisfaction 
• Responsibility 
• Authority  
• Good working conditions  
• Status 
2. While a feeling of threat is a primary reason why people resist change, there are other 
 Communicating Corporate Culture Change and Innovative Spirits  17.4 
 
factors that can mobilize people into resisting any changes from a status quo. These include: 
• Change not needed - status quo is working fine 
• Proposed change does more harm than good 
• Lack of respect for person responsible for the change  
• 0bjectionable way of implementing the change 
• Negative attitude towards the organization before the change 
• no opportunity to have input into change 
• change perceived as implying personal criticism  
• Change simply adds more work and confusion. 
• Change requires more effort than to keep status quo  
• Bad timing of the change 
• A desire to challenge authority  
• Hearing about the change secondhand 
3. The uncertainty principle: This states that when people are faced with ambiguous or 
uncertain situations, where they feel they do not know what to expect, they will resist moving 
into those situations. In other words, if people don't know what is to come resistive. 
Reasons for Acceptance of Change: Resistance to change takes many forms. The more 
obvious forms consist of active resistance, where people will object, or refuse to cooperate 
with the change. Other, subtler forms of resistance, however, are more difficult to deal with.  
For example, at a staff meeting everyone agrees to utilize a new procedure, but several weeks 
later you discover that the procedure has not been implemented. 
It is helpful to have an understanding of why people resist change, because understanding this 
allows us to plan communication strategies to reduce resistance from the beginning. While it is 
likely to encounter people who resist change for the previously stated reasons, one will also are 
encounter people who accept or welcome change. By knowing why people might accept or 
welcome change one is in a better position to formulate a communication plan to 
foster acceptance. 
1. Personal Gain: People will be more likely to accept change when they see the possibility 
that they will gain in some of the following areas: 
• Increased Security  
• Money 
• More Authority  
• Status/Prestige 
• Better Working Conditions  
17.5  Business Law, Ethics and Communication 
 
• Self-Satisfaction 
• Better Personal Contacts  
• Less Time And Effort 
2.  Other Factors:  
• Provides A New Challenge 
• Likes/Respects The Source 
• Likes The Way Change Is Being Communicated 
• Reduces Boredom 
• Provides Opportunity For Input  
• Improves Future 
• Perception That The Change Is Necessary 
17.5 Communication and Change  
Successful change must involve top management, including the board and chief executive. 
Usually there is a champion who takes the initiative to change by being visionary, persuasive 
and consistent. A change agent’s role is usually responsible to translate the vision to a 
realistic plan and carry out the plan. Change is usually best carried out as a team-wide effort. 
Communications about the change should be frequent and with all organization members. To 
sustain change, the structures of the organization itself should be modified, including strategic 
plans, policies and procedures. For example, the leader should meet with all managers and 
staff to explain reasons for the change, how it generally will be carried out and where one can 
go for additional information.  
Communication is probably the most important skill that people need to have in order to be 
effective managers. It is probably the most taken for granted, and the area least addressed by 
developing managers. In situations of instability, or change, or ambiguity, communication 
becomes even more important.  
Poor communication around change issues can: 
1.  Destroy commitment to an organization 
2.  Irrevocably damage employee morale 
3.  Generate huge resistance to change 
4.  Result in hostility.  
5.  Lead to performance problems 
Communication can be simply described as ‘Creating Understanding’. In periods of change (as 
in "normal" times), the manager must not only pass information to employees, but also ensure