1. A Subject and Case of the Study
This study is about the interpretation of cultural collisions and changes in the amalgamated government ministry, which was born through the merging of two culturally heterogeneous agencies. This study of organizati...
1. A Subject and Case of the Study
This study is about the interpretation of cultural collisions and changes in the amalgamated government ministry, which was born through the merging of two culturally heterogeneous agencies. This study of organizational culture is focused on a schematic perspective and symbols by an interpretivist approach, and the research materials were mainly collected by interviews. To explore this topic the study is subdivided in three general categories:
a) To interpretate the two host organization's cultures before the merger.
b) To understand the meaning of cultural conflict or collision in the aftermath of mergers.
c) To infer contingent conditions of organizational changes in terms of schema activation.
The case of this study is the super-powerful Ministry of Finance and Economy(MOFE) in Korea. Under the logic of efficiency and "small government," the MOFE was created following the merger of the Economic Planning Board(EPB) and the Ministry of Finance(MOF) in the late 1994. The MOFE exerted full control in almost all economic policy planning areas, including macroeconomics, budget, tax, financial market and foreign exchange. In the United States, the MOFE would be the equivalent with the Department of Treasury, Federal Reserve, Office of Management and Budget, and Internal Revenue Service all rolled into one. The primary object of the government restructuring program in the late 1994 intended to create a synergy effect in aftermath of mergers.
But much of MOFE's power was wielded through the process of mapping out and implementing the nation's economic and financial policies. The scope of its policy-making was so extensive and massive that the ministry was nicknamed the "dinosaur" ministry. Blaming MOFE as one of the main culprits behind the nation's economic woes, many economic advisors had frequently been disclosing an intent to drastically scale down the ministry's functions. From the beginning of the financial crisis that erupted in 1997, MOFE's elite bureaucrats were accused of being disoriented due to the ministry's overly extensive organization and relatively slow decision-making process. Internally, MOFE had also been plagued by an inner conflict between former EPB and MOF officials. On many sensitive is sues and daily works, the two factions had expressed diametrically opposite views. Officials from the two fact ions even failed to cooperate in the exchange of basic data and documents. And also, some cultural elements became more salient and more likely to be activated than others in the merged organization.
Critics argued that the confrontation between the MOF and EPB has turned into a power game over who can take a larger slice of the power at stake, but I argue that their conflict was fundamentally resulted from the difference of organizational cultures. In the end, Kim Dae-jung's regime dismantled the giant ministry into the current Ministry of Planning and Budget and the scaled down Ministry of Finance and Economy in 1998.
2. The two host organization's cultures before the merger
In the EPB's culture, hereafter referred to as "Coordination" schema, one encounters at the visible an organization with open office lands cape; a vagueness of status symbols; a dynamic environment in the sense of free and hot discussions, argumentativeness. One also discovers that members are constantly busy going to meetings of various sorts and discovers some of their values: high regard for individual creativity and idea, but, at the same time, a headstrong and self-righteous personality. EPB's members are embedded in a balanced and wider orientation, and a persuasive and explanatory skill. Being associated with socio-biological evolutionary ideas, they look like a species adapting a r strategy.
In sum, EPB's culture was under stood as a "coordination" schema and I used the following metaphors as it applies to the organization: "seminar room of graduate school", "generalist", "the lily deep in the mountains."
On the other hand, MOF's culture, hereafter referred to as "Implementation" schema, offers a sharp contrast. At the level of what is visible, it is more formal-the formality symbolized by offices with closed doors; obvious deference rituals among peoples who meet each other in the hall; much more emphasis on schedules, punctuality, and formal preparation of documents for meeting. MOF's members value work accountability, intergroup solidarity and reality above individualism and idealism. They come across as much more serious, more specialized, less impulsive, and more concerned about regulations. Whereas the EPB ties rank fairly strictly to the actual job being performed by the individual, the MOF has a system of managerial ranks based on length of service at the internal post, overall performance, and the personal background of the individual rather than on the actual job being performed at a given time. Rank and status thus clearly have a higher value in MOF than in EPB. MOF's members have longevity in their territory as if it is very advantageous for a species to have a K strategy at their saturation level K.
In sum, MOF's culture was under stood as a Implementation schema and I used the following metaphors as it applies to the organization: "a field army", "specialist", wild flowers in a cluster".
3. Cultural collision in the aftermath of mergers.
From the schematic point of view, the merged MOFE was interpreted as "a culturally colliding arena", where two different subcultures coexisted and members from the two factions got into cognitive and emotional dissonance with each other on many sensitive issues and daily works.
I argue that cultural clash between the two factions is fundamentally resulted from the difference of person or organization schemata that each faction perceive from the other. Schema is to the perseverance effect what culture is to ethnocentrism. People more easily focus on, process, recognize, and retrieve self-relevant than self-irrelevant information. Accordingly, schemata often persist stubbornly even in the face of evidence to the contrary. They can be so robust that they persevere even when people are informed that the evidence in support of them is false.
In the amalgamated MOFE, members simplified reality; they do so mainly by interpreting specific instances such as same events or same concepts in light of self-organization schema. In such a situation, the EPB's schema was inconsistent with the responses given by the MOF's members, and vice versa. In turn, officials from each factions reinforced pro-attitudinal advocacy in the inconsistent information processing. Moreover, when merged members could not help complying the organizational norm expressed as "you must harmonize with each other, they felt some restriction of freedom of choice and experienced emotional labor along with cognitive dissonance; they had an inclination to give up psychologically the merged organization and not to align themselves with others, and each of them were more and more entrapped with self-organization's schema. Along with such self-serving bias as pro-attitudinal advocacy or reactance, self-fulfilling prophecy can also consolidate the foundation of the principle of cultural collision in the MOFE: MOF's members act under the presumption that "the EPB is the idealist and do not know the real world", on the other hand, EPBs do under the expectations that "the MOF adhere to reality". Consequently each of them were bounded within self-fulfilling prophecy and conflicts or collisions between the two were inevitable.
4. Changes and contingent conditions after the culture collision
Organizational culture implies that some schematic at tributes are more salient and more likely to be activated than others. At the most basic level, the appropriate schema is activated because the key aspects of the stimulus match a schema's main attributes. Therefore, I interpreted the cultural change and contingent conditions of the merged MOFE by the perspective of schema activation and in part, by associating with evolutionary ideas in sociobiology.
After the two factions culturally collided with each other, there were some tendencies in the merged MOFE as follows: free and hot discussions disappeared, members had few communication with each other, information exchange was broken down, rank and status got a higher value, and informality of almost activities were salient. In sum, 'Implementation' schema of MOF's was more activated and more salient than 'Coordination' schema of EPB's.
The schema salience and activation of MOF's was contingent on several conditions as follows: ⓐ the norm of the merged organization that demand harmony and solidarity between the two, ⓑ the perception of externally-negative images of the MOFE, ⓒ the general at tribute of super ordinate level in hierarchy, ⓓ increase of organizational size and overcrowding.
In conclusion, the merged MOFE had contingent conditions which matched the implementation schema of MOF's-it used K strategy-and therefore that schema was activated.