Unit 46 Business Psychology-Btechnd


In this task a discussion would be carried out on the impacts that change in the culture and climate will have on the performance of the workforce. This will be explained with the help of the theories that have been developed on culture and change management.

Understand the impact of culture and climate on performance.

a) Contrast the type of culture evident in the original Swan Cooper with the type the new owners clearly want to develop. Explain how each is likely to influence the company’s performance in ways both positive and negative.

There have been many theories that have been developed on the culture and change management. It is usually said by the theorists that whenever there is change in the culture of the organization, the workforce tend to change but how easily they adapt to change is dependent on the policies, motivational techniques and training that the management of the company provides to these people. Originally the people were kept in the protective shelves. They had to follow the instructions of their heads and thereby implement them accordingly. They were never asked to compete and show their potential. The new management in the company is entirely of the changed belief. They would have to hire, recruit and retain only those people who have potential and can perform with the increasing competition with the open culture. There is a complete transformation in the way Swan Coopers used to operate earlier and would be operating now. The company’s performance would be affected in both the positive and negative way as:


  • It will help increasing competition within the company – The competent and skilled manpower would be nurtured and encouraged to work and prove their potential within the organization. Each will develop, grow and become competent.
  • It will retain and attract skilled and competent manpower for the company – The people who are able to prove and apply their potential would be retained and sustained within the company.
  • The company targets would be fulfilled and completed within the timelines and as per the specific objectives set by it (Locke & Latham, 2002).


  • It will have to entire change existing people through motivational techniques and it may take longer time for them to adjust within the organization.
  • The company may lose its potential manpower who may not be able to adjust with the older people working for the company.
b) Evaluate the climate for the rope makers on the shop floor before and after the change in ownership.

The rope markers will experience a change in the climate from the olden times to that of the newer one. They will now get the decision making, motivation and changed policies with respect to the processes, procedures and the benefits that they may get. With the change in the ownership, more work with efficiency would be demanded from them. There would be organization of more training and developmental classes and sessions that the company will adopt for them. In order to improve on the performance and efficiency of the company’s production and business processes, the company may have to install new machines, equipment and tools which existing manpower may not be equipped with. They have to get trained and adapt themselves to the new processes in order to adapt and sustain with the changes that are being brought within the organization. There would be few rope makers who will get adapted to the new culture and environment and start performing whereas some others may be involved in the criticisms. The rope makers who have the potential and ability to perform will be motivated and trained to work further and develop with the growth of the organization (Butler & Cantrell, 1984).

c) Make recommendations for improving the performance of the rope makers on the shop floor through consciously making use of the new culture and company structure.

Swan Cooper will no longer be the same organization as it had been earlier. Originally it was having the paternalistic kind of an organization where the leaders did not develop the workforce to fight for the competition. Now when American company has taken it over then surely, they will have clear, transparent and open culture that will enhance the skilled and competent manpower to compete and grow in the organization. The recommendations that could be given in order to improve on the performance of the rope makers are:

  • Communicating the policies, practices and the procedures effectively to these rope markers so that they have clarity on the roles and responsibilities that they have to fulfil.
  • Keeping a trained and competent leadership for them who may supervise them on the new practices and guide them well.
  • They must be provided with training and developmental processes so that they get clarity on the action plan they have to adopt within the various processes that have to be followed within the organization. This will help in mapping their existing skills and enhancing the newer skills in the various individuals.
  • There should be development of better facilities, benefits and the performance oriented bonuses that will be given to the great performers.
  • There should be development of a grievance oriented redress system that will help in the enhancement of the resolution of the issues and different problems easily (Ones et al, 1993).


Whenever change is brought into the system, there surely are changes that are experienced on the positive and negative front. Swan Coopers had been a paternalistic kind of an organization where the workforce was given instructions, guidance and ways to perform the various tasks. Now when the American company has taken over then surely the psychology of the entire organization in terms of its manpower has changed. The company will have open, transparent and completely transformed culture that would desire its people to effectively utilize their potential and perform well. This requires that Swan Coopers new management has to apply the effective and proven business psychology that would help in adopting the change well and completely recognized and enforced within the company. Swan Coopers can apply these theories like Kotter’s 8 Step Change Model, Ross Model and Scientific Approach to the management and control for the change management (Riemenschneider et al, 2003).


Butler Jr, J. K., & Cantrell, R. S. 1984. A behavioural decision theory approach to modelling dyadic trust in superiors and subordinates. Psychological reports, 55(1), 19-28.
Crain, W. 1992. Theories of Development 5th Ed. Pearson Education.
Davis, J. H., Schoorman, F. D., & Donaldson, L. 1997. Toward a stewardship theory of management. Academy of Management review, 22(1), 20-47.
Gigerenzer, G. 1991. From tools to theories: A heuristic of discovery in cognitive psychology. Psychological review, 98(2), 254.
Heath, C. 1999. On the social psychology of agency relationships: Lay theories of motivation
overemphasize extrinsic incentives. Organizational behaviour and human decision processes, 78(1), 25-62.
Katz, D., & Kahn, R. L. 1978. The social psychology of organizations.
Krauss, S. I., Frese, M., Friedrich, C., & Unger, J. M. 2005. Entrepreneurial orientation: A psychological model of success among southern African small business owners. European Journal of Work and Organizational Psychology, 14(3), 315-344.
Locke, E. A., & Latham, G. P. 2002. Building a practically useful theory of goal setting and task motivation: A 35-year odyssey. American psychologist, 57(9), 705.
McKenna, E. F. 2000. Business psychology and organisational behaviour: a student’s handbook. Psychology Press.
Miller, P. H. 2010. Theories of developmental psychology. Macmillan.
Ones, D. S., Viswesvaran, C., & Schmidt, F. L. 1993.
Comprehensive meta-analysis of integrity test validities: Findings and implications for personnel selection and theories of job performance. Journal of applied psychology, 78(4), 679.
Rennie, D. L., Phillips, J. R., & Quartaro, G. K. 1988. Grounded theory: A promising approach to conceptualization in psychology? Canadian Psychology/Psychologie Canadienne, 29(2), 139.
Riemenschneider, C. K., Harrison, D. A., & Mykytyn Jr, P. P. 2003. Understanding IT adoption decisions in small business: integrating current theories. Information & Management, 40(4), 269-285.
Scherer, G. A., & Wertheimer, M. 1964. A psycholinguistic experiment in foreign-language teaching. McGraw-Hill.
Schultz, D. P., & Schultz, S. E. 1998. Psychology and work today: An introduction to industrial and organizational psychology.Order Now

Leave a Reply

Your email address will not be published.

1 Step 1