Culture Clashes and Culture Gaps
- Cultural clashes in businesses often happen when people from different backgrounds come together in the workplace
- Individuals may have diverse values, communication styles or work habits
- Misunderstandings can occur due to different expectations, communication breakdowns and varying approaches to problem-solving
- A culture gap occurs when a businesses actual culture is not aligned with management's desired culture
- A range of changes in business organisation can create a culture gap
Examples of Cultural Gaps when Organisations Change
Change in Business Organisation
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Impact on Business Culture
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Organic growth
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- Organisational structure often becomes increasingly hierarchical
- Higher levels of bureaucracy distance leaders from the workforce
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Mergers & takeovers
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- Successfully combining the cultures of two businesses is particularly difficult
- The dominant firm's culture often prevails
- A hybrid (combined) structure may emerge
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Overseas growth
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- Differences in national/regional cultures are not always fully understood
- Language and tradition/cultural norms may create additional barriers
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Leadership
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- New leaders bring different ideas and vision
- Different strategic direction can lead to conflict especially if communicated poorly
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Consequences of Culture Clashes
- If culture clashes are allowed to persist in a business it may face a range of negative consequences
Negative Consequences of Culture Clashes
Consequence
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Explanation
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Communication Breakdown
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- Different communication styles can lead to misunderstandings
- Quality and quantity of output may be reduced
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Demotivation
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- If employees' cultural values are not respected/understood it can lead to low morale
- This can lower productivity and cause negativity
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Resistance to Change
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- If a new strategy clashes with the existing culture employees may resist it
- This can lead to disengaged employees and increased labour turnover
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Less Team Spirit
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- Cultural differences can lead to the formation of subgroups within the organisation
- This can result in a lack of cohesion within teams and affect collaboration
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Less Innovation
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- Innovation can thrive when employees bring unique perspectives/ideas
- Without diverse viewpoints creative thinking and problem-solving may decline
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