Organisational culture is important because it can create a sense of identity throughout the company and also on the individual level for employees. It will unite employees from different backgrounds and bring them to a common ground, as well as creating a sense of direction and belonging. The organisation and its culture are dependent …show more content…
This can occur when an organisation does not take the time to explore options outside of the already established culture because they are striving for unanimity, thereby reducing innovation (Janis, 1972). Mergers and acquisitions are also frequent situations where cultures will often clash. Cultural leadership, teamwork and innovation is required to integrate and embody the new culture, and during a merger this may become very difficult to achieve.
The culture of a company is ingrained in the organisational system, requiring a long and arduous planning and assessment process. Successful change in an organisation’s culture occurs after a needs assessment. To do this, a lot of time and effort towards identifying the current organisational culture will take place and will occur with interviews, focus groups, and customer and employee surveys. The Organisational Culture Inventory will also be used to validate, plan, support and measure the need for cultural transformation as well as the transformation itself (Human Synergistics, …show more content…
To do this, long peer review sessions will need to take place as well carefully examining each employee for how well they are adjusting to the change. Selecting and socialising newer employees will then occur in order to create a stronger foundation of change and culture (Cable., & Judge., 1997). This also ensures that the company will lower the turnover rate of its employees and will also increase productivity, as employees are more likely to be suited to and interested in the company and its culture (Sheridan, 1992). However, employees can view this process as the company being disloyal and can resist these changes as well as cause them to feel like they lack job security and become bitter over the culture change as a whole. An employee who is proud, happy and confident in working for a company will be more likely to be adaptable to any culture changes. Employees who do not enjoy their job or working with their newer co-workers contribute to a weaker culture. A weak culture produces lower overall performance, apathy, a high turnover rate and service and quality challenges, all of which bring extra difficulties to the company (The Center for Intentional Leadership,