Cultural Clashes Occur When Organizations Change
- Imagine two companies merging: one values hierarchy and formal processes, while the other thrives on creativity and flexibility.
- What happens when these cultures collide?
Cultural clashes occur when two or more distinct organizational cultures fail to align, leading to conflict and inefficiency.
Why Do Cultural Clashes Occur?
1. Mergers and Acquisitions
- When two companies merge, their cultures may differ significantly.
- For example, one may prioritize innovation, while the other focuses on cost-cutting.
A new democratic leader may struggle to implement their vision in a company accustomed to autocratic leadership.
4. Poor Business Performance
- When a company underperforms, management may attempt to change the culture.
- However, employees often resist, believing the existing culture isn't the root cause of the problem.
- Jaguar successfully changed its culture by involving employees in decision-making and investing in training.
- This approach minimized resistance and improved performance.
Consequences of Cultural Clashes
- Divided Workforce: Employees may form cliques based on their cultural alignment, leading to poor collaboration and low morale.
