FACTORS CAUSING CULTURAL DECAY

FACTORS CAUSING CULTURAL DECAY

1. Change in Leadership

It is generally acknowledged by authors like Beer (2012), Christopher (2012), and Morgan (2012) that changes in top-level management can affect organizational culture. According to Beer (2012), the founder of the organization first establishes the organizational culture, however this culture may alter as a result of the influence of numerous causes. Beer (2012) agrees that this reasoning applies to private sector organizations more so than to public sector organizations, but at the same time, both. However, Beer (2012) and Christopher (2012) contend that alterations in organizational leadership do, to some extent, affect alterations in organizational culture. Christopher (2012) further reasons that the extent to which organisational culture is subjected to change to due to change in leadership depends on a set of factors such as the difference between the new and old strategy to achieve organisational objectives, personal traits and characteristics of a new leader etc.

2. Technological Advances

According to Maude (2011) and Davel et al., one of the main causes of cultural changes is the degree of technical advancements, which have advanced significantly over the past two decades (2013). In order to highlight the effects of this aspect, Maude (2011) cites instances of people using their mobile phones in public. In particular, Maude (2011) claims that while twenty years ago it was considered to be highly impolite to conduct protracted phone calls in public settings like public transportation, today it is commonly accepted as standard behavior. Walshe and Smith (2011) talk about how technological advancements, specifically in the context of healthcare organizations, have an impact on organizational culture.
According to Walshe and Smith (2011), the ability to book appointments with doctors online rather than by phone or in person has significantly altered how healthcare organizations conduct business, which has unavoidable effects on organizational culture.

3. Acquisitions and Mergers

Moran et al. (2011) and Christopher have both cited mergers and acquisitions as organizational culture catalysts (2012). Although examination of the effects of mergers and acquisitions on organizational culture expands the breadth of the literature review, it is vital to stress that mergers and acquisitions primarily concern private sector organizations. According to Moran et al. (2011), the first few months following a merger or acquisition are the most difficult for employees at all levels since there may be a cultural clash with regard to different organizational procedures. However, Moran et al. (2011) believe that this problem will pass quickly and assert that, once a merger or purchase has been completed, a hybrid culture may develop. According to Christopher (2012), organizational leaders’ performance is crucial in determining how mergers and acquisitions may affect organizational culture.
To put it another way, Christopher (2012) contends that in order to mitigate the inevitable negative effects of mergers and acquisitions on organizational culture, executives must actively engage in communication with all levels of employees as well as other organizational stakeholders. 

4. Alterations to the External Environment

Changes in the external environment are one element that Primecz et al. (2011), Velo (2012), and Morgan (2012) identify as potentially causing organizational cultures to shift. According to Primecz et al. (2011), PESTEL analysis, which stands for Political, Economic, Social, Technological, Environmental, or Legal analysis, changes in the external environment may lead to changes in organizational culture.

 

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