Organizational Culture and Change Management, Are Sri Lankan Organizations Truly Transforming or Simply Rebranding?

With the affected economic crisis that Sri Lanka has experienced over the last several years and pressure to then restructure organizational functions, the notion of culture change has become an essential strategic need. Companies in all sectors are making investments in change management programs, transformational programs and cultural rebranding programs. But a basic question remains,

Are organizations in Sri Lanka really changing their cultural fabric or are they simply rebranding their current behaviors in the name of change?

                       

Fig. 1: Schein Three Levels of Organizational Culture

Source: Adapted to (Schein, 1985)

 

The organizational culture model by Schein is a model that is invaluable in the depth and complexity of organizational culture. As figure 1 clearly illustrates, the framework illustrates that culture is functioning at three distinct levels which are interconnected, artefacts, espoused values and underlying assumptions. Although artefacts which include dress codes, office layouts, formal rituals. The most significant and long standing determinant of organizational behavior underlying assumptions, the unconscious assumptions that shape the way employees think, feel and act. Importantly, most of the change management projects in Sri lanka deal only with the artefact level and the underlying assumptions are not challenged at all. A organization can redo it office design and update its mission statement as long as the hierarchical deference and fear of authority still dominate its real decision making culture.  

This difference is especially decisive in Sri Lanka, where such cultural dimensions as high power distance and collectivism, as (Hofstede, 2001) emphasizes, the theory play a crucial role in the workplace. Viewable restructuring programs have been implemented by firms like Sri Lanka Telecom and state owned institutions, but studies have indicated that deep-rooted assumptions about seniority and power have remained largely unchanged underneath these veneer programs (Chandrakumara and Sparrow, 2004). Cultural change requires interventions that reach all three levels of the Schein model, a much more complex and long lasting task than most organizations appreciate.

                           

Figure 2: 8 Step Change Model as developed by Kotter

Source: Adapted version of (Kotter, 1996)

 

Figure 2 depicts a diagram that emphasizes a systematic approach to overcome this complexity based on the Kotter’s 8 step change model. The model focusses on the idea that sustainable change involves gradual, conscious stages, the first one being the creation of urgency, and the last one being the establishment of new behaviors into organizational systems. Importantly the framework contends that firms that proclaim success too soon often revert to previous cultural standards. The trend is sharp in the Sri Lankan context where change momentum needs to fade away unless there are well developed initialization processes like a culturally sensitive performance management systems, leadership development initiatives and strengthening reward systems.

Encouraging examples, however, are more in the private sector. Sustainability and inclusion have been strategically implemented across the performance management and leadership pipeline at MAS Holdings, which is a clear indication of a conscious effort to ensure that cultural values are anchored beyond the artefact level (MAS Holdings, 2024). Likewise, Hemas Holdings has institutionalized values of innovation based on organized talent development processes, which show a more integrated involvement of cultural transformation.

CONCLUSION

Organizational culture is no longer a communication game, it is a system of assumptions deeply ingrained in the organization, which cannot be superficially changed. To attain real change as opposed to cosmetic rebranding, the HR leaders of Sri Lankan organizations need to address all three levels of Schein cultural model and apply structured change models like the 8 Step model of Kotter. Sustainable cultural transformation can only be realised through anchoring new values into all HR systems, including recruitment and leadership development.

Chandrakumara, A. and Sparrow, P. (2004) 'Work orientation as an element of national culture and its impact on HRM policy-practice design choices', International Journal of Manpower, 25(6), pp. 564–589. Available at: https://doi.org/10.1108/01437720410560451(Accessed: 19 April 2026).

Hofstede, G. (2001) Culture's Consequences: Comparing Values, Behaviors, Institutions and Organizations Across Nations. 2nd edn. Thousand Oaks, CA: Sage Publications.

Kotter, J.P. (1996) Leading Change. Boston, MA: Harvard Business School Press.

MAS Holdings (2024) Sustainability Report 2023. Available at: https://masholdings.com/our-impact-reports/ (Accessed: 19 April 2026).

Schein, E.H. (1985) Organizational Culture and Leadership. San Francisco, CA: Jossey-Bass.

