Organizational change is difficult and challenging. However, once the change has been made and successful, one final step is necessary: institutionalizing the change. According to Fernandez and Rainey (2006), this is where employees learn and establish new behaviors and leaders institutionalize them so that new behavior patterns become the norm. This has also been defined by Cummings and Worley (2009) as refreezing from Lewin's three-stage change model where refreezing consists of creating the new practice routine. Therefore, institutionalization is an important part of any change program to maintain long-term success. An example of an organization that has institutionalized structural change within its organization is Hewlett-Packard. Institutionalization Framework According to Cummings and Worley (2009) there is an institutionalization framework that will influence an organization's success in change programs. First of all there are the characteristics of the organizations and the characteristics of the intervention. These two factors then influence the institutionalization process which can be measured by institutionalization indicators (Cummings & Worley, 2009). Organizational Characteristics There are three main characteristics that include congruence, stability of environment and technology, and unionization (Cummings & Worley, 2009). Unionization wasn't an issue for Hewlett-Packard, but congruence and stability were. Congruence is how aligned the intervention is perceived to be with the management structure and culture of the organization (Cummings & Worley, 2009). This was a problem for Hewlett-Packard when it went from 50 decentralized autonomous product divisions to a centralized company... middle of paper... the largest IT company in the world with total revenue of $126 billion . for fiscal 2010 and was ranked eleventh on the Fortune 500 in 2010 (Hewlett-Packard Development Company, LP). Furthermore, Hewlett-Packard is one of the few organizations that has successfully initiated a dozen change programs since it was founded in 1939. Therefore, they are a great example of how culture and reward systems fit into the framework of institutionalization and the success of the intervention. (Cummings and Worely, 2009). Consequently, it is important to understand not only the institutionalization framework, but also the culture of the organization and how it will influence an intervention. In the case of Hewlett-Packard, they have a very strong culture of individualism and teamwork that needed to be taken into consideration when starting new interventions in order for them to be accepted and institutionalized.
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