Cultural Clashes (DP IB Business Management): Revision Note

Culture clash and business change

• 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 business's actual culture is not aligned with management's desired culture

• Changes in business organisation can create a culture gap

  • Organic growth

    • As a business grows organically, its organisational structure often becomes more hierarchical

    • This can lead to higher levels of bureaucracy, making it harder for senior leaders to stay connected with the workforce

    • Communication may become more formal and less personal as the business expands

  • Mergers and takeovers

    • Successfully merging the cultures of two separate businesses is a major challenge

    • In many cases, the dominant firm’s culture overrides that of the other, potentially causing resentment or disengagement

    • Sometimes a hybrid culture emerges, blending elements of both organisations, which requires careful management to succeed

  • Overseas growth

    • Expanding into international markets introduces cultural complexity

    • Businesses may struggle to fully understand national or regional differences in customs, traditions and working styles

    • Language barriers and unfamiliar cultural norms can hinder communication and collaboration

  • Leadership change

    • A change in leadership often brings new ideas, values and a fresh strategic direction

    • These shifts can disrupt existing culture and lead to conflict, especially if the vision is not clearly communicated or widely accepted

    • Effective communication and change management are essential to maintain stability during leadership transitions

Negative consequences of culture clashes