Sri Lanka Telecom PLC (2023) Annual Report 2022. Colombo: Sri Lanka Telecom. Available at: https://www.slt.lk/en/about-us/investors/financial-reports/annual (Accessed: 19 April 2026).

Comments

  1. Madavi HemachandraApril 21, 2026 at 6:52 AM

    This blog clearly highlights an important issue in Sri Lankan organizations. The gap between visible change and real cultural transformation. Many companies seem to focus on surface level changes like policies or branding, but as explained through Schein’s model, true change must address underlying assumptions. The examples given also show that sustainable transformation is possible when organizations align their systems and leadership with cultural values. Do you think Sri Lankan organizations are ready to challenge deep-rooted power distance and move towards more open and adaptive cultures?

    ReplyDelete
    Replies
    1. Shewan SundarampillaiApril 21, 2026 at 7:40 AM

      Many organizations focus on visible changes like policies or branding, but true transformation requires addressing the deeper cultural assumptions, as Schein’s model explains. Challenging power distance is not easy in Sri Lanka, given traditional hierarchies, but there are encouraging signs. Younger generations, exposure to global practices, and the rise of more participative leadership styles are gradually pushing organizations toward openness and adaptability. While the shift may be slow, those companies willing to align leadership behavior and systems with cultural values will be better positioned to build sustainable, engaged workplaces.

      Delete
  2. Gayan halangodaApril 21, 2026 at 7:10 AM

    Your article presents a clear and well-structured explanation of how organizational culture and change are closely interconnected. I especially liked how you highlighted that culture is not just about values, but also about behaviors and daily practices that influence how employees respond to change. This aligns well with the idea that culture shapes how people think, act, and adapt within an organization .

    You also did a great job explaining the challenges of change, particularly resistance from employees, which is a common issue when organizations try to shift long-standing norms. Research also shows that without proper alignment between culture and change strategies, organizations struggle to sustain transformation .

    How can leaders practically measure whether a cultural change initiative is truly successful beyond just short-term performance improvements?

    ReplyDelete
    Replies
    1. Shewan SundarampillaiApril 21, 2026 at 7:42 AM

      Leaders can assess cultural change by looking beyond short term results and focusing on behavioral shifts such as increased collaboration, openness, and adaptability. Tools like engagement surveys and feedback systems help track whether values are reflected in daily practices. Most importantly, if these behaviors continue consistently over time without constant supervision, it indicates the cultural change has truly been embedded.

      Delete
  3. NadeekaApril 21, 2026 at 7:10 AM

    This is a clear and insightful blog that effectively uses Schein's Three Levels of Organizational Culture to show that many Sri Lankan organizations focus only on surface-level changes while ignoring deep-rooted assumptions.
    Your application of Kotter's 8-Step Change Model is also strong, especially in highlighting why change efforts fail when they are not sustained or embedded into systems.
    Examples like MAS Holdings and Hemas Holdings support your argument well by showing that real transformation comes from integrating culture into leadership and HR practices.
    Overall, the key point is clear: Sri Lankan organizations must move beyond rebranding and focus on deep, system-level cultural change to achieve lasting results.

    ReplyDelete
    Replies
    1. Shewan SundarampillaiApril 21, 2026 at 7:43 AM

      Thank you for the thoughtful feedback. I am glad the use of Edgar Schein’s model and John Kotter’s framework resonated. As you highlighted, real transformation goes beyond surface level changes, organizations need to embed culture into leadership, systems, and everyday practices. The examples of MAS Holdings reinforce that lasting change comes from aligning deep assumptions with organizational processes, not just rebranding.

      Delete
  4. Nadun HeeraluarachchigeApril 21, 2026 at 8:01 AM

    Your post is a very thoughtful analysis that clearly highlights the gap between surface-level change initiatives and true cultural transformation in Sri Lankan organizations. The use of Schein’s model effectively shows why many change programs often fail to go beyond visible artefacts. I also agree that without addressing underlying assumptions, most efforts risk becoming rebranding rather than real transformation.
    What is your view on how can HR leaders practically influence deeply rooted cultural assumptions in organizations where hierarchy and power distance are strongly embedded?

