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).