Explain how and why organizational culture changes

What will be an ideal response?

The world in which all organizations operate changes constantly. External events such as shifts in market conditions, new technology, altered government policies, and many other factors change over time, necessitating changes in an organization's mode of doing business and, hence, in its culture.

Composition of the workforce: Over time, the people entering an organization may differ in important ways from those already in it, and these differences may impinge on the existing culture of the organization.

Mergers and acquisitions: Another and even more dramatic source of cultural change is mergers and acquisitions, events in which one organization purchases or otherwise absorbs another. In a number of cases, the merger of the two organizations with incompatible cultures has resulted in serious problems referred to as culture clashes.

Strategic cultural change: A company deliberately can decide to change its culture, as a means of adjusting to evolving conditions (even positive ones, such as exponential growth). Cultural change also may result from the conscious decisions to alter the internal structure or the basic operations of an organization.

Responding to the Internet: The Internet is a major influence on organizational culture these days. Compared to brick-and-mortar businesses, where things move more slowly and change is viewed skeptically, the culture of online business is agile, fast-paced, and receptive to new solutions. When a traditional business establishes an online presence, the changes to its culture will be rapid, drastic, and far-reaching.

In conclusion, although organizational culture is generally stable, it is not immutable. In fact, culture often responds to outside forces (workforce and technology), as well as deliberate attempts to change the design of organizations (mergers and corporate restructuring).