    ReplyDelete
    Replies
    1. Shewan SundarampillaiApril 21, 2026 at 8:15 AM

      You are right Nadun, Schein’s model shows that true change requires addressing underlying assumptions, not just surface artefacts. For HR leaders to influence deeply rooted cultural norms like hierarchy and power distance, practical steps include modeling inclusive leadership behaviors, creating safe spaces for open dialogue, and gradually embedding participative practices into performance management and team structures. Small but consistent actions such as encouraging feedback, recognizing contributions across levels, and promoting transparency can slowly shift assumptions over time. While change may be gradual, HR leaders who align systems and leadership practices with values of openness and adaptability can begin to reshape even deeply embedded cultural patterns.

      Delete
  5. Satheeshwaran BalasundaramApril 21, 2026 at 10:51 AM

    Your blog on organizational culture and change is very good and easy to understand. I like how you explained how culture affects people and how change is important in organizations.
    But I want to raise a question. When organizations try to change their culture, do you think employees always accept it easily, or do they face resistance because of habits and fear of change?

    ReplyDelete
    Replies
    1. Shewan SundarampillaiApril 21, 2026 at 10:55 AM

      I agree with you, employees don’t always accept cultural change easily. Resistance is common because habits, routines, and comfort zones create a sense of stability. Fear of the unknown, concerns about job security, and doubts about adapting to new expectations often fuel this resistance. As Kotter and other change theorists explain, it’s a natural human response rather than outright opposition. The key for organizations is to manage this transition with clear communication, emotional support, and genuine employee involvement. When people understand the purpose of change and feel included in shaping it, resistance gradually shifts into acceptance and even commitment.

      Delete

Post a Comment

Popular posts from this blog

Human capital in the age of artificial intelligence: Augmentation, Displacement or Redefinition. A Sri Lankan Context.

Image
  During the past few years, the initiation of Artificial Intelligence has risen from a mere concept to an operational facet across all institutions and industries. Starting from Chatbots to algorithm driven recruitment tools, stakeholders are relying on these intelligent systems to be more effective and efficient (Úbeda-García et al., 2025). This shift is considered inevitable, impacting sectors such as IT services, Banking, Telecommunications, raising a critical question: Is Artificial Intelligence strengthening human capabilities or gradually replacing it?                Figure 2: Human AI Interaction in Modern Organisations Source: (Aisera, no date)   As illustrated in Figure 1, the integration of AI into workplace environments is increasingly shaping how employees interact with technology and perform tasks. Companies such as Dialog Axiata and Commercial Bank PLC noted to be industry leaders, ...
Read more

The Erosion of the Psychological Contract: Why Modern Employees Prioritize Mobility Over Loyalty in Sri Lanka’s Evolving Labor Market.

Image
  For generations a plethora of firms have always operated on unwritten agreements with their workforce. An employee’s loyalty would often be rewarded with constant career succession, stability and job security. However in today’s evolving job market the psychological contract is under heavy scrutiny. The employees are no longer loyal or under any liability to commit themselves to organizations often opting for personal growth, remuneration and are prioritizing flexibility and mobility. This leads to an imminent predicament.                                Figure 1: Comparison of Psychological and Employment Contracts Source (Jay and Boatman, n.d.) Has organizational loyalty become obsolete, particularly in emerging economies such as Sri Lanka? The framework of psychological contract (Rousseau, 1995) often emphasizes on the u...
Read more

Reskilling or Redundancy ? The Strategic Imperative of Workforce Transformation in Sri Lanka

Image
  The rapid implementation of AI practices has resulted in a widening Velocity Gap which emphasizes that technological adoption substantially outpaces adaptability. In a Sri Lankan context this disparity is evident as firms are swiftly investing in digital transformation without partiality towards investments in employee development.                     Figure 1: Disruption to core skills by 2030 Source: (World Economic Forum, 2025) As exemplified in figure 1, global evidence shows that 39% of employee skills are deemed to change by 2030, highlighting on the gap between technological development and workforce readiness (World Economic Forum, 2025). From a theoretical overview the Human Capital Theory clearly emphasizes that employee skills and knowledge are central to a firm’s productivity and long term sustainability (Becker,1964). Moreover, organizations in Sri lanka perceive tra...
Read more