Reasons for Changing Organisational Culture

• What are different reasons for a business to change organisational culture?

  • New leadership
  • Mergers and takeovers
  • Market changes
  • Technological advancements
  • Poor business performance
• Why might mergers and takeovers lead to a change in a business's culture?

  If two companies merge, they may have conflicting cultures that require integration
• Why might market changes lead to a change in organisational culture? And give an example of when this happended?

  Businesses may shift culture to stay competitive, for example Netflix transitioned from DVD rentals to a streaming service with a culture of innovation and data driven decision-making
• Why might technological advancements such as automation lead to a change in organisational culture?

  It might empower employees to engage in more fulfilling work, fostering a culture of innovation (task culture)
• Why might poor business performance lead to a change in organisational culture?

  It signals that current practices and values are not the best option:

  • Changing to a task culture can lead to innovation and differentiation
  • Role culture could lead to economies of scale and a low cost competitive advantage