Organizational culture can be problematic, especially when corporations merge.
Organizational leaders must also be cultural leaders and help facilitate the change of old culture into new culture.
Organizational culture is reflected in the way people perform tasks, set objectives, and administer the necessary resources to achieve objectives. Culture affects the way individuals make decisions, feel, and act in response to the opportunities and threats affecting the organization.
One of the biggest obstacles in the way of the merging of two organizations is organizational culture. Each organization has its own unique culture and most often, when brought together, these cultures clash.
A collection of guiding principles; what one deems to be correct and desirable in life, especially regarding personal conduct.
A healthy and robust organizational culture may provide various benefits, including the following: (1) Competitive edge derived from innovation and customer service; (2) Consistent, efficient employee performance; (3) Team cohesiveness; (4) High employee morale; and (5) Strong company alignment towards goal achievement.
Organizational culture is the collective behavior of humans who are part of an organization and the meanings that people attach to their actions. Culture includes the values, vision, norms, working language, systems, symbols, beliefs, and habits of the organization. It is also the pattern of collective behaviors and assumptions that are taught to new members as ways of perceiving, thinking, and feeling. Organizational culture affects the way people and groups interact with each other and with stakeholders . Organizational culture can have benefits, consequences, and mixtures of both.
Ravasi and Schultz have described organizational culture as the set of shared mental assumptions that guide interpretation and action in organizations by defining appropriate behavior for various situations. At the same time, although a company may have an overall culture, larger organizations can also have diverse and sometimes conflicting cultures that coexist due to different characteristics of smaller groups.
Influences of Culture
Research suggests that numerous outcomes are associated, directly and indirectly, with organizational culture. A healthy and robust organizational culture may provide various benefits:
Competitive advantages derived from innovation and customer service
Consistent and efficient employee performance
High employee morale
Strong alignment toward goals
Although little empirical research exists to support the link between organizational culture and organizational performance, there is little doubt among experts that this relationship exists. Organizational culture can be a factor in the survival or failure of an organization, with the sustained high performance of firms like IBM, Hewlett-Packard, Procter & Gamble, and McDonald's seen as a reflection of their organizational cultures.
Organizational culture can be problematic, especially when corporations merge. One way to combat such difficulties is through cultural leadership. Organizational leaders must also be cultural leaders and help facilitate the change from the two old cultures into the one new culture. This is done through cultural innovation followed by cultural maintenance. Cultural innovation includes:
Creating a new culture: recognizing past cultural differences and setting realistic expectations for change
Changing the culture: weakening and replacing the old culture