Managing Cultural Change in a Business Process Outsourcing Organization in Makati CityBalisa, Daniel, Escobar, Hidalgo, Mariano, and PalamosFar Eastern University – MakatiProfessor Richard PescadorManaging Cultural Change in a Business Process Outsourcing Organization in Makati City John F. Kennedy once said that change is the law of life; and those who look only to the past or present are certain to miss the future. The business sectors are constantly facing issues in relation with globalization and some changes in consumer and labor markets and in technologies. It is known that if organizations can’t adapt to these changes, then they will be risking failure (Alvesson & Sveningsson, 2008). Much of existing writings and of projects of organizational change involves organizational culture. Culture provides the organization a sense of identity and determines their rituals, beliefs, meanings, values, norms and language (O’Donnell & Boyle, 2008). Cultural changes occur both in the company environment and within the company. Corporate culture is created through every aspect that is incorporated in every company, every element that makes them stand out compared to others. Culture defines an organization’s overall lifestyle that reflects their relationship with the management and workforce and the quality of everyone’s performance (Jackson, 2013). The culture of an organization can have a powerful impact on the employees. A positive, open culture can create trust and loyalty among employees, giving them passion for their job and dedication to the company. If the employees feel comfortable in the culture, they are more likely to be engaged in their jobs and companies, which can inspire enthusiasm and productivity (Smith, n.d.). When cultures are aligned, employees tend to become highly engaged which reduces attrition and improves performance (Gangemi, 2013). Culture change is arguably the most powerful tool for transforming businesses, but it is also one of the least well understood. Without it, many well documented company turnarounds would not have happened (Moyce, 2015). Culture plays a pivotal role in the success of organizations and their ability to influence change in processes, attitudes, and initiatives that can further their success. Shared values connect employees, including a commitment to leadership, which is a shared performance competency (Parker, 2014). Culture can also affect the employee’s interaction with one another which is why it is very important for the different companies and organizations to guide the transition of culture change and lead their employees to better understand and cope up with the change the organization is undergoing. Most organizations undergo change; it is inevitable as new ideas promote growth for them and their members. It can create new opportunities, but are often met with criticism from resistant individuals within the organization (Brookins, n.d.). The employees affected by the change often resist it due to actual or imagined threats to an established work routine (Brown, n.d.). Despite of resistance and other reactions to change, when combined with a strategic plan, it would result to a positive corporate culture that is a major strategic asset (Flamholtz & Randle, 2012). According to Denning (2011), there is a strategy that enables organizations to cope with cultural change. It includes leadership tools, which bring inspiration such as vision, persuasion, and role modelling; management tools that provide information about role definitions, measurement and control systems; and power tools such as coercion and punishments as a last resort, when all else fails. Goldberg (1992), also identified several steps to make change programs successful, it includes opening channels of communication, developing a learning environment, and providing training. Change can only be successful if there is a clear awareness of purpose and process. People need to understand why it is needed, how it will be accomplished, their role in the process, and what it means for them at an individual level (Bevan, 2011).