Reasons for organisational cultural clashes
Growth: internal growth may lead to a more formal hierarchical organisational structure. Bigger companies also have to deal with bureaucracy and power orientation.
Mergers and acquisitions: external growth may cause one of the firm’s culture to prevail, or to develop a new hybrid culture.
Change in leadership: leaders drive the strategic direction and define organisational culture (NORMS).
- Different comfort levels with diversity.
- Different degrees of formality.
- Different languages.
- Different leadership styles.
- Different orientation to tasks and to people.
- Different practices.
- Different sense of time.
Consequences of organisational cultural clashes
Misunderstandings and miscommunication: cultural clashes may be issues if there are language barriers and foreign concepts.
Unhappy Staff: cultural clashes and the potential conflict can cause job dissatisfaction.
Compromises must be reached in order for businesses to move forward.
Resistance to change may occur when staff are too accustomed to the current culture.
Training/hiring costs if new staff are needed.
National culture clashes: firm may find it difficult expanding overseas due to the norms of different countries.
Frequently Asked Questions: Organisational Culture Clash
What is an organisational culture clash?
An organisational culture clash occurs when two or more distinct sets of values, beliefs, norms, and practices within an organisation (or between merging/acquiring organisations) come into conflict. This conflict arises because the established ways of working, communicating, and interacting are fundamentally different and may be seen as incompatible by members of the respective groups.
When does organisational culture clash typically occur?
Culture clashes are most common and often most challenging during significant organisational changes or integrations, such as:
- Mergers and Acquisitions (M&A)
- Integration of different departments or teams with distinct histories and working styles
- Rapid growth leading to the influx of many new employees with different expectations
- Implementation of major strategic or structural changes that challenge existing norms
What are the signs or symptoms of a culture clash?
Signs of a culture clash can manifest in various ways:
- Increased conflict and tension between different groups
- Poor communication and misunderstandings
- Resistance to change or integration efforts
- Low morale, decreased productivity, and increased absenteeism
- High employee turnover, particularly among key talent
- Difficulty making decisions or reaching consensus
- "Us vs. Them" mentality and silos forming
What are the consequences of a culture clash?
Culture clashes can have significant negative consequences for an organisation, including:
- Failure of mergers or acquisitions to achieve expected synergies
- Reduced employee engagement and loyalty
- Damage to the organisation's reputation
- Impeded innovation and collaboration
- Loss of competitive advantage
- Financial costs associated with inefficiency and turnover
How can organisational culture clashes be managed or resolved?
Managing culture clash requires proactive effort and clear strategy, especially during M&A. Key steps include:
- Early Assessment: Identifying potential cultural differences before integration.
- Clear Communication: Articulating the vision for the new culture and involving employees in the process.
- Leadership Role Modeling: Leaders must embody the desired cultural values and behaviours.
- Finding Common Ground: Identifying shared values and practices to build upon.
- Developing Integration Plans: Creating structured processes for combining teams, systems, and workflows in a culturally sensitive manner.
- Training and Socialization: Helping employees understand and adapt to new ways of working.
- Addressing Conflict: Providing mechanisms for resolving disputes and addressing resistance constructively.