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Problems of changing organisational culture

BUSS4 Notes

Glenn Barco

on 11 February 2013

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Transcript of Problems of changing organisational culture

Why Might Culture Change? Declining in Profit and Sales:
- Inadequate returns on investment
- Low quality of customer service

To respond to significant change:
- Market changes (growth, decline, stagnant etc.)
- Political & legal environment
- Change of ownership
- Change of management or leadership
- Economic conditions Change In Culture There are many different ways in which a culture can change. For example:
- New Management
- New laws & legislation
- Reforms of company policy
- Staff Turnover Problems a business might face in changing culture Tradition and Set ways
- Loyalty to existing relationships
- Failure to accept the need for change
- Insecurity
- Preference for existing arrangements
- Different personal ambitions

In fear of...
- Loss of power
- Loss of skills
- Loss of income
- The unknown
- Inability to perform as well in a new situation
- Break-up of work groups Example 1:
Premier Foods Example 2
Nokia BBC have spotted issues regarding Nokia's current culture. For example
- Lack on innovation
- Lack of focus
New boss has been brought in to try and implement change, but it is difficult in the Finnish economy
Former Nokia executive says:
“If you lead the market and are twice as big as your nearest rival, that is something any market leader would desperately wish for,” he says. “Ask Toyota or Coca-Cola or Airbus.” Glenn Barco & Alex Semanda Problems Of Changing Organisational Culture Darby's axing of Geoff Eaton on his first day as chief executive may lead to a fear of the unknown in the workforce
Current employees may feel that the actions of their new boss is unpredictable and that could lead to job insecurity in staff members
Darby wanted to create a flatter organisational structure, so he decided Eaton's services were no longer required http://www.guardian.co.uk/business/2013/feb/04/premier-foods-new-chief-executive?INTCMP=SRCH http://tutor2u.net/blog/index.php/business-studies/comments/nokia-a-business-culture-problem/
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