When different subcultures within one business organization clash with one another, it creates cultural clashes that hinder business growth.
Here are some situations when cultural clashes might happen in a business organization:
- A family business converts into a public limited company.
- A product-oriented business needs to change based upon desires of the market into a market-oriented business.
- A company in the private sector of the economy is not responding to customer needs and wants.
- A merger occurs with another firm with a completely different corporate culture.
- Declining market share is leading to unmotivated employees.
- Two or more cultures clash takeovers or overseas expansion.
Reasons why cultural clashes exist
The main reason for cultural clashes is a conflict between two or more cultures within an organization. Other reasons are explained in details here:
- Growth of firms. Growth, though often celebrated, can be a potent catalyst for cultural clashes. Merging with another firm, expanding overseas, or even experiencing internal growth can trigger a shift in organizational structure. A once informal environment may become bogged down by bureaucracy, prioritizing control over adaptability. This rigidity can clash with cultures accustomed to a more fluid and responsive approach. In other cases, growth can breed a culture of ambition and competition, where individual success supersedes collaboration. This can be particularly jarring for teams accustomed to a more cooperative ethos, leading to resentment and frustration
- Mergers and acquisitions. When two distinct cultures waltz into a merger, the dance floor can become a battleground. Each firm brings its own set of values, norms, and expectations, creating a clash of identities. The dominant culture may attempt to impose its own way of doing things, leading to resistance and resentment from the other. Alternatively, the struggle for dominance can lead to a diluted, hybrid culture that lacks clarity and cohesion, leaving everyone feeling lost. The human cost of these clashes is often high. Employees caught in the crossfire may experience stress, anxiety, and decreased productivity. Talented individuals from the losing culture may choose to leave, further weakening the organization.
- Change in leadership. The leader sits at the helm, orchestrating the organizational symphony. Their leadership style sets the tone for the entire culture. A charismatic leader who values innovation and collaboration can foster a dynamic and engaged environment. Conversely, a micromanaging leader focused on control can create a culture of fear and resentment. When the conductor changes, the music inevitably changes too. A new leader may bring a fresh perspective and new priorities, but this can also cause dissonance. Existing employees may struggle to adapt to the new rhythm, leading to frustration and resistance.
Cultural clashes are inevitable, but they are not insurmountable. By acknowledging their potential, organizations can take proactive steps to mitigate their impact. Open communication, cultural sensitivity training, and a focus on building trust can help bridge the gaps between diverse groups. Leaders must act as cultural ambassadors, promoting understanding and collaboration.
Consequences of cultural clashes
Consequences of organizational cultural clashes include the following issues:
- Misunderstandings and miscommunications. When cultures clash, differences in communication styles, work expectations, and decision-making processes can lead to misunderstandings and confusion. Employees may not clearly understand reasons for change, leading to frustration and resistance.
- Demotivation. The potential conflict that results from cultural clashes will tend to make people unhappy in the workplace. Any tension arising from cultural clashes can significantly impact employee morale. Unhappy, disengaged staff can lead to decreased productivity, increased absenteeism, and higher turnover.
- Compromises must be reached. Resolving cultural clashes often requires compromises, which can be time-consuming and challenging. Finding common ground between conflicting values and practices can be a delicate process, potentially frustrating all parties involved.
- National culture clashes. International businesses face additional challenges when cultural clashes involve national differences. Deeply ingrained societal norms and values can clash with organizational practices, creating strong resistance to change. For example, a company promoting female empowerment might encounter challenges expanding into countries with stricter gender roles.
While the main reason for cultural clashes is incompatibility between two cultures, other reasons might include them being the result of historical conflict or disagreement (about attitudes, beliefs, values or needs of people) as well as from past rivalries and personality clashes.
Ultimately, whatever the cause, businesses cannot afford to ignore cultural differences at all.
