Cultural Clashes (DP IB Business Management)

Organic growth

• Organisational structure often becomes increasingly hierarchical

• Higher levels of bureaucracy distance leaders from the workforce

Mergers & takeovers

• Successfully combining the cultures of two businesses is particularly difficult

• The dominant firm's culture often prevails 

• A hybrid (combined) structure may emerge

Overseas growth

• Differences in national/regional cultures are not always fully understood

• Language and tradition/cultural norms may create additional barriers

Leadership

• New leaders bring different ideas and vision 

• Different strategic direction can lead to conflict especially if communicated poorly

• Different communication styles can lead to misunderstandings 

• Quality and quantity of output may be reduced

• If employees' cultural values are not respected/understood it can lead to low morale

• This can lower productivity and cause negativity

• If a new strategy clashes with the existing culture employees may resist it

• This can lead to disengaged employees and increased labour turnover

• 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

• Innovation can thrive when employees bring unique perspectives/ideas

• Without diverse viewpoints creative thinking and problem-solving may decline