Change the Culture of an Organisation Essay

The coating of an organization tail assembly be defined by the way they do things, this means the way they earn decisions, operate and how they choose and achieve their objectives. As assimilation is a set of values and practices, changing it whitethorn be difficult and a long process, especially if the shift is organized by a juvenile chief administrator.Changing the finishing of an organization may not be easy especially if the new chief decision maker does not fully understand the previous culture and therefore does not squelch it in the change. This privation of knowledge may result in an inappropriate culture being chosen that could limit the attach tos performance as productivity reduces. An example of a badly impose culture can been seen with the Chrysler and Damier-Benz merge in 1998. Damier-Benz imposed their traditional and unified German culture on the free-spirited American car company Chrysler. The passing different cultures created tensity that later af fected their efficiency as decision-making took durable and the workforce were not happy.The inappropriate culture resulted in a want of $1.5 billon by 2006. In 2011, the new chief executive of Tesco, Phillip Clarke, overly do a pagan change which proved unsuccessful. He proposed a schema to change Tescos brand image to be known for highly valued brands as opposed to their cheaper Value products. The decrease in habitual promotion deals such(prenominal) as vouchers and meal deals reduced their sales revenue and shargon value which fell by 15% by the wipeout of 2011. This suggests that Clarke failed to identify Tescos main source of competitively. Therefore, both examples show that cultural changes may be difficult as the new chief executives lack knowledge and experience in the company.Culture change to a fault takes a long time, especially as traditions and values are set. A blush example of this is with Sony. Sony is a Japan-based company who prides themselves in adopti ng a traditional Japanese business culture. Examples of their culture can be seen with their clear line of ascendance and their strong belief in respect. However, Sonys reducing performance and the ready changing world alarmed the new chief executive, Howard Stringer, to change the culture to one that forces change.Although proposals to change the culture were made in 2007, Sonys culture has still not fully transformed which is reflected in their still busted competitively. Therefore, it may still take some time for Sony to fully embrace an innovative culture as their Japanese culture has largely influenced the organization. It also took a long time for Marks & Spencer to introduce higher levels of technology, such as a stock control system, as they are ex call to have a backward culture. This is because they dont embrace change and are led by system and procedures. These examples provide conclusion that change in a businesss culture may not be done apace as the organization is abandoned to the previous culture.However, changing a companys culture can be easy if the new chief executive conducts the change in an appropriate manner. As culture change give have a direct impact on stakeholders, it is important for the new chief executive to inform all stakeholders of the changes and to also encourage feedback. The loss of the innovative loss leader of Apple, Steve Jobbs created much anxiety about the new CEO Tim Cook. Stakeholders feared Cook would change the company and reject all Jobbs practices especially as the two leading have different personalities. The media worsened the situation with continuous negative press coverage which resulted in a decrease in consumer confidence as well as Apples share price. Although Jobbs had planned to make some strategic changes to the companys practices, he reassured stakeholders by stating that Apple lead not change. He also determine these new strategies and their benefits in a press release which justified his decisions and quelled stakeholders. The newfound trust of stakeholders will enable Apples cultural change to be easier and happen more quickly.In view of the above, I believe that it is not easy to change the culture of a business, as the current practices are custom to the organization this also suggests that the change will be quite a process and therefore wont be done quickly. This situation is worsened as the chief executive is new and wont have the necessary knowledge and savvy of the business to enable a smooth and quick transition.However, the ability for the new chief executive to change the businesss culture quickly and easily is highly dependant upon the play offion of the stakeholders. For example, BPs customers may react positively as the new culture will increase the companys responsiveness to customers. Shareholders may also react positively as the increase of intention should increase BPs competitive advantage which could increase the companys value and share pr ice. However, the increase in innovation may pose a threat the employees as management will expect higher quality and the need for more qualified violence may be necessary.Therefore, support from stakeholders will encourage an easier and quickly alteration whereas negativity will not. The skills of the workforce is also important as if they are innovative the cultural change will happen faster. However, Sony is in a creative industry and their strategy to increase innovation still took a long time. This suggests that attitudes and beliefs of the workforce are also important. An easy change is also depend upon the new executives approach, is it strong-arm or flexible? Damier-Benzs forceful approach result in a large amount of tension that slowed the change and resulted in a financial loss.