Change the Culture of an Organisation Essay Example for Free

Change the gloss of an governing body EssayThe purification of an organization provoke be defined by the way they do things, this core the way they make decisions, operate and how they choose and achieve their objectives. As finale is a set of value and practices, changing it may be difficult and a wide process, especially if the turn is organized by a new school principal executive askor.Changing the culture of an organization may not be casual especially if the new chief executive does not fully understand the previous culture and indeed does not embrace it in the interpolate. This lack of know guidege may result in an inappropriate culture being chosen that could limit the companys operation as productivity reduces. An example of a badly imposed culture can been seen with the Chrysler and Damier-Benz merge in 1998. Damier-Benz imposed their traditional and structured German culture on the free-spirited American car company Chrysler. The extremely different cu ltures created emphasis that later change their efficiency as decision-making took longer and the workforce were not happy.The inappropriate culture resulted in a departure of $1.5 billon by 2006. In 2011, the new chief executive of Tesco, Phillip Clarke, alike made a cultural change which proved unsuccessful. He proposed a strategy to change Tescos brand image to be know for highly valued brands as opposed to their cheaper Value products. The decrease in popular promotion deals much(prenominal) as vouchers and meal deals reduced their sales revenue and share value which fell by 15% by the end 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 also takes a long time, especially as traditions and values are set. A rosiness example of this is with Sony. Sony is a Japan-based company wh o prides themselves in adopting a traditional Japanese business culture. Examples of their culture can be seen with their clear line of authority and their strong belief in respect. However, Sonys reducing performance and the fast changing world alarmed the new chief executive, Howard Stringer, to change the culture to one that embraces change.Although proposals to change the culture were made in 2007, Sonys culture has still not fully transformed which is reflected in their still low competitively. Therefore, it may still take some time for Sony to fully embrace an advanced culture as their Japanese culture has largely influenced the organization. It also took a long time for mark Spencer to introduce higher levels of technology, such as a stock control system, as they are utter to have a backward culture. This is because they dont embrace change and are led by system and procedures. These examples provide evidence that change in a businesss culture may not be done quickly as t he organization is accustomed 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 pass on have a direct impact on stakeholders, it is important for the new chief executive to inform all stakeholders of the changes and to also make headway feedback. The loss of the innovative 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 leaders have different personalities. The media decline the situation with continuous negative press coverage which resulted in a decrease in consumer corporate trust as well as Apples share price. Although Jobbs had planned to make some strategical changes to the companys practices, he reassured stakeholders by stating that Apple will not change. He also identified these new strategies and their benefits in a press rel ease which justified his decisions and satisfied stakeholders. The newfound trust of stakeholders will change Apples cultural change to be easier and make it 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 understanding 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 reaction of the stakeholders. For example, BPs customers may react positively as the new culture will addition the companys responsiveness to customers. Shareholders may also react positively as the increase of innovation should increase BPs competitive advantage which could increase the companys value and share price. However, the increase in innovation may pose a threat the employees as management will expect higher quality and the need for more pendent personnel may be necessary.Therefore, support from stakeholders will encourage an easier and quickly transformation 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 forceful or flexible? Damier-Benzs forceful approach result in a large amount of tension that slowed the change and resulted in a financial loss.