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.